National News
Gold Exchange Schemes See Surge In Demand
Nearly 25% Of All Jewelry Buyers Now Opt For Exchange Programs Instead Of Outright Cash Purchases
In 2026, India’s retail gold sector is witnessing a significant paradigm shift. Driven by a combination of macroeconomic factors and strategic government appeals, gold exchange schemes have emerged as a dominant trend. Nearly 25% of all jewelry buyers now opt for exchange programs instead of outright cash purchases, marking a substantial increase from previous years.
Key Drivers of the Exchange Trend
1. Record-High Gold Prices
The primary economic catalyst for this shift is the unprecedented surge in gold prices. As fresh gold becomes increasingly expensive, consumers are unlocking the value stored in their existing assets rather than stretching their liquid capital to make new purchases.
2. Government Advocacy and Import Reduction
The trend is heavily backed by national policy interests. Prime Minister Narendra Modi has actively appealed to the public to utilize old jewelry for new purchases rather than buying fresh gold. The strategic goal behind this initiative is to curb India’s massive gold imports, thereby strengthening the current account deficit and stabilizing the national economy.
3. Aggressive Jeweler Incentives
Jewelers have rapidly adapted to consumer demand and government alignment by lowering the barriers to entry for exchanges.
Two major policy shifts are driving this retail adoption:
- Zero-Deduction Exchange Schemes: Traditional penalties and melting losses that previously deterred consumers from exchanging gold are being eliminated.
- Relaxed Documentation & Purity Standards: Retailers are now accepting old gold sourced from any jeweler starting at a purity level as low as 9KT, even without original purchase bills.
Market Implications
The 25% Threshold: The fact that a quarter of all jewelry buyers are now choosing exchange programs signifies that gold recycling is no longer a niche or distress-driven activity; it has entered the mainstream consumer behavior matrix.
- For Consumers: This shift provides a highly liquid, cost-effective way to upgrade designs and maintain asset value without facing heavy financial hits or bureaucratic hurdles (like tracking down decades-old receipts).
- For the Economy: By circulating existing domestic gold back into the supply chain, India reduces its reliance on international bullion markets, directly answering the government’s call for macroeconomic resilience.
National News
Sky Gold & Diamonds To Acquire Purvi Gems In Strategic Move To Drive Growth, Achieve Scale and Product Diversification
Rs 9 Crore Acquisition To Expand Lightweight & Studded Jewellery Portfolio and Boost Domestic and Export Growth
Sky Gold & Diamonds Ltd., (Sky Gold) one of India’s leading jewellery manufacturers and exporters, has successfully completed the acquisition of 100% equity shares of Purvi Gems & Jewellery (India) Private Limited, a company engaged in the manufacturing of uncut and precia jewellery and related products. Following the completion of the acquisition on October 7, 2026, Sky Gold is well-positioned to leverage Purvi Gems’ expertise in lightweight and studded jewellery to accelerate growth, enhance product diversification and strengthen its presence across key domestic and export markets.
The transaction is completed for a cash consideration of Rs 9 crores which represents 1.5x over its book value as of 31st Mar’26 and does not constitute a related-party transaction. Neither the promoter nor the promoter group of Sky Gold has any interest in Purvi Gems, reflecting the Company’s disciplined approach towards capital allocation and inorganic growth. The management of Purvi Gems to continue overseeing this business going forward, ensuring continuity and supporting the integration process.
Purvi Gems has built a strong position in specialised jewellery segments that continue to witness growing demand across key regions, including South India and Export market. The acquisition is expected to further enhance company’s exports while strengthening its ability to cater to evolving customer preferences in high margin studded jewellery business.
Key Strategic Benefits from Purvi Gems’ acquisition:
- Immediate entry into the fast-growing lightweight uncut & precia jewellery segment, expanding Sky Gold’s addressable market
- Increased exposure to the higher-margin studded jewellery category, supporting improvement in product mix and profitability
- Potential of ~100 kg of monthly sales, enhancing scale and operational flexibility
- Opportunity to unlock cross-selling opportunities and increase wallet share by leveraging Purvi Gems’ product portfolio across Sky Gold extensive customer network
- Enhances export opportunity through specialised products with strong demand across key international markets, particularly the Middle East
- Acquisition completed at book value, providing access to a business expected to generate over Rs 1,600-1,800 crore of annual revenue over the next two to three years, along with established customer relationships, specialised manufacturing capabilities, and an experienced team
- Continues Sky Gold’s proven acquisition, which has historically contributed to enhanced scale and improved market positioning
The acquisition represents another important milestone in the company’s growth journey and is aligned with the long-term strategy of expanding its capabilities through carefully selected and strategically relevant acquisitions mainly in value added products having higher margins. Over the years, Sky Gold has successfully integrated acquired businesses to strengthen its market position, broaden its product offerings, improve operational efficiencies and create long-term value for stakeholders. The acquisition of Purvi Gems builds on this track record and further enhances the Company’s presence across high-growth jewellery categories.
Track Record of Successful Acquisitions
| Acquisitions | Strategic Rationale | Pre- Acquisition Scale | Post- Acquisition Progress |
| Sparkling Chains Pvt. Ltd. | Entry into the fast-moving chains segment; broaden product portfolio | Turnover: ₹201 crore as on 31st March 2024 PAT: ₹0.1 crore | Turnover: ₹760 crore as on 31st March 2026 PAT: ₹22.3 crore |
| Starmangalsutra Pvt. Ltd. | Entry into the mangalsutra segment; broaden product portfolio | Turnover :- ₹171 crore as on 31st March 2024 PAT :- ₹0.07 crore | Turnover: ₹622 crore as on 31st March 2026 PAT: ₹22.9 crore |
| Speed Bangles Pvt. Ltd. (Erstwhile Ganna N Gold Pvt. Ltd.) (Revenues mainly on job work basis) | Entry into specialised lightweight bangle manufacturing; broaden product portfolio | Turnover: ₹0.87 crore as on 31st March 2025 PAT: ₹0.07 crore | Turnover: ₹42 crore as on 31st March 2026 PAT: ₹16.6 crore (Acquired in Aug’25) |
| Shri Rishabh Gold (Revenues mainly on job work basis) | Strengthen capabilities and expand customer base | Turnover: ₹49 crore as on 31st March 2025 PAT: ₹1.60 crore | Turnover: ₹175 crore as on 31st March 2026 PAT: ₹18.8 crore (Acquired in Dec’25) |
Commenting on the development, Mangesh Chauhan, Managing Director, Sky Gold & Diamonds Ltd., said:

“Strategic acquisitions have been an important driver of Sky Gold’s growth and value creation journey. Our disciplined approach to identifying and integrating businesses has helped us expand capabilities, diversify our product portfolio, improve operating efficiencies and strengthen profitability. Past acquisitions have contributed meaningfully to our scale and growth while creating long-term value for stakeholders. The acquisition of Purvi Gems is another step in this direction. The business brings complementary capabilities in the lightweight uncut and studded jewellery segments, an established customer base and a skilled team.
Given our proven track record of successfully integrating acquisitions and realizing operational synergies, we are confident that Purvi Gems will further strengthen our growth platform and support sustainable long-term value creation.”
Commenting on the development, Jigar Mehta, Director Purvi Gems & Jewellery (India) Pvt. Ltd., said:
“Over the last fifteen years, we have built a strong reputation in lightweight, uncut, and Precia jewellery through our commitment to quality, craftsmanship, and customer relationships. We believe Sky Gold’s scale, manufacturing capabilities, extensive customer network, and proven track record of integrating and growing acquired businesses provide the ideal platform for the next phase of our growth.”

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