Vummidi Bangaru Jewellers to open first U.S. showroom on Oct. 19

‘Dallas had huge Indian-American population with a highly-disposable income’

October 10, 2023 08:07 pm | Updated 08:07 pm IST - CHENNAI

Vummidi Bangaru Jewellers Managing Partner Amarendran Vummidi said the firm plans to open four showrooms in the U.S. in  two-three years.

Vummidi Bangaru Jewellers Managing Partner Amarendran Vummidi said the firm plans to open four showrooms in the U.S. in two-three years. | Photo Credit: Special Arrangement

Vummidi Bangaru Jewellers (VBJ) will open four showrooms in the U.S. and eight in T.N. within a span of two-four years, investing ₹1,800 crore, Managing Partner, Amarendran Vummidi said.

“We are a 123-old firm having two showrooms in Chennai city, Mr. Vummidi said. “For the first time, we are venturing into the U.S. by opening the maiden showroom in Dallas, Texas on October 19,” he said in an interaction.

Spread over 7,000 sq.ft, it would be the flagship store of VBJ in the U.S. The investment in the company-owned showroom is ₹150 crore. It would retail all the company-made gold, silver, platinum and diamond jewellery.

According to him, VBJ had decided to set up the showroom two years ago. But, it had to be deferred due to a 60% rise in the cost of real estate in the last 18 months.

Three other showrooms will come up in Chicago, Virginia and California in two to three years at an investment of ₹450 crore.

Explaining the rationale for choosing Dallas, he said that it was for two reasons. It had a huge Indian-American population with a highly-disposable income.

“South Indian festivals such as Diwali are held on three occasions and we want to cash in on that. We are targeting young IT professionals and business owners. The pricing of the jewellery will be similar to India. And, there will be no wastage charges,” he added.

VBJ will be opening four more showrooms in Chennai in two-three years and one each in Coimbatore, Madurai, Tiruchi and Salem in three-four years costing totally ₹1,200 crore.

In FY23, VBJ posted a turnover of ₹1,800 crore and hopes to end FY24 with a revenue of ₹1,950 crore.

Asked about the funding, he said it would be met through internal accruals and bank borrowings.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.