As the disposable income of the Indian center class rises, alongside increasing client spending on lifestyle products, the demand for gemstones and jewelry is likewise growing. The zone contributes to around seven percent of you. S. A .’s GDP and 15 percent of India’s general product exports are consistent with Indian Brand Equity Foundation facts.
The industry has more than 300,000 players in India, and most of them are small groups. However, big manufacturers have also made a name for themselves globally through their massive product lines and aggressive advertising.
One such famous call is Renaissance Jewellery, which employs over four 000 skilled people and has a production potential of two 5 million pieces of jewelry according to annum. The phrase ‘ Renaissance,’ because of this ‘rebirth,’ became used when entrepreneur Sumit Shah remodeled his father’s diamond-reducing enterprise and installed the organization in 1995.
“In 1970, my father, Niranjan Shah, had started a diamond-slicing enterprise. But when Renaissance was released in 1995, we stopped diamond reduction and started manufacturing jewelry, seeing that we desired to enter this big market,” says Sumit Shah, Founder and Managing Director of Renaissance Jewellery.
His father remains the employer’s chairman, and under Sumit’s management, the emblem has become a stalwart in India’s gems and jewelry zone. The Rs 1,800 crore organization is situated inside the Special Electronics Export Processing Zone (SEEPZ) in Mumbai and has subsidiaries in the US, UK, and Dubai.
In a specific interplay with SMBStory, Sumit’s favorite shows are about commercial enterprise and his plans for the future.
Sob story: Can you inform us more about the Renaissance?
Sumit Shah: We are into designing, manufacturing, and selling jewelry to global outlets. Renaissance Jewellery Limited (RJL) has been the largest exporter of studded jewelry from India to leading jewelry stores inside the international. We have a strong one-hundred-fifty-member product improvement group unfolding across the USA, UK, Dubai, and Mumbai.
We also have nine ultra-modern production facilities and employ 4,000 people globally. We have personal special licenses for two brands, ‘Enchanted Disney Fine Jewelry’ and ‘Hallmark.’ The Enchanted Disney Fine Jewellery brand has been a massive success in the US, and we plan to expand into new territories like China and Europe.
SMBS: Who makes up RJL’s management team?
SS: My father, Niranjan Shah, the chairman, has been involved in the enterprise since its inception. He has over four decades of experience in the gems and jewelry enterprise. He is presently answerable for the enterprise’s overall strategic planning and decision-making.
I work closely with him, and my focus regions include method components and new commercial enterprise projects. I helped transform RJL from an agreement jewelry producer to a design residence serving worldwide stores and installed a global advertising community. The 1/3 member is Hitesh Shah, who’s chargeable for the enterprise’s finance, accounting, and vending operations. He has 22 years of experience in the jewelry enterprise.
SMBS: Under your leadership, how did RJL diversify into such a lot of classes?
SS: We had been a manufacturer of diamond-style studded jewelry. In 2013, we obtained the commercial enterprise property of Jewel America, an entity specializing in the gemstone business inside the US. This paved the way for me to get into a gemstone commercial enterprise. The acquisition also enabled move-promoting gemstone products to our cutting-edge studded jewelry shops in the US.
In 2016, we selected to enter the gold manufacturing business in Dubai by acquiring the commercial enterprise property of Vogue DMCC. With changing dynamics inside the jewelry enterprise, we also entered the branded jewelry area with ‘Hallmark’ and ‘Enchanted Disney Fine Jewelry.’ With our good-sized product catalog, we also have a full-size online presence through our website inside the US, besides a strong presence on Amazon and foremost e-commerce marketplaces.
SMBS: What was the critical milestone of our adventure?
SS: We initially invested our cash and started manufacturing studded jewelry in 1995. Between 2000 and 2005, we obtained a forty 000 square-foot facility in Mumbai, began commercial enterprise with Walmart and Zales, and set up a unit in Gujarat. In the next four years, we established subsidiaries in the US and UK. In 2007, we went for an Rs eighty crore IPO and got listed at the BSE and NSE.
We then acquired Jewel America’s business belongings in 2013 to enter the gemstone business. Later, we received Vogue DMC and Jay Gems, and we recently signed a licensing settlement with Hallmark. With this, our profits before interest, tax, depreciation, and amortization crossed Rs one hundred crores.
SMBS: What is your area’s marketplace length, and how is RJL differentiating from its opposition?
SS: The contemporary market size of the jewelry business is around $80 billion, and its growth is expected to remain steady in the near future. However, we assume that branded jewelry will see pretty first-rate growth with a discount inside the popular jewelry business within this marketplace.
Therefore, our primary product differentiation comes through branded jewelry. Our famous manufacturers and product development efficiencies give us an aspect in designing branded jewelry. We expect to introduce brands in other markets like China and Europe to extend our branded jewelry play, improving our gross margins and returning on equity in the next monetary year.
SMBS: What are your challenges in maintaining and growing the business?
SS: The flat nature of the yield curve will soon tip closer to recession. Moreover, lackluster market expectations may hose the demand for luxury goods like jewelry within the subsequent economic year.
However, the US-China trade conflict may have a favorable effect on the jewelry manufacturing enterprise in India. Currently, there aren’t any sanctions on jewelry exports. If those sanctions protect jewelry exports to the US, manufacturing might shift from China to India, which might be very favorable for the jewelry industry in India.
Further, lab-grown diamonds have already been brought by using foremost outlets within the US. Currently, they’re in the testing segment. However, the initial response from customers has been excellent. If the recognition of these diamonds increases, there will probably be a call for shrinkage for low-quality diamonds.
