Shree Ganesh Jewellery House Limited, one of India’s largest manufacturers and exporter of handcrafted gold and diamond jewellery with a turnover of Rs. 10000 crores today announced their joint venture with Rocks Creation Limited of Dhaka, Bangladesh who are into Retail, Jewellery and Textiles. The 75:25 joint venture has proposed to set up a manufacturing unit in Dhaka, Bangladesh with an annual manufacturing capacity of 200 kilograms of gold jewellery. Awaiting prompt clearances from the Bangladesh government, the manufacturing unit envisages an initial investment of Rs 20 Crore to be scaled upto Rs. 50 crores.
This is the first ever venture by an Indian jewellery company to set up a manufacturing base in Bangladesh and will provide direct employment and training for 200 jewellery craftsmen. Rocks Creation will provide the joint venture with the local support and infrastructure in Bangladesh to set up the manufacturing unit and help in retailing the products to the Bangladeshi consumers. Shree Ganesh Jewellery House in return will assist the manufacturing unit with raw material and their technical expertise.
The JV will look at exports to the US market considering that Bangladesh has been designated as a beneficiary country under the Generalized System of Preferences (GSP) program of America. It will also aim to cater to the domestic consumption considering the cultural synergies in consumer requirements.
Commenting about the partnership, Ashok Sahni, CFO, Shree Ganesh Jewellery House Limited said “Bangladesh has a long standing tradition of craftsmanship and producing the finest quality of gold ornaments in the South Asian region. However, the industry has not been able to grow to its potential due to policy barriers in import of gold. Through this partnership we hope to provide them with the support to produce the jewellery and take this opportunity for Shree Ganesh Jewellery House to explore the emerging market in Bangladesh.
Also since Bangladesh has been designated as a beneficiary country under the Generalized System of Preferences (GSP) program of America for export of Jewellery to the States; this venture is a strategic decision to enhance our global market base. The initial investment will be Rs. 10 crores each by both the parties, and in phases further investments will be made, to a total of Rs. 50 crores. We are hopeful of positive returns from this venture.”
The unit will manufacture gold jewellery, both plain and studded with diamonds and other precious and semi-precious stones and is expected to be operational as soon as the Bangladesh Government approves the clearance