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Mumbai, Feb. 14 Renaissance Jewellery Ltd (RJL) has acquired US-based JBR Inc for $40 million (Rs 160 crore) through its wholly owned subsidiary Renaissance Jewellery New York (RJNY).

JBR Inc, catering to major US jewellery retail chains, has a revenue of over $70 million.

Apart from receivables and inventory, JBR has transferred its vendor ID, copyright and trademarks to RJNY. RJNY also stands to gain access to the former’s clientele which includes JC Penny, Sears, Kohl’s, Zales, Sterling Jewellers, Fred Meyer and Mervyns. The acquisition includes a 8,000-sq ft office in New York, and staff and design studios in Hong Kong.

“We believe that this acquisition will consolidate our position in the US market, giving us access to most large retailers. Such a step will help us cater to various segments, besides providing higher realisations,” said Mr Sumit N. Shah, Managing Director, Renaissance Jewellery Ltd.

In India, RJL has three manufacturing units — two located at SEEPZ-SEZ in Mumbai and one export-oriented unit at Bhavnagar, Gujarat. It also has a manufacturing facility at MIDC, Andheri for catering to the domestic retail market.

RJL plans to ramp up retail outlets from eight to 250 in the next five years. In a bid to increase its profitability margins and cater to various segments, RJL intends to become a one-stop shop for the full range of studded jewellery.

“Focus on the smaller retailers in the US markets through their wholly-owned subsidiary will reduce dependence on large retail chains, besides providing higher realisations,” Mr Shah said.

The US is the world’s largest market for diamond jewellery. India accounts for 57 per cent of world net exports of cut and polished diamonds in value terms $10.9 billion — 90 per cent in pieces and 80 per cent by caratage. While most of the gold jewellery manufactured in India is for domestic consumption, a major proportion of processed diamonds is exported.

In terms of export earnings, the Indian gems and jewellery industry is one of the oldest and largest contributors.

More Stories on : Strategy | Mergers & Acquisitions | Overseas Investments | Gems & Jewellery

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Renaissance Jewellery buys JBR Inc for Rs 160 crore

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