Thursday, May 30, 2024
Advertisement
  1. You Are At:
  2. News
  3. Business
  4. Smallcap stock secures $50 million order as gems and jewellery industry see rise in demand

Smallcap stock secures $50 million order as gems and jewellery industry see rise in demand

The gems and jewellery industry, a significant contributor to India's economy, faces challenges with a predicted 30-35% revenue drop in the diamond polishing sector for the financial year 2023-24 due to poor demand from the US, EU, and China.

Edited By: Nitin Kumar @Niitz1 New Delhi Published on: November 07, 2023 20:25 IST
Smallcap stock
Image Source : FREEPIK A free photo jeweler at work in jewelry

The gems and jewellery industry has become one of the largest businesses in the country. It plays an important role in driving the economy. As per statistical data, the industry contributes more than 7 per cent to the GDP. The industry also brings in a huge amount of foreign exchange and provides jobs to nearly 50 lakh people in both organised and unorganised sectors.

According to a PTI report, rating agency Crisil has predicted that India's diamond polishing industry will likely see a revenue drop by 30-35 per cent to USD 14-15 billion in the current financial year 2023-24 on poor demand from the US, EU and China. Notably, the three geographies account for 75 per cent of India's polished diamond exports.

Crisil added that demand in the second half will increase owing to the festivities, thus driving the revenue. Recently, Gujarat Toolroom announced that it has secured an order valued at USD 50 million for the export of diamonds.

According to a stock exchange filing, the diamonds procured will be utilised in the manufacturing of exquisite ornaments. 

"In line with commercial terms, the customer will make an initial advance payment to initiate the order, with the remainder to be settled against the Bill of Lading," the statement shared on BSE said.

Meanwhile, Gujarat Toolroom shares on Thursday went up by 2 per cent to hit a 52-week high of Rs 36.85 on BSE, as per exchange data. The stock has delivered a multibagger return of 192.46 per cent in three months.

Last month, Gujarat Toolroom which is into in industrial activities, announced to foray into the Dubai market with a focus on precious diamonds, stones, gold bars and the jewellery industry.

Advertisement

Read all the Breaking News Live on indiatvnews.com and Get Latest English News & Updates from Business

Advertisement
Advertisement
Advertisement
Advertisement