Gitanjali Q3 Sales Up 33 Percent

Mehul Choksi

Mumbai-based Gitanjali Gems said its net sales in the third quarter rose by 33 percent and its net profit grew by 28 percent.

It is one of the largest companies—if not the largest company—in the Indian jewelry industry. It is diamond manufacturer, jewelry manufacturer, jewelry retailer, and a creator and owner of numerous brands in nearly all consumer markets of the Indian jewelry industry. It also owns retail chains, brands and other operations in the U.S., U.K., Belgium, Italy, the Middle East, Thailand, Southeast Asia and Japan. Mehul Choksi is the chairman and managing director of the company.

“The group has performed strongly across its various segments,” Gitanjali said in a statement. “High growth in sales (in India) can be mainly attributed to rapid expansion in Tier 3 and Tier 4 towns via the franchising route. Profits have grown faster than sales on account of economies of scale achieved in operations and a strategic shift towards jewelry retailing."

Gitanjali said its U.S. sales grew 8 percent for the period where it owns the Rogers Jewelers and Samuels Jewelers chains.

“The quarter has been significant for our U.S. business primarily due to profitability stemming from supply chain synergies,” the company said.

Gitanjali Set to Pay Nearly $33M for Italian Brands

Mehul Choksi

 We’re learning more about Gitanjali Group’s bid for five Italian brands.

Reuters reports that Mehul Choksi, Gitanjali chairman and managing director, is prepared to pay $32.7 million for the DIT Group (which owns four brands) and Valente and expects to reap $100 million from the acquisition in two years.

DIT is a unit of Dubai jewelry maker Damas International and owns the brands Stefan Hafner, IO Si, Porrati, and Nouvelle Bague. Meanwhile, Valente is owned by Mariella Burani Fashion Group.

Gitanjali Group, which trades in India under the name Gitanjali Gems Ltd., is India’s largest diamond jewelry manufacturer and retailer. Its business portfolio includes rough diamond sourcing, cutting, polishing, jewelry manufacture and distribution to its jewelry branding and retail operations. Its brands include Gili, Nakshatra, Asmi, Sangini, D’damas, Vivaaha and Giantti.

Read more.

View previous story.

Gitanjali to Pay Up To $15M for Italian Brand

Mehul Choksi

India’s largest diamond jewelry manufacturer and retailer is about two weeks away from acquiring a major Italian brand, according to media reports.

Mehul Choksi, chairman and managing director of Gitanjali Group, told India’s MoneyControl.com the company is spending about $10 to $15 million for the acquisition of the yet unnamed brand. The idea is to market this brand’s products throughout the company’s growing international network, which includes the Samuels and Rogers jewelry chain in the U.S., more than 20 retail brands in India and retail outlets in the Middle East, China and Japan.

He said the purchase could result in a 10 to 15 percent growth in revenue for the company.

A transcript and video of the interview can be found here.

Gitanjali Gems Ltd., its trading name, is an integrated diamond and jewelry retailing and manufacturing company in India. Its business portfolio includes rough diamond sourcing, cutting, polishing, jewelry manufacture and distribution to its jewelry branding and retail operations. Its brands include Gili, Nakshatra, Asmi, Sangini, D’damas, Vivaaha and Giantti. It has two segments: diamond and jewelry. In the diamond segment, it engages in an end-to-end diamond processing chain which begins with marking, cleaving, sawing, cutting and polishing. In the jewelry segment, process for the manufacturing of diamond studded and other jewelry flows from designing, model and mould making, waxing and wax setting, casting, sprue binding, filling, polishing, metal setting and rodium polish.