Grover Jewells IPO: A Pure-Play B2B Gold Manufacturer

Grover Jewells Limited is a Delhi-based gold jewellery manufacturer primarily catering to the B2B segment. The Company designs and manufactures plain gold, casting jewellery and machine-made chains across 22K, 20K and 18K gold through its fully integrated in-house facility. It supplies to wholesalers and retail jewellers across India, supported by long-standing trade relationships. With a promoter-led execution model, the Company is gradually expanding into retail, exports and value-added jewellery segments to diversify growth.

IPO Details

Strengths and Weaknesses of Grover Jewels' IPO

Now let’s move forward to unfold the whole business story and its numbers

The Gems and Jewellery sector is a significant pillar of the Indian economy, contributing approximately 7% to the nation's Gross Domestic Product (GDP) and employing around 5 million people. The Indian gold jewellery industry is one of the largest globally, driven by strong cultural affinity, wedding-led demand, festivals, and gold’s role as a store of value.

The total market size of the Indian jewellery sector is estimated to be $ 90 billion. Demand is structurally supported by favourable demographics, rising disposable incomes, and increasing urbanisation, although it remains price-sensitive and cyclical, closely tracking movements in gold prices. 

The sector contributes about 15.71% of India's total merchandise exports. India is the world's sixth-largest exporter of gems and jewellery, holding the top rank in cut and polished diamonds and silver jewellery exports. Manufacturing is typically working-capital intensive, as players must fund gold inventory while operating on thin making margins. Pricing power is limited since gold prices are transparent and market-linked, making scale, operational efficiency, and cost control critical for profitability.

The industry is undergoing a structural shift characterized by the increasing penetration of organized retailers and brands, which is driving demand by offering consumers greater variety in designs and products supported by regulatory measures such as mandatory BIS hallmarking, GST implementation, and increased consumer preference for quality and trust. However the industry remains exposed to key risks, including gold price volatility, demand cyclicality, high dependence on trade credit, and intense competition from both large branded retailers and regional unorganised players.

Company Overview & Business Model

The company was originally incorporated as "Grover Chain Private Limited" on October 12, 2021, and subsequently converted to a public limited company, "Grover Jewells Limited," on April 02, 2025.

The  company specializes in the manufacturing and designing of a wide range of wholesale gold jewellery. Their  collections include plain gold, studded, and semi-finished jewellery, mostly available in 22 Karat, 20 Karat, and 18 Karat.The company sources raw materials like pure gold and alloys, processes them in its induction furnaces, and sells the finished goods primarily to wholesalers and jewellery shop owners. They  also sell hallmarked as well as non-hallmarked jewellery in their two  showrooms located at Karol Bagh, New Delhi and Chandni Chowk, Delhi. They also provide a job work segment, wherein small jewellers provide gold and designs. Grover Jewells undertakes manufacturing for a fixed labour charge. This segment offers stable, low-risk income with minimal gold price exposure, though it contributes a small share to overall revenue.

The  company commenced its operations with a specialization in the large-scale manufacturing of gold chains, serving both wholesale and retail markets. Over the years, with consistent focus on quality, precision, and design innovation, they have significantly broadened our product range. Their product portfolio now includes an extensive selection of finely crafted jewellery, comprising bangles, rings, necklaces, and complete sets.

It possesses a fully integrated in-house manufacturing facility spread over 1,003.20 square meters, equipped with advanced Italian, Chinese, and German machinery for processes such as casting, laser cutting, and chain making. All functions ranging from design and development to manufacturing and packaging are executed within the facility, ensuring seamless coordination and complete quality control. The  design capabilities are strengthened by a dedicated team of skilled CAD designers, supported by select freelance designers, allowing us to consistently introduce fresh, intricate, and market-relevant designs.

In a traditional industry, the company leverages technology through its proprietary mobile application, "Grover Jewells." This platform serves as a digital catalog, allowing B2B clients and retail customers to browse live inventory and place orders remotely. This digital reach enhances customer engagement and streamlines the ordering process beyond physical boundaries

Revenue by Activity

• Manufacturing (Sale of Goods): This is the core revenue driver, contributing 99.76% of total revenue from operations for the period ended October 31, 2025. The company manufactures plain gold, studded, and semi-finished jewellery at its in-house facility in Delhi.

• Job Work (Service Income): The company generates a small portion of revenue through "Job Work," where it processes raw gold and designs provided by small jewellers into finished products in exchange for labor charges. This segment contributed 0.24% of revenue for the period ended October 31, 2025.

Revenue by Purity (Caratage): The company manufactures jewellery in 22, 20, and 18 Karat gold.

• 18 Karat Gold: Currently the dominant revenue source, contributing 76.88% of manufacturing sales for the period ended October 31, 2025.

• 22 Karat Gold: Contributed 12.42% for the same period, a significant shift from previous years (e.g., FY 2024-25) where it accounted for over 72% of sales.

• 20 Karat Gold: Contributed 10.33% of sales.

Segment-Wise Revenue ( In INR Cr)

Revenue by Consumers  ( In INR Cr)

Product -Wise Revenue  ( In INR Cr)

Management + Promoters

Grover Jewells Limited is a promoter-led jewellery manufacturing company, backed by over a decade of hands-on operating experience in the gold jewellery value chain. The business has evolved from a proprietorship into a scaled, integrated manufacturing platform under the continued leadership of the founding promoters.

Promoters

• Mr. Deepak Kumar Grover (Managing Director)
  Mr. Grover is the founding force behind the business. He started operations in 2010 under the proprietorship firm Grover Chain Company, initially focused on gold chain manufacturing. With deep domain expertise in jewellery production, machinery adoption, and customer relationships. He individually holds 99.79% of the company.

• Mr. Lavkesh Kumar Grover (Promoter & Director)
  Mr. Lavkesh Grover joined the business during its expansion phase and played a key role in the formalisation and corporate restructuring of the company. He was actively involved in the incorporation of Grover Chain Private Limited in 2021 and the subsequent acquisition of the proprietorship business. His focus areas include operations oversight, scaling production capacity, and strengthening the B2B distribution network.

• Mrs. Bhawna Grover (Promoter)
  Mrs. Bhawna Grover is part of the promoter group and provides support in strategic and administrative matters.
  

The Company plans to expand production capacity through advanced technology and automation, including the installation of automatic laser welding machines to improve precision, finishing quality, and scalability. It intends to strengthen its presence in Southern India by expanding beyond Karnataka and Telangana, while also increasing exports beyond existing markets of Australia and the U.A.E. To diversify revenues, the Company aims to gradually scale its B2C retail footprint across tier-1 and tier-2 cities. Additionally, it plans to broaden its product portfolio by introducing lightweight, men’s fashion, and bridal jewellery to capture evolving consumer demand.

Financial Analysis ( in INR Cr)

Total income increased from ₹255.1 Cr in FY23 to ₹460.9 Cr in FY25, with Oct-25 reaching ₹473.2 Cr, indicating sustained volume-led growth driven by B2B demand. EBITDA rising from ₹4.7 Cr (FY24) to ₹11.3 Cr (FY25) and ₹14.6 Cr (Oct-25). Correspondingly, EBITDA margins expanded from 1.82% in FY24 to 3.09% in Oct-25, reflecting higher capacity utilisation, better absorption of fixed costs, and improved throughput at the manufacturing facility. 

Total borrowings increased sharply to ₹28.3 Cr (Oct-25) from ₹9.3 Cr in FY25, largely to fund higher inventory and receivables amid growth. Operating cash flow turned negative at (₹12.3 Cr) in Oct-25, driven by a sharp rise in inventory ₹34.2 Cr and working capital ₹42.5 Cr, highlighting execution risk in receivable collections and inventory management. 

This increase in profits can be attributed to several key initiatives undertaken during the year: 

• Modernization of In-House Manufacturing – The company achieved full in-house production capability by installing advanced jewellery manufacturing machines imported from Italy and Germany. 

• The opening of a new wholesale showroom in Chandni Chowk—Delhi’s leading jewellery trade hub— further strengthened the brand positioning.

• Increased Participation in Jewellery Exhibitions - The company actively participated in various B2B jewellery exhibitions across India, which opened new business opportunities. These exhibitions attracted high-value wholesale buyers, enabling us to expand our presence in premium customer segment

• Increase in the gold prices also lead to increase in the revenue for the company, as the company has successfully passed on the cost of raw materials to the consumer.

Despite improving EBITDA margins (1.6% → 3.1%), Grover’s margins remain structurally below listed peers (6–17%), reflecting its B2B-heavy, chain-focused mix and limited value-added or retail contribution.

Peer Analysis (FY 25 numbers in INR Cr)

The company  proposes to utilize the Net Proceeds from its Fresh Issue primarily to fund its Working Capital Requirements, with an estimated allocation of up to ₹25.34 Cr.

The jewellery manufacturing business is highly working capital intensive, requiring significant funds to procure raw materials (bullion), maintain inventory, and support trade receivables. The Company intends to deploy ₹25.34 Cr towards this requirement for the following specific operational goals:

• The company is implementing an ambitious expansion strategy aimed at capturing new markets and scaling its operations to meet the growing demand for its products. As part of this plan, the company will enter new geographies while simultaneously increasing its footprint in existing markets, expanding product portfolio, and addressing the associated financial requirements to support this growth.

• Exhibition Participation: The Company plans to increase its participation in jewellery exhibitions. These events are crucial for showcasing new designs and acquiring customers, necessitating a higher level of "ready-to-use" inventory for display and immediate sale.

• Increasing Production Capacity: The Company is enhancing its production capacity and efficiency through technological upgrades. It has started importing advanced jewellery manufacturing machines from globally reputed brands. In line with the market shift toward lightweight jewellery, the Company has ordered and started importing lightweight chain-making machines. These machines will increase output, improve quality, and reduce wastage and manual work.

Final Words – LMVT Framework

Leadership:
Grover Jewells is a promoter-led organisation with over a decade of hands-on experience in gold jewellery manufacturing. The promoters have demonstrated strong execution capability by scaling operations, modernising manufacturing infrastructure, and building deep B2B relationships, though the business remains sensitive to gold price volatility and promoter-driven execution.

Moat:
The Company’s moat lies in its integrated in-house manufacturing, ability to deliver bulk orders with consistent quality, and long-standing relationships with wholesalers and retail jewellers. However, the moat is largely execution-based rather than brand-led, and pricing power remains limited due to the commoditised nature of gold jewellery.

Valuation:
The IPO is valued at a lower P/E compared to listed jewellery peers, reflecting the Company’s lower margins and B2B-heavy business model. While valuations appear reasonable on earnings, sustainability of returns will depend on improvement in cash flows, margin expansion, and working capital discipline.

Tailwinds:
Key upside triggers include capacity expansion through automation, gradual B2C retail scaling, product mix improvement, and better utilisation of working capital. Key risks remain gold price volatility, single product dependency, and low revenue mix from the retail chain which could impact cash flows despite reported profitability.