Modern India, Gitanjali Gems in jewellery venture

Modern India Ltd, the group with diverse interests in areas such as education, textile, real estate and jewellery, is planning to strengthen its presence with an investment of Rs 70 crore. The company has entered into a 50:50 joint venture with Gitanjali Gems Ltd for this purpose.

The newly ventured production company "Modali Jewels Pvt Ltd" would retail customer designer jewellery while the distribution venture, Modali Distribution Pvt Ltd, would control the distribution of jewellery.

Modali Jewels is in the process of setting up its first independent branded jewellery store at Hughes Road, Mumbai, in the next two months under which the company would sell the "ASME" brand of jewellery manufactured by Gitanjali Gems.

Apart from setting up at least three retail stores in Mumbai, the group plans to widen its reach by entering Ahmedabad and Bangalore.

"In the first full year of operation, the group plans to establish a minimum of 10 retail chains in major metros. The company aims to set up 50 retail outlets in the next 4 years, each at a cost of Rs 4 crore excluding land, building and other administrative costs," said V K Jatia, chairman and managing director.

Apart from jewellery production and distribution, the group is also planning to expand its education arm.

Indian Institute of Jewellery (IIJ), by setting up institutes in metro cities, Jaipur to begin with.

Before foraying into Jaipur, the Modern group would set up an institute in Hyderabad in the next three months with a total capital expenditure of Rs 3-4 crore, excluding premise and building costs.

"We would finalise the Jaipur site very soon and initiate the project in the next 8-9 months," Jatia said.

IIJ has designed its education arm separately for inheritance jewellery designer family and workers. A full time course of about 9 months would be offered for the management level trainees with an overall fee of Rs 125,000 per student while a worker would be charged anything between Rs 22,000-25,000 per student for specialised two-month training.

Further discount would be offered to workers to make the course affordable. Apart from that, the entire fee would be divided between the worker and the company he is working for.

"We have simplified the course further by laying emphasis on practical assignments and sending them to jewellery designers which may fetch them anything between Rs 5-50,000 per month after the initial three months of admission," Jatia added.

The education arm of the group "Indian Institute of Jewellery" would remain an independent entity. The group is in look out for joint venture partner for the education institute.

The course offered by IIJ would enhance the availability of trained and skilled labour and professional managers which the industry is lacking today, Jatia quipped.