Gitanjali Gems eyes world expansion
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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.
Questions & Answers
Q.What is Gitanjali Gems' primary focus for its expansion plans?
What is Gitanjali Gems' primary focus for its expansion plans?
Gitanjali Gems is focusing on diamond jewellery retailing globally and expanding its presence in the world's largest diamond-jewellery consuming market, the US. It is also diverting its attention from gold ornaments to diamond jewellery and more profitable items.
Q.How will Gitanjali Gems expand its retail footprint internationally?
How will Gitanjali Gems expand its retail footprint internationally?
The company plans to open 50 new stores in the US, increasing its presence there by 50 per cent. It is also setting up distribution centres in China and the Middle East, and increasing its shop-in-shop model by 3000 outlets worldwide.
Q.What is the company doing to alter its product strategy?
What is the company doing to alter its product strategy?
Gitanjali is shifting its focus from traditional gold ornaments to diamond jewellery. Also, it has introduced products with low-carat gold content in its stone-studded items to align with its new strategy.
Q.What amount of capital is Gitanjali Gems looking to raise for its expansion?
What amount of capital is Gitanjali Gems looking to raise for its expansion?
Gitanjali Gems is planning to raise Rs 110 crore, which is equivalent to US$1.64 million. This capital is intended to fund its proposed expansion plans across both domestic and global markets.
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