Top US jewellery distributor taken over

Mon, 14 May 2007

Indian jewellery and diamonds company Shrenuj and Company Ltd have acquired an 84.6 per cent stake in a major US jewellery distributor. The recent announcement reveals that Simon Golub &Sons Inc (SGS), established 80 years ago was sold in a deal estimated to be worth US$22.7 million.

Vishal Doshi, Shrenuj and Company’s President of Business Development, said, "This acquisition is keeping in line with our future strategy of getting straight to the retailer to build additional margins and have access to first hand information regarding change in fashion trends and consumer preferences. We will be using the massive distribution system of SGS to run various B2C marketing and branding programmes."

"Distributors with their service appeal will continue to be the mainstay of US jewellery business . With SGS we have an 80 year old business with a proven track record amongst both retail segments of the American jewellery market namely, the major chain stores representing the mass market and the independent retail stores representing the mom and pop stores."

Andrew Harris, President, SGS said, "Shrenuj shares our vision and values. In Shrenuj, we have found a team that we believe, will take SGS to greater heights. The entire SGS team has agreed with pleasure to continue managing the business to provide continuity and growth in operations for SGS and for all its indenting partners. SGS operates on robust inventory management systems based on sophisticated ERP…. making us a preferred supplier for large chain stores as well as independent retailers."

In 2006 SGS reported a turnover of US$136 million.

Doshi added, "The jewellery business worldwide is witnessing consolidation at all levels. Major retailers are looking for economical and efficient manufacturing and product development partners." Commenting the trend as healthy, he said, "Indian players have truly become favourites of their western counterparts as possible partners and many such deals are likely in the near future."

For Shrenuj and Co the acquisition means a huge doorway into the North American jewellery market.
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