Kenrik Industries Sets Sparkling Expansion in Motion with New Jewellery Unit

Image Source : The Tribune

Kenrik Industries Ltd, a rising name in India’s traditional jewellery manufacturing space, has announced its formal expansion into the jewellery segment with the launch of a new production unit. The move marks a strategic deepening of its core business and signals the company’s intent to scale operations following its recent listing on the BSE SME platform.

Key Highlights of the Expansion

- The new unit will focus on manufacturing high-end and mid-market jewellery, including bridal collections, luxury items, and custom-made pieces
- Located in Ahmedabad, Gujarat, the facility will operate under a job-work model, allowing Kenrik to meet bespoke client requirements while maintaining lean capital expenditure
- The expansion is expected to increase production capacity by 40 percent and support the company’s growing B2B customer base across India
- All jewellery produced will continue to be BIS Hallmark-certified, ensuring quality and authenticity

This development follows Kenrik’s successful IPO in May 2025, which raised Rs 8.75 crore to fund working capital and corporate growth initiatives.

Product Portfolio and Market Positioning

- Kenrik’s offerings include rings, earrings, armlets, pendants, nose rings, bracelets, chains, necklaces, bangles, watches, and wedding jewellery
- The company caters to high-end, mid-market, and value segments, positioning itself as a versatile supplier in a fragmented industry
- With the new unit, Kenrik plans to introduce modern designs alongside its traditional collections, targeting younger demographics and urban markets
- The expansion will also support increased demand from institutional buyers and retail chains seeking certified, customizable jewellery

Kenrik’s ability to blend artisanal craftsmanship with scalable production gives it a competitive edge in the evolving jewellery landscape.

Operational Strategy and Execution Timeline

- The new unit is expected to be fully operational by Q4 FY26, with phased hiring and equipment installation already underway
- Kenrik will onboard additional artisans and technicians, expanding its workforce beyond the current nine employees
- Inventory management and quality control systems will be upgraded to support higher throughput and reduce turnaround times
- The company is investing in digital cataloging and CRM tools to streamline order processing and client engagement

These operational enhancements are designed to improve efficiency and support long-term growth.

Financial Context and IPO Utilization

- As of October 2024, Kenrik reported revenue of Rs 42.19 crore and net profit of Rs 78.19 lakh, reflecting a 36.4 percent year-on-year growth
- The IPO proceeds are being utilized primarily for working capital (Rs 6.56 crore) and general corporate purposes (Rs 1.8 crore)
- The expansion into jewellery manufacturing aligns with the company’s stated use of funds and growth roadmap outlined in its prospectus
- Promoter holding post-IPO stands at 72.01 percent, indicating strong promoter confidence and governance stability

Kenrik’s financial discipline and targeted capital deployment support its expansion strategy.

Industry Outlook and Competitive Landscape

- India’s jewellery market is projected to grow at a CAGR of 10 to 12 percent through FY30, driven by rising disposable incomes and demand for certified products
- Kenrik competes with regional manufacturers and national brands, but its B2B model and customization capabilities offer differentiation
- The company’s focus on traditional handmade jewellery positions it well in festive and wedding segments, which account for over 60 percent of industry sales
- Regulatory emphasis on hallmarking and traceability is expected to favor organized players like Kenrik

The expansion comes at a time when the industry is consolidating and shifting toward quality-driven, branded offerings.

Conclusion

Kenrik Industries Ltd’s entry into the jewellery segment through a new manufacturing unit marks a strategic leap in its growth journey. By scaling production, diversifying its portfolio, and reinforcing its commitment to quality, the company is poised to capture a larger share of India’s booming jewellery market. As it builds on its IPO momentum, Kenrik’s expansion reflects both ambition and alignment with market trends.

Sources: Reuters, Chittorgarh, Business Standard, ThePrint, Ventura Securities, IPOWatch India, ET Now News, Kenrik Industries investor disclosures and press releases