Gitanjali Gems Ltd has announced 100% acquisition of US-based Rogers Jewelers for $20 million (Rs 80 crore). Rogers Jewelers runs a chain of 46 retail stores in the US, spread across 11 states, with current revenues of $80.6 million. The firm sells under the brand names Rogers Jewelers and Andrews Jewelers.
Gitanjali has plans of making a further investment of $15-$20 million over the course of the next few months in Rogers. This is the Gitanjali Group?s second acquisition after Samuels Jewellers Inc in December 2006. ?This acquisition will benefit the group, enabling them to manage both Samuels and Rogers with the same back-end supply chain from India,? said GK Nair, executive director, Gitanjali Gems Ltd. ?With this acquisition, we are also expecting a growth of 5%-10% in the next one year,? added Nair. The acquisition is also a significant step towards moving up the industry value chain and will offer a range of synergies to Gitanjali?s existing operations.
Gitanjali Group is also shifting their production base from Mumbai to Hyderabad, where they have already acquired land in a special economic zone. They have plans to put up six factories in Hyderabad, which will be operational within the next nine months.
