Gitanjali Gems felt 'Consumers-Pause' due to rising gold price

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Mumbai, Feb 1 (UNI) Gitanjali Gems Limited's gold jewellery retail business declined by about 12 per cent on the backdrop of rising gold prices.

Speaking to the mediapersons on the sideline of new brand-ambassador's announcement for a new jewellery range ''Collection g'' here today, Company Managing Director Mehul Choksi said the world gold prices has increased by 40 to 50 per cent in the first half of the current fiscal, which has directly made an impact on gold-jewellery sales business.

''In a way, we experienced a 'consumers pause' in a certain period due to rise in gold prices,'' Mr Choksi said adding that however, it was only due to festive sessions in the third quarter that the sales accelerated with a good pace.

The group, with three to four per cent share in the country's diamond and jewellery retail market, has posted a net profit increase of 61 per cent at Rs 50.5 crore for the quarter ended December 2007 as compared to Rs 31.3 crore in the corresponding quarter of previous year.

While, group's retail business has been grew by about 200 per cent at year-on-year basis and targeting a business growth at 300 per cent by the end of FY 08, Mr Choksi added.

The group had planned for business expansion in the countries like US, UK, Gulf countries and China, which is expected to be completed by the end of this fiscal.

Earlier, Mr Choksi had told that D'damas gold is look-after the marketing business for the newly launched jewellery range ''Collection g'' which has been created and developed by World Gold Council. D'damas gold is a joint venture company with 50:50 per cent holding by Gitanjali Gems gulf-based diamond jewellery major D'damas.

The company has chosen former Miss Sri Lanka - Jacqueline Fernandez as the brand-ambassador for the promotion of contemporary light-weight 18 carat gold-line--Collection g.

Commenting on the series, World Gold Council Managing Director (Indian Sub-continent) Ajai Mitra said, this collection was particularly created and developed for the young generation professionals and college students.

UNI PP GR VKG1735

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