#01 Highlights: This company aims to achieve ₹1,000 crore in revenue by FY27, supported by a fivefold increase in production capacity planned for FY26, positioning the company for long-term growth.
is rising inventory value a problem? Is it just because of the increase in gold price or is there some other factor at play? Inventory value has more than doubled from fy 23 to fy 24. Btw excellent article, one of its kind.
While the increasing price of gold plays a significant role, other contributing factors are also at play -
1. Strategic Inventory Build-up: RBZ Jewellers strategically increased their inventory levels following their IPO in December 2023. The influx of funds from the IPO facilitated this buildup. This approach aimed to ensure sufficient stock to meet anticipated demand, particularly in light of their ambitious growth plans and capacity expansion initiatives.
2. Increased Demand: RBZ Jewellers has experienced strong demand across both their wholesale and retail segments
Appreciate the nice write up, can you also add about completion from Sky gold that RBZ might face ?
The Indian branded retail jewelry market is expected to grow at a 16% CAGR, reaching USD 145 billion by FY28.
- Gold jewelry demand segmentation: Bridal jewelry (50-55%), Daily wear (35-40%)
- B2C Market Share : Expected to hold 40% share
- B2B Market Share: Currently at 8-10%, showing significant room for expansion.
Focus on 3rd point, Organised B2B market pool is big enough for many players .
Also RBZ Focus on High-Demand Segments: Antique bridal jewellery is their gold mine!
Appreciate !
is rising inventory value a problem? Is it just because of the increase in gold price or is there some other factor at play? Inventory value has more than doubled from fy 23 to fy 24. Btw excellent article, one of its kind.
Thanks Sivaganesh for appreciation ,
While the increasing price of gold plays a significant role, other contributing factors are also at play -
1. Strategic Inventory Build-up: RBZ Jewellers strategically increased their inventory levels following their IPO in December 2023. The influx of funds from the IPO facilitated this buildup. This approach aimed to ensure sufficient stock to meet anticipated demand, particularly in light of their ambitious growth plans and capacity expansion initiatives.
2. Increased Demand: RBZ Jewellers has experienced strong demand across both their wholesale and retail segments
Thanks for the response. The answer is much appreciated.Understood
Very compelling persuasion. I hope a good ornament to my portfolio
Glad you find it helpful Devinder!