Mumbai: India’s largest jewellery retailer Gitanjali Gems plans to invest Rs 150 crore to set up 50 stores under its new multi-brand jewellery format ‘Jewel Souk´, a senior official said on Wednesday.
The company will retail major jewellery brands, fashion jewellery products and watches at Jewel Souk, Rahul Vira, head of retail, Gitanjali Lifestyle, told Reuters.
Gitanjali’s brands include Gitanjali, Gili, Nakshatra, Asmi, D’Damas, Gitanjali Jewels, Maya Gold, Gitanjali Lifestyle and Shuddhi.
The firm is also in talks with several cash and carry and hypermarket operators in India such as Bharti-Walmart, Star Bazaar, Central and Spencers, Vira, who is also the chief executive of Gili, said.
“We are looking at these coming up by the end of this financial year and we are talking to various retail chains...We are also in the process of setting up some standalone properties, which will be in the tier-2 and tier-3 markets,” Vira said.
“We will be launching some special collections for this format and ome of these different and new collections will have an element of value pricing,” he added.
The company which is looking to approximately invest Rs 3 crore per store is looking at revenues worth Rs 5-12 crore per store from its first year of operations.
In India, the company plans to invest Rs 200 crore to add 350-400 stores across various retail formats in the current fiscal year. It opened 300 stores in the country in FY11.
Recently the company valued nine of its major brands at Rs 5584 crore ($1.21 billion), after it undertook a valuation exercise as part of an ongoing business restructuring.
Shares of the company, which have risen 66% since the start of the year compared to a 20% fall on the main index, ended 3.06% down at Rs 348.6 on Wednesday.