'I see strong potential for silver jewellery' Rajmal Lakhichand Jewellers is a partnership firm that is more than 150 years old and is owned and managed by the same family for six generations. Having confined itself to Maharashtra, it is ready to step out of the state, launch branded jewellery and a B2C portal. Partner Amrish Jain talks about the firm's plans and prospects.
What kind of a company is Rajmal Lakhichand?
Rajmal Lakhichand is a partnership firm which has been in the retail jewellery business since 1854, having large format jewellery stores in Jalgaon, Pune, Kolhapur and Nasik. We cater to diamond, gold, silver and imitation jewellery requirements, all under one roof.
How would you describe the Indian market?
The Indian market is primarily a gold jewellery market. The demand in the rural areas and small towns is mainly for gold jewellery. It is in the urban areas that there is a demand for diamond jewellery. India is primarily a market for traditional jewellery, but branded jewellery is also picking up.
What market do you cater to?
RL caters to the value for money market. We maintain a regional focus for every outlet, to cater to all regional jewellery requirements.
What are your expansion plans?
We will soon be stepping out of Maharashtraby starting a large format jewellery store in Surat this August. Next in line are similar stores in Mumbai [in Dadar (W) and Borivali (W)] and Aurangabad, which will be functional by Diwali 2008. Property for them has already been acquired. We have plans to open two more showrooms in Pune, as well as outlets in Ahmednagar, Latur and Nagpur by 2009. We will be entering the branded jewellery segment under the brand name 'Aarel' (this is RL phonetically, which stands for Rajmal Lakhichand), where we will focus on the fashion jewellery segment. This will be primarily silver jewellery, and for this our B2C portal should be in place by Diwali 2007.
Where do you see your company three to five years from now?
Since we offer value-for-money products, I expect that Rajmal Lakhichand will have a lion's share of the Indian jewellery market.
What do you see as the scope for large format retail outlets set up by big companies?
They do not pose a threat to the traditional players, who know their customers well and are strongly entrenched, and function on thin margins, keeping high volumes.
What scope do you see for the growth of the market for branded jewellery?
As I said earlier, branded jewellery is coming up, though India is still primarily a market for traditional jewellery. Consumer tastes in India differ from region to region, and there cannot be absolute standardization in handmade jewellery, which is sold by weight and not by piece. This trait in Indian consumer demand means that branded jewellery will do very well in the fashion jewellery segment, not in the traditional market.
What other trends do you see in the Indian jewellery market?
I see very strong potential for silver jewellery in future, though at the moment the demand for silver is mainly in the form of utensils, puja articles, payals and bichudi.
"India is primarily a market for traditional jewellery, but branded jewellery is also picking up"
Amrish Jain,
Partner, Rajmal Lakhichand Jewellers
