Chennai, Aug 4 (IANS) The Thailand-based $150-million jewellery manufacturing group Pranda Jewellery will set up a manufacturing unit in India, a top company official said here Monday.
'We will invest in India. In Mumbai, there is a gold jewellery industry cluster. However, at present we intend to import the jewellery from Thailand,' group chairman Prida Tiasuwan told reporters.
In India, Pranda has joined hands with Gunjan Jewels of Mumbai to float a 51:49 joint venture - Pranda Jewellery Pvt Ltd - to market imported jewellery.
The Prima range will be marketed through a network of jewellery shops, but the joint venture will open its own showrooms later.
'Retailers will sell our range after adding their margin. The margin will be controlled,' Tiasuwan said.
He said the free trade agreement between India and Thailand has facilitated the group's entry into this country.
'India is the world's biggest jewellery market and has an untapped market for 24 carat gold,' Tiasuwan said.
In a country where gold jewellery is largely bought both as an investment and as a fashion accessory, the Prima range will mainly address the affluent fashion-conscious jewellery buyers, and will be twice as expensive as 24 carat gold.
The jewellery range is targeted at upper middle class and rich fashion conscious buyers.
Tiasuwan said Pranda will also launch its Cai range of silver jewellery in India.
According to Vinod Tejwani, managing director of the Indian joint venture, the company hopes to touch a turnover of Rs.3 billion by 2010.
'We will invest around Rs.1 billion in brand building and expanding our distribution network,' he said.