RBZ Jewellers Ltd
About the Company
RBZ Jewellers Limited, based in Ahmedabad, Gujarat, is a prominent player in India’s jewelry industry, specializing in Antique Bridal Gold Jewellery. Established in 2008, the company has grown from a modest venture rooted in traditional craftsmanship to a leading name in the sector. Drawing on its rich heritage, RBZ blends age-old artisanal techniques like Jadau and Meenakari with cutting-edge technologies such as 3D printing and laser cutting.
The Company owns and operates a flagship retail showroom under the brand name “Harit Zaveri” in the prominent Satellite area of Ahmedabad. Spanning 11,667 square feet, this showroom serves as a key retail destination, offering a wide range of gold, diamond, and Polki jewelry. RBZ’s commitment to transparency, ethical practices, and customer satisfaction has established it as a leading player in the Ahmedabad market, With a strong emphasis on customer satisfaction. RBZ also exports its jewelry to the Middle East and is supported by a skilled workforce of over 200 employees and 250 artisans. Its commitment to quality, ethical practices, and transparency has enabled it to establish a trusted presence in 72 cities across 20 states in India. RBZ holds 1% of the organized wholesale gold jewelry market in India.
The founders of RBZ Jewellers trace their roots to the family business initiated by Shri Bababhai Hargovandas Zaveri in Patan, Gujarat, decades ago. Over the years, the company transitioned into a corporate entity under the leadership of Rajendrakumar Kantilal Zaveri and his son Harit Zaveri, introducing structured processes and modern business practices.
Business Overview
RBZ Jewellers operates with a comprehensive and vertically integrated business model that gives them complete control over the entire value chain. This model encompasses various stages, from designing and manufacturing to wholesale distribution and retail sales. RBZ's unique selling point lies in its ability to seamlessly integrate technology with artistry, offering a range of antique gold jewelry, including Jadau, Meena, and Kundan's work, crafted with techniques like 3-D printing and laser technology. This approach ensures high-quality standards and ethical sourcing practices throughout the entire process.
Here's a breakdown of the key components of RBZ Jewellers' business model:
1. Design and Manufacturing: a) RBZ Jewellers has a state-of-the-art manufacturing facility located in Ahmedabad, Gujarat, which spans 23,966 square feet. This facility is equipped with advanced technologies like casting, laser technology, and 3-D printing.
b) The company combines traditional jewelry-making techniques, such as Jadau and Meenakari, with modern technologies like 3D printing and laser cutting.
c) RBZ's in-house manufacturing setup allows it to oversee every step of the production process, from casting and setting to polishing and finishing. This vertical integration enhances RBZ’s ability to maintain quality and reduce reliance on external vendors.
2. Sourcing of Materials:
a) RBZ Jewellers works closely with trusted suppliers to source gemstones and precious metals, ensuring they are conflict-free and meet quality standards.
b) The company maintains long-term relationships with suppliers, supporting sustainable sourcing and responding to market changes.
3. Distribution and Retail:
a) RBZ uses a direct distribution model, catering to jewellers in 72 cities across India, alongside its retail showroom, "Harit Zaveri," in Ahmedabad.
b) RBZ's wholesale relationships with national, regional, and local family retailers enable it to reach a broad audience, while its retail presence fosters direct engagement with end consumers.
4. Wholesale:
a) RBZ is a supplier of antique bridal jewellery to retail jewellers in over 72 cities in India.
b) The company processes and supplies Antique Bridal Gold Jewellery on a job work basis to national retailers.
c) RBZ focuses on the wholesale segment to capitalize on the demand for ethically sourced jewellery.
5. Retail:
a) RBZ owns and operates a retail showroom under the brand name "Harit Zaveri" in Ahmedabad.
b) The retail segment contributes significantly to RBZ's revenue, driven by direct engagement with end consumers.
6. Financial Performance:
a) RBZ Jewellers reported revenue from operations of ₹327.43 crore for the financial year 2023-24, which is a 13.72% increase compared to the previous year.
b) The company's strategic focus on wholesale has positioned it to capitalize on the growing demand for high-quality, ethically sourced jewellery across India.
7. Expansion and Market Presence:
a) RBZ Jewellers aims to tap into opportunities in Tier II and Tier III cities by expanding its product offerings and acquiring new customers.
b) The company plans to strengthen relationships with national, regional, and local retailers, increasing its presence in key cities.
8. Ethical Practices and Social Media:
a) RBZ is committed to ethical practices, building trust and transparency with customers and business partners.
b) The company has cultivated a strong social media presence to engage with both retail and B2B audiences.
Revenue Breakup: FY24:
- Sale of products: 98%
- Sale of services: 2%
Product wise Sales Split - FY24: Gold ornaments a) (22-Karat) 39% b) 24-Karat gold 4% c) 22-karat ornaments 43% Other ornaments 8% Diamond 3% Labour income 2%
Financial Report
Share Capital & Number of Employees
Share price and Volume (last 1 year):
Month and Year | April-2024 | May-2024 | June-2024 | July-2024 | August-2024 | September-2024 | October-2024 | November-2024 | December-2024 | January-2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Volume | 6000000 | 2046000 | 893000 | 2016000 | 1047000 | 2045000 | 1024000 | 1014000 | 2049000 | 2012000 |
Prev Close
N/A
Sector
Diamond, Gems and Jewellery
Market Cap
₹817 Cr.
TTM PE
24.8x
Sectoral PE Range
N/A
PE Remark
N/A
BSE
N/A
COMPANY TYPE | EVERGREEN |
|---|
| (IN INR CR) |
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| (IN INR CR) |
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Key Metrics
Market Cap
₹817 Cr.
Current Price
₹204
PE Ratio
24.8
D/E Ratio
0.55
ROCE%
16.1%
CWIP
₹1 Cr.
ROIC%
9.91%
Cash Conversion Cycle
323 day
ROE%
14.4%
PEG Ratio
N/A
Business Segment
Wholesale
A significant portion of RBZ's operations involves wholesale distribution. They supply exquisite antique bridal gold jewelry to various retailers across India, including reputed national chains, prominent regional players, and well-established local family jewelers.
Retail
RBZ directly engages with end consumers through its own retail showroom, "Harit Zaveri," located in Ahmedabad, Gujarat. This allows them to showcase their unique designs and provide a personalized shopping experience.
Job Work
Leveraging their manufacturing expertise, RBZ offers job work services to other jewelers. This includes creating and manufacturing jewelry based on specific customer requirements and assisting other jewelers in producing intricate designs or meeting high-volume orders.
Key Highlights & Management Guidance
Expansion Plans:
- The company plans to increase its manufacturing capacity fivefold, targeting 5–6 tons of annual production by FY26. Land procurement and development of a 1,00,000 sq. ft. facility are underway, with operations expected to begin in the next fiscal year. This expansion aligns with the company’s focus on occasion wear jewelry, aiming to meet the growing demand across India.
Retail Growth:
- The flagship Ahmedabad store has been expanded with an additional 3,000 sq. ft. of retail space, enabling projected retail revenue growth of 35–40% annually, from ₹188 crores in FY24 to ₹250 crores in FY25. With a medium-term target of ₹400–₹500 crores, the store infrastructure is equipped to support retail revenue of ₹500–₹600 crores over the next two years.
Order Pipeline:
- Successfully secured a robust order book following a strong performance at the IIJS exhibition (August 2024) and the festive season.
- Orders have been booked through November 2024, driven by demand from both retail and B2B segments.
- B2B accounts for 80% of volumes, showcasing strong traction from organized retailers, while retail contributes 20% of volumes but 50% of revenues.
Capex and Investments:
- Significant funds from the IPO (₹80 crores out of ₹100 crores) were allocated to building inventory, resulting in improved inventory days (from 313 to 198).
- Investments in machinery and technology are aligned with the company’s focus on enhancing manufacturing efficiency and output.
Geographic Expansion:
- The company is strengthening its presence in the Western region, with plans to expand operations into Southern India by FY27.
- The South India market, comprising approximately 40–50% of the total jewelry market, remains largely untapped and offers significant growth opportunities.
Focus on Occasion Wear Jewelry:
- The company continues to prioritize occasion wear jewelry, which accounts for 50% of India’s organized jewelry market (300 tons annually).
- Expansion into daily wear jewelry remains a future consideration, but the immediate focus is scaling occasion wear production to 10–20 tons.
Future-Ready Strategy:
- Plans to become the number one occasion wear player in India by leveraging regional market strengths and building partnerships with corporate and independent retailers.
- Strengthened relationships with clients like Titan, Malabar Gold, and Senco to deepen market penetration and reduce dependency on individual accounts.
Industrial Outlook
Industry Overview
The Indian gem and jewelry industry is a significant contributor to the country’s economy, deeply embedded in cultural traditions and modern consumer trends. As of FY2023, the industry was valued at approximately USD 43.71 billion and is projected to grow at a CAGR of 17.35%, reaching USD 133.96 billion by 2030. Key drivers include:
Increasing Demand for Branded and Certified Jewellery: Consumers are shifting toward branded jewelry that offers quality assurance, transparency, and ethical sourcing. Mandatory hallmarking introduced by the Bureau of Indian Standards (BIS) has enhanced consumer confidence in the authenticity of gold jewelry.
Growth of Organized Retail: Organized jewelry retail is expanding rapidly, with its market share expected to grow from 30% by 2025 to 40% by 2030. Factors influencing this shift include rising incomes, evolving consumer preferences, and increased urbanization.
Wedding Market’s Impact: The Indian wedding market is a major growth driver, with approximately 10–13 million weddings annually. Jewellery accounts for 24% of total wedding expenses, and the demand for bridal gold jewelry remains robust. This segment contributes significantly to the wholesale jewelry sector, with bridal jewelry accounting for 65–70% of the volume.
Growing Importance of Tier II and Tier III Cities: These regions are experiencing significant growth due to rising disposable incomes, increased urbanization, and access to better-quality jewelry through organized retailers.
Financial Highlights
| PARTICULARS | Q1FY25 | Q2FY25 |
|---|---|---|
| Sales | ₹82.45 Cr | ₹116.60Cr |
| OPM% | 17.26% | 11.96% |
| Net Profit | ₹9.08 Cr | ₹8.07 Cr |
Shareholding Pattern
June'2024 | Sep'2024 | Jun'2024 | |
|---|---|---|---|
| Promoters | 75% | 75% | - |
| FIIs | 1.34% | 1.02% | - |
| DIIs | 1.54% | 1.72% | - |
| Retailers | - | 22.27% | 22.13% |
Capsule’s View
1. Industry Overview
The Indian gem and jewelry industry is a significant contributor to the country’s economy, deeply embedded in cultural traditions and modern consumer trends. As of FY2023, the industry was valued at approximately USD 43.71 billion and is projected to grow at a CAGR of 17.35%, reaching USD 133.96 billion by 2030, and Organized retail is projected to account for 40% of the market by 2030, driven by changing consumer preferences and rising incomes.
2. Opportunities
Expansion into Emerging Markets: The company plans to expand into Tier II and Tier III cities, targeting the untapped potential in these areas. These markets are showing increasing demand for certified and premium jewelry due to rising affluence and cultural preferences.
Focus on Ethical Sourcing and Sustainability: Ethical sourcing and sustainability are gaining importance among consumers. RBZ’s commitment to using ethically sourced materials and adhering to BIS hallmarking standards positions the company as a trusted brand in the market.
Technological Advancements in Jewellery Design: By integrating cutting-edge technologies such as 3D printing, CAD, and laser cutting, RBZ aims to stay ahead of industry trends, offering innovative designs while maintaining traditional craftsmanship.
Diversification of Revenue Streams: The company’s presence across wholesale, retail, and job-work services ensures a diversified revenue base. This approach helps RBZ mitigate risks associated with market fluctuations.
Enhancing Wholesale and Retail Partnerships: The company plans to deepen its relationships with national, regional, and local family jewelers, tailoring its offerings to meet the specific needs of different markets. This strategy will help RBZ capture a larger share of its partners' business.
Expanding Product Offerings: RBZ is focused on creating unique and customized jewelry lines, including theme-based designs, to cater to diverse consumer preferences and boost market demand.
Strengthening Market Presence: The company’s strategic initiatives include:
- Expanding into untapped regions.
- Increasing brand visibility through flagship stores like Harit Zaveri.
- Leveraging its strong wholesale network to enhance outreach.
3. Challenges and Threats
Fluctuating Gold Prices: Gold, a primary raw material, is subject to price volatility, which can impact profit margins and pricing strategies.
Competition from Unorganized Sector: Despite the growth of organized retail, a large portion of the jewellery market remains unorganized. Competing with these players on pricing and customer trust is critical.
Economic Uncertainty: Macro-economic factors, such as inflation and geopolitical tensions, could dampen consumer spending on luxury items like jewellery.
3. Guidance and Vision:
RBZ Jewellers is focused on achieving long-term, sustainable growth by adhering to its guiding principles of quality, transparency, and innovation:
- Leadership in Bridal Jewellery: The company aims to become India’s leading provider of antique bridal jewellery, blending traditional craftsmanship with modern aesthetics.
- Expanding Consumer Engagement: RBZ plans to increase customer touchpoints by enhancing its online and offline presence, offering a seamless shopping experience.
- Investment in Technology: Continued investments in advanced manufacturing technologies will improve efficiency and enable the company to cater to evolving consumer preferences.
- International Market Expansion: Leveraging its existing presence in the Middle East, RBZ is exploring further international opportunities to establish itself as a global jewellery brand.
- Growth Targets: The management projects FY25 revenue in the range of ₹500–₹600 crores, with a PAT target of ₹35 crores.
- Guidance: FY26: Revenue target of ₹800 crore and PAT between ₹40-44 crore. FY27: Targeting annual revenue of ₹1,000+ crores by FY27, driven by increasing capacity and market penetration in occasion wear jewelry.
- Focus on Manufacturing: Management focused on manufacturing business and targets to maintain current levels of ROCE (Return on capital employed) and ROE (return on equity)