India’s Jewellery Sector Sees Massive Consolidation Wave as Organized Retail Takes Hold
New Delhi: The Indian jewellery industry is undergoing a structural transformation, characterized by a rapid wave of consolidation. As domestic giants race to bolster their geographic footprints, modernize digital infrastructure, and diversify product portfolios, the traditional, fragmented nature of the market is giving way to a new era of organized corporate retail.
The most notable indicator of this shift is the recent decision by Chennai-based GRT Jewellers India Pvt. Ltd to acquire a controlling 74.12% stake in the listed retailer Tribhovandas Bhimji Zaveri (TBZ) Ltd for Rs. 1,033.71 crore. This high-profile deal underscores a broader trend of consolidation that is reshaping the competitive landscape.
Strategic Expansion and Market Formalization
Jewellery retailers are increasingly turning to M&A activity to plug strategic gaps. For GRT Jewellers, the acquisition of TBZ—a brand with 37 showrooms predominantly located in western India—serves as a vital gateway to expand beyond its stronghold in the south.
Similar moves are playing out across the industry:
- Senco Gold Ltd invested Rs. 68 crore to acquire a 68% stake in August Jewellery Pvt. Ltd, aimed at bolstering its digital and omnichannel capabilities.
- P N Gadgil Jewellers diversified its offerings by acquiring Silvostyle Jewellers for Rs. 27.96 crore, specifically targeting the growing silver jewellery market.
- Titan Co. expanded its international reach with a 67% stake in Dubai-based Damas Jewellery.
The data suggests a rapid formalization of the sector. According to a recent report by Motilal Oswal Financial Services, the organized segment’s market share has nearly doubled, rising to 40-45% of the estimated Rs. 8.5 trillion industry in FY26, compared to just 20-25% in FY19. This transition has been accelerated by mandatory BIS hallmarking, which has bolstered consumer trust in organized brands over local, unorganized jewellers.
Capital Markets and Geographic Reach
The shift toward formalization is also evident in the flurry of public listings. August saw companies like Lalitha Jewellery and the B2B firm Augmont Enterprises enter the stock markets, with other players like Priority Jewels and Deepa Jewellers following suit.
Beyond listing, retailers are aggressively moving into smaller cities. Between June 2024 and June 2025, the total store count for organized jewellers grew by approximately 17%, with smaller, Tier-II and Tier-III cities accounting for nearly 68% of new showroom additions. Companies are specifically targeting under-penetrated markets in Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan.
Premiumization and Changing Consumer Habits
A key driver of margin growth is the focus on “premiumization”—shifting consumer preference toward higher-value studded jewellery, which commands better margins than plain gold. Industry leaders like Kalyan Jewellers have seen their studded jewellery mix rise significantly, while younger demographics are fueling a surge in demand for lightweight, daily-wear jewellery. This has allowed niche players like CaratLane and Candere to record impressive revenue CAGRs of 40% and 30%, respectively, over the last few years.
Policy and Regulatory Shifts
The government’s regulatory agenda is also accelerating the transition. With the mandatory hallmarking of silver jewellery expected to take effect in October, the sector is moving toward greater transparency. However, not all policies have been smooth sailing. While the government raised gold and silver import tariffs to 15% in May, industry experts warn this may have inadvertently encouraged illicit trade, leading to reports that authorities may consider a downward revision to 6%.
As the sector evolves, it faces a complex environment. Even as jewellers expand, they must navigate shifting macroeconomic headwinds, including recent appeals by Prime Minister Narendra Modi, who has encouraged citizens to avoid unnecessary gold purchases and opt for domestic tourism over overseas weddings. Despite these challenges, the momentum toward a consolidated, professionalized, and transparent jewellery market appears firmly set.
