### **Overview** Goldiam International Ltd, established in 1986, is a leading vertically integrated manufacturer and exporter of diamond jewelry, specializing in both natural and lab-grown diamond (LGD) studded jewelry. With over three decades of experience, the company serves as a preferred OEM partner to major global retailers, department stores, and wholesalers—primarily in the U.S. market. In recent years, Goldiam has strategically expanded into the Indian consumer market through its direct-to-consumer (D2C) retail brand **ORIGEM**, marking a pivotal shift from a pure-play B2B exporter to a multi-channel player combining robust export operations with domestic retail ambitions. --- ### **Core Business Segments** #### **1. B2B Export Business (Primary Operations)** - **Target Market**: Mid-to-affordable segment of the U.S. bridal and diamond jewelry market. - **Clients**: Leading branded retailers (including Signet Group), department stores, wholesalers, and e-commerce platforms. - **Geographic Presence**: United States (dominant), with recent forays into Israel, the Middle East, and Australia. - **Products**: Natural diamond jewelry and lab-grown diamond (LGD) jewelry. - **Revenue Mix**: As of FY24–FY25, approximately 85% of sales are from bridal jewelry; LGD contributes a growing share, rising from 19% of revenue in Q2 FY23 to over 80% of B2B export revenue in Q3 FY26 (Nov 2025). - **Operations**: - Dedicated New York sales office. - Dual design teams in India and the U.S. ensure trend relevance. - Omnichannel services: e-commerce fulfillment, dropshipping, and consignment models. - Jewel Fleet, its B2B e-commerce platform, targets independent jewelers in North America with AI-driven inventory insights and fast delivery. #### **2. Backward Integration & Manufacturing Strength** - **Acquisition of Eco-Friendly Diamonds LLP (EDL)**: In 2021 (majority stake), expanded to 88%, enabling **in-house CVD-based lab-grown diamond production**. - **Vertical Integration**: One of the few fully integrated players globally—from growing diamonds (via CVD method) to cutting, polishing, designing, and manufacturing finished jewelry. - **Production Infrastructure**: - Three entities (Goldiam International, Goldiam Jewellery, EDL) co-located in SEEPZ, Mumbai. - Separate, dedicated lines for natural diamonds, LGD jewelry, and e-commerce orders. - **Cost & Margin Advantage**: - In-house production allows use of larger-carat lab-grown diamonds (2–5 carats), improving product differentiation. - Analytics-driven design and rapid recycling of returns enable faster inventory turnover. - Targets EBITDA margins of 30–35% in LGD jewelry and 45–50% in diamond growing. --- ### **U.S. Tariff Mitigation Strategy (Aug 2025)** - **Challenge**: U.S. increased tariffs on Indian diamond jewelry from ~16% to **56%** effective August 27, 2025. - **Solution**: Implemented a **U.S.-origin casting model**: - Raw gold is cast into unfinished jewelry at Goldiam’s U.S. subsidiary (Goldiam USA Inc.). - These castings are shipped to India for finishing (polishing, diamond setting). - Final products qualify under U.S. customs rules as U.S.-origin, reducing duty to **5.5% on incremental value addition (diamonds + labor)**. - **Impact**: - Protects margins despite global trade headwinds. - Ensures continued cost competitiveness vs. non-integrated peers. - Extended delivery timelines for dot-com orders (now 7–10 days), but demand remains resilient. --- ### **Retail Expansion in India: ORIGEM** #### **Brand Strategy** - **ORIGEM** is Goldiam’s exclusive D2C brand for lab-grown diamond jewelry in India. - Positioned as a **sustainable, affordable, design-first luxury brand** for modern Indian consumers. - **Target Customers**: Age 35–55, predominantly women with prior diamond experience but new to LGD; includes HNI segments. - **Pricing**: Average ticket size of ₹45,000–55,000; products priced at **1/4 to 1/5 the price of equivalent mined diamonds**. - **Design Edge**: Leverages 30+ years of global design expertise; contemporary styles based on U.S. bestsellers. #### **Retail Presence & Expansion (as of Nov 2025)** - **Store Count**: 11 ORIGEM stores operational: - **Mumbai**: Borivali, Kharghar, Bandra (Turner Road), Mulund, Andheri, Lower Parel, R City Mall (Ghatkopar), Airport Road. - **Bengaluru**: Phoenix Marketcity. - **Noida**: Central 50, Wave One Mall. - **Recent Store Launches**: - 10th store: Phoenix Palladium, Lower Parel, Mumbai (Oct 25, 2025). - 11th store: R City Mall, Ghatkopar, Mumbai (Oct 2025). - **Expansion Plans**: - **15–18 new locations identified** in North and South India. - Target: **20–25+ stores by March 2026**. - Long-term vision: **70–90 stores in 18–24 months**; **150–200 stores over 3–5 years**. #### **Omnichannel D2C Platform** - **E-commerce**: [www.origemindia.com](http://www.origemindia.com) launched to support online sales. - **Features**: Ring builder, customization tools, educational content, and seamless in-store/online integration. - **Growth**: Growing at 1–2 orders/day; early traction indicates strong consumer adoption. #### **Store Economics** - **Breakeven**: ₹20–30 lakh/month per store. - **Capex per Store**: ₹3.7–4 crore (₹2.7–3.2 Cr inventory; ₹40–60 L rental deposit; ₹40–50 L fit-out). - **Performance**: First three stores reached breakeven within 2.5 months; top stores project ₹1 crore/month in sales. - **Ownership Model**: 100% company-owned and operated; **no franchise model**. --- ### **Financial Strength & Strategy** - **Balance Sheet**: - **Debt-free** with strong cash reserves: **₹2,784 million (₹278.4 crore)** as of June 2025. - Raised **₹202 crore via QIP in Aug 2025**—the largest funding in Indian LGD retail, used to accelerate ORIGEM rollout. - **Shareholder Returns**: - Committed to returning **50%+ of post-tax profits** via dividends and buybacks. - Returned nearly **₹200 crore** to shareholders over five years. - **Margins**: - ORIGEM retail business: **42–45% gross margin** despite being the lowest-priced LGD brand. - B2B export segment: >20% margins, serving as a cash flow engine for retail expansion. - **Inventory Revaluation**: Benefited from stabilizing LGD prices (especially <2 carats), leading to **₹15 crore inventory revaluation gain (Nov 2024)**.