PN Gadgil Jewellers forays into silver fashion jewellery

Pune-based PN Gadgil Jewellers is foraying into silver fashion jewellery, and is planning to invest Rs 250 crore to expand both in India and overseas over the next nine months.

PNG, which deals in exclusive silver jewellery under the Silvostyle brand, has roped in couturier Tarun Tahiliani to design the bridal and party-wear collection of its subsidiary Style Quotient, which will be launched this summer.

“The taste of the consumer is changing. Since gold and diamond prices shot up, consumers have been looking for different options,” Prasad Kapre, chief executive officer and director of Style Quotient said, adding, “there's no brand for silver jewellery and we want to take the first movers advantage in this segment.”

Style Quotient plans to launch Tahiliani's bridal jewellery as well as party-wear collection in April or May.

PNG, which wants to grow through the franchise route, plans to add five branches in Maharashtra, and one each in Goa, Madhya Pradesh and Karnataka. “The company will also add one more branch in the United States, where it already runs one store,” said Saurabh Gadgil, managing director of PNG.

The company will fund this expansion through internal accruals and bank loans.

PNG also plans to launch sports jewellery, casual jewellery to go with denims, ethnic and classy jewellery for different occasions. The silver fashion jewellery will be priced between Rs 500 and Rs 50,000 and sold at MRP.

“We are expanding now because gold related government policies now look stable, there are positive sentiments in the market and consumers look willing to spend," Gadgil said.

PNG started a diamond jewellery manufacturing factory last month, which is helping it save about 5 to 6% cost of procurement. The company expects Rs 2,000 crore turnover in 2014-15.