Fine Jewellery plans to raise $50 Mn via IPO

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Mumbai: Fine Jewellery India (FJIL), diamond jewellery manufacturing and marketing company, is expanding its capacity from 2,500 units to 4,000 units per day, at a cost between Rs 15 crore and Rs 20 crore. The expansion is expected to be completed by June 2009. The 30-year-old company, part of the Mumbai based Fine Group, is considering to raise close to Rs 200 crore through an initial public offering (IPO). "We are in the process of talking to merchant bankers to take the IPO route. The IPO proceeds will be utilized to expand our manufacturing units, besides ramping up our domestic retail network over the next three years," said Sohil Kothari, director, Fine Jewellery India. At present, the company is marketing diamond jewellery under the 'Nirvana' brand in malls and multi-brand outlets across the country. FJIL is in a plan to launch its own standalone stores by opening five shops in the 2008-09 financial year. "A major market for our retail plans will be Gujarat. The state forms around 11 percent of our Rs 40-50 crore turnover," Kothari said. Once the expansion is finished, FJIL would focus more on the domestic market instead of exports. "Domestic sales will contribute 50 percent to our overall business, from the present 30 per cent," Kothari added.