Varyaa Creations Ltd Management Discussions

Our company is engaged in the manufacturing and import-export of high-quality jewellery and precious gems. We specialize in customized handcrafted designs, certified diamonds, and high-grade gemstones, serving both domestic and international markets.

In FY 2024-25, the company continued to focus on quality enhancement, expansion into new markets, and strengthening relationships with international clients. We also scaled up our digital presence and streamlined operations to improve efficiency and customer experience.

Your Directors have pleasure in presenting the Management Discussion and Analysis report for the year ended on 31st March 2025.

INDUSTRY STRUCTURE AND DEVELOPMENT:

The global gems and jewellery industry is a significant component of the luxury goods resilience, cultural value, and economic contribution. The industry is broadly classified into precious metals

(gold, silver, platinum), precious and semi-precious gemstones (diamonds, rubies, emeralds, sapphires), and finished jewellery products (traditional, contemporary, and bespoke designs). It encompasses a wide spectrum of players, including miners, manufacturers, wholesalers, retailers, and exporters.

Global Developments

In FY 2024-25, the global jewellery industry witnessed moderate recovery and strong demand in premium segments, particularly in North America, the Middle East, and parts of Asia. Key factors driving global growth include:

• Rising consumer preference for sustainable and ethically sourced jewellery

• Increasing demand for certified and branded products

• Growth of online retail and virtual try-on technologies

• Surge in demand for lab-grown diamonds, especially among younger consumers

Despite global macroeconomic uncertainties and inflationary pressures, the luxury segment has remained resilient. The integration of technology in the form of AI-powered design, e-commerce platforms, and blockchain for gemstone traceability has also transformed traditional business models.

Indian Market Developments

India remains one of the largest consumers and exporters of gems and jewellery, contributing significantly to the global supply chain:

• India accounts for nearly 75% of the worlds polished diamonds and is a global hub for diamond cutting and polishing.

• The country is a leading exporter of handcrafted and traditional gold jewellery, especially to the Gulf, US, and Europe.

• The domestic market saw increasing demand for branded and customized jewellery, driven by rising urban incomes and changing fashion preferences.

The Government of India has taken several steps to promote the sector:

• Reduction in import duties on gold and cut/polished diamonds

• Introduction of hallmarking mandates for gold jewellery

• Promotion of the sector under the PLI (Production Linked Incentive) Scheme

• Enhancement of trade infrastructure through Gems and Jewellery Parks and SEZs

Trends in FY 2024-25

• Digital Transformation: Online sales have become a major growth driver, especially in tier-1 and tier-2 cities.

• Sustainability Focus: Increasing importance on traceability, ethical sourcing, and environmental impact of mining.

• Export Momentum: Indian exporters benefited from strong demand in UAE, USA, and European markets, aided by trade agreements such as the India-UAE CEPA.

• Product Diversification: Growth in demand for fusion jewellery, minimalistic designs, and affordable gemstone jewellery.

SEGMENT-WISE PERFORMANCE: The Company trades in a single business segment. The Company has passed through a very unusual phase; any worthwhile comparison of performance between two periods would be inconclusive. There is, yet, considerable scope for improvement

OPPORTUNITIES AND THREATS: Opportunities

Expanding demand for ethical and certified jewellery in global markets

• Growing e-commerce and digital sales channels

• Government incentives for exports

• Rising preference for Indian jewellery designs in foreign markets

Threats

• Volatility in gold and precious metal prices

Currency fluctuations affecting export margins

• Regulatory changes and import/export duties

• Geopolitical tensions impacting international trade routes

OUTLOOK

The outlook for FY 2025-26 remains positive. We expect continued demand in both export and domestic markets, especially with growing awareness of branded and certified jewellery. We aim to increase our market share in Europe and North America, expand B2B partnerships, and invest in design innovation and sustainable sourcing.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The company has established robust internal control systems to ensure accuracy and reliability of financial reporting, operational efficiency, and compliance with applicable laws and regulations. Regular internal audits and reviews are conducted, and necessary improvements are implemented.

HUMAN RESOURCES / INDUSTRIAL RELATIONS: The Company has 6 employees including C.F.O. & Company Secretary on the role of the Company.

CAUTIONARY STATEMENT: Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be ‘forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates changes in the Government regulations, tax laws, and other statutes and other incidental factors.

	For Varyaa Creations Limited
	Mrs. Pooja Naheta
	Managing Director
	DIN: 03548285
Date: 02nd September, 2025
Place: Mumbai