Page 25 - Bullion World Volume 3 Issue 2 February 2023

Bullion World | Volume 3 | Issue 2 | February 2023

Organised jewellery retailers to

outpace industry growth over

the medium term;

outlook remains Stable

Mr Vipin Jindal, Assistant Vice President & Sector Head, ICRA Limited

Mr Raunak Modi, Senior Analyst, ICRA Limited

Most organised jewellers have
recommenced expansion with a
focus on capturing the untapped
market in tier 2 and tier 3 cities in
H1 FY2023. The total store count
of ICRA’s sample set is expected
to increase by ~10% in the next
12-18 months, which is expected
to translate into market share gains
and economies of scale

The organised jewellery retailers Mr Vipin Jindal Mr Raunak Modi
in India are expected to continue
to outpace the industry over sample set of 15 major organised sample set is expected to remain
the medium term on the back jewellers to record revenue growth comfortable, supported by higher
of industry tailwinds in the form of ~20% YoY in FY2023 (revenue earnings on the back of improved
of accelerated shift in market growth was 28% in FY2022) scale of operations, despite likely
demand from unorganised against the expected industry moderation in margins and part
retailers and planned expansion growth of ~15% YoY in FY2023. debt-funded store expansions
of retail presence to capitalise on The debt protection metrics and being undertaken. The industry
the tailwinds. ICRA estimates its liquidity position of players in the outlook is Stable.

EXHIBIT: Industry outlook – fiscal trends

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