Shrenuj Pays $22 million for 84% Simon Golub Stake

Indian diamond and jewelry manufacturer Shrenuj has acquired an 84 percent stake in U.S.-based Simon Golub & Sons. The American company is one of the top five jewelry distributors in the United States. Shrenuj paid $22.7 million in the transaction.

“This acquisition is in line with our future strategy of getting straight to the retailer, to build additional margins and have access to firsthand information regarding change in fashion trends and consumer preferences,” said Shrenruj President (Business Development) Vishal Doshi.

Speaking to Jewelbiz India, Doshi says the company has taken this route to expand its U.S. operations because it believes that the distributor level is the ideal entry point in a market as large, developed, and complex as the U.S.

The company will continue to work at different levels in the international market, he added, emphasizing that the acquisition does not indicate a shift in the company’s approach to downstream operations.

“The margins at the distributor level are about 20 percent, and though this is lower than the margins at the retail level, the outlay involved, as well as the risks, are also considerably lower compared to entering directly at the retail level,” he said.

The deal opens the lucrative American market to DTC Sightholder Shrenruj diamonds and jewelry. The company says it will use Simon Golub’s distribution network for B2C marketing and branding programs. Shrenuj expects to involve more U.S.-based product merchandisers to develop new lines, with manufacturing centered in India and China, Doshi told Jewelbiz. Shrenuj owns 51 percent of Joliesse, a Hong Kong jewelry retail chain, and has branded programs in India, France, and the U.S.