Rs 29,00,00,000 Investment: Jewellery Company Strengthens Overseas Subsidiary Amidst Global Expansion
The stock has delivered 25 per cent in 1 year and surged 60 per cent in 2 years.
Renaissance Global Limited has approved an additional investment of up to Rs 29 crores in its wholly-owned step-down subsidiary, RD2C Ventures Inc, based in the USA. This strategic move, approved by the company's Investment Committee, aims to enhance RD2C's capabilities in the direct-to-consumer sale of gems and diamond-studded jewellery. RD2C, a subsidiary of Verigold Jewellery FZCO in Dubai, has been operational since November 2021 but has reported minimal standalone revenue. The investment will be utilized for further expansion and debt repayment, ensuring RD2C remains a key player in the jewellery industry.
This transaction is categorized as a related party transaction, with Renaissance Global maintaining 100 per cent ownership post-investment. The investment aligns with Renaissance Global's broader strategy of expanding its presence in key international markets through its B2B and D2C models. The company boasts a diverse portfolio of licensed and owned brands, including collaborations with global giants like Disney and Warner Bros. This move is expected to strengthen Renaissance Global's foothold in the competitive jewellery market, leveraging its extensive network of manufacturing units and strategic partnerships.
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Renaissance Global Ltd, established in 1989, is a prominent player in the diamond-studded jewellery manufacturing sector, with a strong presence in the USA, Canada, UK, and key Asian markets. The company operates through both B2B and D2C models, offering a wide range of branded jewellery, customer brands, and plain gold jewellery. Renaissance Global has established itself as a leader in the industry by securing licensing agreements with major global brands like Disney, Netflix, and Warner Bros. The company’s clientele includes renowned names such as Macy’s, Walmart, and Amazon.
With eight manufacturing units across Mumbai, Bhavnagar, and Dubai, Renaissance Global is equipped to craft over 1,000 unique designs monthly, supported by customized ERP solutions. The company is also considering exiting its Plain Gold business to reallocate capital and reduce leverage, reflecting its strategic focus on high-growth segments. Renaissance Global Limited has a market capitalization of over Rs 1,400 crore. The stock has delivered 25 per cent in 1 year and surged 60 per cent in 2 years. The company's price-earnings (PE) ratio is 20.
Disclaimer: The article is for informational purposes only and not investment advice.