Jos Alukkas is planning to invest around Rs 550 crore over the next two years in expanding its operations across south India. The jewellery chain has set a target of Rs 1,025 crore turnovers by 2012 and expects to touch an annual growth rate of 30 per cent from then on.
“According to recent studies India will become the biggest consumer of jewellery by 2013 and with disposable income increasing every year this trend is set to stay for the long run with. We believe it is the time to expand our business as well. We will be looking at investing Rs 550 crore over the next two years with an aim of clocking around Rs 1,025 crore turnover by 2012 and an expected annual growth of 30 per cent from then on for the next five fiscals”, said Varghese Alukkas, managing director (finance), Jos Alukkas.
The company plans to invest Rs 250 crore in the current fiscal and Rs 300 crore in 2011–12 and will have 31 showrooms by this period across south India.
“All our investments will be funded through debt and internal accurals in the ratio of 60:40,” said Varghese. He ruled out any equity participation and also said at present the company is not looking at going public.
The company had set up its own facility in Thrissur to manufacture fast moving products and launched new range in Italian, Singaporean and Arabian designs. At present the company sources these products from acclaimed designers across the country and overseas.
Paul Alukkas, managing director (gold and diamonds), Jos Alukkas, added in the recent past there has been a paradigm shift in the demands of the customer. “Initially gold sales accounted for 80 per cent of total sales followed by diamonds accounting for 10 per cent while everything other gem and precious metal accounted for the remaining 10 per cent, but today gold sales accounts for only 60 per cent while there has been a 100 per cent increase in the other two categories,” he said
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