Joyalukkas and Kalyan Jewellers win Tamil Nadu’s ₹755 crore newborn gold ring scheme

Joyalukkas and Kalyan Jewellers have been selected to supply one-gram gold rings to 4.41 lakh newborn babies in Tamil Nadu government hospitals under the Thai Maman Thanga Mothiram Thittam scheme. The order, valued at ₹755 crore, covers babies born from June 22 to the end of the current financial year. The two Kerala-based jewellers emerged as the lowest bidders after competing against regional players such as Vummidi Bangaru and GRT. Following the selection of Joyalukkas as the L1 bidder, the government invited other participants to match the quoted price, with Kalyan Jewellers being the only company to agree. Work orders were subsequently issued in a 70:30 ratio, allocating 1,28,499 rings for the first four months to Joyalukkas and the remainder to Kalyan Jewellers. The Tamil Nadu government will bear the cost of gold at prevailing market rates, while the jewellers are responsible for manufacturing. Joyalukkas’ CMD stated the bid was driven by social purpose and brand-building potential rather than pure commercial gain, highlighting the opportunity to leverage scale and retail presence in a key market where the company operates 26 showrooms. Industry observers note that while manufacturing costs are estimated at 3-4% of the gold value, the standardized nature of the rings and current gold price trends may help offset expenses. The initiative has drawn scrutiny in the state assembly, with a DMK MLA questioning the Tamil Nadu Medical Services Corporation’s expertise in evaluating such tenders. The scheme aims to combine welfare outreach with brand visibility for the participating jewellers.