Renaissance Global Limited on Friday said the recent increase in import duty on precious metals, including gold, silver and platinum, is not expected to have any material impact on its business operations or financial performance.
The clarification follows the government’s decision to raise import duty on gold and silver to 15% from 6%, and on platinum to 15.4% from 6.4%. The company said its manufacturing operations are based in the SEEPZ Special Economic Zone (SEZ) in Mumbai, where imports of precious metals for authorised manufacturing and export activities continue to enjoy applicable customs duty exemptions under the SEZ framework.
“Since the company is primarily engaged in manufacturing and exporting finished jewellery products from the SEZ, the revised import duty structure is not expected to have any adverse impact on costs, margins or profitability,” Renaissance Global said in a regulatory filing.
The company also noted that its domestic business contributes less than 1% of total revenue, with sales routed through its IRASVA retail outlets, further limiting the impact of the revised duty structure.
