According to Credit Rating Information Services of India Limited (CRISIL), the revenue of India's organised gold jewellery retailers will rise to 23-25 per cent this fiscal due to volume growing on pent-up demand and recovery in discretionary spending.
As per the report, the growth will moderate to 8-12 per cent next fiscal, given the higher base of this fiscal and due to the slower growth in disposable incomes courtesy the economic outlook. The organised jewellery retail sales volume is set to increase 16-18 per cent on-year to 670-700 tonne this fiscal, crossing the pre-pandemic level of ~600 tonne, supported by wedding and festival demand. Realisation will also support the revenue growth with an expected on-year increase of 5-7 per cent.
CRISIL sees operating margin decline 40-70 basis points on-year because of the increased marketing and store-related expenses and will stabilise at the pre-pandemic level of 6.7-7.0 per cent this fiscal and the next. The findings are based on a CRISIL Ratings study of 76 gold jewellery retailers that accounts for ~33 per cent of the annual revenue of the organised sector.
While the rising volume and store expansion is expected to gather pace, increase in penetration of Goods and Services Tax (GST) and mandatory hallmarking will aid volume growth and will help organised players grow, says CRISIL.
Also, increased availability of bank funding to established gold jewellery retailers is visible from improving gross bank credit to the sector, which is expected to continue over the medium term, the report added.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
Exclusive
Dmitry Fedorov: I want our jewelry to be displayed at a museum in the future
Dmitry Fedorov is the founder of the eponymous jewelry house. His main focus is the creation of Orthodox-inspired premium luxury jewelry of high artistic merit. He told Rough&Polished about his journey in the jewelry industry, about choosing the ‘Orthodox...
Yesterday
Responsible business practices ‘no longer optional’, says WDC President Feriel Zerouki
The president of the World Diamond Council takes time out of her busy schedule to tell Rough&Polished readers about the critical work of the WDC. Zerouki, the first female present of the body, which includes all the important industry organizations among...
14 october 2024
James Campbell: Botswana Diamonds optimistic as it enters uncharted territory of using AI for mineral exploration
London-listed Botswana Diamonds has expressed optimism about the company’s use of artificial intelligence (AI) to scan the exploration database in Botswana to look for new mineralised deposits. Company managing director James Campbell told Rough...
07 october 2024
Artur Salyakayev: For me, happiness is freedom to make my ideas happen and create valuable products
Artur Salyakayev is an art entrepreneur, founder of the International Jewelry Academy (IJA) and the INCRUA jewelry company. He has initiated and developed successful projects in jewelry industry and services sector. He is also a leading expert...
30 september 2024
Paul Zimnisky: China key for sustained recovery in demand for natural diamonds, prices
The curtailing of upstream and midstream natural diamond production in the past months is starting to have an effect on prices, according to the New-York-based independent diamond and jewellery analyst and consultant, Paul Zimnisky. He told Rough & Polished’s...
23 september 2024
