Joyalukkas: Favourite Gold Shopping Destination
Almost all cultures have used gold to represent power, beauty and accomplishment throughout history. Wedding rings, Olympic medals, Oscars, Grammys, money, religious icons, and art are among the most important items made of gold today. No other substance of comparable rarity occupies such a prominent and visible position in society.
As per The World Gold Council’s Full Year 2024 Gold Demand Trends report, the total annual gold demand, including over the counter, hit a new record high of 4,974 tonnes. This was mostly driven by strong and sustained central bank buying and growth in investment demand. The record high gold prices, along with volumes, resulted in the highest ever total value of demand at $382 billion.
However, high prices dampened demand in the jewellery sector, with annual consumption decreasing by 11% to 1,877 tonnes. This was driven largely due to China's decreased year-on-year consumption of 24%. On the other hand, Indian demand remained resilient, dropping only 2% in 2024, thanks to a record high price environment. In fact, India's gold demand growth outperformed the global average, as the country clocked a 5% growth in 2024. As per sources, the overall demand for gold in the country stood at 802.8 tonnes during the year compared to 761 tonnes in 2023. The climb was sharper in value terms, as it went up by 31% to Rs 515,390 crore in 2024 from Rs 392,000 crore in 2023.
The Indian jewellery market is projected to grow at 10% CAGR by 2030. The share of organised retail in this market is expanding more rapidly than the industry average. Currently, the organised segment, which accounts for less than 50% of the market, is growing at a fast rate.
Joy Alukkas' Epic Journey
Joy Alukkas is a jewellery retailer with over 100 outlets in India and 60 overseas. The owner has been ranked the 712th richest person in the world, with a net worth of $4.4 billion. Alukkas was born to Kerala-based businessman, Alukka Joseph Varghese. Alukkas' father was involved in diverse businesses, including umbrella manufacturing, selling clothes, real estate and earthen pots. In 1956, the year Joy Alukkas was born, the family set up a jewellery shop in Thrissur, Kerala.
Varghese Alukkas, Joy Alukkas' father, subsequently shared his business among his sons: Jos, Francis, Joy Alukkas and Anto Alukkas. Joy Alukkas later set up shop in the Gulf countries and started a gold business. Although Alukkas' brothers were sceptical about him making a foray into the Gulf countries and also doubted his ability to set up a jewellery store, Alukkas convinced that the Malayali diaspora there were spending most of their income on buying gold, which was cheaper while India had restrictions about individual gold possession.
In 2001, Alukkas founded Joyalukkas Jewellery. The group has its major offices in Thrissur (India) and Dubai (UAE). In 2007, he opened a Gold & Diamond jewellery showroom and a 'Diamond Cave' in Chennai, India. In 2012, Joyalukkas was authorized to sell Forevermark branded diamonds from De Beers. Joy Alukkas has other businesses, including Mall of Joy, a shopping retail destination, Jolly Silks, a silk fashion label, Joyalukkas Exchange, a money exchange platform, and Joyalukkas Lifestyle Developers, a real estate company. Jolly Silks was named after Jolly Joy his wife.
By the early 1980s, the Alukka family expanded its business from Kerala's Thrissur to Kozhikode, which was developing as a trading hub. Setting up of a jewellery store in Kozhikode, a city that had seen large migration to the Gulf countries, as the Gulf boom gathered pace, proved to be a catalyst for the rapid growth of Alukkas Group. The success of Alukkas Group in Kozhikode prompted other jewellers, including Malabar Gold, to foray into gold retail. As business thrived, the family had also identified the GCC Countries, with a large Malayali diaspora, for the next phase of growth.
In 2002, the Alukkas family divided its business among the brothers. Joy Alukkas was handed control of the Middle East business. His brothers Jos, Paul and Francis opened several jewellery stores in Kerala, and they continue to run their own retail businesses. Jos has 49 stores located largely across South India. Francis has six stores, all of them situated in Kerala. Paul, another brother, operates two retail stores in Kerala, besides being a real estate developer. And Anto, the youngest brother, has discontinued the jewellery business.
Nearly 90% of Joyalukkas' revenues in India are from Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana. This is followed by the northern and western markets, particularly Maharashtra, where the company now sees enormous potential to expand. Unlike some of its competitors, the group's stores are built on leased land. Apart from India, it has Jewellery stores in the UAE, the US, the UK, Saudi Arabia, Qatar, Bahrain, Kuwait, Oman, Singapore and Malaysia. The company employs over 9,000 people.
Joyalukkas' Overseas Operations
Joy Alukkas bought a Rolls-Royce after being insulted by a salesperson at a Dubai car showroom in the early 2000s. He then gave away the car in a raffle to boost his jewellery business in the UAE. This marketing strategy proved to be a masterstroke. Today, he owns a number of jewellery stores in the UAE.
Some of the major overseas branches of Joyalukkas are located in the UAE's Al-Ain, Ras-al-Khaimah, Dubai, and Abu Dhabi. In Oman, it has branches in Boushar, Ruwi, Seeb, and Sohar. It has branches in Qatar's Al-Gharafa, Al-Wakrah, Doha, and Abu Hamour Doha. In Bahrain, it has branches in Bab-Al-Bahrain and Manama. The company has stores in Saudi Arabia located in Jeddah, Al-Batha, Riyadh, and Al-Khobar. In Kuwait, it has branches in Souk Al-Watiya, Kuwait City, Al-Rai, and Fahaheel. It has branches in Southall and London, UK. In the US, its stores are located in Georgia, Dallas, and New Jersey.
Awards And Accolades
In 2016, Joy Alukkas received ‘The Business Excellence Award 2016’ from Sheikh Nahyan Bin Mubarak Al Nahyan, UAE Minister of Culture, Youth and Social Development, organized by the Indian Business Professionals Council (IBPC) 2016.
In 2018, Alukkas was listed in Forbes Magazine in both its World's Billionaires list and India's Rich list.
In 2019, he was honoured with Best Indian Diamond Jewellery of the Year by Retail Jeweller Middle East innovation Awards.
In 2022, he was ranked the 69th richest Indian in Forbes India’s Richest List.
Philanthropy
In 2018, Joy Alukkas contributed a large sum of money to the relief fund for victims of the Cyclone Ockhi. After the Kerala Floods in September 2018, the Joyalukkas Foundation announced its plans to build 250 houses for those who lost their homes. Around 350 orphaned students were awarded the 'Joy of Hope' scholarship by Joyalukkas Foundation securing educational support for five years. The foundation also has plans for an old age home in Thrissur, Kerala, and a palliative care centre.
(Photo: Courtesy Joyalukkas)
No comments
Post a Comment