About Divine Hira Jewellers Limited

Business Overview

Divine Hira Jewellers Limited specializes in designing and marketing 22 Karat gold jewellery, offering a diverse range of designs tailored to regional preferences. The company is engaged in the wholesale of gold jewellery, silver articles, bullions, and coins in Mumbai, Maharashtra, catering to wholesalers, showrooms, and retailers in bulk.

The jewellery collection includes handcrafted and machine-made pieces such as necklaces, mangalsutras, chains, malas, rings, pendants, bracelets, bangles, kadas, and wedding jewellery. With a strong focus on purity and commitment, the designs are crafted by in-house designers and skilled artisans.

Gold is procured from bullion dealers and importers, with ongoing efforts to start direct imports. Jewellery manufacturing is outsourced to experienced artisans across India, ensuring high-quality craftsmanship. The product portfolio spans daily wear, festive, and wedding jewellery, catering to mid-market and value market segments with an extensive variety of designs.

Recently, the company has expanded its offerings to include antique gold jewellery, blending historical artistry with modern aesthetics. As of October 31, 2024, the Company have 9 employees according to Department wise bifurcation. The Banker to the company is HDFC Bank Limited

Industry Analysis

Overview of the Gems and Jewellery Industry

In FY 2023-24, India's gems and jewellery exports declined by 14.94%, reaching US$32.02 billion compared to US$37.6 billion in the previous year. The sector saw a 12.17% decline in rupee terms and a 14.94% decline in dollar terms, amounting to ₹2,65,187.95 crore and US$32.02 billion, respectively. Imports also fell, decreasing by 11.09% in rupee terms and 13.84% in dollar terms, totaling ₹1,84,355.48 crore (US$22.26 billion).

Segment-Wise Performance:

• Cut & Polished Diamonds: Exports dropped 27.58% to US$15.96 billion, while imports surged 46.12% to US$1.91 billion.
• Gold Jewellery: Exports grew 16.97%, reaching US$11.14 billion, driven by free trade agreements (FTAs) with the UAE and Australia.
• Silver Jewellery: Exports declined sharply by 45%.
• Platinum Jewellery: Exports surged 449.52%.
• Coloured Gemstones: Exports rose 13.94% to US$478.68 million.

Gold Jewellery Market:

• Plain Gold Jewellery: Exports increased by 61.72% to US$6.79 billion from US$4.19 billion in FY 2022-23.
• Total Gold Jewellery (Plain & Studded): Initially declined 10.47% (April–Sept 2023) but rebounded with 46.91% growth in the latter half of the year.
• UAE Market: A key destination, witnessing 107.2% growth to US$4.53 billion in FY 2023-24. UAE & Bahrain accounted for over 85% of India's plain gold jewellery exports.
• Australia: Plain gold jewellery exports increased 37%, benefiting from the India-Australia ECTA.
• Overall Gold Jewellery Exports: Grew 16.75% to US$11.23 billion from US$9.61 billion in the previous year.

Other Key Trends:

• Silver Jewellery: Exports fell 44.97% to US$1.61 billion from US$2.94 billion.
• Polished Lab-Grown Diamonds: Exports declined 16.54% to US$1.4 billion.
• Platinum Jewellery: Strong growth of 449.16%, reaching US$163.48 million.

Future Outlook

• Growth in the gems and jewellery sector will be driven by the expansion of large retailers and brands, increasing the penetration of organized players.
• Government policies, such as relaxed gold import restrictions and low-cost gold metal loans, are expected to boost industry growth.
• India remains a global hub with 450 organized jewellery manufacturers, importers, and exporters, benefiting from liberal trade policies.
• With increasing demand and structural improvements, India's gems and jewellery market is projected to reach US$100 billion by 2027.

Business Strengths

1. Experienced Leadership & Skilled Workforce
Led by Mr. Hirachand P Gulecha (30+ years) and Mr. Niraj H Gulecha (10+ years), the company benefits from strong leadership, enabling rapid response to market opportunities and innovation in business strategy.

2. Diverse Product Portfolio
Offers an extensive range of traditional, Indo-western, and modern jewellery, including necklaces, mangalsutras, chains, malas, rings, pendants, bracelets, bangles, kadas, coins, and wedding jewellery, along with customized designs.

3. Strict Quality Control
Jewellery undergoes hallmarking at government-approved centers, ensuring adherence to BIS standards. A two-stage quality check verifies structural integrity, polishing, finishing, and purity using advanced gold testing machines.

4. Deep Understanding of Customer Preferences
Strong market insight allows for the creation of designs based on trends and customer-specific requirements, providing a competitive edge in both organized and unorganized jewellery markets.

5. Hallmarking & Unique Identification
Every jewellery piece is hallmarked and assigned a unique HU ID number, ensuring traceability, authenticity, and customer confidence in quality and origin.

6. Skilled Vendor Network & Artisans
A trusted network of vendors and artisans with 10-15 years of expertise ensures high-quality craftsmanship. Continuous vendor integration maintains competitive market positioning.

7. Innovative Design Capabilities
An in-house design team creates exclusive and trend-forward jewellery with a meticulous end-to-end crafting process, ensuring high precision and uniqueness.

8. Commitment to Customer Satisfaction
High-quality jewellery is offered at affordable market prices, with a focus on timely and accurate delivery to maximize customer satisfaction.

9. Strong Client Relationships
Consistent delivery of quality products and meeting customer requirements have resulted in long-term relationships and repeat orders, strengthening market reputation and business growth

Business Strategies

1. Strategic Export Expansion
Plans to enter international markets, particularly Dubai, leveraging its status as a global gold trading hub. Participation in B2B exhibitions strengthens trade relationships across the Gulf region.

2. Scaling Business Operations
Enhancing fund-based capacity to support working capital-intensive operations, ensuring smooth procurement of gold bullion and maintaining supplier relationships while managing credit cycles for wholesalers and retailers.

3. Expanding Product & Brand Portfolio
Strengthening market presence by identifying portfolio gaps and introducing new jewellery designs based on insights from exhibitions and trade fairs.

4. Strengthening Customer Base
Leveraging an established domestic market presence and retail network to retain existing customers while expanding outreach to new clients.

5. Enhancing Operational Efficiency
Continuous business process review, cost reduction, and technology upgrades to optimize operational effectiveness and maintain competitive pricing.

6. Maintaining Quality & Purity Standards
Strict adherence to quality control measures, periodic assurance reviews, and technological advancements to uphold brand reputation and ensure long-term customer trust

Business Risk Factors and Concerns

1. Raw Material Availability and Pricing
Limited availability and rising costs of quality gold bullion and colored gemstones could impact operations and profitability. Dependency on bullion dealers and importers makes procurement sensitive to economic conditions, competition, global pricing, and regulatory policies. Fluctuations in gold prices may also lead to delayed consumer purchases, affecting financial performance.

2. Geographic and Customer Concentration
Revenue is heavily dependent on specific regions like Maharashtra, Karnataka, Gujarat, and Chhattisgarh, making the business vulnerable to regional disruptions. A significant portion of revenue comes from a limited customer base, and losing key clients to competitors could negatively impact cash flow and profitability. Expansion into new geographies may not be as profitable as existing operations.

3. Dependence on Job Workers
Manufacturing operations rely on external job workers, with no formal contracts in place. Any decline in product quality, inefficiencies, or disruptions in job workers’ operations could adversely affect business continuity and product output.

Divine Hira Jewellers faces key risks related to the availability and pricing of raw materials, revenue concentration in specific geographies and customers, and reliance on external job workers for production. These factors could significantly impact operational stability, profitability, and future growth prospects.