Shringar House of Mangalsutra has increased its production capacity to 4,000 kg per year following a plant relocation in Mumbai. The company is also diversifying into the bridal jewellery market to reduce its reliance on the core mangalsutra business and supply to major organized retail chains.
Shringar House of Mangalsutra Ltd has completed a move to a new, larger manufacturing facility in Kandivali, Mumbai. This shift has allowed the company to raise its annual production capacity from 2,500 kg to 4,000 kg. The new site, which began operations in February 2026, uses updated machinery to manage the company's existing inventory as well as its new product line.
In April 2026, the company entered the bridal jewellery segment. This is a strategic move to reduce the business’s heavy reliance on mangalsutra sales, which has traditionally been its primary product. By moving into bridal jewellery, the company hopes to improve its profit margins, as bridal items typically carry higher making charges compared to standard daily-wear jewellery. The company supplies these products to organized retail chains including Titan Company, Indriya, Joyalukkas, Reliance Retail, Kalyan Jewellers, and Malabar Gold.
To reach more customers, the company is implementing a hub-and-spoke distribution model. This involves setting up company-managed offices in urban hubs like Pune and Delhi, while using third-party facilitators to reach Tier-2 and Tier-4 markets. These local partners are authorized to hold up to 5 kg of inventory each, which helps the company reach smaller cities without the cost of setting up its own full-scale retail showrooms.
For investors, this expansion comes with specific considerations. Jewellery manufacturing is a capital-intensive business because it requires holding significant amounts of gold inventory. As the company expands its production capacity and product range, the working capital required to fund this gold inventory will increase. Additionally, the business remains sensitive to gold price volatility. Any sharp fluctuation in raw material prices can affect inventory value and margins if not managed effectively through hedging strategies.
Furthermore, while the move to supply organized retail chains helps in scaling, it also creates high client concentration. The company’s growth is directly tied to the expansion plans and sales performance of its retail partners. Investors may want to track how effectively the company manages its increased inventory levels and whether the bridal jewellery segment helps improve overall margins in the upcoming quarterly results.