Two prominent jewelers, Joyalukkas and Kalyan Jewellers, have been awarded a significant contract by the Tamil Nadu government to manufacture gold rings for a state welfare initiative. The contract, valued at ₹755 crore, was secured through an exceptionally low bid of just 1 paisa for the making charge per ring.
The tender is part of the state's 'Thai Maman Thanga Mothiram Thittam' (Maternal Uncle's Gold Ring Scheme), a flagship program aimed at providing a one-gram gold ring to every baby born in government hospitals and primary health centers across Tamil Nadu. The scheme is slated to commence on September 15, covering all births from June 22 onwards.
Unprecedented Bidding Strategy
The bidding process saw Joyalukkas emerge as the lowest bidder by quoting a mere ₹0.01 as the making charge for each gold ring. Following this, other participating companies were given the opportunity to match the winning bid. Kalyan Jewellers was the only firm to agree to match the 1 paisa charge, as confirmed by a statement from the Tamil Nadu government.
Other jewelers in the fray included GRT Jewellers India, which bid ₹410.97 per ring, and Vummidi Bangaru Jewellers at ₹822.97. Major players like Titan and Malabar Gold also participated, while Saravana Stores notably quoted over ₹15,000 per ring.
Supply Distribution and Social Commitment
Under the terms of the contract, Joyalukkas and Kalyan Jewellers have been issued work orders with a 70:30 supply ratio, respectively. Initially, the companies are tasked with supplying 1,28,499 gold rings over the first four months of the scheme's operation. The cost of the one-gram gold in each ring will be borne entirely by the government.
Joy Alukkas, Chairman and Managing Director of Joyalukkas, emphasized that the decision to bid so low was driven by more than just commercial interests. He stated that the company views the contract as an opportunity to build long-term value and leverage its brand strength, retail experience, and customer base. A representative further clarified that Joyalukkas considers the initiative a social commitment to the state, given its extensive branch network in Tamil Nadu, framing it as a way of giving back to the community.
The Thai Maman Thanga Mothiram Thittam was a key campaign promise of the TVK government, led by Chief Minister Vijay, and was subsequently announced as part of the state budget.