Kalyan Jewellers Win ₹755 Cr Tamil Nadu Gold Ring Contract

Two Kerala-based jewellers, Joyalukkas and Kalyan Jewellers, have won a ₹755 crore Tamil Nadu government contract to supply 1-gram gold rings to 4.41 lakh newborns under a new welfare scheme. Key Highlights • Joyalukkas will supply 3.13 lakh rings, while Kalyan Jewellers will supply 1.28 lakh rings. • Joyalukkas reportedly bid just ₹0.01 per ring over the gold cost, leaving an extremely narrow margin for making, wastage, hallmarking, packaging, insurance and logistics. • The Tamil Nadu government bears the cost of the 1-gram gold at the prevailing market price. • Therefore, the ₹755 crore contract value should not be interpreted as Joyalukkas absorbing or funding the entire gold cost. Why It Matters The contract provides a large-volume order for the two jewellery companies, covering 4.41 lakh gold rings under the state government's welfare initiative. The economics of the contract are particularly notable because Joyalukkas reportedly quoted only ₹0.01 above the gold cost per ring. This leaves the company with very limited room to recover associated costs such as manufacturing, wastage, hallmarking, packaging, insurance and logistics. However, since the government is separately bearing the cost of the 1-gram gold itself, the ₹755 crore figure represents the overall contract value and should not be viewed as the amount being funded by the jewellers.