 "Delhi leads: 4.8 mn weddings to generate Rs 6 trillion biz in wedding season")
The much-awaited wedding season in India is back with a bang, with an estimated 4.8 million weddings scheduled for November and December, according to Motilal Oswal Wealth Management Ltd. This marks a significant increase from last year's 3.8 million weddings, which generated a business of Rs. 4.7 trillion. This year, the industry is expected to witness Rs 6 trillion in revenue.
As the wedding fever grips the nation, Delhi alone is expected to see over 4.5 lakh weddings during the two-month period, according to data from the Confederation of All India Traders.
The bustling wedding market is set to have a ripple effect across various sectors, including jewellery, retail, hotels, and automobiles, as families indulge in extravagant celebrations.
Sectors Poised for Growth
Motilal Oswal Wealth Management has identified several sectors that are likely to benefit from this surge in wedding-related business. The firm has highlighted five companies that are well-positioned to perform well over the short to medium term, owing to the booming wedding season.
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Titan
Titan, a leader in the jewellery segment, is expected to see a spike in demand due to the customs duty reduction announcement. The company’s competitive positioning in the wedding jewellery market has enabled it to outperform other branded players. With wedding jewellery demand on the rise, Titan is well-poised for strong growth in the next two quarters.
Eicher Motors
Eicher Motors' Royal Enfield brand is witnessing a surge in demand, particularly in the run-up to the wedding season. The company’s new launches, increased model availability, and enhanced promotional activities have piqued consumer interest. As a result, Eicher Motors is set to benefit from the higher demand expected during the festive and wedding season.
Vedant Fashions
Vedant Fashions, which operates the popular ethnic wear brand Manyavar, is projected to experience robust growth, thanks to a spread-out wedding season this year. With wedding dates starting from November, Vedant Fashions is set to capitalize on the high demand. The company’s expansion plans and ramp-up in newer categories provide significant growth opportunities.
Safari
Safari, a prominent player in the furniture and home décor sector, is expected to see an uptick in revenue due to increased demand driven by pre-festive stocking. The company’s performance in the preceding quarter was hindered by a heatwave, but with the festive season underway, Safari’s revenue is projected to bounce back. Additionally, the launch of a greenfield plant in Jaipur in Q3FY25 is expected to further boost the company’s earnings.
Lemon Tree Hotels
Lemon Tree Hotels is another company set to benefit from the wedding season. The hotel chain has experienced strong growth momentum in the second half of the year, aided by the stabilization of Aurika Mumbai, a strong wedding season, and favorable demand-supply dynamics. Investments in renovations are expected to improve operating metrics, including occupancy rates (OR), average room rates (ARR), and EBITDA margins for the company.