Gitanjali Group Takes Full Control of Nakshatra (Updated)

The Gitanjali Group has taken full control of Nakshatra, the jewelry line that pioneered the DTC’s foray into branded diamond jewelry in India in 2000 and its holding company. The brand was held until now by Gitanjali in partnership with Dimexon and Mahendra Brothers.

Announcing the acquisition, Anuj Rakyan, Vice President Jewellery Division, said that it was almost “an organic transfer” as Gitanjali was the natural choice for the takeover. However, Rakyan made it clear that there was no bidding process nor an acquisition price.

In 2005, when the DTC handed over its brands to different Sightholders, Gitanjali acquired a 33 percent stake in Brightest Circle, the company that had been licensed to produce and distribute Nakshatra by the DTC.

The group has invested in the brand Rs. 1 billion ($25.47 million) over the years, plans to invest another Rs. 1 billion in developing the brand over the next few years.

Under the terms of the latest acquisition, Gitanjali has also acquired full control over Brightest Circle Jewellery Ltd.

The Group’s plans for the brand include setting up standalone Nakshatra stores and adding 200 more outlets to the existing network of about 480.

There are also plans for extending the Nakshatra brand to lifestyle products such as diamond studded handbags, shoes, etc. However, as currently the merchandising process is underway, no firm announcements were made as to the actual unveiling of other Nakshatra products.

The company also hopes to introduce the brand in international markets. The Middle East and the UK are the first ones which will be focused on.

Over the next five years, Gitanjali hopes to raise revenues from the Nakshatra brand to Rs. 10 billion ($254.7 million), from its current estimated revenue of Rs. 1.5 billion ($38.21 million) in fiscal 2006-2007.

Gitanjali already owns the Asmi brand, also a DTC initiative, and has a 50/50 partnership with Sanghavi Exports in Spectrum Jewellery, the company that manufactures and markets the Sangini brand in India.

(Last update January 8, 2008 7:49 am)