The investments will be made through the company's wholly-owned subsidiary, Suashish Jewellery Ltd, a press release issued here today said.
The manufacturing facility will be set up at the Santacruz Electronic Export Processing Zone (SEEPZ).
Around Rs 82 crore will be invested in the first phase for setting up the 16,000 sq ft manufacturing facility, which will be operational in August, the release said.
It will add an estimated 5,00,000 jewellery pieces of capacity to Suashish Diamonds' already existing annual capacity of over 10,00,000 pieces of jewellery, the release said.
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"The first phase of the facility is expected to achieve a turnover of Rs 180 crore in a full year of operation.
We are looking at investing the remaining Rs 68 crore in the second phase in the next two years," Suashish Diamonds' Managing Director, Ashish Goenka, said.
Once the full resources are committed and both the phases become operational, the company expects the SEEPZ operation to achieve a turnover of Rs 400 crore annually, he said.
"We have a strong balance-sheet with total assets of Rs 1,467 crore and reserves of Rs 588 crore. Given this, we do not see raising resources for the capital investments as a problem," Goenka said, adding that the company will look at a mix of internal accruals and equity capital to fund the new investments.