Pune-based 183-year-old jewellery firm P N Gadgil Jewellers is expanding its overseas business by opening stores in US and Dubai. The company is also foraying into branded silver jewellery. For this, It has tied up with fashion designer Tarun Tahiliani to design the ornaments, plans to grow this business under the Silvostyle brand. The estimated market of silver ornaments is of Rs 12000 crore.
Domestically, the company is opening nine stores in Maharashtra,Goa, Madhya Pradesh and Karnataka. In Maharashtra, PNG is opening stores in Panvel, Panaji, Nanded, Chandrapur, Baramati and Akluj.
The company is investing Rs 250 crore for the expansion. The funds will be raised through internal accruals and debt.
“By September 2015, we will add nine stores for gold and diamond jewellery including a second one in the US and one in Dubai. After the expansion in Maharashtra and new stores in Indore, Hubli and Goa, the company will have 20 stores and a presence in four states. The expansion will help PNG grow the top line by 60 per cent by end of 2017, " says Saurabh Gadgil, managing director, P.N. Gadgil Jewellers.
To scale up its diamond jewellery business, the company has set up a diamond manufacturing unit in Mumbai. This will help the company to increase the diamond jewellery production by four times. The unit has a capacity to produce 5,000 pieces a month.
"Eighty per cent of the jewellery manufactured in the diamond factory will be retailed in the domestic market and the rest 20 per cent will be exported," Gadgil added. The firm has a five year tie up with Tahiliani who will design wedding and party wear jewellery under its own brand Silvostyle.