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Shree Ganesh Jewellery forms 50:50 JV with Italy's SALP SPA

31 Oct 2011 Evaluate

Handcrafted gold and diamond jewellery producers and exporters Shree Ganesh Jewellery House (SGJHL) has formed a 50:50 joint venture with Italy's SALP SPA to manufacture machine-made light weight gold jewellery for the domestic wholesale market. Oroitalia Sales will be set up at SGJHL's integrated jewellery manufacturing complex in Domjur, West Bengal, with an estimated investment of Rs 100 crore. SGJHL, which had a turnover of Rs 5,900 crore in FY11, expects the sales to increase by another Rs 500 crore after this JV becomes operational.

The unit is expected to be operational by first quarter 2012-13 with an initial capacity to manufacture 10 tonnes of light weight gold jewellery, particularly gold chains, annually. Under the JV, SGJHL will provide the infrastructure, while SALP will give technical expertise. This light-weight jewellery is mainly targeted at the young crowd, who prefer light jewellery, following volatile gold prices.

Peers
Company Name CMP
Titan Co 4526.30
Kalyan Jewell.India 426.90
Rajesh Exports 125.34
Senco Gold 326.45
Thangamayil Jeweller 4205.90
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