STOCK MARKET BSE NSE

PAN Requirement: Titan Sees Rs 500 Crore Hit on Sales This Fiscal

Published: 07th January 2016 04:22 PM  |   Last Updated: 07th January 2016 04:22 PM   |  A+A-

NEW DELHI: Jewellery and watches major Titan Co expects to take a hit of up to Rs 500 crore this fiscal due to government's move to lower the transaction threshold of quoting PAN to Rs 2 lakh from Rs 5 lakh earlier.

"We would have of around Rs 400 crore to Rs 500 crore effect on our turnover. This would be loss of turnover.

This is our estimate," Titan Co Managing Director Bhaskar Bhat told PTI.

The company has already taken a hit due to the previous limit at Rs 5 lakh, he added without quantifying the loss.     

Last month, the company had stated that it expected cash sales of jewellery items between Rs 2 lakh and Rs 5 lakh to be impacted to some extent after the government move. 

Claiming that the company has not resorted to means to circumvent the rule by breaking up bill, he said: "We are suffering on account of that. We do not break up bill as one lakh, one lakh and then sell."

In December last year, the Finance Ministry had lowered the purchase limit for quoting PAN to Rs 2 lakh per transaction from Rs 5 lakh as part of measures to curb domestic black money generation. In FY 2014-15, Titan Co had reported a revenue of Rs 11,903.21 crore.

At present, jewellery constitutes around 73 per cent, 25 per cent is from watches and rest is from eye-wear and precision engineering segment.

Titan's watch segment is having a year-on-year growth of around 10 per cent.

"People are buying; luxury segment and premium segment is growing... However, mass market has got affected," Bhat said.

Titan has collaborated with global information technology major HP to offer a range of smart watches.

"Our smart watches would be well designed and very good looking, you would see them in next 15-20 days," said Bhat.

He further added that still smart watch segment in India is very small and would grow gradually.

More from Business.

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp