Orra to invest Rs 630 cr in 2 years
To strengthen its presence across tier-1 cities, metros
Hyderabad: On an expansion spree, Orra Fine Jewellery Pvt Ltd plans to increase the number of stores to 100 in a couple of years. It aims to achieve 40 per cent growth in revenue to Rs 1,000 crore by 2023. Currently, the diamond jewellery brand has 58 company-owned and operated stores across 25 cities in India. It is going to add four more stores by the end of this year.
On an average, the company invests Rs 15 crore to set up each store in the country. So, it will be investing around Rs 630 crore for strengthening its presence across tier-1 cities and metros in next two years. Later, it will be focusing on tier-2 and tier-3 cities. Recently, we have opened stores in Chandigarh and Indore. We are also looking to tap the franchisee opportunities.
He said, "Jewellery business is again on growth trajectory. Our business turnover has witnessed 110 per cent rise during August 2020 to August 2021 when compared to same period a year ago. Interestingly, we have seen mostly high-intended customers during the pandemic. The purchases were few but large and serious."
"Due to the pandemic-induced restrictions on retail stores, our online business has seen 500 per cent increase during the last two years. Thanks to video calls and online-assisted omni-channel activities. With an investment of Rs 5 crore, the company is developing a mobile app which allows the customers to virtually try the jewellery," Mehta said.
"The app will be ready to use by the end of this year. Almost 85 per cent of our business is studded jewellery. Bridal segment is a key contributor. As people want to touch, feel and look at it, growth is witnessed in lower price category of below Rs 1 lakh. The above Rs 1 lakh category has also seen good response after our 'try-at-home' service."
Gold jewellery market is estimated at about Rs 2 lakh crore in the country, while platinum jewellery is roughly 1-2 per cent of that. Diamond jewellery segment stands around 15-20 per cent at Rs 40,000 crore. The market is witnessing double digit growth every year, driven by growing demand from millennials and serious buyers.