1-paisa bid wins Joyalukkas, Kalyan ₹755-crore Tamil Nadu gold ring tender

Kerala-based Joyalukkas and Kalyan Jewellers have won a contract from the Tamil Nadu government to make gold rings under a ₹755-crore welfare scheme for newborns, BusinessLine reported.

Joyalukkas quoted just 1 paisa as the making charge per ring, and Kalyan later agreed to match the bid.

The tender is for the state's Thai Maman Thanga Mothiram Thittam, under which babies born in government hospitals and primary health centres will receive a one-gram gold ring.

The Times of India reported that the scheme is scheduled to be launched on September 15 and covers babies born in state-run hospitals on or after June 22.

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How The Tender Was Won

Joyalukkas quoted ₹0.01 per ring for making charges and emerged the winner. GRT Jewellers India was the second-lowest bidder, quoting ₹410.97 per ring, ThePrint reported. Vummidi Bangaru Jewellers was third at ₹822.97.

Other bidders included Titan and Malabar Gold, while Saravana Stores quoted more than ₹15,000 per ring, according to the report.

After Joyalukkas emerged as the lowest bidder, the other participating companies were asked to match its price. Kalyan Jewellers was the only company to agree, according to a Tamil Nadu government statement cited by BusinessLine.

70:30 Split For Initial Supply

Joyalukkas and Kalyan have been issued work orders in a 70:30 ratio.

They will initially supply 1,28,499 rings over the first four months. The government will bear the cost of the one-gram gold in each ring.

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Why Joyalukkas Took The Contract

Joyalukkas Chairman and Managing Director Joy Alukkas said the company's decision was about more than the commercial opportunity. "We see this as an opportunity to create long-term value while leveraging our brand strength, retail experience, and established customer base," he told BL.

A Joyalukkas representative told ThePrint that the company was not treating the contract as a profit-making business. "It is our social commitment to the state since we have a lot of branches here, and this is our way of giving back," the representative said.

Thai Maman Thanga Mothiram Thittam was a key campaign promise of the  TVK government led by Chief Minister Vijay. The scheme was later announced as part of the state budget.