Gitanjali Group makes twin acquisitions

The first jewellery brand to be launched in India- Gili is evaluated at INR 85 cr today and had achieved a Superbrand status in 2004. For more than a decade now, the brand offers Indian consumers a world of choice in gold and diamond jewellery – truly “Easy Elegance”. Gili was launched in the year 1994 with its primary brand value being, “Genuine diamond and gold jewellery at affordable prices” and it has come a long way becoming andd sustaining itself as one of the most preferred brand in its category.

Gitanjali Gems Ltd has also acquired 100% Shares of 'Modali Gems Pvt Ltd.' (MGPL), earlier a joint venture Company. By way of this acquisition, MGPL has become a wholly owned subsidiary of the Company. The main business of MGPL is to manage the distribution of the brand Asmi and allied products. It is currently a 120 people company with about 45 distributors and 345 retailers under its banner.

These powerful acquisitions will drive much more value to key stakeholders including end customers, and partners of Gitanjali Group. This all adds up to advantages including better deals for consumers and access to the world's most coveted brand than ever before.

Speaking on the momentous occasion, Mr. Mehul Choksi, Chairman Gitanjali Group said, 'We are aggressively pursuing opportunities that will synergize with the company's philosophy to add incremental value at every level of the supply chain, thus ensuring greater shareholder value and boost to the bottom line. Also this acquisition brings unparalleled depth and breadth of lifestyle and product offerings to existing and prospective customers of Gitanjali.”

Gitanjali has a reputation of bringing world-class brands in the country. It may be recalled that the company has introduced renowned brands such as 'Asmi, D'Damas, Nakshatra, Sangin, Giantti and several others to establish itself as the pioneers in innovation and technology.

“Gili pioneered the rapid growth of the Indian diamond market since its launch in 1994. Reigning in the jewellery brand category, it has stirred great interest from audiences nationwide. We wil strive harder to scale greater heights and with our longstanding relationship with our customers and loyal employees, we welcome the competition from the other jewellery and lifestyle brands, said Mr. Rahul Vira, the newly appointed – Business Head, Gili.

Future Plans

Today, Gili is one of the top brands for studded jewellery with more than 500 outlets in over 30 cities, including various retail formats, stand-alone stores, shop-in-shops, outlets at airports etc. Gili has several of its exclusive showrooms called the 'Gili World'. Growing dynamically, it has a sub-brand to itself called the 'Facet Shoppe'. It comprises of a highly priced product range, suitable for weddings and other such planned purchase.

Post Acquisition the Gitanjali Group aims at strengthening Gili's existing retail presence through acquiring more retail space, adding new and relevant product lines as per changing market preferences, aggressive marketing with stress on retail activation. Gili owns over 45% market share in branded jewellery retail through modern retail formats. The target is to increase it to 65 -70% in next two years.

The Gitanjali Group now plans to extensively broaden the Gili brand portfolio hitherto restricted only as a jewellery affordable jewellery brand. Gili will now entail in its portfolio artistic cutwork jewellery, and International jewellery brands. The current sales figures of Gili are 85 crore Rupees. Gitanjali aims to position Gili as a Jewellery and Lifestyle brand worldwide. The internationally acclaimed jewellery brands – Rosato and Calgaro by the Mariella Burani Fashion Group would now be exclusively retailed by Gili. In the first phase, The Gitanjali Group would introduce them in about 30 outlets across the metros and mini-metros.

Given the nature of the products, the brand would also be aggressively involved in events and marketing programs. This year's Femina Miss Teens would be crowned with crowns by Gili Gold.

Overall, Gitanjali would make investments worth Rs. 50 crore to nurture and grow the 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. One of the brands under the Gitanjali fold, it can leverage the Group's well-earned reputation for ethics and values in a business where such attributes are critical to win the trust of consumers. On the other hand Gitanjali will not only have access to the entire spectrum of Gili but also leveraging its existing brand value that will give control over the entire value chain in the retail jewellery business.

With a 100% growth in value since its inception Gili has retained its position as the most preferred brand in the retail market. Gili also manifolds over times growth in terms of volume in the last three years, an achievement no other jewellery brand can boast of.