Gold prices which are presently hovering close to Rs16,000 per 10grams are expected to touch Rs17,000-Rs18,000 per 10 grams in the next six months, a top industry player said.
"I believe gold prices will go up. The oil price will start going up which will push up gold prices. Inflation is expected to go up and likely hardening of the US dollar will push up gold prices," Gitanjali Gems' Managing Director, Mehul Choksi, told reporters on the sidelines of a press meet here.
The gold price is ruling at $1,200 per ounce in the international market and around Rs 15,900 per 10grams in the local market. Gold prices may touch Rs17,000-18,000 per 10 grams in the next six months, Choksi said.
Commenting on business prospects, Choksi said the gold jewellery market would remain stable due to 20 days advancement in the Diwali festival. "We have to push marriage season strongly, which is starting early in November," Choksi said.
The company is now looking at entering Nepal, Bangladesh, Pakistan, Dubai, the UK and US markets in a big way, Choksi said, adding that it is also planning to enter the
Chinese market but in a different vertical and not in branded jewellery.
Gitanjali Gems, one of Indias leading integrated diamond and jewellery retailing and manufacturing companies, said that a brand valuation study carried out by well known UK-based firm, Brand Finance, has valued four of its major brands--Gili, Nakshatra, Ddamas and Asmi at Rs1,502-crore.
The company undertook this major brand valuation exercise during the last quarter. Brand Finance, a renowned UK firm in marketing and brand valuation was commissioned to evaluate four of these major brands.
Gitanjali is gearing up towards improving the value of the brand and not just improving sales and is looking at multiplying the value of these brands by 1.5-2-times by 2011-2012, Choksi said.
The four brands that have been evaluated today have immense value in the market. Gitanjali group is looking at using the value contributions of these brands as a benchmark for investments and strategy focus.
We look forward to ascertaining the value that can be unlocked from our existing brands and unravel areas where the synergies between different group brands can be leveraged, Choksi said.