Diamond exporter Goldiam’s shares rise 9% on plans to explore manufacturing facility in USA

A manufacturing facility closer to the US clients may mean Goldiam could save on shipping costs and processing, as well as avoid import tariffs on jewellery, aside from easier compliance with local regulations. The plans are at an initial stage of assessment, said Goldiam, and details such as location, investment outlay and timeline will be shared once finalized and approved by the board.

Shares of Goldiam International – the maker and exporter of gold and diamond jewellery – are higher by over 9% on February 19, after the company said it is exploring setting up a manufacturing facility in USA. In the last year, Goldiam’s shares have risen by 96%, and the company has a market capitalisation of over Rs 4,100 crore. The diamond exporter said it is currently assessing the feasibility of a US-based facility, and this will be a strategic initiative by the company.

Goldiam said it is hoping to enhance its operational efficiency as well as optimize the supply chain logistics involved in the export of jewellery. The company aims to ‘further’ strengthen its presence in the US market, which it regards as crucial for its business. The management is hoping to get a competitive edge through this proposed facility. “The proposed facility is expected to provide better service to our customers, reduce lead times, and offer a competitive edge in the region.” Goldiam International said.