In an exclusive conversation with BW Retail World, Mangesh Chauhan, Managing Director & CFO of Sky Gold & Diamonds, shares insights on gold price volatility, consumer trends, and the company’s strategic roadmap for sustained growth in India’s evolving jewellery landscape
Gold prices have seen significant volatility recently, influenced by both domestic and international factors. How do you see current market trends shaping demand in India, particularly for lightweight and design-led jewellery where Sky Gold has a strong play?
Gold price volatility has driven a clear shift toward lightweight and lower-karat jewellery such as 9KT, 14KT and 18KT. Gen Z and young urban consumers are leading this trend, seeking affordable yet aspirational pieces that balance style and value. Sky Gold is well-positioned with innovative design, efficient manufacturing, and our recent 9KT collaboration with Senco Gold & Diamonds is a step in this direction. Separately, lab-grown diamond jewellery is fast gaining traction, appealing both to price-sensitive buyers and to aspirational solitaire customers who seek larger, fashionable designs at accessible price points.
With GST 2.0 expected to streamline compliance and bring more transparency to the bullion and jewellery trade, what impact do you anticipate on organised players like Sky Gold? Will it help expand market share for compliant brands?
GST 2.0 is a welcome move by the Modi government as it strengthens compliance, transparency, and trust across the bullion and jewellery industry. We are already witnessing a significant shift from unorganised to organised players, which not only benefits compliant organised jewellers like Sky Gold & Diamonds but also enhances revenue visibility for the government and supports the broader Indian economy. Greater transparency builds consumer confidence, while higher disposable income will drive aspirational consumption. Gold, being both a lifestyle purchase and a trusted asset class with strong historical returns, is poised to benefit further as more consumers embrace organised jewellery brands.
The festive and wedding season is traditionally a strong demand driver for gold in India. What kind of consumer sentiment and buying trends are you witnessing this year, and how is Sky Gold preparing to capture this festive frenzy?
The festive and wedding season remains a strong demand driver, and this year consumer sentiment is positive despite volatility. Buyers are gravitating toward value-driven purchases, especially in the mid-mass market where Sky Gold has a strong foothold. Lightweight jewellery across 9KT, 14KT and 18KT continues to dominate, complemented by growing interest in lab-grown diamond jewellery, which offers aspirational designs at accessible price points. Our recent 9KT launch with Senco Gold, expanding karat range, and focus on trendy, design-led products ensure we are well positioned to capture festive demand and cater to evolving consumer preferences in both gold and diamond categories.
International factors like central bank buying, dollar strength, and geopolitical tensions continue to impact gold prices. How do these global shifts affect your pricing strategy, margins, and hedging practices at Sky Gold?
Global factors like central bank buying, dollar strength, and geopolitical tensions influence gold prices, but Sky Gold manages volatility through pricing which is percentage of invoice value and a fully hedged position, making short-term fluctuations negligible. Longer-term price changes are offset by volume shifts. Diamond jewellery is largely insulated from gold price swings, providing stable margins and predictable pricing. Combined with agile pricing and operational efficiency, Sky Gold ensures profitability while serving both gold and diamond-studded jewellery segments.
Beyond short-term festive demand, what are Sky Gold’s medium to long-term growth priorities? Are you looking at expanding product categories, exports, or digital retail channels to strengthen your market presence?
Sky Gold’s medium to long-term growth strategy focuses on achieving a monthly sales of 4 tonnes of gold jewellery by expanding market presence, deepening customer relationships, and strengthening our role as a trusted B2B jewellery supplier. We have recently opened a B2B office in Dubai to serve large, medium, and small customers across India and the APAC region. Alongside geographic expansion, we are increasing our focus on studded diamond jewellery, including lab-grown designs, and continuing design innovation to meet evolving customer preferences, ensuring sustainable growth in both gold and diamond jewellery segments.
