Integrated diamond and jewellery manufacturer and retailer, the Rs3,500-crore Gitanjali Gems Ltd., today announced the complete acquisition of Nakshatra Diamonds, a premium brand owned by the De Beers group's Diamond Trading Company (DTC).
Gitanjali says it plans to position Nakshatra as a global luxury and premium jewellery and lifestyle brand with projected sales of Rs1,000 crore over the next five years.
Nakshatra, sold through a network of 480 upmarket jewellery establishments, was owned by DTC, with manufacturing, distribution and marketing rights held by Brightest Circle Jewellery Pvt. Ltd. (BCJPL), a joint venture between Gitanjali and two other companies. This acquisition gives Gitanjali Group a 100-per cent stake in BCJPL and sole rights over the jewellery brand.
"Nakshatra has been a key component in the rapid growth of the Indian diamond market since its launch in 2000," said David Rudlin, director of international markets, De Beers Group Marketing. "We are happy to see the successful conclusion of the transfer of the brand to Gitanjali Ventures, an important partner in its success to date."
Gitanjali now plans to broaden the Nakshatra brand portfolio, till now confined to diamond jewellery, and will introduce other lifestyle accessories like designer bags, watches, belts, etc.
"We are aggressively pursuing opportunities that will synergies with the company's philosophy to add incremental value at every level of the supply chain, thus ensuring greater shareholder value and boost to the bottom line," said Mehul Choksi, chairman, said Gitanjali Group.
The acquisition is a significant step towards moving up the industry value chain and will offer a range of synergies to Gitanjali's existing operations, which owns several premium jewellery brands that include 'Asmi, D'Damas, Gili, Gianti.