Pune-based PNG Jewellers plans to expand its presence across India and is targeting 103 stores by the end of the current financial year, as the company looks to build on its presence across seven states.

Saurabh Gadgil, Chairman and Managing Director of PNG Jewellers, said the company's three-year strategy is centred on expanding beyond its traditional Maharashtra base and strengthening its presence across new markets.

He added, “As we speak, we are in seven states of India, and we want to further consolidate in these states. So, after Maharashtra, Goa, we are looking at Madhya Pradesh, Uttar Pradesh, Bihar, Delhi NCR as the belt which we are further going to develop on.”

PNG Jewellers will follow a two-brand strategy for its expansion. Its large-format legacy stores will continue to serve its traditional customer base, while YOOU by PNG will focus on lightweight jewellery, younger consumers and more frequent, no occasion-based purchases.

Gadgil said jewellery demand has improved after a slower start to August, with customer footfalls picking up during Shravan and Ganpati. He said the company is seeing greater interest in jewellery purchases compared with investment buying through gold bars and coins.

The upcoming Navratri and Diwali period is expected to be an important phase for the industry.

“People are buying jewellery. One trend for a quarter, which we have seen, is there is more interest in jewellery buying than investment buying. So, we are seeing less of bars and coins and more of jewellery,” he said.

The company is also seeing a shift in customer preferences towards lighter caratage jewellery, particularly in markets outside Maharashtra.

While 22-carat jewellery continues to dominate in Maharashtra, 18-carat is more common in diamond jewellery. In Central and North India, 14-carat plain gold jewellery is also gaining acceptance.

PNG Jewellers is experimenting with 9-carat jewellery in select markets, particularly among younger consumers. The company is stocking products across 22, 18, 14 and 9 carats to cater to different budgets and design preferences.
Studded jewellery is also seeing healthy traction at PNG Jewellers. Gadgil said the company's diamond business is growing at more than 40% year-on-year, although the segment currently accounts for around 12-13% of total sales.

The company is also seeing a clear shift from bullion towards jewellery. Bullion currently contributes around 20% of the overall business, while jewellery accounts for the remaining 80%.

Gadgil said the trend of customers exchanging old gold for new jewellery is supporting demand. The company expects this preference for gold jewellery to remain a positive factor for the broader industry.

P N Gadgil Jewellers' current market capitalisation is ₹8,964.64 crore.

Courtesy: CNBC TV