Gitanjali Gems acquires majority stake in US firm Diamlink
14 Jul 2009
Gitanjali Gems Ltd has announced that Gitanjali USA Inc, its wholly owned US subsidiary, has acquired a 51 per cent stake in Diamlink Inc, a New York-based company.
Diamlink is engaged in the business of diamond and diamonds studded jewellery. By virtue of this acquisition, Diamlink has become a step-down subsidiary of Gitanjali.
However, the company did not disclose any financial details in its notice to the Bombay Stock Exchange on the acquisition.
Gitanjali Gems, one of India's leading integrated diamond and jewellery retailing and manufacturing companies, reported a turnover exceeding Rs5,088.88 crore ($1 billion) in year ended 31 March 2009. The company reported strong growth across its jewellery sales, led by a robust domestic demand, and a strong portfolio of brands.
The global economic slowdown, especially the situation in the US and the currency fluctuations, while raising the company's costs had a lesser impact on profits.
The global slowdown, however, has left the company with higher inventories, increased receivables and a higher carrying cost, the company said.
Consolidated revenue for 2008-09 increased by 5.32 per cent to Rs5,088.88 crore from Rs4,831.74 crore in the previous year (2007-08).