Diversified Growth Plans for Su-Raj

Su-Raj Diamonds and Jewellery, an Indian diamond and jewelry manufacturer and one of the first diamond companies to be publicly listed (in 1986), has recently taken a number of wide ranging steps to expand and consolidate its businesses both in India and key international markets.

In a revamp of its overseas structure over the last few months, Su-Raj has integrated six of its sister companies in different overseas markets across Europe, U.S. and Middle East under a common banner. This will enable the company to market its goods directly, says Jatin Mehta, Chairman. He adds, “It will also help us to establish a more direct relationship with our clients as well as offering them better value for money in terms of price and service.”

At present the company has no plans to develop a retail operation outside of India, but rather concentrate on its activity in the B2B segment.

Meanwhile, Vishal Mehta, son of Su-Raj chairman Jatin Mehta, is currently involved in two ventures abroad in what can be seen as inorganic growth for the parent company, but which are totally independent of the Su-Raj Group. Working with European investors interested in the U.S. & Europe in the jewelry sector, all of whom believe in working in the B2B arena, they have now acquired stakes in two international companies.

The first was the 65-year old U.S. firm I. Gansky & Co., a Philadelphia based manufacturer/wholesaler and a niche player concentrating on catering to independent retailers dealing in medium to high end bridal jewelry. Su-Raj will be the first overseas diamonds and jewelry supplier for the company. I. Gansky is also looking at sourcing loose colored stones and jewelry from Bangkok, as well as jewelry from China

About a month ago, this team also completed the acquisition of Zettl Gmbh, a 20-year old company based in Pforzheim, Germany that served Europe, the U.S., Australia, and New Zealand markets before going into insolvency four years ago. Zettl’s core product strength is basic jewelry in 8k to 18k gold, and plain and studded silver jewelry. The new team will now rebuild the production base focusing on the European market.

For the Indian market, Su-Raj is working through its subsidiary Forever Precious Jewellery and Diamonds (in which it holds a 49 percent stake). The company aims at boosting its turnover from Rs 1,500 million ($32.75 million) to Rs 5,000 million ($109.15 million) in the next two years, with a major thrust being planned in the Tier II and Tier III cities.

In the process, it hopes to expand its present client base, which includes leading jewelers such as Tanishq, Khazana, Alukkas, Chintamani’s, and TBZ, from the existing 100 to over 500 jewelers in the same period.

Forever has also entered into a tie up with the Fortune India group (formerly Pantaloon India) to set up its exclusive jewelry outlets or gold bazaars called Navarasas at all the Food Bazaars and Big Bazaars run by the chain. It already has a presence in 12 such shopping malls in Bangalore, Mumbai, Ahmedabad, Nagpur, Hyderabad, and Gurgaon and plans to add 12 more during 2006-07 fiscal year in centers like Nashik, Mangalore, Kolkata, Bhubaneshwar and Guwahati. It aims to have a total of 40 stores by 2007-2008.