Senco Gold to launch luxury accessories brand Sennes globally as per diversification plan for FY25  

The brand’s strategy for the upcoming fiscal year involves focus on markets with significant Indian expatriate communities, where it has already established recognition 

Kolkata — Senco Gold and Diamonds is poised for substantial growth in FY25 with ambitious plans for global expansion and luxury market diversification through the introduction of a new line of premium lifestyle accessories under the brand ‘Sennes’. 

The brand’s strategy for the upcoming fiscal year involves focus on markets with significant Indian expatriate communities, where it already has established recognition. Concurrently, Senco Gold will debut ‘Sennes’, a sub-brand offering luxury leather bags and high-end jewellery accessories, catering to affluent consumers. 

Suvankar Sen, Managing Director & CEO of Senco Gold, commented, “The launch of Sennes is a pivotal move, introducing premium lifestyle products that will enrich our brand’s offerings and enhance consumer experiences. This initiative is designed to bolster our brand recall and position Senco Gold as a leading provider of comprehensive lifestyle solutions.” The introduction of Sennes also marks Senco Gold’s entry into the Dubai market, underscoring the company’s commitment to international expansion. 

Sanjay Banerjee, Chief Operating Officer of Senco Gold, shared a positive outlook for FY25. He highlighted that new stores opened in FY 2022-23 are expected to mature and contribute significantly to revenue. Investments in advanced technologies and processes are anticipated to improve profit margins, while strategic branding efforts are likely to boost visibility and store traffic. The company plans to expand its footprint across India, focusing on growth in the north, west, and south regions, building on its strong presence in the eastern part of the country. 

Senco Gold raised ₹405 crore through its Initial Public Offering (IPO), with ₹270 crore allocated to primary investors and ₹135 crore to secondary investors via an Offer for Sale (OFS). After IPO expenses and proportional reimbursements, the net capital inflow amounted to ₹248 crore. These funds are being used to support working capital needs for both existing and new showrooms. As of March 31, 2024, Senco Gold operates 159 showrooms across 96 cities and towns in 13 states, covering approximately 1,19,405.51 square feet of retail space. The company also has franchisee showrooms in tier-I and tier-II non-metro locations. 

Sanjay Banka, CFO of Senco Gold, emphasized the company’s focus on enhancing profitability through prudent financial management, strategic capital allocation, and optimizing Gold Metal Loans (GML) to reduce interest costs. Senco Gold acknowledges the competitive nature of the jewellery industry, which may lead to price wars, margin pressures, and increased marketing costs. The industry also faces frequent regulatory changes, inflation, currency fluctuations, and geopolitical uncertainties that could impact operations. 

Regulatory developments, including compulsory hallmarking and anti-money laundering regulations, are seen as beneficial for organized players such as Senco Gold. However, the company remains vigilant about risks such as economic instability, supply chain disruptions, and potential brand dilution due to rapid expansion. 

The Indian jewellery industry has demonstrated steady growth, with a Compound Annual Growth Rate (CAGR) of 8% from 2018 to 2023. It is projected to reach $145 billion by 2028, driven by an accelerated CAGR of 16%. Organised retail jewellers are expected to account for over 60% of the market by 2035. Looking ahead, Senco Gold plans to enhance its e-commerce and digital marketing efforts to better engage with customers. The company is investing in technologies such as 3D printing, Computer-Aided Design (CAD), and augmented reality (AR) to offer innovative jewelry designs that appeal to modern consumers. 

Retail Jeweller India News