Shree Ganesh Jewellery to invest Rs 1,000 cr for expansion

Jewellery maker, Shree Ganesh Jewellery House Ltd (SGJHL) is planning to set up 20 large format retail stores across the country with an estimated investment of around Rs 1000 crore during the current fiscal.

The company operates retail business through its retail brand, Gaja.

The company is planning to open four such stores in Gujarat. "We will open four large format stores in Gujarat each at Ahmedabad, Vadodara, Rajkot and Surat. Currently we have nine exclusive stores in the state," Parekh informed.

The BSE-listed SGJHL currently has around 46 retail outlets out of which two are large format stores with area in the range of 10,000-15,000 square feet. The existing two large format stores are located at Mumbai and Kolkata each.

"With more and more consumers preferring organised retail stores for the jewellery purchase over the traditional stores, there is huge scope for retailing in Indian market. We plan to open 20 large format retail stores across the country this fiscal," said Umesh Parekh, Managing Director, Shree Ganesh Jewellery House Limited.

"We will invest Rs 1000 crore for the retail expansion. The funds will be met through the mix of equity and debt," said Parekh.

Headquartered in Kolkata, SGJHL is manufacturers and exports hallmarked and handcrafted gold jewellery from India. The company manufactures and exports gold jewellery, diamond jewellery, gemstone studded jewellery and light weight Italian jewellery.

Exports constitute a large part of company's revenues. However, with its focus on retail business, SGJHL aims to increase its revenues from the domestic revenues.

The company expects to cross turnover of Rs 7500 crore for the fiscal 2012-13, as against Rs 6600 crore for the fiscal 2011-12.

The company posted net profit of Rs 5.88 crore for the quarter ended December 2012 on the revenues of Rs 288.6 crore for the quarter.