Currently, India's gems and jewellery industry has a market size of Rs 251,000 crore and is expected to double by 2018.
Mumbai: Tiding over the critical phase of the economy, Maharashtra-based Gems and Jewellery retailer, Suwarnsparsh, is planning to leverage itself to forge ahead with the growth phase of the macro-economy.
At present, Suwarnsparsh, founded in 2009, retails 1-gram jewellery and astro-gems through its outlets, 65 in numbers, based mostly in Maharashtra.
In a bid to expand across India, Suwarnsparsh Gems and Jewellery, is planning to open 20 new outlets in cities like Delhi, Kolkata, Hyderabad, Chennai and Ludhiana during the next financial year.
According to FICCI-AT Kearney study, India's gems and jewellery industry has a market size of Rs 251,000 crore and is expected to reach to Rs 500,000-530,000 crore by 2018.
"Expansion of these outlets would entail an investment of around Rs 12-14 crore including the inventory in these stores and would be funded via a mix of debt and internal accruals," Suwarnsparsh Gems and Jewellery chairman and managing director Vimal Patel said.
The company targets to touch a revenue of Rs 62 crore this financial year by March 2015 compared to Rs 49 crore in the previous year.
Of the current market size, 80 per cent constitutes jewellery while the rest is gems and diamonds, industry sources said.
"The recessionary trend in the economy in the past 2 years has acted as a barrier for new entrants to foray into this segment,” Patel said.
Through integrating with manufacturing, Suwarnsparsh has been able to pass on the price-benefit to the end-consumer and also improve its own operating margins.
Around 70 per cent of the company’s revenue is derived from gemstone and balance from 1-gram jewellery. It is hoping to see greater contribution from the latter segment so as to get an equal revenue from both the offerings.
Industry experts estimate the market size of 1-gram jewellery segment at around 5 per cent of the prevailing market size of the conventional jewellery ornament market, standing at around Rs 10,000 crore but is expected to grow at a faster rate than its traditional jewellery segment.
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