Shree Ganesh sets up JV with Bangladesh's Rocks Creation

Company mulls to set up manufacturing unit under the JV with annual capacity of 200 kg of gold jewellery

Shree Ganesh Jewellery House, makers and exporters, of handcrafted gold and studded jewellery, today said it has set up joint venture with Bangladesh's Rocks Creation.

Rocks Creation is into retail, jewellery and textiles.

"Bangladesh has tradition of craftsmanship and producing the finest quality gold ornaments in the South Asian region. However, the industry has not been able to grow. Through this partnership we hope to take this opportunity to explore the emerging market in Bangladesh," Shree Ganesh Jewellery House CFO Ashok Sahni said.

The initial investment for this 75:25 JV, which is yet to be named, will be Rs 10 crore each by both the companies and in phases it will be scaled to a total Rs 50 crore, he added.

After the required clearances by the Bangladesh government, Shree Ganesh Jewellery House is planning to set up a manufacturing unit under this JV with an annual capacity of 200 kilograms of gold jewellery.

"We are expecting to get all clearances in four months, after which it will take another six months to set up and make the manufacturing unit operational," he said.

Shree Ganesh Jewellery House is already exporting jewellery to many retailers in Bangladesh, however, under this JV the company will directly the retail space in the neighbouring country, he said.

The 75:25 joint venture will also planning to set up a manufacturing unit in Dhaka, with an annual manufacturing capacity of 200 kgs of gold jewellery and an initial investment of Rs 20 crore to be scaled up to Rs 50 crore, the company said.

The JV, which will produce gold jewellery, both plain and studded with diamonds and other precious and semi-precious stones, will provide direct employment and training to 200 craftsmen.

Rocks Creation will provide the JV with local support and infrastructure in Bangladesh to set up the manufacturing unit and help in retailing the products to the Bangladeshi consumers.

Kolkata-based Rs 10,000 crore firm Shree Ganesh Jewellery House will assist the manufacturing unit with raw material and their technical expertise.

The JV will also look at exports to the US market considering Bangladesh has been designated as a beneficiary country under the Generalised System of Preferences (GSP) programme of America.

It will also aim to cater to the domestic consumption considering the cultural synergies in consumer requirements, Sahni said.

Shree Ganesh Jewellery House has a strong focus in the export market with a clientele that includes buyers in Singapore, the Middle East and Hong Kong, he added.