MUMBAI: Having established itself as one of the major jewellery exporters in the country, Mumbai-based SB&T International Ltd is now keen on making its presence felt in the indigenous market as well.
With this objective in view, it has acquired Mimansa Jewellery Pvt Ltd, marking its entry into the Indian jewellery retail space.
Speaking to DNA Money, Varij Sethi, managing director, SB&T, said that acquiring the Mimansa brand was a strategic decision and would help the company to target high-end retailing in the country. “Jewellery is one of the fastest growing and most profitable segments in the Indian retail space today,” he said.
“We valued the company at Rs 4.5 crore and are issuing 5,00,000 shares of SB&T International to Mimansa shareholders,” he said.
With the acquisition, SB&T employee base would increase to 1,200 from 400 and its capacity would increase from 1,000 units a day to 3,000 units a day.
SB&T has been a consistent performer in the last few years, clocking a turnover of Rs 180 crore in 2004-05 and close to the same figure in 2003-04. The promoters expect to get close to Rs 200 crore this year. “We are targeting a turnover of over Rs 190 crore in 2005-06,” said Sethi.
Its line of products comprise coloured stones, diamonds, gold, gold jewellery studded with diamonds and other stones, jewellery, platinum, semi-precious stones and silver. The company registered an operating profit of Rs 14.32 crore in the second quarter of 2005, while its net profit was pegged at Rs 1.52 crore. Details on the third-quarter financial performance is still awaited.
According to figures released by the Gem & Jewellery Export Promotion Council, total exports of gems and jewellery between April and November 2005 was Rs 47,882.36 crore, as compared to Rs 42,862.98 crore for the same period last year - an increase of 11.71%. Of the total exports, cut and polished diamonds accounted for Rs 35,335.52 crore, rough diamonds Rs 1,652.62 crore, gold jewellery Rs 9,850.41 crore and coloured gemstones Rs 633.60 crore.
