Our major procurement will be outsourced from places like Mumbai, Calcutta, Ahmedabad, Karnataka, Kerala and locally at Tamil Nadu. We have recently established two manufacturing units through which we manufacture designer jewellery, as per the market trend and based on the requirements of our customers.
We have opened our branches in Tier 2 and Tier 3 towns in and around Madurai, as well as in bigger towns like Coimbatore, Salem, Tiruppur, Krishnagiri, Tirunelveli & Tuticorin.
Depending upon the showroom’s size, each branch would have from anywhere around 40 to 150 employees at the front and back office. As of now, we have surpassed the 900 employee mark, in all the 30 branches we are operating our retail business.
We expect to grow 50% - 60% in the coming years, in line with the expansion plan of our retail business and priorities in promoting our brand in the Southern region. This dynamics depends upon the industrial scenario and government regulations imposed on the industry from time to time.
What is the level of competition with the prevailing trend in the market vis-à-vis the organized sector?
The prevailing market conditions with regard to competition is quiet healthy. More and more leading jewelers in and around South India are opening their branches to capture the needs of consumers at Madurai. Among the organized sector, we find the growth of competition quite reasonable and that each one of us are in our own way, in an advantageous position to market our products. We provide quality, purity, variety and excellent service to retain customers and cater to their requirements in an adequate manner, providing them enough opportunity to choose ornaments that are to their heart’s satisfaction.
We already have a presence in bigger towns like Tirunelveli, Tuticorin, Coimbatore, Salem, Krishnagiri and Tiruppur. We also have ambitious plans to break through into the metros and cities like Chennai, Bangalore, Hyderabad, Tirupati, etc., in due course of time.
What is the gold / silver proportion used in TMJL’s jewellery? Is TMJL primarily retailing in gold ornaments?
We predominantly trade and manufacture gold ornaments, which form more than 90% of our sales. Silver, platinum, diamond and others constitute the rest.
Do you envisage any shift in TMJL’s policy of gold retailing to other jewels like studded diamonds, platinum and fashion jewellery?
Depending upon the current trend, the pulse of our customers and their purchasing capacity, it is likely that we may add fashion jewellery, studded jewels, diamond and platinum ornaments to cater to the needs of consumers in future.
Yes, to a certain extent, based on the requirements of customers and the prevailing trend. We do have a couple of manufacturing units where we have employed our own goldsmiths to manufacture various designer jewellery to meet the taste of the market.
Around 25% - 30% would constitute manufacturing activities in the total volume of gold sales.
Does TMJL have any plans to raise capital through equity or borrow monies from the market in the form of debt instruments?
Right now, we are utilizing working capital finance sanctioned by our bankers to meet inventory requirements, and our own internal generation to meet showroom interior requirements and equipments for the branches. With regard to raising equity and other debt instruments, it would be viewed only when such a need is felt necessary that the Board will take an appropriate decision.