Fine Jewellery mulls Rs 115 cr capex, IPO likely

We are setting up 30 stand-alone stores for 'Nirvana' brands in 10 major towns in the next three years and increasing our manufacturing capacities to supply to these retail outlets. Our capex is estimated at Rs 115-crore, Fine Jewellery's Director, Sohail Kothari, said.        

The company proposes to raise $25 million through private equity in the next six months. It is also considering raising funds through an initial public offer (IPO), Kothari said.        

The "Nirvana" brand, which is positioned as a lifestyle brand, has been the number two brand in the domestic market in the branded jewellery segment. It will now be sold through exclusive jewellery boutiques.        

The company has decided to expand its domestic retail business in view of the 18 to 20 per cent growth in the domestic jewellery market, Kothari said.        

FJIL has the capacity to produce one million jewellery pieces per year and an installed capacity to consume 0.5 million carats diamonds a year.        

Every month, around 300 jewellery designs are churned out at the factory using the latest machinery.