Khanna Gems will invest about Rs 50 crore to set up a manufacturing facility for bullion in the national capital as it seeks to enter in gold and silver coins, a top company official said.
The city-based company, which posted a turnover of Rs 100 crore in 2017-18, sells gemstones and diamond both in the domestic and overseas markets.
"We are entering into bullion business. We will sell gold and silver coins in view of huge demand. We are going to esablish a factory at Najafgarh here," Khanna Gems managing director Pankaj Khanna told PTI.
The company has already taken the land on a long-term lease to set up the factory, he said, adding that the investment demand for bullion is rising especially during the festival season.
Asked about the investment, Khanna said: "Total cost would be Rs 50 crore including basic infrastructure, bullion and branding."
The investment will be funded through internal accruals and sale of its equity, he added.
The new facility will be operational before 'Akshay Tritiya' in mid-2019. It will import machine to manufacture in volumes and ensure accurate weighage of coins.
Khanna said the company had generated a business of Rs 100 crore during the last fiscal, of which 50 per cent came from exports. Bulk of its turnover comes from sale of gemstones.
Khanna Gems, set up in 1997, is a leading player in the gemstone business and sells gemstones with an appropriate government lab certificate both online and offline mode.
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