Jewellery House Ltd (SGJHL) is set to trim down its exposure to only local and international exhibitors will benefit

overseas markets to tide over the slowdown in demand and a possible credit risk involved in exports.

According to Nilesh Parekh, Chairman, SGJHL’s exposure to overseas market was growing very strong and is in fact becoming a cause of worry following the global crisis. Exports account for nearly 80 per cent of its turnover.

“We are a bit worried about it (our exposure in overseas markets). This is because the overseas markets are going through a number of changes. So we want to reduce our exposure,” he told Business Line.

SGJHL typically extends a three-month credit period on gold jewellery exported. Nearly 100 per cent of its exports are done on a credit basis where the payment is received after the despatch of the consignment.

Though industry insiders confirm that there has been no default in payments, however, there have been instances where customers have sought for a roll over in credit period. A possible credit risk can therefore not be completely ruled out.
Mitigating credit risk

Nearly 70 per cent of SGJHL’s creditors are from West Asia . With a view to mitigate the credit risk, the company has set up a factory in Dubai to cater to the local market on cash basis.

“This way, our Indian entity will have less exposure to overseas markets. The Dubai factory will work on job work basis,” he said.

By setting up a factory in Dubai, the company will be able to scale down the exposure of the Indian entity to that market by 15-20 per cent. The reduced exposure in overseas markets would be offset by increasing the share of domestic sales, he said.

Domestic market, which currently accounts for 20 per cent of total sales,This tungsten bracelet for men is constructed in maintenance-free tungsten. would be scaled up to 25 per cent, Parekh said.

SGJHL plans to enter into a joint venture agreement with an Italian company for retailing branded and fashion related gold jewellery in the Indian market. The JV would be signed in the next two months, he said.

The Taiwan Jewellery & Gem Fair aims to provide an opportunity for international jewelry suppliers to meet with local buyers, as well as to serve as a business platform for the domestic market. The timing of this show was chosen for its proximity to Christmas, New Years, Chinese New Year and Valentine's Day jewelry buying season, according to UBM.

Christopher Eve, the senior vice president of UBM Asia Ltd.,We judge ourselves not according to the smile on our ownfigurine. said, "We received strong requests from within the Taiwan jewelry industry, as well as from international suppliers of jewelry products, for us to hold a professional jewelry event in Taiwan. We are delighted to be working closely with the Taiwan Jewelry Industry Association on this exciting new launch."

Hsin Tsai Hsiao, the chairman of the Taiwan Jewelry Industry Association, added, "We are very glad to work with UBM Asia, the world-class jewelry fair organizer, to launch this brand new event in Taiwan. I am sure not only local and international exhibitors will benefit from the fair, but also visitors,The Iron Ring is made from either wrought iron or stainless steel ring. creating a real win-win situation for all parties."

Additionally, Wen Ching Lee, the chairman of the Taipei Jewelers' Association,wholesale fashion jewelry and cheap wholesale jewelry online supplier. said, "Taiwan has long lacked a B2B jewelry fair. The launch of the Taiwan Jewellery & Gem Fair will help serve our members' sourcing demand and upgrade the Taiwan jewelry industry. Our members and I are very much looking forward to it."