Suwarnsparsh plans Rs 500 cr turnover via expansion

Also, aims to raise Rs 40 crore through PE

Suwarnsparsh, a prominent gemstone and jewellery retailer, said it is exploring options to raise Rs 40 crore through private equity to fund expansion to about 200 outlets in next five years on pan-India basis. Currently, the company has 42 outlets in Mumbai and Pune. Through the retail expansion the company aims to reach over Rs 500 crore turnovers in next five years. For the current fiscal the company aims  revenue of Rs 65-70 crore based on its current sales trend.

The retailer, which currently generate about 75 per cent of its revenue from gemstone and the balance from one gram jewellery, expects to see increased contribution from the latter segment and garner revenue in equal proportion going forward.

Speaking on development Suwarnsparsh Chairman and Managing Director Vimal Patel, said, "Unlike the organised retail industry, which is modeled on high volume low margin business, we operate a niche business with high margins derived from our insightful domain knowledge on the subject generated over the past two decades,"

The astro gems market - a niche segment in the colour gemstone market is estimated at around Rs 5,000 crore, Patel informed.