Gitanjali sees 2011 sales up, eyes expansion
Gitanjali Gems Ltd , India's biggest jewellery retailer, expects to boost sales to about $2 billion this year from $1.55 billion in 2010 and aims to expand in Italy and China , its top executive said.
"This year we will reach, we hope to achieve about $2 billion in revenues ... and emerge as one of the largest integrated brands in (jewellery) retail," Gitanjali Managing Director Mehul Choski told Reuters in an interview on Sunday.
Gitanjali, which last September bought Italian jeweller Valente Milano, plans to complete the acquisition of four other Italian jewellery brands by the first week of February, Choski said at a key international jewellery fair in northern Italy.
The Indian group aims to add between $100 million and $150 million to its revenue in 2013 from its Italian assets, which also include the Giantti brand, and may buy other brands in Italy which Choski said he considers a top jewellery manufacturing centre.
"Italian jewellery has a universal appeal ... it is two to three years ahead of the market ... Our main aim is with the Made in Italy products to catch the markets in Saudi Arabia, Russia, Japan and America," he said.
Gitanjali would pay about $11 million for the Italian jewellers Stefan Hafner, IO Si, Porrati and Nouvelle Bague grouped under the BLU Srl umbrella, with funds going to their creditors, and would inject another $10 million over a year into the companies, Choski said.
The four Italian brands were previously owned by now bankrupt DIT Group, a unit of Dubai debt-laden jewellery group Damas International .
Gitanjali which specialises in diamond and stones jewellery also plans to expand on the booming Chinese market, Choski said.
"China is very much on our cards to expand ... We could have an acquisition too," he said without giving more details.
Turning to the group's domestic market, Choski said India's gold jewellery demand, which powered the international gold market growth in 2010, would be strong this year and its strength was sustainable thanks to the growing wealth of its population.
Diamond jewellery demand is set to be strong too, he said. "In India gold and diamonds play a very important role. In India jewellery is not only a luxury, it is an investment. Everybody looks to save up and give it to the children," he said.
Gitanjali Gems Ltd , India's biggest jewellery retailer, expects to boost sales to about $2 billion this year from $1.55 billion in 2010 and aims to expand in Italy and China , its top executive said.
"This year we will reach, we hope to achieve about $2 billion in revenues ... and emerge as one of the largest integrated brands in (jewellery) retail," Gitanjali Managing Director Mehul Choski told Reuters in an interview on Sunday.
Gitanjali, which last September bought Italian jeweller Valente Milano, plans to complete the acquisition of four other Italian jewellery brands by the first week of February, Choski said at a key international jewellery fair in northern Italy.
The Indian group aims to add between $100 million and $150 million to its revenue in 2013 from its Italian assets, which also include the Giantti brand, and may buy other brands in Italy which Choski said he considers a top jewellery manufacturing centre.
"Italian jewellery has a universal appeal ... it is two to three years ahead of the market ... Our main aim is with the Made in Italy products to catch the markets in Saudi Arabia, Russia, Japan and America," he said.
Gitanjali would pay about $11 million for the Italian jewellers Stefan Hafner, IO Si, Porrati and Nouvelle Bague grouped under the BLU Srl umbrella, with funds going to their creditors, and would inject another $10 million over a year into the companies, Choski said.
The four Italian brands were previously owned by now bankrupt DIT Group, a unit of Dubai debt-laden jewellery group Damas International .
Gitanjali which specialises in diamond and stones jewellery also plans to expand on the booming Chinese market, Choski said.
"China is very much on our cards to expand ... We could have an acquisition too," he said without giving more details.
Turning to the group's domestic market, Choski said India's gold jewellery demand, which powered the international gold market growth in 2010, would be strong this year and its strength was sustainable thanks to the growing wealth of its population.
Diamond jewellery demand is set to be strong too, he said. "In India gold and diamonds play a very important role. In India jewellery is not only a luxury, it is an investment. Everybody looks to save up and give it to the children," he said.
