Acquisitions Strengthen Gitanjali’s Luxury Lifestyle Position
March 10, 08
The Gitanjali Group further consolidated its presence in the luxury and lifestyle segment of the Indian market with a number of new acquisitions. Following the acquisition of Renaissance Retail Ventures with its flagship jewelry brand Lucera for Rs 250 million ($6.18 million), it is also acquiring the Trinity Watch Company Pvt Ltd and Hoop Jewellery, both owned by the B Vijaykumar Group. The details of the two acquisitions will be finalized shortly. In regard to the Lucera acquisition, the company said its investment in the luxury and lifestyle segment now exceeds $15-20 million. Announcing the acquisitions, Gitanjali Chairman Mehul Choksi, said that the acquisition amount for Lucera includes brand nurturing, brand purchase and a 100 percent stake in Renaissance Retail Ventures. Gitanjali plans to invest an additional Rs 250 million in developing the Lucera brand by adding five new outlets to the existing nine flagship stores and 32 shops across the country. It will also broaden the Lucera brand portfolio, until now a silver jewelry brand, with the introduction of other lifestyle accessories such as designer watches, belts and bags. It aims to position Lucera as a jewelry and lifestyle brand worldwide with sales worth Rs 600 million ($14.82 million) over the next year. Once the acquisition of Trinity is complete, Gitanjali will add four well-known watch brands – viz Iris, St. Honore, Umbro and Everlast – to its existing range. Gitanjali also informed the stock exchange that through the incorporation of its wholly owned subsidiary Mohar Jewels Ltd, “the company will also enter the business of providing safe deposit vaults and gold loans to individuals, entities or any other person and to do the business of manufacturing, buying, selling, importing, exporting of diamonds and other precious stones.”