With Diwali and the wedding season approaching, we anticipate a significant boost in sales, said Siddharth Sipani, Chief Financial Officer (CFO) of Sky Gold & Diamonds, in an interaction with BW CFO World. He added that the company’s exposure to US tariffs is minimal, as the majority of its exports are directed to Asian markets, including the Middle East and Singapore.
Edited Excerpts:
In the post-pandemic landscape, the role of the CFO has expanded beyond traditional responsibilities such as accounting, taxation, compliance, and funding to now encompass functions across supply chain, technology, sustainability, and more. Have you observed a similar broadening of your own role?
Yes, I would say that post-pandemic, the role of a CFO has changed significantly. We are in a Volatility, Uncertainty, Complexity, and Ambiguity (VUCA) world, and every day and every week brings a new set of challenges.
As a CFO, the main focus is to be future-ready to guide the organisation and provide strategic insights to the board so that the company is well-positioned to face any challenges.
With the advent of AI and the increasing availability of technology, the industry is becoming more competitive each day. Therefore, a CFO must adapt to these changes and identify the most suitable technologies and strategies in terms of both IT and overall finance that will work best for the organisation as a whole.
In the era of digital transformation, how is Sky Gold and Diamonds integrating financial technologies to streamline operations and enhance decision-making processes?
With the help of AI, many repetitive tasks can now be automated. By using the right stack of technology, we are working to streamline the entire process flow.
With automation and the use of AI and other software, we have also been able to reduce the lead time previously required to prepare various reports. Data accuracy has improved significantly, as the process is now structured with minimal human intervention.
These technologies have enhanced both the accuracy and the timely availability of reports, enabling better decision-making for the management. With automation, reports can now be generated at the click of a button. Earlier, there used to be a considerable lead time, but with the adoption of technology, we can now access real-time data.
Additionally, from a Finance and Accounting (F&A) perspective, we are using automation in design and other areas that earlier required extensive manual effort. With the help of technology, we have been able to automate these processes, improve efficiency, and enhance our ability to serve customers more effectively.
How do you see consumer preferences evolving in the Indian jewellery market, particularly among younger customers?
Traditionally, gold jewellery in India was viewed purely as an investment. However, with Gen Z and millennials, this perception is changing, as they now see jewellery as a blend of investment and fashion.
Younger buyers are increasingly focused on trendy, lightweight, and affordable designs rather than gold purity. This shift has also contributed to a rise in online sales, supported by the growth of Unified Payments Interface (UPI) payments and increasing disposable income.
The trend benefits organised retail players like us, as the market is gradually transitioning from unorganised to organised segments due to reforms such as the Goods and Services Tax (GST), Know Your Customer (KYC) norms, and the broader push for transparency. These measures have strengthened consumer confidence in compliant brands like Sky Gold and Diamonds.
How is GST impacting the jewellery sector, and what are your expectations for its future effect?
Currently, GST on jewellery remains steady at 3 per cent, and we do not anticipate any immediate changes. However, reductions in GST on other consumer products may lead to an increase in disposable income, indirectly boosting demand for jewellery.
Higher gold prices, coupled with stronger consumer spending, could support overall sector growth. We are closely monitoring economic developments to align our financial strategies accordingly.
Overall, we remain optimistic about the sector’s long-term trajectory, particularly given India’s rising middle class and evolving consumer aspirations.
How is the company preparing for the forthcoming festive and wedding seasons?
We remain very optimistic. Our B2B wholesalers are reporting strong traction despite high gold prices. Women continue to be the primary buyers, and their investment decisions have proven prudent, with many seeing the value of their gold assets double over the past two years.
With Diwali and the wedding season approaching, we anticipate a significant boost in sales. Rising disposable income and a younger demographic are key drivers of this growth.
We are also observing increasing competition in the jewellery sector, which is beneficial as it fosters innovation and enhances overall market perception. This is likely to attract more investors and elevate the industry’s reputation globally. |
