Joyalukkas Focuses on High-Value Jewellery Amidst Strong Sales and Expansion Plans

Joyalukkas, a prominent jewellery group based in Kerala and Dubai, is strategically enhancing its focus on the studded and precious jewellery segment. This move is prompted by a growing consumer preference for high-value items like diamonds and precious stones, which is being amplified by rising gold prices. Executive Director Thomas Mathew stated the company is "doubling down" on this segment and actively building inventory to meet anticipated strong demand during the upcoming festive and wedding seasons.

Mathew expressed significant optimism about gold prices, maintaining a "very bullish" outlook and expecting further substantial increases. The company is also pursuing an aggressive expansion strategy, currently operating 176 stores across 12 countries, including recent openings in Sydney and Melbourne, with a target of 200 stores by the end of fiscal year 2025-26.

Joyalukkas achieved record-breaking sales during the recent Dhanteras festival, recording ₹1,163 crore for the week and ₹440 crore on Dhanteras day alone. This signifies substantial year-on-year growth, with sales up 94% on Dhanteras day and 80% for the week in terms of both value and volume.

The company observes a notable shift in India's jewellery retail landscape, with consumers increasingly favouring organised players over unorganised ones. Joyalukkas expects the organised sector to capture 60% of the market within the next 18 months. Heavy jewellery sales have also experienced a resurgence, indicating strong consumer confidence despite elevated prices.

Regarding its Initial Public Offering (IPO), Mathew confirmed it has been deferred by one year. He explained that external funding is not required due to the business's robust growth sustained by internal accruals.

Impact This news indicates strong consumer spending in the jewellery sector, particularly during festive periods, and highlights a trend towards high-value products. Joyalukkas's expansion and strategic focus suggest positive momentum for the Gems and Jewellery sector and the consolidation of organised retail. Rating: 7/10

Difficult Terms: Studded jewellery: Jewellery that is adorned with precious or semi-precious stones, or diamonds. Dhanteras: An auspicious Hindu festival, considered a highly favourable day for purchasing gold, silver, utensils, and new possessions. IPO (Initial Public Offering): The process where a privately held company offers its shares to the public for the first time, becoming a publicly traded company. Internal accruals: Profits earned by a company that are reinvested back into the business for growth, operational needs, or debt reduction, rather than being distributed. Organised players: Businesses that are formally registered, follow standardised operational procedures, and have a structured management system, as opposed to informal or unorganised businesses.