This article first appeared in the Thailand Special 2024.

Corundum specialist Sukhadia Stones Co Ltd is banking on its vast inventory of coloured gemstones in a wide range of sizes and qualities as well as its keen business acumen and skilled stock management to bring the company to new heights.

Established in 2002 by Chetan and Kaimesh Sukhadia, the gemstone manufacturer is renowned for its expansive selection of rubies and sapphires. Its inventory encompasses the full spectrum of choices, from calibrated sizes to special single stones and eye-catching layouts in a diverse array of qualities, origins, colours and cuts to meet client needs.

The company is particularly known for supplying high-quality calibrated coloured gemstones and fulfilling specific and customised client orders.

The bulk of its business lies in midrange to high-end stones, which it exports to some 30 countries. As its extensive assortment of rubies and sapphires covers large quantities of both heated and unheated goods from various origins, it can provide jewellery brands and manufacturers with a steady supply of coloured gemstones for their collections.

Extensive inventory

According to company managing director Kaimesh Sukhadia, rubies and sapphires in smaller sizes have been moving well this year, largely due to the significant increase in prices of bigger stones.

He noted that price levels of coloured gemstones, which started skyrocketing in late 2022, continue to exhibit an upward trend in 2024, amid persistent supply shortages and logistical challenges in the supply chain.

Prudent inventory control has, however, enabled Sukhadia Stones to deliver a steady business performance during and since the pandemic.

“Our competitive advantage in the coloured gemstone field has always been our wide collection of rubies and blue and fancy sapphires that enable us to meet the needs of various clients,” Kaimesh explained. “By controlling our inventory and focusing on sales, we emerged from the pandemic largely unscathed.”

Having accumulated large quantities of polished coloured gemstones over the years, the company concentrated on selling as much stock as possible to keep inventories manageable and costs to a minimum. “Moving forward, we intend to focus on carefully managing our stock and being more risk-averse when it comes to purchasing rough and selling polished goods,” Kaimesh said. “This strategy served us well during the pandemic and should keep us on an even keel in the long run.”

Rosy outlook

Market conditions have likewise been generally favourable for Sukhadia Stones.

The gemstone manufacturer caters primarily to customers from India, Japan, Europe and the US. As such, the slowdown in demand from the China market has not directly hit its sales.

Kaimesh said, “Whenever there is a downturn in China, the entire market is often affected in one way or another. We are fortunate that our core markets remain stable and macroeconomic conditions have had a minimal impact on our business.”

The company official expects coloured gemstone prices to eventually stabilise, thereby ushering in more transactions in the market.

“This year’s business cycle is slowing down, after a good start. When prices finally correct themselves, buyers should gain greater confidence in the market and business should return to regular levels,” he disclosed.