MUMBAI: Handcrafted gold and diamond jewellery producers and exporters Shree Ganesh Jewellery House (SGJHL) today said it has formed a 50:50 joint venture with Italy's SALP SPA to manufacture machine-made light weight gold jewellery for the domestic wholesale market. "The JV -- Oroitalia Sales Pvt Ltd -- will manufacture machine made light weight gold jewellery mainly for the domestic wholesale market," SGJHL Chairman Nilesh Parekh said. Oroitalia Sales will be set up at SGJHL's integrated jewellery manufacturing complex in Domjur, West Bengal, with an estimated investment of Rs 100 crore. SGJHL, which had a turnover of Rs 5,900 crore in FY11, expects the sales to increase by another Rs 500 crore after this JV becomes operational, he said. "The unit is expected to be operational by first quarter 2012-13 with an initial capacity to manufacture 10 tonnes of light weight gold jewellery, particularly gold chains, annually," he said. Under the JV, SGJHL will provide the infrastructure, while SALP will give technical expertise. "This light-weight jewellery is mainly targeted at the young crowd, who prefer light jewellery, following volatile gold prices. Of the estimated Rs 250,000 crore domestic jewellery market in the country, Rs 50,000 crore accounts for only light weight jewellery," he said.

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