With an eye on what is estimated to be a ₹12,000-crore strong market for silver ornaments, Pune-based PN Gadgil Jewellers is foraying into branded silver jewellery.
The 183-year-old jewellery company, which has tied up with fashion designer Tarun Tahiliani to design the ornaments, plans to grow this business under the Silvostyle brand.
PNG is also investing around ₹250 crore to expand the gold and diamond business, which includes the setting up of a factory to make diamond jewellery in Mumbai last month. 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,” Saurabh Gadgil, MD, PNG Jewellers, said. 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 the 2017 fiscal, he added.
Pointing out that there is presently no branded silver jewellery in the Indian market, Prasad Kapre, CEO of Style Quotient, the subsidiary under which the Silvostyle brand will come, hopes to get the first mover advantage with this initiative.
Interestingly, Kapre in his earlier capacity of Business Director in India for diamond major De Beers fathered now well-established brands like Nakshatra and Sangini, amongst others. The jewellery market is moving toward silver which is emerging as alternative, especially for destination weddings, he feels.
The 5-year, and extendable, tie-up with Tahiliani is to design two independent lines of jewellery – one wedding wear and the other party wear. The new jewellery will come into the market by April or May, he says.
The first exclusive Silvostyle store has recently been launched in Delhi, and plans are afoot to grow the outlets both through the store-in-store format, as well as through the franchise route.