PNG Jewellers to add over 23 new stores in 2-3 yrs

9 | India - 618.17 (Image source: moneycontrol)

PNG Jewellers is planning to add over 23 new stores in the next two to three years to take its total store count to over 50 in the country and abroad.

The stores will be operated in both company-owned and franchise models, PNG Jewellers' chairman and managing director Saurabh Gadgil told reporters here today.

"We are looking at expanding in tier II and III cities in India and the international markets under franchise owned franchise operated (FOFO) and franchise owned company operated (FOCO) models. We are expecting to add over 23 stores though these two models and also with company owned stores in two to three years," he said.

"We have set a capex of Rs 75-80 crore for expansion, which will be raised through internal accruals," he added.

In the international markets, the firm is looking at expanding in the Middle East, the UK, the US and the far east.

PNG Jewellers currently has 27 stores, all of which are company owned, mainly in Maharashtra, Goa, Madhya Pradesh, the US and the Middle East.

It posted a revenue of Rs 2,500 crore in FY18, and Gadgil said the revenue is growing at 10-12 percent annually.

"We are expecting to add Rs 1,000 crore revenue through the franchise model expansion," he added.

The company has 1,400 employees at present, and is looking to add 200-250 more people for expansion, Gadgil said.

According to him, the franchise expansion is aimed at entrepreneurs and small businesses who are looking at diversifying into other sectors.

"There are people with existing business and looking to diversify to other sectors. We want to tap them with this lucrative business model. We are also looking to tap entrepreneurs for our franchise models," he said.