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Excerpts:
Q. Please tell us about Divine Hira Jewellers and its core business operations. What’s the business model?
Niraj Gulecha: So, we are a well-established gold jewellery company with a legacy since 1984. Our promoters initially started with silver articles in 1984. Then, gradually in 1997, we started catering to the small jewellery segment in small showrooms, especially in Pune. In 2004, we entered the gold segment, specializing in designing and marketing 22K gold jewellery, which includes chains, necklaces, bangles, mangalsutras, rings, and many more wedding jewellery pieces. We mainly cater our products to B2B clients like wholesalers and retailers. We outsource our manufacturing to skilled karigars and artisans with whom we have long-term relationships. While we manufacture our products through our karigars, we maintain strict quality control. We are located in Zaveri Bazaar, Mumbai, which is also known as India's gold hub.
Neha Vashishth Mahajan: So, I just wanted to also know what is the main reason behind launching the IPO right now? Why now?
Niraj Gulecha: Yes, expansion. You can say expansion of business. We are looking to prioritize our geographical expansions within India and internationally. With the capital raised through the IPO, we would like to accelerate our growth by targeting new markets, particularly where there is high demand for our products. We also want to introduce new products in line with market trends.
Q. So, as you mentioned Zaveri Bazaar, has thousands of jewellery dealers. What sets Divine Hira apart from its competitors?
Niraj Gulecha: Our design innovations, strong vendor network, and customer-focused approach set us apart from our competitors. With years of experience, we have earned a reputation of trust in the market. Our jewellery is of high quality, and we offer a variety of products. We have a perfect combination of modern and traditional designs. We ensure complete transparency in pricing and offer the best rates to our customers. These factors help us build long-term relationships with our customers, leading to repeat orders. We also provide individual attention to each customer, which further differentiates us from our competitors.
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Niraj Gulecha: The company’s financials are strong. Our revenue and profit margins have increased year on year. We are adding new clients every year. We are more focused on jewellery sales with higher margins. These high-margin products, we believe, will help us build strong profitability in the long run.
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Niraj Gulecha: Currently, we do not have any in-house manufacturing. Our primary focus is on expanding our B2B business by adding more clients and customers. We want to grow and establish our presence in different states like Karnataka, Delhi, Gujarat, and also begin exports internationally. However, in the future, we do have plans to develop our in-house manufacturing unit as part of our long-term growth strategy.
Q. What about showroom expansion? Is the company looking to enter B2C as well, or will it remain a B2B model for now?
Niraj Gulecha: For now, our primary focus remains on the B2B model, expanding our network of wholesalers, retailers, and corporate clients across India and international markets. We aim to strengthen our presence in new states and grow through strategic partnerships and participation in various exhibitions. However, as we scale, we may evaluate the possibility of opening showrooms in the future, depending on market demand and business growth opportunities.
Q. Divine Hira has quite a marginal employee strength. How is the company planning to manage operations once things get bigger? Are there any plans to increase employee strength as well?
Niraj Gulecha: Our business model is mainly B2B, and we outsource our manufacturing process to third-party artisans. This allows us to operate with a relatively small employee strength. Since we collaborate with third-party manufacturers on a labour job basis, we do not require an extensive in-house production team. However, as our workload increases post-IPO, we will strategically grow our team to support business expansion.
Q. Now, let us come to the main part, which is talking about the IPO. What are your expectations from the IPO, and how will the proceeds be used?
Niraj Gulecha: The objectives of the IPO are primarily to raise funds for working capital requirements. Around ?19 crores will be utilized for working capital. Additionally, a portion will be used for repaying certain loans, and ?6 crores will be allocated for general corporate purposes. The rest will be used for issue expenses.
Q. Some investors have previously lost money in SME IPOs. Many of them are quite doubtful about SME IPOs. What would you say to such skeptical investors? How would you address concerns and assure them that your IPO is a fair and transparent effort to raise funds for growth?
Niraj Gulecha: In today’s time, SME companies play a significant role in our economy. It is natural for investors to be cautious, but every IPO is unique. At Divine Hira Jewellers, we have built our business on trust, transparency, and quality—values that are reflected in our IPO as well. We have a strong financial track record, a clear growth vision, and a commitment to ethical business practices. Our pricing is fair, and we are fully compliant with regulations. Investors should always focus on the fundamentals, and we welcome them to be a part of our journey as we scale Divine Hira Jewellers to new heights.
(This article is generated and published by ET Spotlight team. You can get in touch with them on etspotlight@timesinternet.in)
