The Rs 10,000-crore Shree Ganesh Jewellery House Ltd (SGJHL) plans to set up a manufacturing unit in Bangladesh in joint venture with Dhaka-based Rocks Creation Ltd.
The unit to be set up by the 75:25 joint venture will have an annual manufacturing capacity of 200 kg of gold jewellery. Awaiting clearances from the Bangladesh Government, the unit envisages an initial investment of Rs 20 crore to be scaled up to Rs 50 crore.
Rocks Creation, a company which is into retail, jewellery and textiles, will provide local support and infrastructure to set up the unit and help in retailing the products to local consumers. SGJHL will assist the manufacturing unit with raw material and their technical expertise.
According to Ashok Sahni, Chief Financial Officer, SGJHL, will aim to cater to the domestic consumption as well as enhance its global market base through this venture.
“Since Bangladesh has been designated as a beneficiary country under the Generalised System of Preferences (GSP) programme of America for export of jewellery to the US; this venture is a strategic decision to enhance our global market base,” Sahni said.
A beneficiary under GSP is given preferential duty-free entry for certain specific products.
The unit will provide direct employment and training for 200 jewellery craftsmen.
According to Sahni, the gold manufacturing industry in Bangladesh has not been able to grow to its potential due to policy barriers in import of gold.
Speaking to Business Line on earlier, Nilesh Parekh, Chairman, SGJHL, had said the company has been witnessing 20-25 per cent growth in its export as well as domestic markets. Exports account for nearly 80 per cent of its turnover.