Risks
Commodity Price Volatility: Fluctuations in the prices of gold, rough diamonds, and other precious metals can impact raw material costs and profitability.
Economic Slowdown: A downturn in the domestic or global economy can reduce discretionary consumer spending on jewellery.
Regulatory Changes: Changes in import/export duties, taxation (e.g., GST rates), hallmarking norms, anti-money laundering regulations, and environmental standards can affect operations and costs.
Intense Competition: The industry is highly competitive with numerous organized and unorganized players vying for market share.
Supply Chain Disruptions: Geopolitical events, trade restrictions, or issues in key diamond mining regions can disrupt rough diamond supply.
Reputational Risk: Concerns around ethical sourcing, "blood diamonds," or the rise of lab-grown diamonds can impact consumer perception and demand for natural diamonds.
Forex Fluctuations: As raw materials are often imported and finished goods exported, currency exchange rate volatility can affect margins.