Financing Strategies and Capital Structure Dynamics of Pune’s Jewellery Firms

Abstract

The jewelry and gemstone industry is very important for India's economy as it helps earn money from exports, creates jobs, and serves local customers. This research looks at how well 60 leading jewellers in Pune have done financially over the last 14 years based on their financing choices. The study focuses on changes in how they manage their capital. To test ideas about changes in debt and equity, reliance on outside funding, and how these affect profits and financial stability, paired sample t-tests and correlation analysis are used. The findings suggest that there is no significant variation in the debt-equity ratio over time (H1), while jewellers have shown a statistically significant increase in reliance on external financing (H2). Jewellers with greater equity ratios enjoy better financial health compared to their highly leveraged counterparts (H3). The results have important implications for jewellers and financial planners to stress equity-driven strategies to ensure financial stability & long-term viability in a capital-intensive industry.