Gitanjali gems buys Nakshatra diamonds

The Rs. 3500-crore (Rs 35 billion) Gitanjali Gems Ltd., India's largest integrated diamond and jewellery manufacturer and retailer, announced the complete acquisition of Nakshatra Diamonds - DTC's most premium brand. Nakshatra was a brand owned by the DTC, with manufacturing, distribution and marketing rights held by Brightest Circle Jewellery Pvt. Ltd. (a joint venture between Gitanjali and two other companies).

This acquisition gives Gitanjali Group sole rights over the world's most supreme diamond jewellery brand and also 100% stake in BCJPL.

The company now plans to extensively broaden the Nakshatra brand portfolio hitherto restricted only as a diamond jewellery brand. The group will soon introduce other lifestyle accessories like designer bags, watches, belts etc to complement the contemporary global citizen. Gitanjali aims to position Nakshatra as a Jewellery and Lifestyle brand worldwide and report sales worth Rs. 1000 crores (Rs 10 billion) over the next 5 years.

With Aishwarya Rai, one of the most beautiful women on the planet, a rare achiever and India's most recognised and loved film star as its brand ambassador, the brand has a great inspirational value attached to it. Gitanjali aims to blend this popularity to bring Nakshatra to the next level - a brand that truly speaks class. It desires to be at par with the international brands like Gucci, Louis Vitton, etc. hence positioning India as the house of luxury and premium brands.

A company statement said that the acquisition will drive much more value to key stakeholders including end customers and partners of Gitanjali Group. This all adds up to the advantages including better deals for consumers and access to the world's most coveted brand than ever before.

Speaking on the occasion, Mehul Choksi, Chairman Gitanjali Group said, 'We are aggressively pursuing opportunities that will synergise 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. Also this acquisition brings unparalleled depth and breadth of lifestyle and product offerings to existing and prospective customers of Gitanjali."

Gitanjali has a reputation of bringing world-class brands in the country. It may be recalled that the company has introduced renowned brands such as 'Asmi, D'Damas, Gili, Gianti and several others to establish itself as the pioneers in innovation and technology.

"Nakshatra has been a key component in the rapid growth of the Indian diamond market since its launch in 2000. 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,' commented David Rudlin, Director of International Markets, De Beers Group Marketing.

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. One of the brands under the Gitanjali fold, it can leverage the group's well-earned reputation for ethics and values in a business where such attributes are critical to win the trust of consumers. On the other hand Gitanjali will not only have access to the entire spectrum of Nakshatra but also leverage its existing brand value that will give control over the entire value chain in the diamond jewellery business.

With 170% growth in value since its inception Nakshatra has retained its position as the most preferred brand in the Diamond Jewellery Segment. Nakshatra also manifolds over 11 times growth in terms of volume in the last three years, an achievement no other diamond jewellery brand can boast of. Such is the strength of Nakshatra that 70% of retail outlets stocking the brand credit it for playing a key role in boosting overall diamond jewellery sales and increasing consumer footfalls.

The Halo of Nakshatra on floral sales is 1:4 i.e. for every one Nakshatra sold the retailer is able to sell 4 more pieces of floral jewellery.