Gitanjali Gems eyes world expansion
After announcing plans to capture the global recovery in demand for diamond jewellery and other luxury items, India’s Gitanjali Gems saw its share price hit a 52-week high.
This follows the jewellery manufacturer and exporter’s share price dipping to its lowest in many years on March 1.
As well as diverting its focus from gold ornaments to diamond jewellery, Gitanjali has introduced low-carat gold content in stone-studded products, and is planning to raise Rs 110 crore (US$1.64 million) for its proposed expansion plan in both domestic and global markets.
“The company is going in for diamond jewellery retailing all over the world, and also for more profitable items,” says MD Mehul Choksi. “It plans 50 more stores in the US to expand its presence by 50 per cent in the world’s largest diamond-jewellery consuming market. We are also setting up distribution centres in China and the Middle East.”
Gitanjali also plans to increase its shop-in-shop model by 3000 outlets worldwide.
After the US, the company plans to concentrate on its home market, followed by China and west Asia.