PNGS Reva Diamond Jewellery Limited IPO

About PNGS Reva Diamond Jewellery Limited

Our Company was originally formed as a partnership firm under the name of Gadgil Metals and Commodities at Pune, under the Indian Partnership Act, 1932 pursuant to a partnership deed dated July 26, 2004 which was subsequently amended on December 9, 2015 and September 1, 2024 (collectively, the Partnership Deed). Subsequently, the partnership firm was converted into a public limited company under the Companies Act, 2013 with the name PNGS Reva Diamond Jewellery Limited and a certificate of incorporation dated December 20, 2024 was issued by the Registrar of Companies, Central Registration Centre. Our Corporate Promoter, P.N. Gadgil & Sons Limited undertook a disinvestment via a slump sale of their diamond business in favour of our Company pursuant to a business transfer agreement dated January 31, 2025 (Business Transfer Agreement) pursuant to which our Company has been involved in the business of retail diamond jewellery.

The Indian gems and jewellery industry is a significant pillar of the national economy, contributing approximately 7% to the country's GDP and around 15% of total merchandise exports. The sector is expected to grow steadily, driven by domestic consumption and international demand. India is the largest diamond-cutting and polishing hub globally, producing over 90% of the world's polished diamonds. The industry comprises various segments, including gold jewellery, diamond jewellery, coloured gemstones, and diamond-studded gold jewellery, with gold jewellery dominating the market. Gold plays a vital cultural and religious role in India, symbolising prosperity and wealth, and is an essential part of weddings, festivals, and other ceremonies. The manufacturing base is geographically concentrated in key states like Maharashtra, Gujarat, and Tamil Nadu. Organised players are gaining traction as the industry undergoes formalisation. Increasing consumer preference for branded jewellery, quality assurance, and contemporary designs is driving this transition. Government initiatives, such as mandatory hallmarking for gold jewellery, the Gold Monetisation Scheme, and easing gold import restrictions, are bolstering the formal sector. In 2024, seven major trade fairs were organised by prominent councils such as the Gem and Jewellery Export Promotion Council (GJEPC), the All India Gem and Jewellery Domestic Council and others. These events were held across cities, including Jaipur, Mumbai, Bengaluru, Coimbatore, Delhi NCR, Hyderabad, and Kolkata, showcasing the dynamic Gems and Jewellery sector in India. Serving as vital platforms, these fairs promoted innovation, enhanced domestic and international trade, and fostered collaborations among industry stakeholders. Domestic demand is fuelled by rising disposable incomes, urbanisation, and a growing preference for lightweight, modern designs, especially among younger consumers. On the export front, markets like the U.S., UAE, and Hong Kong continue to drive growth. Trade agreements and government support for export-oriented policies further strengthen India's position in the global market. While the sector holds immense potential, it faces challenges such as gold price volatility, dependency on imports, and increasing competition from synthetic diamonds. Fluctuations in international demand and compliance with stringent regulatory norms also pose risks. However, these hurdles are being addressed through policy interventions, innovation, and diversification. Technological advancements, while still emerging, are being explored to improve efficiency and build trust. Digital retail platforms and blockchain-based supply chain transparency tools are examples of these efforts. However, traditional factors such as India's skilled workforce, robust manufacturing infrastructure, and a deep-rooted cultural affinity for jewellery remain the primary growth drivers. In conclusion, the Indian gems and jewellery industry continues to thrive, blending traditional strengths with evolving consumer preferences and gradual modernisation. Its ability to adapt to changes while leveraging its heritage ensures its sustained growth and competitiveness on the global stage.

We are a retail focused jewellery brand involved in the business of sale of a wide range of jewellery made using diamond and precious and semi-precious stones which are studded into precious metals such as gold and platinum. We also retail plain platinum jewellery including rings, bracelets and chains. Our products are sold under our flagship brand, Reva. As a design-led brand, we offer designs across various price points tailored to various occasions and customer preferences. Our retail network comprises of one brand-exclusive store owned and operated by our Company and thirty-three shops-in-shop stores where we set up our brand in a dedicated space within the premises of the retail stores operated by our Corporate Promoter, P. N. Gadgil & Sons Limited (Stores), allowing us to leverage their established infrastructure and customer footfall while maintaining our brand identity. As on the date of this Red Herring Prospectus, we have 34 Stores across 25 cities in the states of Maharashtra, Gujarat and Karnataka aggregating to an area of 647.15 Running Feet. These 34 stores are divided into three categories, namely, (1) franchise owned and company operated (FOCO), (2) franchise owned and franchise operated (FOFO) and (3) company owned and company operated (COCO). Our product offerings are designed to cater to a broad spectrum of customers, starting at an accessible price point of approximately Rs.20,000 and going up till high-value jewellery. This entry-level pricing allows us to tap into a larger market, appealing to both first-time buyers and seasoned jewellery enthusiasts who seek high-quality designs without compromising on affordability.

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