Gitanjali Group to invest $30 m to expand retail presence in China

The group which already owns around 45 showrooms in China is planning to increase the store count to 100 by 2010. ?By this year end, we should be able to up the number of retail outlets to around 60-70 from the existing 45 stores in China,? said Mehul Choksi, managing director, Gitanjali group, one of the largest diamond companies in India which has already established strong presence in the US where it operates 143 retail stores through its acquisitions of Samuels Jewellers and Roger Jewellers.

The Gitanjali group has in its kitty diamond brand portfolios that include Nakshatra, Gili, Asmi, D?Damas and Sangini. Choksi, who also dons the hat of chairman, gems and jewelllery committee of Ficci said that the Indian gems and jewellery industry is already witnessing a revival from the adverse impact of global meltdown. ?We are already seeing a turnaround in terms of consumption, however what remains the biggest concern of the industry is the flight of around half a million diamond workers during the downturn. The real challenge of the industry would be to recover from this loss of manpower,? said Choksi.

The group, which has its flagship Gitanjali Gems listed on the stock exchange, is targeting to achieve a turnover of Rs 6,500 crore in 2009-10 from Rs 5,000 crore in the previous financial year. Earlier this month the government approved a Rs 180 crore investment proposal of Dubai-based Damas LLC for setting up a retail joint venture with Gitanjali Lifestyles for opening jewellery and accessories stores. ?We will be opening our first store in Delhi next month,? Choksi said after the proposal got the government?s clearance.

The proposed JV firm would open about 100 stores in three years with an investment of over Rs 300 crore, he had said.

(Travel for the story was sponsored by Ficci)