Gitanjali acquires stake in Verite

Eyes expansion in Japanese diamond jewellery market.


India’s leading jewellery brand, Gitanjali, has acquired a 15.3 per cent stake in Japanese retail chain Verite for Rs 25 crore. “With the stake in Verite, we want to obtain access to the Japanese jewellery retail market. This will enhance supply chain advantages, economies of scale and profitability,” said Mehul Choksi, Managing Director, Gitanjali Group. The stake was bought through its wholly-owned subsidiary-Astona Luxury Group in Hong Kong.

This acquisition also brings a 50 per cent supply contract to Gitanjali from Verite for its 101 jewellery retail stores in Japan.

Being the leading diamond jewellery market of the world with the likes of the US, India, China and West Asia, Japan consumes nearly 12 per cent of the global diamond jewellery. Also with consumers high on fashion consciousness, Japan offers excellent margins over commodity prices. “With the strengthening dollar, international revenues will balance our growth and margins,” he added.