KDDL eyes acquisition in Switzerland
KDDL Ltd, manufacturer of premium watch dials, says it is exploring options to acquire a watch company in Switzerland.
By PTI |
CHANDIGARH: KDDL Ltd, manufacturer of premium watch dials, on Tuesday said it is exploring options to acquire a watch company in Switzerland with an aim to tap the European and Swiss market.
Besides, the company (formerly known as Kamla Dials & Devices) also plans to invest Rs 60 crore for expanding its retail chain of Swiss watches under the brand Ethos in the domestic market in the next couple of years.
"We are quite keen on acquiring another watch company in Switzerland as there is a huge potential for a firm like us in this luxury watch region. But it will take some time to get things materialised," KDDL CEO Yashovardhan Saboo said.
KDDL was the first Indian company in the watch business segment to acquire a watch factory in Switzerland with an investment of $2.7 million this year.
To consolidate its position in the domestic market, the company has plans to expand the strength of its Swiss watch studios under the brand of Ethos to 40 within next two-and-a half-years with an expected investment of Rs 60 crore.
The expansion project would be funded in two phases and there are plans to develop a facility for manufacturing delicate and high-value watch dials.
"We are expecting that the facility here will be fully commissioned by the year 2009," he said.
The company will consider all options including private equity placement, internal accruals and debt in order to fund this expansion project, said Saboo.
Presently, KDDL has nine stores spanning Bangalore, Pune, Mumbai, Chandigarh, Ludhiana and NCR. These stores offer over 25 premium Swiss watches including Omega, Corum, Carl F, Rado, Tag Heur.
KDDL is also anticipating robust growth from its precision stamping division, which was established in 2004.
This division offers high precision pressed components and tooling solutions for a wide range of engineering applications.
Established in 1983 with a watch dial factory in technical collaboration with Leschot SA of Switzerland, KDDL as factories at Parwanoo (Himachal Pradesh), Derabassi (Punjab) and Bangalore (Karnataka).
Besides, the company (formerly known as Kamla Dials & Devices) also plans to invest Rs 60 crore for expanding its retail chain of Swiss watches under the brand Ethos in the domestic market in the next couple of years.
"We are quite keen on acquiring another watch company in Switzerland as there is a huge potential for a firm like us in this luxury watch region. But it will take some time to get things materialised," KDDL CEO Yashovardhan Saboo said.
KDDL was the first Indian company in the watch business segment to acquire a watch factory in Switzerland with an investment of $2.7 million this year.
To consolidate its position in the domestic market, the company has plans to expand the strength of its Swiss watch studios under the brand of Ethos to 40 within next two-and-a half-years with an expected investment of Rs 60 crore.
The expansion project would be funded in two phases and there are plans to develop a facility for manufacturing delicate and high-value watch dials.
ADVERTISEMENT
"We are expecting that the facility here will be fully commissioned by the year 2009," he said.
The company will consider all options including private equity placement, internal accruals and debt in order to fund this expansion project, said Saboo.
Presently, KDDL has nine stores spanning Bangalore, Pune, Mumbai, Chandigarh, Ludhiana and NCR. These stores offer over 25 premium Swiss watches including Omega, Corum, Carl F, Rado, Tag Heur.
KDDL is also anticipating robust growth from its precision stamping division, which was established in 2004.
ADVERTISEMENT
"We are aiming for 70 to 100 per cent growth from this business which stands at Rs 5 crore at present," Saboo said.This division offers high precision pressed components and tooling solutions for a wide range of engineering applications.
ADVERTISEMENT
The company is expecting a total turnover including export of Rs 120 crore by the end of this fiscal against the sales of Rs 90 crore of last fiscal on the back of growing demand for luxury watches in India, Europe, Hong Kong and China.Established in 1983 with a watch dial factory in technical collaboration with Leschot SA of Switzerland, KDDL as factories at Parwanoo (Himachal Pradesh), Derabassi (Punjab) and Bangalore (Karnataka).
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
