India is the highest gold-consuming market in the world. It is a category with 100% awareness, 100% penetration, rooted in our heritage and tradition, and a big part of our lives, a beautiful saving which becomes our saviour in times of need. But what goes behind ensuring that the gold reaches you securely?

India is not a major 'producer' of gold, as it does not have any major functional gold mines. Hence all the gold consumed is imported into our country. Thus the supply chain & logistics of gold, from bullion bars and rough stones that are imported into our country, to the manufacturing and distribution of finished gold & diamond jewellery, is both a fascinating, interesting and important subject. As a common man, we do not realize or even think about the complexity and criticality of such precious cargo logistics.

Things, however, started changing slowly after liberalization in the 90s. Tata's Tanishq brought about the first change to organize, formalize and standardize jewellery buying with their transparent approach and promise of purity, premium retail experience and a pan-India network. Along with this came the need for organized & professional logistics partners to manage their large and complex supply chain network. Thus organized precious cargo logistics, as a segment, took shape in the early 2000s.

The jewellery industry thrives on the sale during festivals and weddings. Jewellery retailers select their products during the B to B jewellery exhibitions/trade shows and place their orders with the manufacturers. The largest exhibition for the jewellery industry was held from 4th to 8th August in Mumbai, called India International Jewellery Show (IIJS), organized by GJEPC (Gems & Jewellery Export Promotion Council). More than a thousand exhibitors displayed their merchandise, and they were visited by more than fifty thousand visitors, who came to select and place their orders for the upcoming festive season. For these large exhibitions & trade shows as well, the jewellers/manufacturers take the services of the precious cargo logistics service providers to move their precious gold, diamonds, gemstones and silver products from their factory/shop to the exhibition venue and back.

With the government's impetus on ensuring compliance, with measures like GST, e-invoice and e-way bill, a tectonic shift is being witnessed towards ensuring compliance. This has further hastened the role and use of organized precious cargo logistics service providers.

India being the largest consumer and importer of gold & silver in the world, the government and this industry felt that it was imperative to have our own India International Bullion Exchange (IIBX), in line with what some of the larger & mature economies have in place. This important step will immensely help our Indian market to shift from being just a price taker to becoming a market maker. Our government has set up the India International Bullion Exchange at GIFT City in Gandhinagar, which was recently inaugurated by the Hon PM Shri Narendra Modi on the 29th of July 2022. IIBX is set to become the gateway for bullion imports into India.

Further, SEBI is also commencing the gold spot exchange to create a transparent, compliant and convenient platform for buying & selling gold, similar to equity shares. Sequel has been audited, approved, and appointed as the vault manager, by SEBI, based on the financial strength, operational competence and historical track record of the company and its promoters.

Unlike regular parcels, documents or even e-commerce and food/grocery deliveries, precious cargo logistics operate at an entirely different plane and level. The level of performance has to be top-notch in all aspects, which are:

Apart from the above, the most important element that is unique & different is the culture & mindset of the team that runs & manages the show. People, processes & technology will need to work in sync to be able not just to deliver the shipment safely but also to keep the customer informed at each step of the way, with zero margins for error. For example, the customer wants to know, every single time, the details of the authorized person who would come for the shipment pickup. Similarly, the shipment must be handed over to the verified receiver only, every single time, and not to anyone available at the given delivery address. Internal and external Auditing and Certification go a long way in ensuring that the processes are robust and foolproof.

ISO 39001:2012 certification for Road Transport Safety Management System (RTSMS) for High-Value Transportation and Responsible Jewellery Council (RJC) certification are some of the international certifications that are important and essential.