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Shree Ganesh Jewellery close to two overseas buys

Friday, 27 May 2011 - 3:07am IST | Place: Kolkata | Agency: DNA
Shree Ganesh Jewellery House is close to acquiring two foreign jewellery retail brands, one each in Italy and United Arab Emirates, worth Rs1,000 crore, chairman Nilesh Parekh said on Thursday.

Shree Ganesh Jewellery House is close to acquiring two foreign jewellery retail brands, one each in Italy and United Arab Emirates, worth Rs1,000 crore, chairman Nilesh Parekh said on Thursday.

The bigger deal, an Italian retail chain, is worth €150 million and is likely to happen within the next 5-6 months while the UAE brand is valued at Rs125-150 crore, Parekh said while announcing the financial results of the Kolkata-based jewellery exporter.

“We have spent the last 12 months studying these brands and expect to close both the deals within the next couple of months,” Parekh said.

If the acquisitions fructify, Shree Ganesh, which went public a year back by raising Rs315 crore, may go for additional fundraising this year, though Parekh didn’t elaborate further.

These two deals apart, Shree Ganesh is also at an advantaged stage of negotiations with an Italian jewellery house for a Rs100 crore equal joint venture to manufacture light-weight machine-made jewellery.

“The joint venture deal is likely to be signed within the next two months and the manufacturing facility would come up at an investment of Rs50 crore from our side at our upcoming integrated complex at Domjur (in West Bengal),” Parekh said.

The light-weight jewellery unit has been planned looking at the increasing demand from young customers who tend to avoid heavy ornaments.

“Of the Rs250,000 crore domestic jewellery market, about Rs50,000 crore accounts for lightweight whose demand is growing fast,” he said.

Shree Ganesh had committed investment of about Rs150 crore at Domjur facility, and also at Mondalpara within the state, at the time of the IPO but Parekh said it might go up by another Rs75 crore as Shree Ganesh is now raising the capacities more than what was earlier planned. The Domjur facility, to be inaugurated within the month, would also house a gold refining facility being built at an investment of Rs50 crore. Shree Ganesh is also adding new retail outlets.


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