Setup in 1094 Manoj Vaibhav Gems are a hyperlocal jewellery retail chain with presence in the micro markets of Andhra Pradesh & Telangana with 13 showrooms (including 2 franchisee showrooms) across 8 towns and 2 cities. They have a market share of 4% of the overall Andhra Pradesh and Telangana jewellery market and 10% of the organised market in these
two states in FY ‘23. They were one of the earlier entrants in the organised jewellery retail market of Andhra Pradesh and continue to focus on regional expansion into the high growth untapped regions and micromarkets. They connect with target groups through exhibitions to understand the taste and preference of the customers. The brand, Vaibhav Jewellers, is a known name in 166 Andhra Pradesh & Telangana with a loyal customer base.
India is the world’s second largest market for gold with an average consumption of close to 700 -750 tons.
The Indian jewellery retail sector’s size in FY ‘23 was close to USD 70 billion. The sector’s organized retail share stood at 32%, comprised of national and regional players, while the rest of jewellery retail continues to be dominated by the unorganised segment.
The jewellery retail market is expected to grow to approximately USD 124 billion by FY ‘27 on account of the growing economy and rising disposable income, increasing consumer demand for gold, growth in gold prices and rising demand for other categories like diamonds, other precious stones and costume jewellery.
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+ Leading Home-Grown Regional Brand: : They are concentrated in the micro markets of Andhra Pradesh and Telangana over a period of almost three decades. Given the track record in these micro markets, they understand the sentiments and preferences of the local customers.
+ Early Mover Advantage: : They have been amongst the first movers in the organised jewellery business in the state of Andhra Pradesh by starting business as a proprietorship concern in the year 1994 from our first showroom in Visakhapatnam. They continue to focus on regional expansion into the high growth untapped regions within the micro-markets.
+ Rural Market Focus: : 77% of their showrooms are in Tier 2 and Tier 3 cities catering to the semi urban and rural demand of Andhra Pradesh and Telangana. Growth in farmer’s income, increase in farm yield and increase in income in coastal area will help grow jewellery sector since rural consumers invest their savings predominantly in gold jewellery.
+ Go To Market Strategy: : Their GTM model helps in collecting critical market data viz., demographics of such location, existing businesses in the surrounding areas, the site quality such as site visibility, footfall generation, parking and accessibility of the location to the customers, etc. It enables us to know the market trends and also map competition in their area.
+ Experienced Promoter:: They are led by a management team with extensive experience in the jewellery industry.
- Quality Raw Material:: The non-availability or high cost of quality gold bullion, silver, diamonds and other precious and semi-precious stones may have an adverse effect on business.
- Working Capital:: They have significant working capital requirements and may require additional capital and financing in the future. The ability to access capital at attractive costs also depends on credit ratings. Their operations could be curtailed if they are unable to obtain required additional capital.
- Regional Focus:: Due to regional concentration, they run risk of any political or economic instability, or natural calamity in the region affecting the business.
- Competitive Market: : They operate in a competitive market and face competition from other jewellery retailers. Any increase in competition may adversely affect business and financial condition.
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