The Gitanjali Group has lined up over Rs 300-crore expansion plan for a three-fold increase in the number of company-owned stores.
The Rs 5,000-crore Gitanjali Group, which unveiled on Tuesday a joint venture with state-owned MMTC for gold and diamond jewellery, has lined up over Rs 300-crore expansion plan for a three-fold increase in the number of company-owned stores.
"Currently, Gitanjali has 150 large (exclusive) stores and is planning to increase it to 450 shops in about 12-18 months with an investment of over Rs 300 crore," Gitanjali group managing director Mehul Choksi told reporters here.
The first store of the 'Shuddhi-Sampurna Viswas' (SSV) joint venture was launched in south Delhi by cine actress Lara Dutta who is also the brand ambassador of D'damas, the diamond jewellery brand of the Gitanjali group.
The Gitanjali group, with diamond brand portfolio of Nakshatra, Gili, Asmi, D'Damas and Sangini has 74 per cent equity stake in the joint venture with the MMTC.
As MMTC is the country's largest gold trader, it provides a strategic fit to Gitanjali to make forays into the gold jewellery, after it has created a strong market for its diamond labels.
Choksi said the group would move its business away from distributors to the stores owned by itself or by the SSV network, which will be strengthened to 50-60 stores in the next 18 months with an investment of about 65-75 crore.
The group has established a strong presence in the US where it operates 143 retail stores through its acquisitions of Samuels Jewellers and Roger Jewellers.
Besides, it has built its footprints in China where it has business tie-ups with 35 local stores.
The group, which has its flagship Gitanjali Gems listed and traded on the stock exchange, is targeting a turnover of Rs 6,500 crore in 2009-10 from Rs 5,000 crore in the previous fiscal.
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