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Our Bureau

Kolkata, Oct 11 The Kolkata-headquartered Shree Ganesh Jewellery House is planning to invest Rs 150 crore in two years to expand manufacturing facilities.

The company plans to raise about Rs 300 crore from the IPO to be launched this fiscal. There could also be a pre-IPO placement.

A part of this fund would be used for the factory expansion, while the balance would be utilised in setting up retail outlets (Rs 50 crore) and in ramping up working capital (nearly Rs 50 crore), its Managing Director, Mr Mr Umesh Parekh, told media persons here on Friday. “Out of Rs 150 crore earmarked for expansion, about Rs 100 crore would be used for setting up two new manufacturing units at Domjur and Baranagar , both catering to the domestic market,” Mr Parekh said.

The balance would go into taking on lease an additional space of one lakh sq ft at the Manikanchan SEZ in Salt Lake, Sector-V, where the present unit is located.

The company currently produces 200 kg of gold jewellery annually for the domestic market.

The two new facilities would help ramp up the production for the domestic market to four to five tonnes, Mr Parekh said.

The present 17,000 sq ft facility at Manikanchan produced nearly 13 tonnes gold jewellery a year for export in the Central Asia, Hong Kong and Singapore, which would be ramped up by an additional 23 tonnes in two-three years at the expanded facility, Mr Parekh said.

The company also planned to set up, in two years, 14-15 new retail outlets in Jaipur, Indore, Hyderabad, Guwahati and other tier-II cities, Mr Nilesh Parekh, Chairman of the company, said. It presently has two outlets in Kolkata and one in Ahmedabad while the fourth is expected shortly in Bangalore.

It was also eyeing acquisitions of chain of jewellery stores in the Central Asia to ramp up exports to the region, Mr Parekh said.

The company has an export order book of Rs 3,000 crore for 2009-10, of which Rs 1,500 crore worth of jewellery has already been delivered, he said.

Its turnover in 2008-09 amounted to Rs 2,250 crore, including Rs 2,000 crore from exports.

The company’s net worth is Rs 500 crore and its short-term debt is Rs 1,000 crore.

More Stories on : New Projects | Gems & Jewellery

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