AJC Jewel Manufacturers is primarily engaged in the designing and manufacturing of wholesale gold jewellery, including plain gold, studded, and customized named jewellery in 22 Karat and 18 Karat. As of December 31, 2024, revenue contributions from plain gold, studded gold, and named jewellery stood at 33.45%, 42.12%, and 6.34%, respectively.
Finished jewellery is manufactured from raw gold (bullion) and consumables and sold in bulk to dealers, showrooms, corporates, and small jewellery retailers. The product portfolio includes Anklets, Bangles, Bracelets, Earrings, Necklaces, Nose Pins, Pendants, Rings, and customized name jewellery for men, women, and children.
Designs are developed by an in-house CAD design team and freelance designers, offering a wide and diverse range that caters to both mid-market and value market segments.
Manufacturing operations are carried out at a leased facility in Inkel Greens Edu City, Malappuram, covering 21,780.76 sq. ft. The facility houses advanced machinery including 3D printers, Wax Injectors, Casting Machines, and Polishing Equipment, supporting end-to-end production under one roof. Strict safety protocols and regular safety meetings are followed.
Though hallmarking services are not provided, jewellery for occasional retail orders is hallmarked through authorized centers.
Sales are managed PAN India by a dedicated Sales Manager and Customer Relations Executives from the Registered Office, responsible for lead generation, order management, client negotiations, and participation in exhibitions and market research.
Gold bullion is sourced from DGFT-nominated agencies (e.g., Axis Bank, HDFC Bank) and bullion dealers, with premium negotiation based on the spot gold rate. Additionally, used gold is procured from individuals. All consumables are sourced from multiple vendors across states.
Occasionally, raw gold is sold without processing, but such instances are rare and treated as manufacturing income, not trading.
AJC Jewel Manufacturers maintains a robust supply chain, diversified customer base, and a fully integrated manufacturing setup, positioning it as a competitive player in the wholesale gold jewellery sector. As on February 28, 2025, the Company have employed 67 personnel at their Manufacturing Plant and Registered Office. The Banker to the Company are ICICI Bank Limited, Axis Bank Limited and HDFC Bank Limited.
INDUSTRY ANALYSIS
Indian Jewellery Industry Overview – 2025
Gold’s Unprecedented Surge
Gold prices have demonstrated exceptional momentum in 2025, crossing the psychological mark of US$3,000/oz, with 13 new all-time highs recorded so far. Key drivers include global economic uncertainty, USD weakness, falling interest rates, and inflation fears, all of which have supported sustained investment demand. The LBMA gold price has increased by US$330/oz (12%) to US$2,999/oz, while the Indian domestic landed price has surged by 17% to INR 88,946/10g, primarily due to a 1.3% depreciation in the INR.
Despite this price rally, domestic jewellery demand has softened, leading to a discount in local gold prices compared to landed prices. The average discount in March stood at US$12/oz, narrower than US$17/oz in February.
Gold as a Top Performing Asset
Gold has emerged as India’s best-performing asset in 2025, delivering 13% year-to-date returns, outperforming domestic equities and fixed-income investments. This reinforces gold’s importance in diversified investment portfolios.
Demand Shift: Jewellery Slowdown, Old Gold Sales Rise
High prices have curtailed jewellery purchases, especially outside wedding-related buying. Financial year-end obligations and tax-related spending have further limited discretionary buying across both urban and rural areas. Consumers are delaying purchases, awaiting a potential price correction.
Meanwhile, there has been a notable increase in old gold sales, with retailers reporting up to one-third of transactions involving scrap jewellery exchange for lighter or newer designs. Additionally, gold-backed loans have surged, with retail gold loans up 77% year-on-year by end-January, indicating rising consumer liquidity needs.
Gold ETFs Gain Investor Traction
Gold Exchange Traded Funds (ETFs) maintained strong momentum, with net inflows of INR 19.8 billion (~US$227 million) in February, despite some profit-booking driven redemptions. Investor accounts (folios) increased by 300,000, bringing total folios to 6.8 million—an all-time high. Assets under management (AUM) rose to INR 55.7 billion (~US$6.4 billion), up 7% month-on-month and 95% year-on-year. Domestic gold ETFs now represent 0.9% of mutual fund AUM, compared to 0.5% a year earlier, reflecting growing retail investor confidence. Two new ETF products launched in February pushed the total count to 20 ETFs in India.
RBI’s Gold Reserves Strategy
While the RBI paused gold purchases in February, it has added gold in 12 of the last 14 months, averaging 6.3 tonnes per month. The total reserves remain at 879 tonnes, but gold’s share in total forex reserves rose to 11.5%, marking the highest share on record, and nearly 4% higher than a year ago, underscoring continued reserve diversification.
Gold Imports Continue to Decline
India’s gold imports dropped sharply in February, hitting the lowest level since March 2024—a 63% year-on-year decline, totaling $2.3 billion. Import volume is estimated at 25 to 30 tonnes, reflecting weakened demand due to high prices and cautious consumer sentiment.
Key Takeaways:
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Gold prices hit record highs, influencing both investment demand and jewellery slowdown.
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Jewellery sales dip, while old gold sales and gold loans surge.
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Gold ETFs attract retail investors, with record folio growth and rising AUM.
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RBI continues gold reserve diversification, despite temporary purchase pauses.
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Imports fall, reflecting price sensitivity and demand restraint in the domestic market.
BUSINESS STRENGTHS
1. Wide Product Range & Design Innovation
Offers a diverse portfolio of Rings, Pendants, Chains, Necklaces, Anklets, Bracelets, Bangles, and Earrings in 22K and 18K, featuring unique, region-specific designs catering to all age groups. Maintains an extensive inventory aligned with latest market trends, ensuring high dealer retention.
2. Experienced Leadership & Skilled Workforce
Promoter and Managing Director Mr. Ashraf P brings over 13 years of industry experience, driving strategic vision and market understanding. Supported by a skilled artisan base and contemporary CAD designers for high-quality, trend-focused output.
3. Strong Dealer Network
Long-standing B2B relationships with reputed jewellery retailers and dealers, forming a stable and repeat customer base. These associations have significantly contributed to past growth and are key drivers for future scalability.
4. Integrated Manufacturing Setup
Operates a fully-equipped, in-house facility featuring laser cutting, engraving, casting units, and 3D printing. Utilizes custom-built order management software for seamless operations and real-time client tracking, ensuring quality and efficiency across all production stages.
BUSINESS STRATEGIES
1. Investment in Manufacturing Automation
Plans to enhance production capacity and efficiency through continuous investment in automated equipment such as 3D printers, Wax Injectors, CNC machines, Casting Machines, and Screw Making Setups.
2. Debt Reduction for Financial Stability
Aims to improve the debt-equity ratio (currently 1.32) by repaying secured loans, reducing interest costs, and strengthening long-term financial stability.
3. Expansion of Product Designs
Focus on regularly adding innovative designs to the jewellery portfolio through insights gained from exhibitions and trade fairs, combined with in-house design development.
4. Enhancement of Operational Efficiency
Strategic focus on process improvement, quality control, skill development, and technology upgrades to boost productivity and ensure consistent product quality and customer satisfaction.
BUSINESS RISK FACTORS & CONCERNS
1. Supplier Dependency
Operations rely on a limited number of raw material suppliers without long-term contracts. Any delay, disruption, or price fluctuation in gold and consumables may directly impact product pricing and profitability.
2. Geographic Concentration – Domestic
A significant portion of domestic sales is concentrated in Kerala. Economic, political, or regulatory disturbances in this region could adversely affect business performance.
3. Geographic Concentration – International
A portion of revenue is generated from international markets, with the United Arab Emirates (UAE) contributing the majority. Any adverse developments in this market may impact overall revenue and growth.
4. Product Dependency
Revenue is heavily dependent on Studded Jewellery, Plain Gold Jewellery, Named Jewellery, and Rose Gold Jewellery. A decline in demand or production of these specific categories may negatively impact financial performance.
AJC Jewel Manufacturers faces key risks related to supplier dependency, regional concentration, product reliance, and market fluctuations, all of which could significantly affect revenue, operations, and financial stability.
