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Gitanjali to expand retail jewellery business

Ramnath Subbu
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Gitanjali Gems, the Mumbai-based jewellery retail player has drawn up plans to expand its retail jewellery business. The company has more than 4,000 points of sale and its diamond jewellery brands include Gili, Nakshatra, Asmi and D'damas.

Mehul Choksi, Chairman, Gitanjali Group, told this correspondent that “Our retail and branded business now account for half of our total with pure retail now at 30 per cent. I expect our pure retail business to go up to 50-60 per cent of our total in the next two years.”

For the nine months ended December 2011, the company added 66 new stores (owned as well as franchise), 150 shop-in-shops and nearly 200 retailers. It reported sales of Rs.3,536 crore for the December quarter and a net profit of Rs.129 crore.

Mr. Choksi said about a dozen brands were now going national and the company would set up 50 outlets for each. ``We have earmarked an annual capital expenditure of Rs.25-30 crore for the next few years.”

“We follow a unique model of value creation — right from sourcing raw material to making jewellery to branding and retailing of jewellery. Over a five-year period, we have moved from being a jewellery manufacturer to a branded global player.”

It undertook a restructuring and re-aligning exercise a year ago to consolidate its business and accordingly, the business is being divided into three divisions — one for jewellery manufacturing in India, the second for branded jewellery and retailing and the third for international manufacturing, branding and retail.

The international business will come under its Hong Kong-based subsidiary Aston Luxury group.

As part of the exercise, Giantti Italia s.r.l, a Milan-based subsidiary, has merged with leading Italian Jewels s.r.l., another subsidiary of the company based in Valenza, Italy, in order to consolidate the business in Italy. Gitanjali Gems acquired Leading Jewels of Japan for $18 million with an aim to expand its business in Japan and the adjoining region.


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