Chemmanur Jewellers mulls Rs600 crore capex to open showrooms
Posted by Administrator on Oct 23, 2009
Mumbai: Kerala-based Chemmanur Fashion Jewellers plans to invest Rs600 crore to expand its operations across the country and abroad, a top company official said. Chemmanur Fashion Jewellers, the world’s first jewellery group with BIS and ISO certification for quality, is the leading and fastest growing jewellery company.
“We plan to invest Rs600 crore in next two year’s period to open 50 new jewellery showrooms across the country and abroad,” Chemmanur Fashion Jewllers chairman and managing director, Boby Chemmanur told reporters here.
The project will be financed through internal accruals and bank loans, for which the company has started negotiations, Chemmanur said. This is the best time to set up a gold showroom as people are now buying gold as an investment. Earlier, it was just worn as ornaments, he said.
The company has also identified plans to open six showrooms in Mumbai. After Vashi, we plan to open stores in Opera House, Goregaon, Vasai, Dombivli, and one place which is yet to be identified.
“We are also opening new showrooms at Ajman in UAE, Singapore and Sri Lanka,” Chemmanur said, adding that the company already has showrooms in Kuwait and Qatar.
The company has recently launched Picaso collection in mixed and traditional and has received good response in the market. Commenting on gold prices, Chemmanur said, the gold prices would remain firm due to heavy demand from investor’s community, who buy gold for investment purpose. The company have made a brisk sale of gold jewellery worth Rs60 crore during the Diwali festival, he said.
The gold prices ruling around Rs16,000 per 10 grams, may cross Rs18,000 in one year and Rs 20,000 per 10 gram in two year’s time, Chemmanur said.
“In view of offering gold to middle class people, the company is also launching credit facility under which it is tying up with banks to offer gold at an 12 and 24 months instalment period. The credit facility will start from Rs10,000 to Rs5 lakh. The objective of providing credit facility is to help our customers to plan and pay for purchases of gold and jewellery over certain fixed periods of time,” Chemmanur said.
