Vinod Hyagriv, the Managing Director of C.Krishniah Chetty & Sons (Bengaluru), is a multifaceted businessman. He is a Director of the World Diamond Council, Past Chairman of the All India Gems & Jewellery Trade Federation (GJF), Chairman of the Legal Committee, GJF, Member of the World Presidents Organisation and Director of the Gem & Jewellery Sector Skills Council of India.
A commerce graduate from Bengaluru, Hyagriv later studied in Hong Kong, Santa Monica and San Diego to become a gemmologist. Stepping into his family business in 1981, he has been instrumental in taking the ‘C.Krishniah & Sons’ brand forward. He currently heads C.Krishnaih Chetty & Sons (CKC&Sons), which is one of the Finest Heritage Jewellers in India with a legacy dating way back to 1869. As jewellers to many Royal Houses of India as well as the British in the past, CKC&Sons is now considered a well-run private limited company. It has won many accolades and awards like ‘Best Retail Showroom in India’, ‘Star Luxury Retailer of the Year’, ‘Best Window Display in India’, ‘Best employer in Retail’ and many more...
Besides being an astute businessman, Hyagriv is also an avid golfer and a collector of rare books. He is widely travelled and is married to Triveni. His two sons, Chaitanya and Shreyas, are also involved in the family business.
In an interview with Rough & Polished, Vinod Hyagriv spoke at length about his company; the current market condition; and the Indian gem and jewellery industry on the whole.
Some excerpts:
Please give us an overview of your company; it’s growth graph over the years; and its present standing as a high-end jeweller.
In brief, we occupy a unique position of a scaled up family jeweller, with modern processes and standards. Our company is well run, with excellent working departments. However, we still see potential for greater improvement. We are considered, generally speaking, as the most 'organised' setup in our industry.
What transformations have you seen over the years in terms of diamond / colour stone / gold content, design in the Indian market?
The Indian market has evolved, but only slightly or in pockets. This is unfortunate as we could have done better. If we had imbibed better technology, employed people with higher remunerations, adopted modern manufacturing methods, the industry could have been in a better state.
The key move we need to make as an industry is to stop thinking jewellery as an 'investment'. That is the reason we are unable to move up the cost absorption scale.
However, I can vouch for the fact that the craft is booming. The craftsmen / crafts persons are working hard and excelling from their cramped quarters. We definitely need better infrastructure. The State must chip in, and we will, as an industry, partake in development.
How important is the diamond content in your jewellery, which is known for exclusive designs incorporating precious coloured stones?
About 10-15% of the market overall in size. Very important. Growing at a higher pace than gold and silver. Surely the future.
In general, do high-end jewellers find themselves competing for a market share with the pure gold / or even other lesser priced studded jewellery, given that volume sales are more in that space?
Yes, they do compete for the dollar of the consumer. The two - gold and diamonds - are two sides of the same coin. Quite often the coins are one sided. The two products offer good business.
Has the sliding Indian Rupee in anyway affected your company’s overall business?
No, but the effect on the economy does have a debilitating effect on the business sentiment in general. No one wants an uncertain outlook. The government has not played their part well.
How does your company tackle the gold shortage at present? With gold price high due to shortage, have you had to compromise on your margins?
Margins have been hit due to slide in gold prices... more in the crash of March/ April/ May. This year will be hit as far as profits go. The shortage is also making an artificially high gold price. And with that Indian gold cannot claim to be 'clean'. In other words, we will not know for sure where our gold is coming from. As much as one (like our company), wishes to source goods from the cleanest sources, at times we may be unsure. Therefore, the current legislations are pushing back development. The macro space is getting sullied.
Do you foresee a future where less caratage gold jewellery will be accepted in the Indian market? Especially in couture jewellery - diamond/precious stones studded jewellery - which is considered more as an heirloom?
Yes... but slowly. There is now scope for new brands in the fashion sector of gems and jewellery. That may be a silver lining in this chaos.
What’s your opinion on the Government/RBI’s step to curb imports of gold? How do you see the gold curb panning out in due course? Did it hamper the smooth running of your business till now?
As I said earlier, the macro scene is getting ugly. The government is short-sighted. It is not willing to implement suggestions I and the GJF have suggested to the FM in person. They are in knee-jerk decision frame at present. It will hamper investment decisions, business modernisation, manufacturing, compliances, everything. Collateral damage will be high!
Your comments on the current domestic market as far as diamond jewellery demand are concerned. And what is the trend, especially in quality/size of polished diamonds demand in today’s market.
Melees are still strong. Well cut, good quality diamonds are still doing well. The country is moving up the quality scale, be the full cuts or partly cut (valanda /valandi as they are called here in India). Growth is still 10% plus pa in quantity terms, with the leading players.
And how do you foresee jewellery sales during Diwali this year in the domestic market, given all the challenges it has faced during recent times.
Mixed. Business will need to be pushed with consumers. Not easy overall.
Your views on online jewellery business in general. And how is your company faring in your online venture?
Nascent. But surely the future.
How many stores does CKC & Sons have locally? Any plans for more in the future?
Three... two in the making. Although we desire to continue to grow, the process has slowed this year.
Any special design / offer from CKC & Sons for Diwali this year?
We did do a special Musical Series of brooches, pendants. Exceptional craftsmanship, Natural gemstones, Diamonds and 18kt gold. It was a sell out.
Your overview of the proceedings in the Gold Convention (16-18 Aug 2013) in Jaipur?
Very useful discussions. We were able to exchange all the thoughts and interpretations as well as convey the work the trade bodies of GJF and GJEPC have done in the last few months. As Chairman of the Legal Committee, and the Past Chairman of the GJF, the IGC was a good platform for me personally as well as for all the participants to exchange ideas. Also useful were the many national presentations that were educational and useful.
Aruna Gaitonde, Rough&Polished, Mumbai
