The diamond jewellery brand aims to launch two new stores every month for the next 36 months
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Diamond jewellery brand Orra, backed by businessman Russell Mehta’s company Rosy Blue, is planning to add nearly 70 stores by 2025, a top executive said. The company aims to launch two new stores every month for the next 36 months, which will be a mix of both owned and managed stores. Currently, Orra has 60 stores in 27 cities in the country, of which 59 are owned by the company.
Dipu Mehta, managing director, Orra, said the company typically spends about ₹8-10 crore per outlet. “We are looking at doubling the topline in the current fiscal year with a 35%-plus blended gross margin, since diamonds contribute approximately 85% to the topline. Growth will be driven by the addition of a minimum of 24 new stores year-on-year over the next three fiscals (including FY23) with a mix of owned and franchised stores - taking the network to more than 130 stores," he said. Most of the franchised stores will be in the studded diamond business which, Mehta said, has a higher margin.
Orra’s next store will open in Uttarakhand’s Haldwani this month as the company plans to expand footprint both in metros as well as smaller towns through its franchisee model.
As India’s per capita GDP is rising, buyers are moving away from traditional gold and moving towards diamonds, Mehta said. The new customer base for the company is growing as well. “We are seeing that diamond buyers now want to go to trusted brands." He added that typically, younger diamond purchasers in their mid-thirties start with smaller diamonds or lab-grown diamonds when they begin to buy, and move on to larger purchases when they are, say, closer to 50 years.
The company is also experimenting with lab-grown diamonds and has launched three stores in the last three months. “We’re testing that out. The average footprint of these stores is about 200-400 sq. ft. We typically require about a ₹2-2.5 crore investment for these." The company will remain committed to lab-grown diamonds too as in markets like the US and others, they are finding considerable buyers.