Retail jewellers become cautious on expansion

The Indian jewellery manufacturing companies are facing tough times with their domestic expansion plans as the government regulations are tightening their liquidity, reports say. The Reserve Bank of India (RBI) having put restrictions of the 80:20 rule for importing gold, doing away with the advance letters of credit which allowed companies more ease in financing their procurement, is influencing the companies to cut expansions in the domestic market, reports say. Prominent jewellery brands and some in the unorganised sector are adopting to shrinking their number of stores, reducing the area of the stores or launching very few but prominent stores, in order to sustain the costs, reports suggest.