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Weddings To Add Rs. 5 Lakh Crore To The Economy! 3 Sectors To Look Out For

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The Diwali season may have ended, but it’s now time for wedding season. And with the “Mann ki Baat” from our PM, the wedding industry is on another high.

The wedding season has commenced now. Some trade organizations estimate that there could be a business of around ₹5 lakh crore during this wedding season. While shopping for weddings, all of you should emphasize products made in India only,” the Prime Minister said.

 And yes, since the topic of marriage has come up, one thing has been troubling me off and on for a long time… and if I don’t open up my heart’s pain to my family members, who else do I do it with? Just ponder… these days a new milieu is being created by some families to go abroad and conduct weddings. Is this at all necessary?” he added.

In 2022, until mid-December, 32 lakh weddings took place as per reports, generating Rs. 3.75 lakh crore of business. This year, 38 lakh weddings are already on the cards until mid-December, which may generate business close to Rs. 5 lakh crore.

Stocks to Look Out For During The Wedding Season

1. Apparel & Clothing Stocks

Weddings have a substantial positive impact on the apparel and clothing industry. Regarding Indian weddings, it’s not only the bride and groom who shop for their wedding attire, but the family, extended family, friends, friends’ families, and so on. Around 10% to 15% of wedding expenditure is spent on apparel and clothing during the wedding season.

Raymond generated revenue worth Rs. 1.3Tcr. from its Apparel business during FY23 against the total revenue of Rs. 890.95 crore in FY22. Raymond offers a unique range of clothing known as “Ethnix by Raymond,” made for Indian weddings and special occasions.

Demand for Arvind Fashion went up in November by 32%, the highest rise in demand in 2023. This is due to festivals and weddings in the pipeline this year. The yearly revenue of the company rose from Rs. 3.1Tcr in FY22 to Rs. 4.5Tcr in FY23. The company generated a profit of Rs. 87.92 crores in FY23 compared to its loss of Rs. 104.08 crores in FY22.

2. Hotels & Hospitality Stocks

Demands for Hotels, Banquet Halls, and the hospitality industry and services increase during the wedding season. The demand has already started picking up as the number of weddings increases this year. According to the CAIT Report, around 5% of the wedding budget is spent on banquets and venues, 10% on catering services, 12% on decorations, 5% on event management, etc.

Therefore, around 32% of the wedding budget is spent on hotels and the hospitality sector. So, if the wedding season is expected to generate Rs. 5 lakh crore of business, then around Rs. 1.5 lakh crore will go to the hospitality industry.

On the other hand, Marriot generated 12% of its total revenue last year from the wedding business; this year, they are targeting to increase the share to 20%.

3. Jewellery Stocks

As gold prices have increased drastically, and Millennials and GenZers prefer diamonds over gold, the wedding jewelry demand for diamond jewelry has increased by 60%. The gold prices have also surged in the past 2 months. While it was around Rs. 58000 during the first week of October, it has increased to Rs. 63500 for 10 grams.

In the jewelry industry, Titan’s share price has gained momentum as the wedding demand kicked in. Titan offers multiple jewelry brands, such as Tanishq, Zoya, and Mia. Apart from its jewelry, the watches and wearables segment also picks up, as one of the favorite gifts during the wedding season is a couple of watches for both bride and groom. Titan’s revenue increased by 40.48% during FY23, while the PAT increased by 52.89%.

Kalyan Jewellers has unique wedding collections such as Muhurat, Mudhra, Nimah, and others, integral to generating significant revenue during the wedding season. The revenue generated by the company during FY23 was Rs. 14.1Tcr compared to its FY22 revenue of Rs. 10.8Tcr. The profit made during FY23 was Rs. 431.9 crores.

So, as you prep for the upcoming weddings in your family or friends, check out the stocks, which are soaring high with wedding demands, to make some solid investments.

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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.

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