Gitanjali Gems to form JV with Saudi retail chain
New Delhi, Nov 21: Gitanjali Gems today announced that it will form a 50:50 Joint Venture with Saudi Arabia's Sulieman Al Othaim, one of the leading retail chains in the West Asia, to enter the country's mainstream gems and jewellery retail market.
The company expects to leverage Sulieman Al Othaim's specialty stores chain across the region. As Saudi Arabia is one of the largest diamond jewellery consuming markets, the company expects a robust growth from this venture in the following years.
''The JV is part of the group's endeavour to expand to new markets. It would provide platform for the company to create a strong position in Saudi Arabia along with the partner,'' a company statement said.
Under the joint venture agreement, the company seeks to create various new branding programmes to market jewellery in Saudi Arabia.
This would include brands like Rayana, La Baguette, Hart to Hart to the local population.
The company will also market its Indian brands like Nakshatra, Asmi and Sangini in Saudi Arabia by setting up additional retail stores in two years. ''The success of these brands in UAE has opened up a huge market in the West Asia as these brands are preferred by Locals as well as Non Resident Indians,'' the statement said.
The JV would also set up a whole jewellery business that would service various independent/ chain stores.