About Varyaa Creations Limited Limited

Historically, the company is engaged in the business of wholesale trading of gold, silver, precious stone, semi-precious stone. The company also intends to focus on manufacturing and selling of jewellery ‘s from this financial year onwards. The company manufactures its jewellery through job worker located in Mumbai. 

Raw material used is gold, precious stones, gemstones, semi-precious stone, silver etc. is majorly procured through the bullion market and jewellery market dealers located in Mumbai, which is further provided to the job worker who manufacture the jewellery. The job worker manufactures products as per design and pattern provide by the company done in-house. Getting the products manufactured based on the orders basis and as and when need basis. 

Jewellery is widely sold through B2B and B2C platform also selling customized jewellery to customers. Currently business operations are based in Mumbai only. Historically, the company has earned from wholesale trading of gold, silver, precious stone, semiprecious stone and from sales of jewellery. Products are sold only through the offline market, i.e. from a registered office located in Mumbai. Further, the company will also be selling its products through its own online platform, i.e. www.baubleberry.com. Product portfolio includes Necklace, Earring, Tops, Ring, Bracelet, Bangles, Gemstones, Diamonds, Lab Grown diamonds, Pearls making customized jewelleries as per customer’s needs.

India’s gems and jewellery market size was at US$ 78.50 billion in FY21. Growth in exports is mainly due to revived import demand in the export market of the US and fulfilment of orders received by numerous Indian exhibitors during the Virtual Buyer-Seller Meets (VBSMs) conducted by GJEPC. 

India’s gems and jewellery exports reached US$ 39.14 billion in 2021-22, a 54.13% rise from the previous year. In December 2022, India’s gems and jewellery exports was at US$ 2.56 billion. The Government of India is aiming at US$ 100 billion in jewellery export in the next five years (until 2027), up from US$ 35 billion in 2020.

As of Feb’21, India’s gold and diamond trade contributed ~7.5% to India’s GDP and 14% to India’s total merchandise exports. Based on its potential for growth and value addition, the Government declared the gems and jewellery sector as a focus area for export promotion. The Government has permitted 100% FDI in the sector under the automatic route, wherein the foreign investor or the Indian company do not require any prior approval from the RBI or GOI. 

Risk associated to the company:

The non-availability or high cost of quality gold bullion, silver, diamonds and other precious and semi-precious stones: Timely procurement of materials such as gold bullion, silver, diamonds and other precious and semi-precious stones, as well as the quality and the price at which they are procured, play an important role in the successful operation of business.

Failure to attract and retain qualified designers: The company deals in labor intensive and high competition industry where success depends in large part upon ability to attract, hire, train and retain qualified designers and craftsmen.

Few suppliers for the material requirements: Top 10 suppliers contributed 93.60%, 91.65%, 98.53% and Nil of the purchases for the period ending on Dec’23 and for the financial year ending on March 31, 2023, 2022 and 2021, respectively.

Clients: Clients play the key role in the organization; the company needs to consistently add new customers and retain the existing customers as well. The top 10 customers contributed 98.98%, 79.66%, 95.96% and 100% of our revenues from operations for the period ended Dec’23 and for the year ended March 31, 2023, 2022 and 2021, respectively. Default or delays in payments by a significant portion of customers may affect.

Introduction of new designs: Jewellery business is subject to changing consumer patterns and preferences, which is difficult to predict. They have to improvise product designs, understand consumer tastes and preferences focus on innovative designing.

Protection of designs: The company changes jewellery designs on a regular basis and do not register them under the Design Act, 2000 making it difficult to enforce intellectual property rights & if competitors copy it, in particular the designs of products, it could lead to a loss of revenue.

Seasonality: Sales have historically exhibited certain seasonal fluctuations, reflecting higher sales volumes and profit margins during festival periods and other specific occasions such as Akshay Trithiya, Dussehra, Dhanteras, Diwali and Christmas.