Shrenuj to enter China, West Asia

Shrenuj & Co, the diamond and jewellery firm, plans to enter the Chinese and West Asian jewellery retail market.

With a consolidated turnover of Rs 952 crore, Shrenuj has retail presence in international markets such as the US, Hong Kong, France and Australia.

Pranava Bhargava, group general manager, marketing, said, "The company will focus on India, China and West Asia, which are registering double-digit growth since the last 4-5 years. The net margins are also similar to those in Western countries with relatively low operating costs and investments in these markets."

The company will make its Chinese debut with Joliesse, a Hong Kong-based jewellery chain it acquired in 2003.

Bhargava said, "We have re-positioned Joliesse as a mid-end fashion jewellery retailer, which was essentially a discount store. The company plans to open two stores in China and add 18 stores in Hong Kong in the next two years." According to industry estimates, China contributes close to 5 per cent to the global diamond jewellery market.

In the domestic market, Shrenuj will focus on branded jewellery retail through Diti, a low-end gold and platinum brand.

Unlike other branded players, Shrenuj is adopting the shop-in-shop concept to test the waters in the Indian jewellery retail. It aims to open 100 points of sales for Diti by March 2009.

However, the company will expand its premium jewellery brands such as Arisia, Sveni and Bhavya through traditional jewellers. Arisia and Sevni comprise solitaire diamonds and cater to the premium and high-end segments of the market.

While Bhavya, positioned at a relatively lower end, is retailed as an in-house label in independent retail stores. "Arisia and Sevni will be marketed through high-end traditional jewellers as they require a unique retail environment that is currently lacking in the organised space," said Bhargava.

Earlier this year, Shrenuj consolidated its position in the US market through the acquisition of Simon Golub & Sons, a Seattle-based leading distribution company.

Bhargava said, "C & A Diamonds, the company's existing firm catering to bridal jewellery, will be merged with Simon Golub & Sons to derive better operational synergy."

The $100 million (Rs 400 crore) Simon is expected to register 15 per cent consolidated growth during this financial year.

Shrenuj expects retail operations to contribute 20 per cent to the consolidated turnover of Rs 4,000 crore by FY12. The share of jewellery in the pie is targeted to grow by 15 per cent from the current 35 per cent.