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India Gitanjali to spend $33 mln for Italian brands
Bids for five brands to boost sales in Europe, Middle East.
September 21, 2010 1:16 by Reuters
Indian jeweller Gitanjali Gems Ltd plans to spend up to 25 million euros ($32.7 million) to buy five Italian brands to boost sales in Europe and the Middle East, the company’s chairman said on Tuesday.
Mehul Choksi also said Gitanjali, which is India’s biggest jewellery retailer, would bid for more Italian brands in the coming months.
The company has bid for all four brands of DIT Group and one from Mariella Burani Fashion Group SPA .
DIT is a unit of Dubai jewellery maker Damas International and owns brands such as Stefan Hafner, IO Si, Porrati, Nouvelle Bague, while Valente is owned by Mariella Burani.
“The brands have a presence across Europe and the Arabian markets,” Choksi told Reuters. “This will help us penetrate global markets and introduce new jewellery designs in Europe and the Middle East and will give a huge boost to our sales.”
If the bids succeed, Gitanjali hopes to add more than $100 million in revenue from the brands over the next two years, he said.
“The outcome is expected in a month’s time,” Choksi said.
Gitanjali, which sells jewellery under the Gili, Nakshatra, Asmi and D’Damas brands in India, had reported annual sales grew 28 percent last year to $1.4 billion.
India is the world’s biggest market for gold, mostly in jewellery. Companies also import gold to make ornaments and sell overseas.
Shares in Gitanjali, valued by the market at $404 million, have jumped 76 percent this year, outpacing a 14 percent rise in the main index .
(Additional reporting by Svetlana Kovalyova in Milan; Editing by Ranjit Gangadharan)