Renaissance to double sales by 2021 as it enters new markets

Mumbai: The largest studded diamond jewellery exporter Renaissance Jewellery has targeted to double its revenue at Rs 3,600 crore over the next two years and plans to enter new markets, including China and Russia.

The city-based exporter, which had clocked Rs 1,825 crore sales in FY18, designs, manufactures and sells diamond jewellery to over 50 top brands globally, and had sold over 3.3 million pieces of jewellery in 2018, mostly to American retailers in the year.

Renaissance, which was launched 24 years ago as a lose diamond trader, today leads the studded jewellery exports market from the country with around 13 percent of the USD 2 billion pie in FY18.

"As the next step in our brand makeover, we are taking our most notable licensed brand, Enchanted Disney Fine Jewellery to China, Russia, the Middle East and Hong Kong shortly. Hallmark Jewellery, our second biggest brand, will follow suit. This should help us double our revenue by 2021," its managing director Hitesh Shah told PTI.

Renaissance primarily supplies to major global retailers like Macy's, JCPenny's, Walmart, Monica Vinader, Kenrda Scott, Links London apart from online retailer Amazon.

Shah said the company will not enter into direct retail as "we know what is our forte: being a supplier of the best fine jewellery to top-notch global brands." 

Renaissance runs eight manufacturing units--six in the Mumbai Seepz area where it's headquartered, one in Gujarat's Bhavnagar and one in Dubai, where it manufactures gold jewellery. The company employs around 4,000 globally, including a 150 in the R&D team spread across Mumbai, the US, Britain, and Dubai.

Shah also claims that Renaissance offers over 12,000 new designs annually and has more than 100 patents/copyrights for the same.

Since its listing following an Rs 80-crore IPO in 2007, Renaissance has been following an acquisition-led growth strategy and has snapped up three global brands so far.

Jewel America, which specialises in in the gemstones business in the US in 2013 was its first acquisition. It bought the Dubai-based Vogue for USD 1.5 million in 2016, helping it enter gold manufacturing. Its biggest acquisition came in August 2018 when it snapped up Jay Gems of the US for USD 25.62 million.

Shah affirms they will continue with the same inorganic growth model going forward to expand reach.

Over the years, Renaissance has been lowering its dependence on the US market steadily. From 62 percent in FY16 to 57 percent in FY17 and to 41 percent in FY18, it has been on a steady downhill. Of Rs 1,825 crore revenue in FY18, 38 percent came from the Middle East, Asia Pacific (11), Europe (6), and India (4 percent), Shah says.

For the nine months to December 2018, it reported a net income of Rs 71.2 crore, up 29 percent on a revenue of Rs 1,875 crore, which grew 36 percent.

Renaissance gained over 3 percent at Rs 317.05 on BSE Wednesday against a flat benchmark.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.