Tribhovandas Zaveri to invest Rs 1200 cr to open 43 showrooms

Buoyed by the good response to its recent initial public offering, Jewellery retailer Tribhovandas Bhimji Zaveri today said it would invest about Rs 1,200 crore in the next three years for opening 43 showrooms across the country.

"We plan to open 43 new stores across India by 2015 with an investment entailing about Rs 1,200 crore. In Kolkata itself, we plan to open three more stores during the same period," Tribhovandas Bhimji Zaveri (TBZ) chairman Shrikant Zaveri told PTI after inaugurating the first of its two stores in the city.

The showrooms would be both in the large as well as small-format high street stores, he said.

At present, TBZ has 18 showrooms across 11 cities, including metros as well as Tier-1 and Tier-2 cities.

In April, the jewellery retailer had launched its Rs 200-crore IPO, which was subscribed 1.5 times on NSE. The company had then said the proceeds would be utilised for expanding its presence and also to meet its working capital requirements.

"The IPO was a sign of people's faith in us and we are expanding to keep that faith in tact," Zaveri said.

Asked if he saw demand for the yellow metal rising in the near future despite burgeoning prices, he said the second half of the fiscal should see some improvement because of the festival season.

"The opening of the showroom is also timed well to serve customers during the ensuring festive season
encompassing Durga Puja, Dussehra, Diwali and the marriage season, which are auspicious occasions to buy jewellery," he said.

On whether gold prices would ease anytime soon, he said it was very unpredictable.