Hasmukh Parekh Jewellers bets on Saudi Arabia to offset US tariff impact

Jeddah, Sep 19 (PTI) Kolkata-based gold jewellery manufacturer Hasmukh Parekh Jewellers is eyeing Saudi Arabia as its next growth market after a 50 per cent rise in US tariffs forced the company to scout for new export destinations.

Speaking to PTI, at the recently concluded SAJEX trade fair in Jeddah, partner Nikhil Parekh said the firm is actively seeking wholesale partners in the kingdom, while redesigning its traditionally heavy gold sets to cater to local preferences for lighter jewellery.

"After US tariffs on India have shot up 50 per cent, we are looking for new markets for the future," Parekh said.

The company currently exports primarily to the United States, the UAE, and Qatar.

The jeweller specializes in handcrafted heavy-weight gold sets averaging 400 grams each, made in 21-carat and 22-carat gold. Production includes elaborate pieces such as a 900-gram gold purse that requires two months to complete.

However, Parekh acknowledged that the Saudi market presents different challenges compared to established Gulf destinations like Dubai.

"Here, basically, people are looking for lighter weight. In Dubai and the US, they don't look for lighter jewellery," he said, adding that the company plans to redesign products to meet local preferences for lighter pieces.

The firm is adapting its strategy amid broader shifts in gold jewellery demand driven by record-high prices. Parekh said the company is pivoting toward lightweight jewellery ranging from 10-20 grams, down from previous minimum weights of 50 grams when gold prices were lower.

Despite the market opportunity, regulatory hurdles remain significant in Saudi Arabia, according to Parekh. High customs rates and VAT are deterring local customers, he said, expressing hope for a free trade agreement similar to those between India and other Gulf states.

"I think here also, if something like FTA happens, it will be better for us or Indian manufacturers," Parekh said.

The company already supplies to the eastern Saudi city of Dammam through wholesalers but is seeking new partnerships in the Jeddah region for the first time.

India's Directorate General of Foreign Trade data shows gold jewellery exports totalled USD 15.1 billion in fiscal 2024-25, with the Gulf region representing a significant portion of overseas sales. PTI LUX DRR