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 products exports, consistent with Indian Brand Equity Foundation facts.
The industry has extra than 300,000 players in India, and most of them are small groups. However, there also are big manufacturers who have made a name for themselves globally via their massive product strains and aggressive advertising.
One such famous call is Renaissance Jewellery, which employees 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,’ become used while entrepreneur Sumit Shah remodeled his father’s diamond reducing enterprise and installation the organization in 1995.
“In 1970, my father Niranjan Shah had started a diamond slicing enterprise. But when Renaissance become released in 1995, we stopped diamond reducing and started manufacturing jewelry seeing that we desired to enter this big market,” says Sumit Shah, Founder, and Managing Director, Renaissance Jewellery.
His father remains the Chairman of the employer, and beneath Sumit’s management, the emblem has to turn out to be 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), Mumbai, and has subsidiaries in the US, UK, and Dubai.
In a specific interplay with SMBStory, Sumit favorite shows extra approximately the commercial enterprise and his plans for the future.
sob story: Can you inform us extra approximately Renaissance?
Sumit Shah: We are into designing, manufacturing, and sale of 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 unfold across the USA, UK, Dubai, and Mumbai.
We also have nine ultra-modern production facilities, using 4,000 people globally. We personal special licenses for two brands, namely ‘Enchanted Disney Fine Jewelry’ and ‘Hallmark.’ We plan to go into new territories like China and Europe with the Enchanted Disney Fine Jewellery brand, which has been a massive success in the US.
SMBS: Who makes up the management team of RJL?
SS: My father Niranjan Shah, who is the Chairman, has been related to the enterprise for the reason that its inception. He has over four decades of experience inside the gems and jewelry enterprise. He is presently answerable for the overall strategic making plans and decision making for the enterprise.
I work closely with him, and my regions of focus include method components and new commercial enterprise projects. I helped transform RJL from being an agreement producer of jewelry to a design residence serving worldwide stores and installed a global advertising community. The 1/3 member is Hitesh Shah, who’s chargeable for finance, accounting and vending operations for the enterprise. 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 specialized in the gemstone business inside the US. This paved the way for getting into the gemstone commercial enterprise. The acquisition additionally enabled move-promoting gemstone products to our cutting-edge studded jewelry shops within the US.
In 2016, we selected to go into the gold manufacturing business in Dubai through 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, other than a strong presence on Amazon and different foremost e-commerce marketplaces.
SMBS: What had been a number of the critical thing milestones on your adventure?
SS: Initially, we invested our cash and commenced 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 started putting in place subsidiaries inside 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 business belongings of Jewel America in 2013 to go into the gemstone business. Later we received Vogue DMC and Jay Gems, and we these days signed a licensing settlement with Hallmark. With this, our profits before interest, tax, depreciation, and amortization crossed Rs one hundred crores.
SMBS: What is the marketplace length of your area, and the way is RJL differentiating from its opposition?
SS: The contemporary market length of the jewelry business is around $80 billion, and it’s miles expected to remain steady in the near destiny. However, we assume that within this marketplace, branded jewelry is going to see a pretty first-rate growth with a discount inside the popular jewelry business.
Therefore, our primary product differentiation comes through branded jewelry. Our famous manufacturers and our product development efficiencies give us an aspect in terms of designing branded jewelry. We expect to introduce those brands in other markets like China and Europe to extend our branded jewelry play, and thereby improve our gross margins and go back 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 tips closer to recession shortly. Moreover, lackluster market expectations may hose down 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 the jewelry exports to the US are protected in those sanctions, manufacturing might shift from China to India, which might be very favorable for the jewelry enterprise 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 will increase, there is probably call for shrinkage for low high-quality diamonds