LKS jewellers forays into fashion business

LKS Syed Ahamed, Chairman, LKS Gold House and a third-generation entrepreneur, who came into the family-business in 1973 continues to steer the jewellery business along with his brother, while the foray into fashion – textile segment is being handled by his son Sarfaraz. 

Ahamed has seen the cyclical fortunes of the industry that is estimated to be worth over Rs 3 lakh crore and a mass-employment generator. 

The fluctuating prices in the international market and heavy import duties were taking the shine off the sector. He says, “We have heard that the import duty on gold will be brought down from 10 per cent to 6 per cent. If the duty could be brought down to 2 or 1 per cent, then not only would the prices of gold come down, but the industry would thrive.” 

Citing the example of Sri Lanka, which had slashed its duties from 25 per cent to 0 per cent, he said many jewellers (including his own enterprise) were looking at such markets to grow their business. LKS is keen on entering Malaysia as part of chalking out strategies for a well-rounded international presence.” 

LKS set up shop in the boiler town of Tiruchy as well as Jaffna in Sri Lanka before finally coming to the city, where it has its flagship stores at T Nagar, Anna Nagar and Tambaram. Two other showrooms  at NSC Bose Road and Cathedral Road are managed by the LKS family members, following the decision to bifurcate the business. Three shops in Tiruchy too are operated by his cousins. Ahamed, who is part of the 92-year-brand, spoke at length on the need for diversification. He said, “This is the best time to venture into uncharted waters as we have an ability to absorb risks and capitalise on our strengths. We would like to capitalise on our goodwill and market leadership position. Our large clientele and multi-generational presence encouraged the Gen Next to enter the fashion enterprise.” 

Asked about the firm’s turnover, Ahamed says, “We achieved a growth of around 10 per cent last year, which we think is impressive, given the current economic scenario, where several jewellers are shutting shop. In fact, our business grew by about 15 to 20 per cent post demonetisation.” 

A believer in steady growth and riding on the loyalty of its customers, LKS has chosen to keep itself abreast with the latest developments in the gems, jewellery and precious metals industry. 

“Buyers are moving to handmade and costume jewellery while traditional items like wedding haarams or kasu mala have undergone makeovers. Last year, as part of rebranding, LKS changed its logo. We have constantly upgraded ourselves – technology, design, quality, and operations-wise. Today, we make contemporary designs available to buyers in line with current global trends,” said Ahamed, who in the past had spearheaded the jewellers’ association.