Mumbai-based diamond manufacturer, Goenka Diamonds & Jewels, has launched a high-end range of handcrafted diamond jewellery ‘Ceres’ through an exclusive Ceres store in Mumbai. Three more Ceres retail outlets will be opened this financial year in Bangalore, Delhi and Kolkata. Plans are on for an international foray as well.
Ceres jewellery is targeted at the rich clientele (1 per cent of the population); prices start from Rs 10 lakh and run into several crores.
Goenka Diamonds, which supplies rough diamonds to the world market, is already present in domestic retailing through its lower end brand G-Wild – trendy diamond jewellery, priced between Rs 10,000 and Rs 5 lakh, and targeted at the youth. There are eight G-Wild stores in the country across Mumbai, Delhi, Chandigarh and Ludhiana.
By 2014, the company plans to have in place 200 exclusive stores of both the brands in total, nationally and internationally. By March 2010, G-Wild stores will be opened in Malaysia and Dubai, apart from eight new stores (combination of both standalone and mall stores) in India. By 2014, G-Wild will be present in London, Jamaica, Hong Kong and Singapore.
This year (FY 2010), three more Ceres stores will come up in high-street locations in the country. Next year (2011), Goenka Diamonds hopes to take Ceres globally – California, New York and London.
Are such plans in line with current market conditions? Nitin Goenka, managing director, Goenka Diamonds & Jewels, said: “In 2007-08, India’s diamond exports were $14.8 billion compared to 2006-07 ($10.3 billion). That is 40 per cent more diamond exports compared to 2006-07. Last year too, no one was really cutting budgets for the wedding.
Diamonds are still considered auspicious for weddings. People are still spending. This year too, the marriage season is showing good signs. The recession is only in their heads, not in their pockets.
“And in America, it’s only the middle class and lower class which have run out of money. But we are targeting the super rich with Ceres in the US.”
If “market conditions improve,” Goenka Diamonds hopes to make a total sales turnover of Rs 3,500 crore from both brands. In the first year of operations, Ceres is expected to fetch retail revenues of Rs 300 crore. G-Wild, which is currently valued at Rs 50 crore, is estimated to touch Rs 100 crore this year.
This year, Goenka Diamonds will invest close to Rs 150 crore on its retail plans.
Source: Business Line
