Higher gold prices to weaken jewellery demand growth: ICRA
Kolkata, May 7: Higher gold prices and tightened credit availability are expected to weaken growth in jewellery demand by 2-4 per cent during 2018, a credit rating agency said on Monday.
"The agency expects the jewellery demand growth to weaken by 2-4 per cent for CY2018 (Calendar year 2018), owing to higher gold prices and subdued financing environment. The industry continues to remain susceptible to the regulatory risks, which has affected both demand and supply," ICRA said.
However, over the medium to long term, it expects the gold jewellery retail industry to record a 6-7 per cent volume growth, supported by stable rural and wedding demand, cultural affinity for gold, rising disposable income and favourable demographic profile.
"Gold prices have increased steadily in the last three months, which coupled with lesser number of auspicious days impacted jewellery demand. Also, financing to the gems and jewellery sector has been under increased scrutiny in the recent months following reporting of fraud by few lenders on their exposures to the sector," its Vice President K. Srikumar said.
According to him, lenders are more cautious on the sector with increasing due diligence and checks on credit and inventory quality.
"We expect the tightened credit availability to affect the working capital position of jewellery retailers, especially the unorganized ones," he said.
In contrast, gold jewellery demand for CY2017 grew by 12 per cent in volumes and 9 per cent in values amid headwinds in the form of higher tax rates post GST, inclusion of jewellery sector under the ambit of Prevention of Money Laundering Act albeit for a brief period and continued preference for other asset classes due to better returns.
The agency also said it expects the industry revenues to grow by 8-9 per cent in FY2019 supported by stable wedding and festive demand. The growth is seen declining compared to FY2018 with elevated gold prices and supply side concerns amid cautious lending environment.
"Over the medium to long term, the industry revenues are likely to settle at 7-8 per cent growth led by socio-economic and cultural factors that are unique to the Indian market," it added.
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Thumbay Group launches “Thumbay Cares” well-being program putting team members first
Ajman (UAE): Thumbay Group has launched “Thumbay Cares”, a comprehensive well-being programme aimed at improving the quality of life, career growth and long-term security of its team members across all its divisions. The announcement comes soon after the Group was officially certified as a “Great Place to Work” in the UAE for 2025–2026.
The Group employs more than 3,000 people from 56 nationalities, including over 500 doctors. With the launch of Thumbay Cares, the management said it is strengthening its focus on a people-first work culture by bringing together healthcare support, financial protection, education assistance, wellness initiatives, recognition and leadership development under a single umbrella.
According to the Group, Thumbay Cares is not limited to employee benefits but is designed as a long-term commitment to support team members in both their professional and personal lives. The programme has been introduced under the vision of Dr Thumbay Moideen, Founder President of Thumbay Group, who has consistently stressed the importance of investing in people to build sustainable institutions.
Speaking on the occasion, Dr Thumbay Moideen said that being recognised as a Great Place to Work reflects the organisation’s internal culture and values. He said the new programme takes this commitment further by ensuring that team members feel supported in health, growth and life, adding that when employees feel valued and secure, excellence follows naturally.
Under Thumbay Cares, team members will receive a range of healthcare and wellness benefits. These include free medical checkups at Thumbay Healthcare facilities, free blood tests at Thumbay Labs, free health insurance for all employees, quarterly body composition analysis through Body and Soul Health Club, complimentary health club membership, grooming and wellness services, as well as life and workmen’s compensation insurance. The Group said the focus is on preventive care, early diagnosis and overall well-being as part of everyday life.
The programme also places strong emphasis on education, professional growth and leadership development. Thumbay Group will offer merit-based scholarships for children of employees at Gulf Medical University and provide free next-generation leadership training through Thumbay College of Management and programmes in artificial intelligence in healthcare. These initiatives are aimed at creating clear pathways for career advancement and leadership roles within the organisation.
In addition, Thumbay Cares includes performance-based rewards, incentives, benefits for long-serving employees, annual bonus programmes and subsidised services across various Thumbay outlets. The Group said these measures are intended to recognise loyalty and contribution, while building a work environment where employees feel respected, rewarded and motivated to stay long term.
With the launch of Thumbay Cares, Thumbay Group said it aims to position itself not only as a leader in healthcare and education, but also as one of the region’s most people-centric organisations.
