| SB&T International,
the leading Indian manufacturer and exporter of
gem and diamond studded jewellery, is to invest
$2mn (Rs 9 crore) in the US-based home shopping
television channel – Worldwide Shopping Source
(WSS).
The investment
will allow the Rs 170-crore ($ 38mn) company 10%
equity in WSS, gaining access to its established
distribution network. SB&T will also become
the primary world-wide supplier of gem set jewellery
to WSS.
About 75% of
SB&T’s total sales to WSS will be from
its jewellery segment while watches, leather bags,
wallets and other accessories will account for the
remaining sales of 25%.
The jewellery
market for the television home shopping industry
in the US is worth $5bn (out of the total US jewellery
market of $40 bn).
According to
Varij Sethi, managing director, SB&T International
- “It is an agreement that will provide our
company with a revenue of about $25 mn (Rs 110 crore)
in ’05.”
Earlier
in December’04, SB&T completed the expansion
of its jewellery manufacturing unit from 11,000
sq feet to 40,000 sq feet for $3mn. The newly added
capacity will cater to the demand from WSS and its
UK venture SB&T UK. |
