Kolkata, Oct 28 (IANS): Shree Ganesh Jewellery House Limited (SGJHL), one of the largest manufacturers and exporters of handcrafted gold and diamond jewellery in India, Friday formed a joint-venture with Italian company Societa Aretina Lavorazione Preziosi S.P.A. (SALP SPA) to set up a gold jewellery manufacturing unit in West Bengal with an investment of Rs 100 crore.

The 50:50 joint-venture (JV) will set up the unit at SGJHL's integrated jewellery manufacturing complex at Domjur in Howrah district.

SALP SPA is one of the largest gold jewellery manufacturers in Europe.

"The JV is a step by our company towards expanding its product portfolio and strengthening its position as the leading exporter and manufacturer of gold jewellery globally. This alliance will help us to get the expertise (in technology) of the Italian company in manufacturing light weight machine made jewellery in India," SGJHL chairman Nilesh Parekh said here.

The company, which has a turnover of Rs 5,900 crore, will invest Rs.100 crore from its internal accruals to set up the manufacturing plant, Parekh said.

Claiming that this was the first ever JV in India where an Italian company was entering into a strategic relationship with a jewellery company to set up the manufacturing base in the country, he said the unit was expected to be operational by first quarter of the next year with an initial capacity to annually manufacture ten tonnes of lightweight gold jewellery, particularly gold chains.

SALP SPA director Alvise Martini, who was present on the occasion, said: "It is established today that India is one of the largest and fastest growing gold and diamond jewellery markets globally. The JV presented us with the opportunity to venture into a potential market and introduce our expertise."