Joyalukkas to tap market to fund retail expansion

The Rs 2,500-crore Joyalukkas Group, a leading jewellery retailer, plans to tap the capital market with an initial public offer (IPO) next year to fuel its growth plans.

Aiming to double its turnover of Rs 700 crore in India by March 2008, the Dubai-based company run by Joy Alukkas, a non-resident Indian from Kerala, is presently on an expansion spree in the country.

The company is planning to set up two big showrooms in Chennai and Bangalore in addition to the 16 in the country. The Group has been funding its expansions through internal accruals and bank loans.

Joyalukkas Jewellery, the flagship company of Joyalukkas Group, is in the process of setting up what is touted as the world's largest jewellery retail showroom in Chennai with an investment of Rs 70 crore.

"This will be the world's largest jewellery retail showroom, which will be spread over 70,000 sq ft. Joyalukkas will provide a new shopping experience to jewellery shoppers in Chennai," said Joy Alukkas, chairman, Joyalukkas Group. "The largest jewellery retail outlet, spread over 33,000 sq ft, is in Turkey," he added.

The Chennai showroom, which is located in North Usman Road, a shopping hub for silk sarees and gold jewellery, will employ 400-500 people and is expected to open by Diwali.

The showroom will have five floors and three mezzanine floors and each floor will be dedicated to separate kinds of jewellery - gold, diamond, platinum, silver, branded jewellery, pearls and precious stones, among others.