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India Jewellery Sector Update - Hallmarking – Under-Appreciated Facets: ICICI Securities

India Jewellery Sector Update - Hallmarking – Under-Appreciated Facets: ICICI Securities

<div class="paragraphs"><p>A customer inspects jewelry inside a jewellery store in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
A customer inspects jewelry inside a jewellery store in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Consensus understands and appreciates jewellery hallmarking as a tailwind for industry formalisation.

In our view, the impact is far higher. We believe that jewellery hallmarking may likely lead to:

(1) further industry consolidation (apart from formalisation),

(2) likely traceability of raw material (gold) leading to potentially higher imports through formal route,

(3) material business disruption for informal players in converting their inventory to hallmarked standards (necessity to melt and recreate ornaments),

(4) opportunity for design-oriented brands to realise higher brand premium (versus commodity++ / unbundled pricing mostly, as of now).

Click on the attachment to read the full report:

ICICI Securities Consumer Jewellery India Report.pdf

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