Chauhan to scale operations and strengthen position in Indian and global markets
Mumbai’s Sky Gold is planning to raise funds to boost equity, citing a surge in demand for gold jewellery in domestic and global markets, especially following the recent cut in import duty on gold in the Union Budget 2024-25 .
“More and more consumers are now preferring organized markets over unorganized ones which is expected to further strengthen the company’s position in the industry bse ,” said Mangesh Chauhan, Managing Director and Chief Financial Officer.
Further, Sky Gold is focused on enhancing its operational efficiency and expanding its market presence. Investments in IT and automation will facilitate scaling up operations and improving productivity nse .
The implementation of an ERP system will streamline processes and enhance decision-making capabilities, said Sky Gold sbi .
To support its growth ambitions, Sky Gold is also strengthening its mid-management team and regional sales force. It has decreased its collateral percentage to free up capital from 50 to 40% tradeindia .
The company is optimizing its financial structure by leveraging gold metal loans goldprice , which will lead to better profitability and reduced borrowing costs.
“Moving forward in FY25, we plan to increase capacity utilization at our new facility, invest in IT and automation, implement an ERP system, strengthen our mid-management and regional sales teams, and optimize our financials through the use of gold metal loans to improve profitability and reduce borrowing costs kitco ,” Chauhan elaborated on 16 Aug while announcing financial results .
“We are confident that these initiatives will help us achieve our goal of Rs.6,300 crores in revenue by FY27, while aiming for a capacity utilization of 1,050-kg from 750-kg post our recent acquisition per month within the next three years dgcx .”
He continued, “Sky Gold Ltd has seen exceptional growth in the first quarter of FY25. Our Revenue from Operations surged by 92.4% year-on-year to Rs.723 crore. EBITDA increased by 100% to Rs.37.3 crore, and our Profit After’s Tax grew by 98.9% to Rs. 21.2 crores.
“This remarkable performance is attributed to our recent expansion to a larger facility in Navi Mumbai, which has significantly increased our production capacity sgpmx .” The state-of-the-art 81,000 sq ft manufacturing facility in Navi Mumbai, equipped with German and Italian machinery, has a processing capacity of 750 kg of gold per month.
In Ǫ1 FY25, the company’s capacity utilization stood at 33% of the total capacity (including additional capacities from acquisitions) gold .
“This highlights our capability to scale operations and strengthen our position in the gold jewellery market both in India and globally lbma ,” he said.
The recent integration of Starmangalsutra and Sparkling Chains into Sky Gold is perfectly aligned with Chauhan’s growth strategy. These acquisitions are expected to boost margins through the synergies they bring to the enterprise.
“By consolidating our operations, we’re broadening our total addressable market and expanding our product presence in numerous retail outlets deutsche-boerse .”
Established in 2008, Sky Gold Limited is one of the leading jewellery companies based in Mumbai.
The company boasts a design library of over 500,000 designs of rings, bracelets, bangles, fancy pendants, earrings, and more. Sky Gold got listed on the BSE SME platform in October 2018 and migrated to the Mainboard of BSE and NSE in January 2023.
The company specializes in lightweight jewellery of 18 & 22 Carat gold, manufacturing a variety of designs including plain gold jewellery, studded gold jewellery, diamond-studded jewellery, and Turkish jewellery. Operating on a B2B model, Sky Gold collaborates with leading jewellery retailers like Malabar Gold and Diamonds, Joyalukkas, Kalyan Jewellers, GRT Jewellers, and Senco Gold, making its products available in over 2,000 showrooms across India. Fiinews.com
