Shrenuj eyes jewellery mart consolidation

Shrenuj, one of the country's oldest diamond manufacturers, is now looking at consolidating its presence in the international branded jewellery market. Shreyas Doshi, MD, Shrenuj said, "We wish to make rejig the existing 80:20 breakup of manufacturing and branded jewellery to 50:50, or ideally 40:60 in three years."

Shrenuj, which has three manufacturing units in SEEPZ, which recently acquired 50 per cent stake in SN Jewellery for capacity expansion. It is also in the process of restructuring operations. "We are integrating three of our privately held and subsidiary companies into one for better governance," said Doshi.

Unlike most companies in the sector that are looking at establishing their presence in the Indian retail market, Shrenuj will focus on making a global presence.

"There is greater brand consciousness abroad," said Doshi. The company acquired a 51 per cent stake in the Hong Kong-based Daily Jewellery in 2003 and is in the process of restructuring the company and setting up more outlets.

"We have changed the brand name to Joliesse and are moving from low-end jewellery to higher-end products," Doshi added.

Shrenuj, which retails Dante and Fellini brands in the US, acquired Bernice for distribution.

In France, the company has a retail presence through Jo Mart where it acquired a 50 per cent stake last year and is marketing the De Beers brand Fiana.

Doshi is clear that the company's focus will continue to remain on international markets as far as acquiring and establishing brands is concerned. It has, so far, spent around Rs 20 crore on acquisitions and is in talks for more acquisitions in Europe and South East Asia. Doshi says that the company will consider raising resources through various instruments for further acquisitions.

Another area where the company is looking at leverage is the first-mover advantage is through its tie up with ICJ in the USA, which is a sourcing partner for a various retail chains. "So far our tie up with ICJ has worked extremely well," said Doshi. The company will shortly be opening its New York office.