Under the scheme, Joyalukkas will supply one-gram gold rings to 4.41 lakh newborn babies delivered in government hospitals across the state from June 22 to the end of the current financial year.
Making 4.41 lakh gold rings may sound like a massive order for most jewellers, but for Kerala-based Joyalukkas, it is a chance to combine economies of scale, brand visibility and public welfare.The jewellery retail giant, which has just relocated its corporate headquarters from Thrissur to Kochi, has beaten a crop of regional rivals like Vummidi Bangaru and GRT, among others, to emerge as the lowest bidder (L1) for the Tamil Nadu government’s ₹755 crore welfare initiative- Thai Maman Thanga Mothiram Thittam. Under the scheme, Joyalukkas will supply one-gram gold rings to 4.41 lakh newborn babies delivered in government hospitals across the state from June 22 to the end of the current financial year.It has achieved this by bidding at virtually no margin. “Under the tender, Joyalukkas quoted a symbolic service charge of just 1 paisa above the prevailing gold rate. The quote covers the supply of the gold rings along with applicable making charges and associated costs, with the company offering the service at virtually no profit,” the company said.Golden GoodwillThe cost of the gold will be borne by the Government of Tamil Nadu at the prevailing market rate. When asked about the economics of the bid, Joy Alukkas, CMD of the Joyalukkas Group, told BusinessLine that the decision to participate went beyond the commercial aspect, and the company was happy to contribute its capabilities toward a scheme with a strong social purpose. “We see this as an opportunity to create long-term value while leveraging our brand strength, retail experience, and established customer base,” he added.Industry stakeholders say that the financial hit to the company may not be much given the benefits of the scale of production, especially as the rings are expected to be standardised and involve limited design work. On the other hand, the contract could provide the company with significant brand visibility and reach among families across Tamil Nadu, the source added.However, others feel that the financial losses could be much higher, as manufacturing cost is roughly 3-4 per cent of the gold cost, but it will help the company in brand recognition and goodwill, and they will likely offset costs from their inventory since gold prices have gone up in the past few days.Tamil Nadu is an important market for Joyalukkas, with 26 showrooms across the State. “The State is a key market for us, and we see significant potential to further strengthen our presence and serve customers across the region,” Alukkas said.Meanwhile, DMK MLA P H Manoj Pandian raised questions in the Assembly about how procuring gold rings was beyond the scope of Tamil Nadu Medical Services Corporation, the department that is procuring the gold and put out the tender, and questioned the expertise that the department has to scrutinise tender bids.With inputs from Subramani Ra mancombu in ChennaiPublished on August 21, 2026
