Uday Jewellery Industries Limited has announced a strategic shift to a job-work manufacturing model, where large customers supply the raw gold. This move aims to significantly lower the company's own gold inventory requirements and improve working capital efficiency.

The Hyderabad-based manufacturer, known for its B2B supply of gemstone-studded and polki diamond jewellery, is also expanding its product range by introducing lightweight plain gold jewellery. This new focus area addresses growing market demand and complements its existing collections of CZ and gemstone-studded pieces.

Strategic operational changes

The company disclosed these developments in a press release dated October 16, 2026. The job-work model allows Uday Jewellery to serve larger volumes without a corresponding increase in capital locked in gold stocks. By being compensated for manufacturing services rather than selling finished goods with embedded material costs, the firm expects higher overall capacity utilisation.

Additionally, the company is exploring supply tie-ups with several large corporate clients. These discussions are currently at a preliminary stage, and no definitive agreements or binding commitments have been executed yet.

What the numbers show

The shift to a job-work model represents a fundamental change in the balance sheet structure for this jewellery manufacturer. Traditionally, jewellers carry high inventory values due to the cost of gold. By transitioning to customer-supplied gold, Uday Jewellery decouples its revenue potential from its working capital intensity. This suggests a strategy focused on asset-light growth, where profitability is driven by manufacturing efficiency and design capability rather than commodity price fluctuations or inventory holding costs.

The management highlighted that their core strength lies in four generations of design expertise, supported by in-house CAD/CAM, 3D printing, and laser engraving technologies. The new lightweight plain gold segment leverages this existing infrastructure, allowing the company to offer a broader portfolio to retail partners without significant new capital expenditure.

Uday Jewellery Industries Limited completed its 27th Annual General Meeting on September 28, 2026, with all 11 proposed resolutions passing by the requisite majority. The meeting was conducted via Video Conferencing and Other Audio-Visual Means.

The Consolidated Scrutinizer's Report, submitted on September 29, 2026, confirmed that remote e-voting and venue e-voting results supported the adoption of audited financial statements for FY26, appointment of statutory auditors, and the declaration of a dividend of ₹0.50 per equity share (5% on face value of ₹10).

Voting Results Overview

A total of 7,247 shareholders were eligible to vote as on the cut-off date of September 21, 2026. Of these, 136 members cast their votes through the electronic voting system provided by CDSL. The scrutiny process was overseen by Practising Company Secretary Ajay Suman Shrivastava.

The following table summarizes the voting outcome for key ordinary business items:

Special Business and Related Party Approvals

Members also approved several special business items, including material related party transactions with Sanghi Jewellers Private Limited and rent payments to directors and promoters. These resolutions received overwhelming support from the voting public shareholders, excluding interested parties as required under the Companies Act, 2013.

Key approvals included:

• Increase in borrowing powers under Section 180(1)(c).
• Creation of security for borrowings under Section 180(1)(a).
• Investments, loans, and guarantees exceeding limits under Section 186.
• Appointment of Tejas Sanghi and Sakshi Sanghi to offices or places of profit with remuneration.

What the Numbers Show

The voting data reveals a stark divergence in participation between ordinary and special business items. For ordinary resolutions such as the dividend declaration, approximately 26.28 million votes were cast in favour. However, for related party transactions (Items 5, 6, 10, and 11), the total valid votes dropped significantly to roughly 2.46 million. This reduction reflects the mandatory exclusion of votes held by promoters and interested parties in related party matters, leaving the decision entirely to the minority public shareholder base. Despite this narrower voting pool, all special resolutions passed with over 99.99% support among eligible voters.