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Deferred gold jewellery purchase schemes see decline

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India’s gold jewellery retail sector is undergoing a structural transformation as deferred gold purchase schemes — once central to retailer financing and customer retention — record their first major contraction in a decade. FY25 saw Tanishq’s deposits fall 19% to Rs.3,458 crore and Reliance Jewels’ decline 5% to Rs.333 crore, amid a 56% surge in gold prices to Rs.22 lakh per 10 grams.

Rising gold prices have eroded affordability, strained monthly commitments, and triggered defaults, exposing the rigidity of traditional savings-linked purchase models. Consumers increasingly prefer digital gold platforms offering flexibility, liquidity, and transparency — features absent in conventional schemes.

The World Gold Council now projects India’s gold consumption to fall to 600–700 tonnes in 2025 from 802 tonnes in 2024, underscoring behavioral shifts rather than cyclical correction.

While legacy jewellers plan to innovate through hybrid models and digital integration, the future of such schemes hinges on adaptability, regulatory modernization, and consumer-centric redesign. The market’s direction is clear — flexibility and digital convergence will define the next chapter of gold retail in India.

Key Insights

1. Structural, Not Cyclical: The decline represents fundamental misalignment between rigid scheme design and volatile market conditions, not merely temporary disruption.

2. World Gold Council : The rise of digital gold is permanent and will continue capturing market share from traditional schemes unless incumbents adapt.

3. Price Sensitivity Threshold: Consumer psychology shifts dramatically when gold crosses psychological price barriers (₹1 lakh per 10 grams), triggering behavioral changes.

4. Segmentation Imperative: One-size-fits-all schemes no longer viable; retailers must develop multiple product variants for different consumer segments.

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Shringar House of Mangalsutra Ltd. Flags Off the Pune Expansion, Inaugurated by PNG Jewellers CMD Saurabh Gadgil

The opening of Pune Sales Office to strategically drive expansion across Pune, Marathwada and Vidarbha region

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Shringar House of Mangalsutra Limited, India’s most trusted B2B gold jewellery manufacturer specializing in mangalsutras, has strengthened its presence in Maharashtra through the launch of a strategic Pune sales office, which was inaugurated by Saurabh V. Gadgil, CMD of P N Gadgil Jewellers Limited (PNG).

Shringar House of Mangalsutra Limited, India’s most trusted B2B gold jewellery manufacturer specializing in mangalsutras, has strengthened its presence in Maharashtra through the launch of a strategic Pune sales office, which was inaugurated by Saurabh V. Gadgil, CMD of P N Gadgil Jewellers Limited (PNG).

With Maharashtra playing an increasingly important role in India’s jewellery value chain, the company plans to deepen retail partnerships, expand its design portfolio and strengthen its B2B infrastructure across the region. The Pune office represents a foundational step in Shringar House of Mangalsutra Limited’s strategy to consolidate its position as a leading specialist in the mangalsutra category.

The Pune sales office will function as a central commercial and coordination hub for operations across Pune, Marathwada and Vidarbha regions, supporting closer engagement with jewellery retailers, wholesalers and corporate jewellery brands.

Pune’s location enables Shringar House of Mangalsutra Limited to service premium urban jewellery markets while extending efficient trade coverage to Marathwada and Vidarbha, where mangalsutras remain integral to bridal and ritual jewellery demand.

Commenting on the expansion, Chetan Thadeshwar, Chairman, Shringar House of Mangalsutra Limited, said: “Our Pune sales office is a strategic step aligned with our long-term vision to enhance accessibility, quality product and a wide variety of mangalsutras for retailers across Maharashtra. The state represents a critical market for us, and this expansion strengthens our ability to work closely with partners and support their growth with greater efficiency and consistency.”

Viraj Thadeshwar, CEO and Executive Director, Shringar House of Mangalsutra Limited, added, “The launch of our Pune sales office marks an important step in strengthening on-ground engagement with our retail partners in Maharashtra. This presence allows us to respond faster to market needs, improve supply efficiencies, and ensure consistent availability of designs across price points. As demand continues to evolve, our focus remains on building a scalable and agile distribution network that supports long-term partner growth.”

Speaking at the inauguration, Dr. Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers, said:

“I am honoured to be part of the inauguration of Shringar – House of Mangalsutra’s new office in Pune. Shringar has been a trusted partner to PNG Jewellers for many years, and our teams share a very close and collaborative working relationship. Mangalsutras are a significant and culturally important category in the Indian jewellery landscape, and Shringar is among the finest manufacturers in this space, known for their vast product range, exceptional designs and consistent quality.

This new office will further strengthen their ability to serve the western India market and support many more jewellers across the region. I extend my best wishes to Chetan Thadeshwar ji and his sons, Viraj and Balraj, for continued success.”

With decades of experience in mangalsutra manufacturing, Shringar House of Mangalsutra Limited continues to focus on design innovation, manufacturing excellence and dependable supply partnerships across India.

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