Senco Gold aims for Gulf expansion, scouts for tie-ups in Saudi Arabia

Indian jeweller Senco Gold & Diamonds is seeking collaboration opportunities in Saudi Arabia's $8.3 billion luxury market as the company pursues Gulf expansion while targeting 20% domestic growth, its chief executive has said.

Senco Gold took part in the three-day Saudi Arabia Jewellery Exhibition (SAJEX), which concluded on Friday. The trade show featured over 200 Indian exhibitors as India's gem and jewellery sector aims to reverse declining exports to one of the region's largest consumer markets.

"Saudi Arabia is one of the largest consumer markets, especially when it comes to jewellery for the Gulf region. Unfortunately, in this global competitive scenario, jewellery from Turkey or other parts of the world has been able to capture a large market share while Indian jewellery has been on a downturn," Suvankar Sen, Managing Director and CEO of Senco Gold & Diamonds, told PTI.

Sen said SAJEX 2025 provided a platform for Indian jewellers to collaborate with Saudi designers under the kingdom's Vision 2030 initiative, which aims to diversify the economy beyond oil.

The Kolkata-based public listed company is particularly focused on Saudi Arabia's younger demographic, which Sen said prefers "modern, lightweight, sleek jewellery" compared to traditional preferences of older generations.

Senco sees potential in cross-border e-commerce, especially if India's recent EFTA Free Trade Agreement leads to similar arrangements with Saudi Arabia and reduced trade barriers.

"If the free trade pact and the opening up of the economy, especially with gem and jewellery can happen in Saudi Arabia, I'm sure we can see huge opportunities," Sen said.

However, he acknowledged that Saudi Arabia currently imposes some of the highest tariffs and taxation on jewellery imports, which acts as a hindrance to trade expansion.

To meet growing demand for ethical luxury goods, Senco has launched lab-grown diamond jewellery under its Senes sub-brand and increased the use of recycled gold amid record-high gold prices.

The company has also implemented solar power across stores and factories as part of environmental sustainability efforts.

"When it comes to sustainability, there are three parts - environment, social and governance. Whatever business we do has to be long-term thinking," Sen said.

Domestically, Senco has invested ₹700-800 crore in the current financial year, opening 10-12 new stores with 5-6 more in the pipeline. The company reported a turnover of ₹6,400 crore last year and is targeting 20% growth this fiscal.

"Q1 was very good with 30% year-on-year growth. Q2 has been slow, so we are expecting 15-16% growth year-to-date. But overall, we are targeting 20% growth for the year," Sen said.

Diamond jewellery sales have outpaced gold jewellery due to high gold prices, Sen added.

The company plans to open 16-18 stores this fiscal year as part of sustainable annual growth of 18-20%.

Sen said SAJEX represented part of a broader strategy to reduce dependence on Western markets and build "Made in India" jewellery as a premium brand in Gulf markets.

"We need to work on marketing, brand building, and collaboration to make this market very big. Using this as a base, we can then look at exporting to other Gulf markets," he said.

The company is open to joint ventures and technology-sharing arrangements with Saudi firms to benefit from the kingdom's economic diversification while showcasing India's traditional jewellery craftsmanship.

SAJEX was organised by the Gem & Jewellery Export Promotion Council (GJEPC) with support from the Ministry of Commerce and Industry to diversify export markets beyond traditional destinations.