Shree Ganesh Jewellery has tied up Bharti Retail in a bid to have a shop-in-shop alliance. Nilesh Parikh, chairman of Shree Ganesh Jewellery, tells CNBC-TV18 that alliance with Bharti Retail has been an encouraging event for the company and it may come out with 23-30 new stores this year in a shop-in-shop format.

 are expecting a turnover of Rs 300-400 crore from this retail alliance and we are also looking to grow our bottomline at approximately 15%,� added Parikh.

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: Can you tells us more about this whole alliance, when it is going to come on board and what it throws up for you monetarily?

A: Bharti Retail has been a very encouraging alliance for us. Basically, it's a gifting area that we have created in each Bharti and we may come out with approximately 20 to 30 stores this year shop-in-shop format. Bharti Retail is a format where there is impulsive buying, and hence, this format has been taken because people are very impulsive when it comes to gifting.

We are putting up the lightweight diamond and gold jewellery there, which is very affordable and fashionable to gift to people. The range varies from Rs 5,000 to Rs 50,000. We have already started a store in Bangalore and second one is coming near Mumbai. We will be doing quite well in that format.

Q: Can you tell us what kind of bottom-line impact this kind of alliances will have? You did Rs 80-81 crore in the first quarter, what's the pro-rata that an investor can expect?

A: We will have to increase our bottomline and this format would help us on the bottom-line. We think that it will increase by a couple of percentage on overall turnover. We are expecting a turnover of approximately Rs 300 to 400 crore from this retail alliance. The bottom-line that we are looking at on a total turnover is about 15%.

So, we'll be able to mitigate the interest rates going onwards and upwards. This is one of the strategies the company has made to go into mass retailing through Bharti, where a lot of gifting could happen.

Q: You were planning to start an NBFC to do lending against gold, what's the status? Have you got Reserve Bank抯 permission? Is the company capitalised?

A: We have taken initial steps and we are very soon to start real operations in a couple of months. One has to take care while lending, especially when the question of gold is there. We've already finalised a zero deal on 50 locations and training processes are going on. So, we will start our operation before December this year.

Q: Capital of the company?

A: We will start off with approximately Rs 200 crore.

Q: How much do you think your revenue will grow in the next fiscal and in the following fiscal as well, can you give us a trajectory?

A: We are growing at a pace of 20%-25% each year. So this year, it won抰 be a difficult task to achieve. We are coming out with large manufacturing facilities and investment in different formats for retail shops. So, I don't think two three years down the line, the growth will be less than 20%-25%.

Q: How much will come from export markets and what are the new markets that you are looking at this point?

A: As far as exports are concerned, we don抰 have aggressive plans; in fact, we are looking acquisitions in the European and other regions. We have an export growth of 20% 25% because of the demand and there is hardly any change in that. We are very cautious in European and American zones, where there are chances of defaults and other things. So this year, we are not going very aggressively on export as such.

Q: Your margins were 4.3%. Will that be the margins for the full year?

A: These margins will keep on varying because the interest rate has suddenly gone up. So, margin may change and it could be anywhere between 3% and 6%. The RBI is increasing the rates and banks are also very confused what to lend and what not to lend. Now the dollar has also become very strong against the rupee, so there is a lot of volatility in the market, which makes it difficult to maintain a margin. However, we think that we'll do fairly well during this year.

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