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Company to expand its capacity from 2,500 units to 4,000 units per day.
To cater to the growing domestic demand, diamond jewellery manufacturing and marketing company, Fine Jewellery India Limited (FJIL), is expanding its capacity from 2,500 units per day to 4,000 units per day, at a cost of between Rs 15 crore and Rs 20 crore. The expansion is expected to be completed by June 2009.
To fund the expansion, the 30-year-old company, part of the Mumbai-based Fine Group, is contemplating raising close to Rs 200 crore through an initial public offering (IPO).
"We are in the process of talking to merchant bankers to take the IPO route. The IPO proceeds will be utilised to expand our manufacturing units, besides ramping up our domestic retail network over the next three years," said Sohil Kothari, director, Fine Jewellery India.
On the retail front, the company at present markets diamond jewellery under the 'Nirvana' brand in malls and multi-brand outlets across the country. FJIL is now set to launch its own standalone stores, five to begin with, in the 2008-09 financial year.
"Gujarat will be a major market for our retail plans. The state forms around 11 per cent of our Rs 40-50 crore turnover," he added.
Post-expansion, FJIL will focus more on the domestic market instead of exports. "Domestic sales will contribute 50 per cent to our overall business, from the present 30 per cent," he said.
The jewellery market in India is estimated to be Rs 80,000 crore at the retail level, of which diamond jewellery accounts for 12 to 15 per cent. Source : business-standard |
