Shree Ganesh forms JV with italian firm for Domjur plant

Shree Ganesh Jewellery House Ltd (SGJHL) has formed a joint venture with Italian firm SALP SPA. The JV will set up a manufacturing base at Domjur in West Bengal.

“This will be a 50:50 joint venture and will set up a 10 tonne light weight gold jewellery manufacturing unit at Domjur integrated jewellery manufacturing complex, with an estimated investment of Rs 100 crore. It will be operational by 2012. We will make gold chains under the brand name Oroitalia for retail acrioss the country and may export to Singapore, Middle East and Hong Kong too,” said Nilesh Parekh, Chairman, SGJHL.

As per the JV the Rs 5,900-crore SGJHL will provide infrastructure to set up the manufacturing division and SALP in return will introduce their technical expertise. “Out of the estimated Rs 250,000 crore domestic jewellery market, Rs 50,000 crore accounts to light weight jewellery. We will raise our part of the JV investment through internal accruals,” he added.

The Kolkata-based company is also setting up a 35-tonne facility at Domjur with an investment of Rs 150 crore. Along with that the firm will set up a skill development centre in join venture with the government, which will be finalised in two weeks.

As far as acquisition of gold mines are concerned, the company chairman has said that it is on look out for mines in Africa and Australia and are in talks with some firms. “We are also in talks with a European branded jewellery outlet to enter into the Chinese market.” However, the firm’s NBFC is set to be functional with in this financial year.