KOCHI: Gold and diamond are the lucrative field of business in Kerala now. Business groups in hardware, finance and electrical business are flocking to jewellery business to tap the profit potential in the sector. KLM Group, Gaylord and Dubai are the firms which have entered into the jewellery business in the state recently.
Kothamangalam-based KLM Group is in finance business, Angamaly-based Gaylord Group is running hardware business and the promoters of Kozhikode-based Dubai Gold were running an electrical business.
In the past also Kalyan Group entered into jewellery business when they were into textiles and Manappuram Group started Riti Jewellery when they were running an NBFC.
Industry sources said that gold worth Rs 85,000 crore to Rs 1 lakh crore is being sold in the state in a year. Kochi, the commercial capital of Kerala, alone accounts for about 15 per cent of the total gold consumed in the state.
“We will start new gold and diamonds showroom with the brandname Tiana Gold and Diamonds with an investment of Rs 100 crore in this financial year. The shops will be at Kothamangalam, Ernakulam and Dubai.
There is a huge potential for jewellery business in the state. The diamond segment is growing among youngsters in an aggressive manner. Since we are in the business for quite a long time, the group wants to cash in the credibility factor,” said Shibu Theckumpuram, Chairman, KLM Group.
Making charges is the area through which jewellers make a killing. At present, the margin ranges from 5-40 per cent.
Kalyan Jewellers, Malabar Gold, Joy Alukkas, Alapatt, Riti Jewellery are some of the major jewellery brands from Kerala which later became big players in the segment.
“Jewellery business is considered a business which has lots of profit yielding potential on account of its great demand. That business is having least risk quotient. Even if there is no demand still business can earn huge profits by selling the metal only. With the advance booking facility, jewellers could accumulate money to run the business without much risk,” said G Sanjeev Kumar, Managing Director, Progno Financial Planning Systems.