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Gitanjali gems expects sales growth to accelerate after buying Italian brands

16 Sep 2010 Evaluate

India’s biggest jewelry retailer, Gitanjali expects growth to accelerate at the fastest pace in three years after it completes the purchase of six Italian brands. The company expects the acquisitions to help add $100 million to its sales in the year ending March 31. The company forecasts revenue to increase 31 percent to 85 billion rupees ($1.83 billion) in the period.

The company has not disclosed the brands it plans to acquire. It plans to spend 1 billion rupees to buy the brands from two companies to lure buyers as rising salaries boost spending power in Asia’s fastest growing economy after China. Gitanjali, which sells its jewelry under 15 brands including Nakshatra and Gili, also plans to open 100 stores in China in the next three years. Luxury spending has been up worldwide as both diamond and gold are now perceived as investment categories. Italy is a fashion jewelry capital, their brands appeal to the world.

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Peers
Company Name CMP
Titan Co 4512.90
Kalyan Jewell.India 417.30
Rajesh Exports 121.98
Senco Gold 324.10
Thangamayil Jeweller 4129.85
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