Gitanjali lines up 5-6 new retail formats

Gitanjali Group, a manufacturer and retailer of branded jewellery, is looking to launch 5-6 new formats under its retail subsidiary Gitanjali Lifestyle.

Each of these formats would sell products such as accessories,eyewear, watches, mobile phones, apparels and fashion items alongside jewellery, Mehul Choksi, chairman and CEO, Gitanjali Group, told DNA.

“We are going to launch various new formats — each will be unique in its own way, where jewellery will be the main focus and it will be teamed with other fashion and lifestyle products,” Choksi said.

“The jewellery industry started with retailing jewellery in departmental stores and then through organised retail stores… this is the next innovative step we are taking to provide consumers with various fashion and lifestyle product options as they come to buy jewellery,” he said.

The company plans to invest Rs 300-400 crore towards the new retail ventures over two years. The funds will be arranged through internal accruals.

Meanwhile, Gitanjali Lifestyle is in the process of rolling out 22 Hoop stores, which will sell mobile phones and fashion accessories.

Gitanjali Lifestyle last month acquired 70% stake in MobileNxt, a Bangalore-based mobile retail chain. It is revamping the existing format and re-launching them as Hoop. Over two years, the company will extend the network to 100 stores, which will also include shop in shop at other retail stores.

Choksi is aiming for a turnover of Rs 200- 300 crore from the new ventures in the first year, and then hopes to multiply the turnover every year.

Gitanjali is also looking at launching 6-7 new brands of jewellery collections, which will also have signature line of film celebrities.

Meanwhile, Gitanjali’s US subsidairy, Gitanjali USA, has recently acquired 51% stakes in New York based jewellery company Diamlink Inc, which distributes its products to 3000 outlets in New York. “Diamlink products will be added under Gitanjali and distributed to other retailers as well. We are making it a tool to market our brand,” Choksi said.