Suvankar Sen, Managing Director and CEO, Senco Gold Ltd., in an exclusive interview with Solitaire, discusses how elevated gold prices are reshaping consumer entry points rather than dampening intent. Sen outlines Senco’s shift towards smarter product strategies, design efficiency and circular gold flows. The conversation also touches on GST rationalisation, regulated EMIs and the growing structural role of old gold exchange.
With gold prices staying elevated, how is Senco recalibrating product mix and price points to keep demand steady without diluting margins?
Elevated gold prices are not reducing consumer’s intent; they are reshaping how consumers enter the category. Our strategy at Senco Gold & Diamonds has therefore been structural, not promotional. Instead of relying on discounting, we are strengthening design-led, lightweight collections that reduce gold weight per piece while preserving visual appeal and craftsmanship value.
Collections such as Everlite, available across 9-, 14- and 18-karat gold, offer more accessible ticket sizes and cater to modern daily-wear needs. At the same time, we are increasing the share of diamond jewellery and solitaire-led ranges like Perfect Love, where the value proposition is driven more by design and gemstone than metal weight.
Operationally, the focus is on design efficiency, carat optimisation, and higher design value per gram. Exchange-driven upgrades and structured purchase pathways further help customers manage budgets without compromising margins. The result is demand continuity supported by smarter product architecture rather than price intervention.
What safeguards are required in regulated small-ticket EMIs to balance affordability with consumer protection and financial discipline?
Small-ticket EMIs can make jewellery purchases more structured and accessible, but the framework must prioritise transparency and responsible lending. Jewellery is an emotional purchase, yet financing must remain rational.
Consumers should receive clear, simplified disclosure of the total cost of credit including interest, processing fees and repayment obligations. Tenures for small-ticket lifestyle purchases should be reasonably capped to avoid long repayment cycles that can lead to debt stress.
Equally important are responsible, credit checks, especially for first-time borrowers, to prevent over-leveraging. Customers should have flexibility through cooling-off periods and easy prepayment options without heavy penalties. Integration with regulated banks and NBFCs, rather than informal credit channels, is essential to ensure compliance and consumer protection. The objective is to support planned affordability, not impulse-led borrowing.
How could a review of the 3% GST practically influence buying behaviour, especially in entry-level and wedding jewellery?
Jewellery purchases are both emotionally significant and value-sensitive, which means even small tax adjustments can have a visible behavioural impact.
In entry-level and lightweight segments, a lower effective tax burden can meaningfully improve affordability and encourage first-time buyers to choose organised retail over informal channels. For wedding jewellery, where ticket sizes are larger, tax rationalisation reduces the overall bill value and can ease the need to defer purchases or rely excessively on old gold exchange to manage budgets.
A calibrated GST review would not simply act as a price lever; it would also strengthen formalisation, improve billing transparency and support organised retail competitiveness, benefiting the broader ecosystem.
What are the key on-ground challenges jewellers face in scaling old gold exchange programs, which now form around 45% of transactions?
Old gold exchange has become a structural driver of the jewellery market, but scaling it involves operational complexity.
The first challenge is purity assessment and customer trust. Even with modern testing technologies, customers often have emotional attachment to legacy jewellery and can be sensitive to melting outcomes and valuation differences. Older jewellery also varies widely in composition and craftsmanship, creating standardisation challenges across regions.
At the store level, exchange transactions are time-intensive, particularly during peak seasons, affecting throughput. There are also documentation and compliance requirements as traceability norms strengthen. From a backend perspective, exchange-led buying changes inventory dynamics, requiring careful balance between recycled gold and fresh procurement.
Successful scaling depends on trained staff, transparent communication, and strong refining partnerships to ensure consistency and consumer confidence.
How can gold exchange help reduce import dependence and improve circulation within the domestic supply chain?
India holds a substantial stock of gold in household form. When this gold re-enters the market through organised exchange programs, it becomes a secondary domestic source of raw material.
Recycled gold feeds local refining and manufacturing, strengthening the internal supply chain, and improving metal circulation within the formal ecosystem. As exchange-led transactions grow, the need for incremental fresh imports at the margin can ease particularly during high-price periods when consumers prefer upgrading existing holdings.
Over time, a robust exchange and recycling ecosystem supports a more sustainable, circular gold economy, helping balance demand and supply in a price-sensitive market like India.
What level of import duty would meaningfully improve competitiveness without significantly impacting revenue?
The import duty calibration is about balance. The objective should be to narrow the gap between official imports and unofficial channels without creating fiscal instability.
A moderate, stable duty structure can improve compliance, reduce grey-market incentives, and strengthen organised retail competitiveness. When duties are perceived as reasonable and predictable, formal trade volumes tend to rise, which can partially offset lower rates through better documentation and wider tax compliance.
Stability and predictability are as important as the rate itself. Jewellers need visibility for pricing and inventory planning, while policymakers must balance competitiveness with revenue considerations. The right calibration encourages legal trade flows and strengthens the formal value chain.