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Joyalukkas to spend Rs 1,500 crore on 30 stores in India abroad

The Economic Times:  December, 2014

Kolkata: Jewellery major Joyalukkas has chalked out a Rs 1,500-crore expansion plan that entails setting up 20 stores in India and 10 overseas.

The new stores, which will come up next fiscal, will add to the Thrissur-headquartered company's existing 95 outlets, chairman Joy Alukkas told ET, adding that the company is looking at expanding its footprint in the US, Sri Lanka and Europe.

"Each of the stores will be set up at an investment of Rs 50 crore. We want to enter USA and Sri Lanka with our jewellery to cater to the Indian diaspora. We may look at private equity funding in future if we need funds for our retail expansion plan," Alukkas said.

"The domestic branded jewellery market has enough room to grow and we want to leverage this growth opportunity."

Recently, another Thrissur-based jewellery firm, Kalyan Jewellers, received an investment of Rs 1,200 from PE fund Warburg Pincus for its expansion plan.

According to a Ficci-AT Kearney report, the domestic gems and jewellery industry has the potential to touch Rs 5-5.3 lakh-crore by 2018, up from Rs 2.51 lakh crore in 2013. Gold jewellery accounts for 30 per cent of this market. The domestic retail jewellery segment has seen a consistent year-on-year growth of 15-20 per cent and the sector will continue to expand at 20 per cent in the next few years, industry executives said. Joyalukkas has 51 stores in India and 44 over seas stores. Overseas,the company has operations in London, Singapore, the UAE, Saudi Arabia, Bahrain, Oman, Kuwait and Qatar.

"Some of the new stores in India will come up in tier II cities where we are expecting good growth. Joyalukkas is a brand that stands for choice, service, best price (particularly its popular clear price tag, known as CPT), convenience and best practices, and the new outlets will be guided and governed by the same brand philosophy," Alukkas said.