Pre-Feasibilities Studies

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Gems & Jewelry

Category: Gems & Jewelry
Sector: Gems & Jewelry
Region: Punjab
Investment Size: PKR Between 10-20 Million

A lack of passion for gold jewelry in Pakistan, and even amongst the Pakistani expatriates, is hard to imagine. It is a cultural idiosyncrasy within the South Asian Region. Gold jewelry is perceived not only as a decorative item but a symbol of status. The perception pervades in all classes. Another reason for the vitality of the gold jewelry market is that all domestic jewelry products are priced by weight, which results in the fact that people perceive gold jewelry as a means of security net for the future because gold alone has an internationally agreed price. Global trade for Gems and Jewellery has shown a positive growth trend showing increasing demand for these valuable fashion articles in international market. United Nation’s Statistics showed that India is the market leader right now. The subject enterprise of this pre-feasibility study is an integrated business gold jewelry manufacturing and retailing business. In the subject pre feasibility study we assume the 60% of total jewelry sold will be traditional jewelry normally available in gold jewelry shop, while 40% of total jewellery will be of designer made, which is of premium quality and high price. This designer made jewelry will target the elite class of society. Total projected cost of the project is estimated at Rs. 12.418 million. The internal rate of return (IRR), Net Present Value (NPV) and payback of the project are 56%, Rs.78.805 million and 3.48 years respectively. This pre-feasibility is being prepared by SMEDA and is intended to provide general information on the opportunity for an investor in the Gems and Jewelry sector to establish a Gold Jewellery designer made retail outlet and workshop. This would allow the project to manufacture Gold Jewellery and gems for local market and Global market as well, thereby, adding value and maximizing profits.