Forever Jewellery to set up sixth unit

Forever Precious Jewellery and Diamonds Ltd, an Ahmedabad-based Rs 2,000 crore group is planning to open up its next manufacturing unit in Rajkot. The unit is likely to come up in a year's time. This will be the company's sixth manufacturing unit across the country.

The company is also looking at sales of Rs 800 crore in 2008-09 through business to business, corporate marketing and business to consumer and direct marketing by opening more of its own exclusive showrooms across the country.

Talking to Business Standard, Jai Begani, managing director of Forever Jewellery, said, "We are planning to set up our sixth manufacturing facility in Rajkot. We already have five existing manufacturing units in Bangalore, Mumbai, Goa, Kolkata and a service station at Ahmedabad. The sixth one is planned at Rajkot."

He added that the plans were in the initial stages but the facility is likely to come up within a year.

Giving the reason for choosing Rajkot for its next manufacturing unit, Begani said, "Each location has its own specialities and unique designs. The skilled workers specialising in them are also found in that particular region. If we plan to manufacture Kolkata's designs in Bangalore it will not do justice to its uniqueness. So to add Rajkot's unique designs in our jewellery range we have chosen the city to set up our sixth facility."

However, he did not reveal the investment that will be made in the manufacturing unit, saying it was too early.

The company, which sells diamond studded jewellery, diamonds, silver jewellery as well as accessories to other brands like Tanishq through its business to business (B2B) segment, plans to add 4-5 exclusive showrooms across the country, in a year's time.

At present the group has one exclusive showroom in Ahmedabad. The company is planning to strengthen its own brand marketing through these new showrooms.

"At present we have B2B business where we provide jewellery to brands like Tanishq. They market these jewellery under their own brand-names. We are planning to strengthen our own brand by opening up 4 to 5 exclusive showrooms across the country," Begani said.

"We have our existing |showroom at Ahmedabad, our second showroom will come up at Surat by next year and we are looking at Delhi and Punjab as potential locations," Begani added.

Talking about the company's future targets Begani said, "In 2006-07 our sales stood at Rs 190 crore. In 2007-08 we are confident our sales will reach the Rs 450 crore mark and for 2008-09 we have set a target of achieving Rs 800 crore in sales."

The company has 28 outlets across the country through a tie up with Future Group. The outlets located in Big Bazaar retail chain are manned and owned by Forever Jewellery.

S Santoshkumar, marketing head, Forever Jewellery, said, "India is the largest gold consuming nation globally. Last year, India consumed 900 MT of gold. According to the World Gold Council figures India consumes 45 per cent of total global gold production. Gold worth around Rs 18,000 crore is annually consumed by the Indian gems and jewellery industry."