Feb 16 2012 |
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Joyalukkas to use $100m syndicated loan for expansion
Thursday, Feb 16, 2012
Gulf News
Dubai Dubai-based jewellery retailer Joyalukkas has roped in Standard Chartered Bank (UK), Emirates NBD and Bank of Bahrain and Kuwait (BBK) to sign a Dh367 million syndicated loan to spearhead a massive expansion of its retail network of jewellery stores, Gulf News has learnt.
Standard Chartered Bank is the arranger and facility agent of the syndication that includes a $75 million (Dh275.4 million) term loan for five years and $25 million as working capital.
“We are planning to sign the deal on Sunday with the lenders,” a source told Gulf News.
‘Good deal’
Joyalukkas Group has rapidly expanded its presence all over the globe since its inception 24 years ago.
Today the group has 10 million customers and employs over 3,000 people in various countries. With an estimated net worth of $200 million, Joyalukkas Group has an annual turnover of more than $1 billion.
The company is owned by Joy Alukkas, a non-resident Indian businessman from the south Indian state of Kerala.
The group’s operations are geographically split between India and other countries. However, apart from its core business in jewellery, it has ventured into the money exchange and textile businesses as well. It’s international operations, based in Dubai, employ about 1,000 professionals split into the three verticals — jewellery, money exchange and textiles.
The company’s Indian operation was last year planning a public listing which is yet to come to fruition.
The company’s origin lies with Varghese Alukkas, who started his first jewellery showroom in 1956. His son, Joy Alukkas, followed in his father’s footsteps and expanded the Joyalukkas name globally.
Small beginnings
Joy Alukkas took his first step by setting up a jewellery showroom in the UAE in 1987 and has not looked back since then. He set up his first shop in Abu Dhabi followed by Dubai, Sharjah, Al Ain and Ras Al Khaimah.
The expansion since then has continued into countries such as the UK, Qatar, Oman, Bahrain, Kuwait and Saudi Arabia.
Analysts say the deal comes on the back of strong gold sales in the Gulf, mainly driven by festive purchases.
Gold retailers have been expanding in the GCC due to rising demand.
We are planning to sign the deal on Sunday with the lenders. The $25 million working capital will be used for general expenses and the rest for expansion.”
By Saifur Rahman?Business Editor
© Gulf News 2012. All rights reserved.
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