About Utssav CZ Gold Jewels Limited

Utssav CZ Gold Jewels is in the business of designing, manufacturing, wholesaling and exporting of 18Karat 20Karat and 22Karat CZ Gold jewellery. The Company specializes in light weight production of cubic zirconia (CZ) gold and rose gold casting jewellery. They manufacture and offer wide collection of products such as Rings, Earrings, Pendants, Bracelets Necklaces, Watches and Broaches etc.

Their forte lies in crafting exquisite CZ casting gold jewellery and designer pieces, tailored to the preferences of today's youth. Whether for daily wear or special occasions, their designed rings, earrings, pendants, bracelets, and necklaces resonate with their target audience. Cubic zirconia (CZ) is a synthetic gemstone known for its similarity to diamonds. Composed of zirconium dioxide, CZ is renowned for its clarity and can be crafted into various shapes and sizes, such as round, emerald, and pear cuts. These stones are popularly known as ‘American Diamonds’. While it is much more affordable than diamonds, it still offers impressive durability and a sparkling appearance, making it a popular choice for jewellery. The Company specializes in Gold jewellery studded with CZ stones, combining the elegance of gold with the dazzling beauty of cubic zirconia. They customize designs to accommodate diverse regional preferences, ensuring that they meet the unique needs of their clientele in every market we serve. Their company's key strengths lie in their focus on design and innovation, their deep understanding of consumer preferences and market dynamics, and the quality of their products. They cater to a wide range of customers by offering high-end, medium-range and affordable CZ gold jewellery, all hallmarked by the Bureau of Indian Standards (BIS).

Their expertise lies in the production of lightweight jewellery, offering affordability without compromising on quality. Many of their exquisite pieces feature intricately studded gemstones in CZ casting gold, crafted by their skilled team of designers proficient in computer-aided design (CAD). With a team of 15 CAD designers on their payroll, they develop approximately 400 designs per month on a regular basis to stay ahead of market trends and customer demands.

Their manufacturing facility spans over 8,275 square feet area in Andheri East, Mumbai, equipped to produce variety of jewellery with precision and efficiency. As on date, they have an installed manufacturing capacity of 1,500 kg per annum. Their manufacturing facility spans over 8,275 square feet area in Andheri East, Mumbai, equipped to produce variety of jewellery with precision and efficiency. As on date, they have an installed manufacturing capacity of 1,500 kg per annum.

INDIAN RETAIL SECTOR
The Indian retail sector is one of the fastest-growing sectors. It has the largest consumer base, and as a result, the industry’s market size has increased significantly. This growth can be attributed to robust demand, increasing investments, innovations, and government initiatives. As digitization widens the market, better access channels, faster customer acquisition leading to cash conversion, and rapid shifts in both demand & supply factors will accelerate the momentum of retail expansion in India.

INDIAN GEMS & JEWELLERY INDUSTRY
The Indian Gems and Jewellery (G&J) business has traditionally been fragmented with consumers mainly purchasing from family jewelers. The fragmented nature of this sector makes it difficult to quantify the number of jewelers in India. 

However, the industry has seen structural transformation in the recent decade with more G&J players moving up the value chain with a greater focus on branded jewellery. Jewellery retailing is not only profitable and high-margin but also an underpenetrated industry in India, which means there is a lot of room for growth. Moreover, consumers are more predisposed to branded jewellery particularly in metro & tier I cities, given the rising media and Western influences and willingness to pay a premium.

The long-term demand prospects for the sector are supported by a growing working population, higher disposable income, easier access to credit, and improved living standards. To cater to the changing consumer preferences and design trends, larger stores are offering more variety and a diverse range of jewellery. This continuous adaptation to consumer trends and behavior is likely to further support the shift towards the organized jewellery segment.

Share of Various Segments in the Indian Gems & Jewellery industry

Key Segments of Indian Gems and Jewellery Industry: 
The Indian G&J industry broadly consists of gold jewellery, studded jewellery and other jewellery types like platinum jewellery, fashion jewellery, and silver jewellery.

Gold Jewellery 
The Indian jewellery market is traditionally dominated by gold jewellery. Gold jewellery purchases in India are not just limited to consumption as is the case with fashion jewellery. They have a strong saving significance. This is more evident in rural communities where access, literacy, and acceptance of other financial savings instruments are low. These factors have resulted in gold being a major saving asset class. Cultural differences, religious & trust concerns, and other elements that influence jewellery purchases have all contributed to gold jewellery's significance.

Studded Jewellery 
Apart from gold jewellery, the other type of jewellery gaining traction is the studded ornaments segment. The key factor contributing to this segment growth is the younger population’s preference for diamond-studded gold jewellery, typically made of 14- or 18- carat gold rather than heavy 22-carat gold. There has also been a noticeable shift towards more informal and everyday use of diamond studded jewellery. 

Furthermore, many urban millennials, unlike the previous generations, are drawn to studded jewellery. Such jewellery is easy on the pocket, and therefore, supports multiple purchases. Also, most young population believe that heavy gold jewellery is for the elderly. Similarly, they regard that modern designs cannot be found in pure gold. Studded jewellery comes in a wide range of styles and prices. When paired with white gold, a studded diamond appears to be more expensive, thereby evoking the quality feel of platinum. 

Although diamond studded jewellery may not have the same advantages as gold as a store of financial value, increasing price transparency and repurchase guarantees offered by most jewellers have helped persuade customers that their investment would not depreciate.

Cut and Polished Diamonds
India is one of the leading cutting and polishing centres for diamonds, supplemented by government policies. India is deemed a hub for this industry given the low cost and steady availability of highly skilled labor. Due to its potential for growth and value addition, the government considers this segment as a focus area for exports.

Outlook for the Gems & Jewellery Industry in India 
The gems & jewellery industry’s performance has been weak in the first half of CY23. However, the demand is expected to improve in the second half, led by purchasing during the festivals and holidays. The demand is expected to further revive in subsequent years driven by the moderation of inflation and alleviation of global geopolitical issues. Also, the domestic growth is likely to be driven by resilience in demand, particularly during the festive and wedding seasons and expansion by organized jewellery retailers across pan-India.

Diamonds Segment: 
India is the world’s largest centre for cutting and polishing diamonds. With a global share of more than 90% in the processing of rough diamonds, Cut & Polished Diamonds (CPD) accounted for 58% of the overall gems and jewellery exports from India. The CPD industry mainly caters to demand from the US, Hong Kong, and the Middle East. 

After witnessing robust growth in exports during FY22, the demand remained largely stable in FY23, on the back of the opening of experience-based spending avenues coupled with continued sluggish demand from the second-largest diamond-consuming country China, which continued with its zero-tolerance COVID policy. However, the recent headwinds such as high inflationary pressures across major diamond-consuming nations continue to weigh on the global cut and polished diamonds demand as is evident from the 25% y-o-y dip in exports during 10MFY24.

Gold Jewellery Segment: 
Most of the demand for gold jewellery comes from the domestic market. The demand for gold jewellery in India is still primarily driven by weddings and festivals, with bridal jewellery alone accounting for at least half of the market. Long-term trends in economic growth, wage growth, wealth division, and urbanization rate will all influence the demand for gold jewellery in India.

Gold demand in rural communities usually picks up after the harvest season. Harvesting of Kharif crops runs from September until November and about 70% of Indian agricultural production takes place during the Kharif season. During the festivals of Diwali and Akshaya Tritiya, it is considered extremely auspicious to buy gold. 

Dhanteras (the first day of Diwali) usually falls during October or November, and Akshaya Tritiya between late April and early May. On average around 40-60 tonnes of gold is sold in India during these two auspicious festivals alone. The continued momentum in demand for gold jewellery and the increased footprint of organized players are projected to result in healthy growth of the industry in the medium term.

Gold Jewellery Wholesale Market in India
In the gold jewellery sector, retailers generally purchase gold jewellery from wholesalers who manufacture the jewellery or outsource the manufacturing to workers. Most jewellers outsource manufacturing of the majority of the plain gold jewellery inventory held by them while studded jewellery is procured through a mix of in-house manufacturing and outsourcing. The share of the wholesale segment in the jewellery sourcing mix has increased considerably over the years with the growth of large retail chains that see value in sourcing from wholesalers due to a variety of designs and product innovations. This further permits the jewellery retailers to focus on the retail business. 

Furthermore, the procurement of jewellery from wholesalers is more prevalent in urban India, which has a large-scale presence of jewellery retailers. In this model of wholesale business, the gold required for the manufacturing of jewellery is procured by the manufacturer itself. In contrast, the manufacturing of jewellery by job workers or karigar is more common in rural India wherein the gold is procured by the retailer for manufacturing of specific designs. In 2022, the share of the wholesale segment in gold jewellery was estimated to be in the range of 60-65% of the overall gold jewellery consumed in India, i.e., 360-390 tonnes per annum.

UTSSAV CZ GOLD JEWELS LIMITED STRENGTHS
1. Catering to fast growing daily and fashion wear gold jewellery market
2. Long-standing relationship with reputed jewellery retailers
3. Skilled work force with contemporary designing capabilities
4. Strong financial performance
5. Experienced Promoters and Senior management team

UTSSAV CZ GOLD JEWELS LIMITED STRATEGIES
1. Enhance their financial capabilities to facilitate the expansion of our business operations
2. Expand their geographical presence in domestic as well as export market
3. Continued focus on creative designs
4. Focus on improving Operating efficiency
5. Improve Company’s financial leverage ratio

UTSSAV CZ GOLD JEWELS LIMITED RISK FACTORS & CONCERNS
1. Significant portion of their revenues is concentrated from a limited number of clients.
2. Their CZ gold jewellery business faces risks from market volatility and changing consumer preferences.