Strategic Demerger of Parshva Enterprises' Jewellery Division

The demerger of Parshva Enterprises Limited’s Jewellery business into Simandhar Impex Limited is a strategic move designed to streamline operations and create focused business units. the company highlights in its annual report the company first announced this in May of 2024.

This separation allows each entity to concentrate on its core competencies, leading to enhanced strategic flexibility. By separating the Jewellery business, Parshva Enterprises can ensure dedicated management attention to each business segment.

This allows for tailored strategies that align with the unique growth dynamics of the Real Estate, Diamonds, and Jewellery divisions.Each entity can pursue independent growth strategies, both organically and inorganically, enhancing their competitive positioning in their respective markets.

The Jewellery division accounted for 12% of Parshva Enterprises’ total revenue in the financial year ending March 31, 2024. The segregation will enable the Jewellery business to scale efficiently and attract the right investors, providing greater access to capital for expansion.

This separation will lead to better resource allocation, enhancing operational efficiency and profitability for both entities.The Jewellery market, with its unique growth prospects, can now be independently developed. Simandhar Impex Limited can leverage its focused management to tap into new market opportunities, innovate, and expand its product offerings.

The Real Estate and Diamonds divisions can also pursue growth strategies without being overshadowed by the Jewellery business, ensuring all segments are aligned with their market demands.

The demerger positions both Parshva Enterprises Ltd. and Simandhar Impex Limited for robust future growth. The focused management approach is expected to drive significant improvements in operational performance and market expansion.

• Simandhar Impex Limited is projected to enhance its market share in the Jewellery sector, leveraging new investments, product innovation, and strategic market expansions.
• Parshva Enterprises Ltd. will continue to strengthen its Real Estate and Diamonds divisions, pursuing new opportunities and improving profitability.

This strategic move is set to create a stronger, more focused business structure, delivering enhanced value to shareholders and positioning both entities for sustained growth in their respective markets.

Demerger Announcement

Parshva Enterprises Annual Report 2023 24

Parshva Enterprises Limited has reported significant milestones and financial achievements for the fiscal year 2023-24, demonstrating robust growth and operational efficiency.

Financial Performance:

The financial performance of the company is known through the both consolidate and standalone results given below 

• Consolidated Financials:
  • Total Revenue: ₹2,512.82 Lakhs, up from ₹1,829.53 Lakhs in the previous year, marking a 27.19% increase.
  • Profit: ₹25.60 Lakhs, compared to ₹21.44 Lakhs in the previous year.
• Standalone Financials:
  • Total Revenue: ₹2,512.82 Lakhs, up from ₹1,829.53 Lakhs in the previous year.
  • Profit: ₹25.60 Lakhs, compared to ₹21.44 Lakhs in the previous year.

Change in share capital 

During the past year, the company made changes to its share capital as follows:

1. The Board of Directors approved the issuance of 50,000 Equity Shares at a price of Rs. 200 each (including a premium of Rs. 190 per share) to non-promoters. Additionally, 90,000 Equity Shares were issued to Prashant Vora, a promoter, at the same price per share, converting a loan into equity shares.
2. As a result of these issuances, the paid-up share capital increased from Rs. 10,04,97,490 to Rs. 10,18,97,490. This change reflects an increase from 1,00,49,749 fully paid-up Equity Shares to 1,01,89,749 fully paid-up Equity Shares.
3. The company applied for In-Principle & Listing Approval for 1,40,000 equity shares issued on a preferential basis and through loan conversion. These shares were not listed on the stock exchange by March 31, 2024, due to pending matters with the Stock Exchange SOP Committee regarding fines. The waiver application for these fines was approved on April 16, 2024.
4. Apart from these changes, there were no other alterations to the company's share capital during the financial year

Key Strengths and Opportunities:

The Company in its report highlighted that about three important aspects of the company's strengths and opportunity 

• Board Expertise: Inclusion of experienced and specialized personnel.
• Government Support: Expected benefits and exemptions for exports and Special Economic Zones.
• Global Partnerships: Major global retailers sourcing from India, boosting the diamond industry.

Challenges and Threats:

The company in its report highlights the key challenges and threats 

• Fast-Changing Fashion Trends: Need for agility in responding to evolving consumer preferences.
• High Working Capital Requirements: Long credit periods and high inventory levels, with low priority from bankers.
• Global Economic Uncertainty: Impact of global economic fluctuations on business operations.

Future Outlook:

The company talked about the demerger of the Jewellery industry from real estate and diamonds and the growth of the industry. 

• Strategic Demerger: Approved Scheme of Arrangement for demerging the Jewellery business into Simandhar Impex Limited. This aims to enhance strategic flexibility and focus on specific business areas.
• Industry Growth: Continued growth in the gems and jewellery sector, driven by large retailers and increasing exports. The sector is expected to contribute significantly to India's GDP, with exports potentially reaching US$ 100 billion by 2027.

Industry Report:

In the report major insider industries report some good bright spots in the field of both in terms of product and consumer approach towards that product.  

• Market Leadership: India remains the global hub for cutting and polishing diamonds, supported by low costs and skilled labor.
• Consumer Trends: Increasing demand for diverse jewellery types, including coloured gemstones and lab-created diamonds, driven by changing demographics and lifestyle choices.

Parshva Enterprises Limited demonstrated robust financial growth in FY 2023-24, driven by increased revenue and profits. The company leveraged government support and strategic partnerships to strengthen its market position.

However, it faced challenges such as rapidly changing fashion trends and high working capital requirements. Looking forward, the strategic demerger and positive industry outlook position the company for continued success and growth in the gems and jewellery sector.

Full Annual Report 2023- 24 

Parshva Enterprises  

Parshva Enterprises Limited, originally incorporated under the Companies Act, 2013 on July 27, 2017, operates primarily in the diamond and gold jewelry sectors. Specializing in both rough and polished diamonds ranging from 0.10 to 5.0 carats, the company conducts thorough grading and cut evaluations to ensure high quality.

It deals exclusively in natural diamonds, certified by GIA and guaranteed conflict-free. Additionally, Parshva Enterprises sells a variety of gold jewelry items, including chains, bangles, necklaces, and earrings, catering to diverse customer preferences and trends.

The company also engages in real estate investments focused on properties in Mumbai, targeting trading gains through strategic acquisitions in Maharashtra and Gujarat.