Joyalukkas IPO

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Joyalukkas IPO Details

Joyalukkas Limited IPO
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Why Subscribe to Joyalukkas IPO

Joyalukkas India Limited one of the leading jewellery companies in India in terms of revenue in Fiscal 2021 (Source: Technopak Report). Its jewellery business includes the sale of jewellery made of gold, studded and other jewellery products that include diamond, platinum, silver and other precious stones. The company has a presence across multiple regions in India with a focus on southern states. The company operates 85 showrooms under the “Joyalukkas” brand located across 68 cities in India with an aggregate area of approximately 344,458 square feet, as of January 31, 2022. The company has a range of over 100,000 jewellery designs, across various price points and caters to customers across all market segments.

Objects of the Offer :

The Offer comprises of a Fresh Issue aggregating up to ₹23,000 million. Out of the net proceeds from the fresh issue, ₹14,000 million would be utilized for Repayment or pre-payment, in full or part, of certain borrowings availed by the Company, ₹4,639 million would be used for Financing the opening of the New Showrooms, and the balance would be used for general corporate purposes.

Joyalukkas IPO Analysis

Consistent track record of financial performance:

The company’s revenue from operations has remained flat since the onset of the pandemic. The revenue from operations was ₹80,918.42 million in FY19 and was ₹80,662.93 million in FY21. EBITDA increased from ₹5,876.76 million in FY19 to ₹ 9,462.51 million in FY21 while PAT increased from ₹1,161.38 million in FY19 to ₹4,717.54 million in FY21.

Consolidated Financial Summary Of Joyalukkas

(`₹ in Millions) FY19 FY20 FY21
Revenue from Operations 80,918.42 80,237.88 80,662.93
EBITDA 5,876.76 6,488.56 9,462.51
EBITDA Margin 7.26% 8.09% 11.73%
PAT 1,161.38 407.05 4,717.54
EPS (₹) 1.51 0.53 6.12
ROE 9.77% 3.26% 27.42%

Competitive Strength:

Established homegrown brand with focused sales and marketing strategy

Joyalukkas has created high brand recall through consistent quality, extensive market reach, innovative and customised design, high service level and an evolved marketing strategy (Source: Technopak Report). The company was among the pioneers in the Indian jewellery market to introduce price transparency into its products (Source: Technopak Report). Its focus on core values of trust and transparency has contributed to its strong brand recognition and customer loyalty. The company’s branding and its marketing efforts have contributed to its prominence as a leading jewellery chain in India (Source: Technopak Report). Joyalukkas has strengthened its brand portfolio with local, targeted marketing strategies aimed at different customer profiles, various markets and price segments and for various uses and occasions. The company also partners with local artisans to develop location and community specific product ranges and designs, as well as employing local showroom staff for effective engagement with customers. Its marketing initiatives include advertising through various media, such as, television, radio, newspapers and magazines, online advertisements, hoardings and displays, advertisements in the cinema halls, bus terminals, railway stations and similar displays.

Leading jewellery company in India and well positioned to capitalize on industry growth

Joyalukkas maintains an inventory of jewellery made of gold, diamond and other precious stones, platinum and silver, all with an extensive array of designs. Its gold, diamond and other jewellery inventory in each individual showroom reflects regional customer preferences and designs. Its focus on design and innovation. It’s ability to recognize consumer preferences and market trends, the intricacy of its designs and the quality and finish of the products are its key strengths. The company believes that its strong brand, scalable business model, effective operational processes and proven track record of profitable expansion, positions it well to capitalise on the growing market opportunity.

Presence across India with a strong foothold in South India

Joyalukkas has an entrenched presence in South India and a growing presence in the rest of the states in India. Its total showroom count has grown from 77 showrooms across 67 cities, as of March 31, 2019 to 85 showrooms across 68 cities, as of March 31, 2021. As of January 31, 2022, the company had 5,132 employees across various categories, i.e., permanent employees, employees under probation and employees doing their apprenticeship with over 4,227 retail-focused employees across 85 showrooms having a retail area of 344,458 square feet which covers 13 states and union territories in India. Its showrooms are usually located in high-visibility and high-street areas. The company’s typical showroom has an average size of 4,000 square feet and 50 staff, majority of whom are sales personnel. The company has a standardized and scalable development model for its showrooms based on its know-how and experience. The showrooms are situated in locations that have significant footfalls such as high street locations and shopping malls.

Diversified product portfolio across categories and price points

As of January 31, 2022, Joyalukkas’ product portfolio comprises over 1 lakh jewellery designs, including a wide range of gold, diamond and other jewellery products across different price points. Its products are also sold under eight sub-brands, and under stringent quality control processes, including various official and other tests for different jewellery. Each collection serves customers with different needs and preferences for different designs. The company’s sub-brands such as “Pride”,“Eleganza”,“Veda”,“Apurva”,“Ratna” and“Zenina”, are designed to cater to specific customer niches such as classic jewellery, contemporary jewellery and polki diamonds and precious stones jewellery. The company’s products cater to different occasions including special occasions, such as weddings and party-wear, jewellery for personal milestones, festival jewellery, daily-wear jewellery, kid’s jewellery and men’s jewellery. Its products are available in multiple jewellery options, including rings, earrings, pendants, bracelets, necklaces, chains, waist bands and bangles.


  • Its showrooms are located mostly in South India. Any adverse development affecting such a region may have an adverse effect on its business.

  • Its ability to attract customers is dependent on the success and visibility of its showrooms.

  • The company has significant working capital requirements and if it is unable to secure adequate working capital loans on commercially reasonable terms it could have a material adverse effect on its business.


  • The growth in the number of households exceeds population growth, which indicates an increase in nuclearization in India. It is expected that smaller households with higher disposable income will lead to a greater expenditure in, among others, jewellery.

  • The biggest driver of growth in the jewellery sector is the growing income profile of India. A continuous economic growth with a favorable demographic profile and high contribution of private final consumption expenditure (“PFCE”) are growth drivers to the Indian jewellery sector.

  • Expenditure on jewellery is the second-highest retail category with approximately 6% in overall retail consumption basket of India in Fiscal 2021 and will be a close second to apparel and accessories by 2025.

  • The impact on jewellery has been less severe as compared to other discretionary categories like apparel and accessories given the Price and income inelasticity of wedding-related jewellery demand, which underpins the sustenance of this category. Wedding and wedding-related jewellery, which constitutes 60% of India’s total demand, will thus remain resilient.


  • The non-availability or high cost of quality gold bullion, diamonds and other precious and semi-precious stones may have an adverse effect on its business.

  • Jewellery purchases are discretionary and are often perceived to be luxury purchase. Any factor which may bring discretionary spending by consumers under pressure may adversely affect its business.

  • The company may be subjected to fraud, theft, employee negligence or similar incidents.

  • The company operates in a competitive market and any increase in competition may adversely affect its business and financial condition.

Strategies going forward:

Continue to expand its retail network in a cost-efficient manner by leveraging its Joyalukkas brand

Joyalukkas intends to leverage the scalability of its operations and expertise in developing the branded jewellery market in India to grow its network in existing and newer geographies. Over the next 2 years, the company intends to open eight new showrooms across India with a particular focus on the state of Telangana, Maharashtra, Odisha and Karnataka. The company will continue to adopt a methodical approach in evaluating and selecting suitable locations for the establishment of new showrooms, such as local population density, rental lease rates, market potential, accessibility and proximity to its competitors. The company’s showrooms will be tailored to local preferences, with comprehensive offerings from its various product ranges, to target various customer and price segments as well as to provide custom made jewellery.

Focus on increasing the sale of studded jewellery

Joyalukkas also intend to use its branded jewellery lines and its wide retail operations to increase its market share in the jewellery industry in India. The company intends to continue to increase its focus on studded jewellery going forward and in non-southern states in India as these products have become increasingly popular, and also typically have a higher margin profile than its gold jewellery. The company intends to tailor its showrooms to offer prominent displays of such studded jewellery and, in many cases, have entire floors dedicated to such jewellery. It is continuing to explore opportunities to extend its product offerings in its various existing sub-brands, targeted at both specific customer niches as well as the luxury market focused on high-end gold and studded jewellery.

Focus on expanding its product and brand portfolio to cater to existing portfolio gaps

To maintain its operational efficiency, Joyalukkas intends to continue to develop its existing branded jewellery lines and introduce additional designs and seasonal product offerings to cater to its customers and develop its diamond and platinum jewellery markets through the expansion of its retail operations. Joyalukkas also intend to leverage its goodwill associated with its existing brand, to further develop its various sub-brands in target markets and product segments in India. The company intend to do so through expansion of its retail operations, continued marketing initiatives, promotional campaigns and advertising.

Leveraging technology to grow its operations and focus on online channels

Joyalukkas has invested in and implemented a cloud-based enterprise resource planning solution that allows it to manage all its accounting, procurement and project and risk management functions. It has also implemented a cloud marketing solution for its marketing campaigns, social media and advertising efforts, and are revamping its e-commerce platform, with progressive web apps, artificial intelligence and virtual reality capabilities for relevance. With the implementation of its technology initiatives, the company intends to streamline its operations further and expects to decrease its operational expenses which will drive its revenue growth.

Focus on B2B segment and arrangements with leading corporates

Joyalukkas follows a structured approach for its product development which involves market research, sales analysis, brand development, media campaigns and promotions. This has helped us forge relationships with its corporate customers and gain increased business through their customers/clients. The company’s structured approach toward brand development through its B2B offerings and its execution capabilities has enabled the company to create relationships with leading corporate clients. It has a dedicated business division that caters to its corporate clients. The company also offer certain customized gifting options for its corporate partners, based on their requirements. The company aims at enhancing its corporate clientele which results in the creation of strong brand equity and increasing its customer footfall and revenues.

Continue to invest in its marketing and brand building initiatives.

Joyalukkas marketing and promotion efforts seek to increase sales by increasing brand awareness that stimulates interest in its product range and entrenching its position in the Indian jewellery industry. Going forward, the company’s strategy is to increase market its products to its millennial customers through digital media, such as social media websites, rather than focusing primarily on print media. Its branding strategy helps the company to retain existing customers and attract new customers. The company intends to continue investing in its marketing initiatives and brand building exercise, including advertising through various media and celebrity endorsements. It would also continue to provide effective training for its sales personnel in sales techniques and product knowledge.

Disclaimer -

The content on this page is made available on the basis of the DRHP (draft red herring prospectus ) filed by Joyalukkas India Limited. The final content could change based on the Red Herring Prospectus (RHP) filed

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