Laxmi plans diamond stores overseas

The Surat-based Rs 1100-crore Laxmi Dia Jewel Pvt. Limited, the second largest exporter of polished diamonds in the country, is now eyeing on the booming market of diamond jewellery in markets in USA, Antwerp, China and also in Bangkok and Hong Kong.

It will sell its branded diamond jewellery, Cygnus through outlets in two years. In the domestic market, Laxmi Dia will be setting up 13 outlets in various cities in the current fiscal year.

Its first outlet in Mumbai and then three outlets opened in the last fiscal year at Chandigarh, Noida and Gurgaon, had reported strong sales. The first one in Gujarat was opened in Ahmedabad on Monday.

"By this December, we will be opening four outlets in Mumbai alone and in Kolkata, first Cygnus exclusive outlet will be opened on June 16 following which we will be opening similar outlets in Pune, Bangalore and other cities," said Shekhar Wadke, chief executive officer (CEO) of Cygnus.

The jewellery range will be priced competitively in the range of Rs 1500 to Rs 3 lakh. Cygnus will sell polished and cut diamonds. The products were targeted towards working and young women in the 18-30 year age group.

Laxmi Dia will sell Cygnus through 350 multi-branded lifestyle stores in India as well. It will also take the franchisee route to set up outlets in non-metro cities.

Laxmi Dia has its own offices in Antwerp, New York, Los Angeles, Bangkok and Hong Kong. It opened an office and diamond jewellery manufacturing unit in China recently.

The China unit will supply USA and Europe as well as east Asia.

The USA, Antwerp, China and east Asian diamond jewellery markets have bee growing well in the last two years. Cygnus was also looking at Sacndanavian countries like Sweden, Denmark and Netherlands. Laxmi Dia reported sales of Rs 1000 crore during fiscal 2002-03 and Rs 1100 crore in 2003-04.

"With the retail chain in place, we hope to clock a turnover of atleast Rs 1400 crore by end of the current fiscal year while Laxmi Dia is targeting at being a Rs 2000 crore company in next three-four years of time," added the CEO.