Senco Gold eyes up to 60% revenue growth by FY17

Tags: Senco Gold, News
Gold jewellery retailer and exporter Senco Gold is eyeing up to 60% growth in revenue to over Rs 2,000 crore in next three years following plans to add around 25 stores in the western and northern region, a top company executive has said.

"We have a strong presence in the eastern region with 52 stores. We are planning to add another 20-25 stores mainly in the west and the north by 2016-17 financial year. This will boost our revenue growth by 50-60% in three years to about Rs 1,950-2,050 crore," Senco Gold Executive Director Suvankar Sen told PTI here.

Revenue of the Kolkata-headquartered company stood at Rs 1,300 crore during 2013-14 financial year.

For the expansion of stores, the company will invest Rs 250 crore, he said.

Senco Gold, which specialises in manufacturing handcrafted gold jewellery, will have company-owned and franchise model mix stores.

"We believe in a mix of both company-owned and franchise model as it can help us build our brand and requires high level of trust. Of the 52 stores currently, 22 of them are owned by us and 30 are franchise," he said.

The company also exports handcrafted gold jewellery to the US, the UK, West Asia and Singapore, he said adding that Senco Gold had exported Rs 300-crore worth jewellery in FY14.

When asked about the company's export plans, Sen said, "Handcrafted jewellery has limited markets. So going forward we want to strengthen our existing export market. We are aiming Rs 500 crore worth exports by FY17."

The company's domestic and export revenue ratio stood at 75:25. It has two manufacturing units -- one in SEZ Manikanchan and one in Kolkata.

"Currently, we manufacture over two lakh jewellery pieces for the domestic market and over one lakh pieces for our export markets annually from both our units," he said.

He further said the company is also mulling to set up a third manufacturing unit in Kolkata to cater to the expanding business.

"We are thinking of setting up another manufacturing unit in Kolkata that will cater to our expanding business. We will also outsource and get jewellery manufactured according to our specification from other small jewellers," he said.

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