look news india
Mumbai: Revenue of organised gold jewellery retailers is expected to grow 22-25 per cent in the current fiscal year on the back of a massive cut in import duty on gold in the current year's Budget, according to a Crisil report.
A study conducted by CRISIL found improvement in working capital management in the organised jewellery industry.
Lower gold prices will reduce inventory costs for jewellers, thereby easing working capital.
Organized jewelers have a share of about 35 percent in the total market of the jewelry sector in the country. The financial performance of the organized jewelry sector is also expected to remain strong compared to the unorganized sector, as the demand for jewelry is expected to remain intact due to the reduction in import duty ahead of the wedding and festive season.
Sales are expected to grow by 3 to 5 per cent in the current financial year. With the festive season approaching, gold prices are currently trading at around fifteen per cent higher than last year's average. However, demand will remain strong and the jewellery sector will see an increase in revenue.
Due to reduction in duty, the price of gold per ten grams has decreased from Rs 4500 to Rs 5000.