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Shree Ganesh Jewellery House Ltd (SGJHL) will set up $100-million (approximately Rs 560 crore at current exchange rate) joint venture company with an Italian jewellery brand manufacturer.
SGJHL will invest about Rs 280 crore in the company, which is likely to be operational by the end of the first quarter of this fiscal, according to Mr Umesh Parekh, Managing Director, SGJHL.
“It is a very famous premium Italian jewellery brand and we will sell it in West Asian markets as well as select stores in domestic market,” Mr Parekh told Business Line .
The company had recently tied up with Italy's SALP SPA to manufacture machine-made light weight gold jewellery for the domestic wholesale market.
SGJHL will also set up 100 per cent subsidiary company in Beijing to cater to the growing demand of Chinese market.
This apart, the company also plans to set up 10-11 exclusive stores in West Asia this year.
“Our 100 per cent subsidiary in Dubai commenced operations about six months ago and it is already earning profits. We plan to plough back this profit to expand our presence in the region,” Mr Parekh said.
Results
Backed by a strong growth in exports, SGJHL posted 240 per cent rise in consolidated net profit to Rs 194 crore compared with Rs 57 crore during the corresponding period last year.
The board has recommended a dividend of Rs 6 a share of face value of Rs 10 each. Shree Ganesh's scrip closed at Rs 98.10, up by 14.60 per cent on the BSE on Friday.
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