The Gitanjali Group has bought ‘Nakshatra’, the premium brand of jewellery promoted by Diamond Trading Company (DTC), for approximately Rs 100 crore through its Dubai-based subsidiary, Gitanjali Ventures.
This also includes the purchase of the former exclusive licensee of the brand in India, Brightest Circle. Gitanjali Group had owned 33% stake in the company, while the remaining stake was owned by Kirtilal Kalidas and Mahendra Brothers. The group acquired the remaining stake of the company from these two players.
Brightest Circle also had the option to purchase the brand. However, it has terminated its licence and ‘irrevocably waived and surrendered’ all the rights and interests in the Nakshatra brand. The company now plans to extensively broaden the Nakshatra brand portfolio hitherto restricted only as a diamond jewellery brand.
The group will soon introduce other lifestyle accessories like designer bags, watches, belts to complement the contemporary global citizen. Gitanjali aims to position Nakshatra as a jewellery and lifestyle brand worldwide and targets sales worth Rs 1,000 crores over the next 5 years. Mehul Choksi, chairman Gitanjali Group said, “We are planning to launch 500 stores over the next three years and promote Nakshatra as a lifestyle brand.”
The acquisition is a significant step towards moving up the industry value chain and will offer a range of synergies to Gitanjali’s existing operations. The Rs 3,000-crore group launched its first branded jewellery line in 1994 under the name of Gili. Subsequently, it became a licensee for DTC’s premium brand, Nakshatra, along with three other sightholders of DTC, under Brightest Circle.
With the success of the brand, DTC also handed over another brand Asmi, to Gitanjali. The company also has a joint venture with middle east based Damas, under the name of D’Damas. In 2005, DTC consolidated its diamonds and jewellery business under Gitanjali Gems.
Source: Economic Times