Suashish Diamonds to invest Rs 150 cr in new facility
Diamond jewellery manufacturer and exporter, Suashish Diamonds, is planning to invest Rs 150 crore for setting up a new state-of-the art manufacturing facility.
MUMBAI: Diamond jewellery manufacturer and exporter, Suashish Diamonds, is planning to invest Rs 150 crore for setting up a new state-of-the art manufacturing facility.
The investments will be made through the company's wholly-owned subsidiary, Suashish Jewellery Ltd, said on Monday.
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, 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, said.
"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.
The investments will be made through the company's wholly-owned subsidiary, Suashish Jewellery Ltd, said on Monday.
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, 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, said.
"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.
ADVERTISEMENT
"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.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
