VBJ charts Rs 500-cr spread

Chennai-based Vummidi Bangaru Jewellers (VBJ) is planning to make an incremental investment of around Rs 500 crore in inventories for setting five outlets across the country over the next five years, according to VBJ’s managing partner Jithendra Vummidi.

The company, which currently garners a turnover of around Rs 500 crore from its single showroom in Chennai that it is operating since 1981, has set up its second showroom in the city last month.

“We may require much larger investments as the Rs 500-crore funds will be utilised only for the inventory of designed gold, diamond and platinum jewellery for our new stores. The proposed investments exclude the real estate costs and cost of skilled manpower,” Vummidi said.

 

Though the company has plans to set up five showrooms in the next five years, it will initiate steps to accelerate the process of expansion and complete it much ahead of the target date, he said, adding that the proposed showrooms would have an average carpet area of 4,500 sft each and that one of the outlets would be set up outside Tamil Nadu.

VBJ would seek expertise from financial consultants to identify various viable options of fund-raising, either from public or private sources. At present, the company plans to invest in its immediate expansion projects from internal accruals. The company expects to touch a turnover of $1 billion in the next five years, he added.