Joy­alukkas to Spend 600 cr to Grow its Re­tail Foot­print

Co ropes in ac­tress Ka­jol as brand am­bas­sador

The Economic Times - - Brands: Creating Desire - Su­tanuka.Ghosal@ times­

Kolkata: Jewellery ma­jor Joy­alukkas has roped in Bol­ly­wood ac­tress Ka­jol as brand am­bas­sador for its In­dia as well as overseas op­er­a­tions. The ac­tress, who has com­pleted 25 years in the film in­dus­try, will en­dorse the jewellery brand in FY18-19.

Joy­alukkas has also de­cided to in­vest ₹ 600 crore in the cur­rent fis­cal to ex­pand its re­tail foot­print in In­dia, where it is ex­pect­ing to in­crease its turnover by 18.87% in the cur­rent fi­nan­cial year to ₹ 8,000 crore. Joy­alukkas had clocked a turnover of ₹ 13,000 crore in FY17 from its In­dian and overseas op­er­a­tions.

Talk­ing to ET, Joy Alukkas, chair­man of Joy­alukkas Group said “Ka­jol has been in the in­dus­try for 25 years and is re­garded as a trusted name in the en­ter­tain­ment world. Sim­i­larly, our jewellery busi­ness has been there from 1956 and has be­come a trusted name not only in In­dia but in the overseas mar­kets as well. So Ka­jol gels well with our brand phi­los­o­phy.” Though Alukkas did not share the cost of rop­ing in Ka­jol as the brand am­bas­sador, he said that the to­tal bud­get for mar­ket­ing and pro­mo­tion has been pegged at ₹ 200 crore. The Ker­ala-based jewellery ma­jor has 66 stores in In­dia and 64 in the overseas mar­kets with ma­jor pres­ence in the Gulf coun­tries. “We will set up 15 new stores in met­ros and ma­jor cities in In­dia, each mea­sur­ing 3,000 square feet. There is enough growth op­por­tu­ni­ties in In­dia even af­ter in­tro­duc­tion of 3% GST on gold. We do not see any down­trend in In­dian con­sump­tion going ahead,” Alukkas added. With this ad­di­tion, the num­ber of stores in In­dia will go up to 81.

In fact, Alis­tair He­witt, di­rec­tor (mar­ket in­tel­li­gence), World Gold Coun­cil (WGC) has re­cently in­di­cated that even though gold con­sump­tion may be around 650-750 tonnes in 2017 but over time how­ever, he an­tic­i­pates that an eco­nomic growth should push de­mand higher. “By 2020 we see In­dian con­sumers buy­ing be­tween 850 tonnes and 950 tonnes of gold,” He­witt said in June 2017 is­sue of Gold In­vestor pub­lished by WGC. Alukkas added that there has been not much de­cline in sales in the post GST regime.

Jewellery co has lined up a bud­get of 200 crore to­wards mar­ket­ing & pro­mo­tional ac­tiv­i­ties


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