Hyderabad set to emerge as jewellery trading hub

Our Corporate Bureau
28 November 2005

Hyderabad: With the laying of foundation stone for a Special Economic Zone (SEZ), for the Rajiv Gems Park, at Shamsabad, 25km from Hyderabad, the Deccan city will soon emerge as a trading hub for the gems and jewellery sector.

Promoted by the Gitanjali Group in association with the government of Andhra Pradesh, the park has already seen an investment of Rs500 crore and is expected to start functioning by the end of next year. It will provide direct and indirect employment to 50,000 people in the next three years.

The park will be located near the proposed Hyderabad International Airport where the government has allotted 200 acres of land for the project.

Andhra Pradesh chief minister YSR Reddy, while laying the foundation stone for the park said, "The developers of the zone have promised to bring 20 units in the first year and these industries will provide direct employment to 20,000 people."

The Gitanjali Group has lined up an investment of Rs500 crore for SEZ and is targeting a turnover of Rs5,000 crore from the zone by 2009. The company's investment for this 200-acre park involves around 35 per cent equity with the remaining raised from borrowings.

Addressing the media, Sunil Sheth, vice-president, commercial, Gitanjali Exports said, "While we expect the SEZ to be fully operational by 2009, the we will set up the first unit in 2006. Around 75 units are expected in this zone and we expect a turnover of Rs5,000 crore in 2009 from this park."

The Gitanjali Group, that ended last year with a turnover of "about Rs 2,200 crore" has marketing rights for brands like Nakshatra and Asmi in the country. It has diamond cutting and polishing facilities in five locations in India.

The group will invest Rs100 crore to set up its own unit in the SEZ in the park. This investment will also involve setting up of an institute to train artists in cutting and polishing gems.

Hyderabad is the second-largest city in diamond consumption in the country after Surat.