Joyalukkas to open 40 new showrooms in India, abroad in next 2 yrs with investment of Rs 2,400 cr
Leading jewellery firm Joyalukkas India Pvt Ltd plans to invest about Rs 2,400 crore in the next two financial years to open 30 new showrooms in India and ten outlets abroad, according to Chairman and Managing Director Joy Alukkas. The company is also preparing for an IPO (initial public offering) for further expansion of its business, he said.
Currently, Joyalukkas has 100 showrooms in India and 60 outlets in ten countries.
"We have plans to expand our operations both in India and abroad.
We are targeting to open 30 new showrooms in India, while ten outside India in the next two financial years - 2024-25 and 2025-26," Joy Alukkas told PTI in an interview.
Alukkas said the company will invest on an average about Rs 60 crore on each showroom.
"The total investment for opening 40 showrooms will be Rs 2,400 crore," he said.
Around 30 showrooms will be opened mostly in north India, while ten of them in other countries including Canada and Australia.
The investments will be made from internal accruals and bank loans. The showrooms will be entirely owned by the company, he added.
Sharing about the IPO plans, Joy Alukkas said the company tried twice to go public in 2011 and 2022. The company could not bring an IPO in 2011 as the market was not favourable, while in 2022 there was a delay in the regulatory approval and the company's valuation by then had improved.
"We are internally preparing for an IPO. In the last three decades, the company has been operating like a family business. We are now trying to bring more transparency in the system as part of the IPO preparation process," he said.
On the company's quarterly performance, Joy Alukkas said the company expects more than 22 per cent jump in its net profit at Rs 1,100 crore in the current 2023-24 fiscal, as against Rs 900 crore a year ago.
During the Q2 of this fiscal, the company posted a net profit of close to Rs 300 crore and a revenue of Rs 3,775.69 crore.
"Gold prices are down and we expect a 25-30 per cent increase in revenue during the third quarter of this fiscal," he added.
The Joyalukkas India generates much of its business from South India, especially Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana.