Gitanjali to invest Rs 150 cr, acquire two brands

Mumbai, Mar 10 (UNI) In a move to expand its business in luxury&lifestyle segment, Gitanjali Group will initially invest Rs 150 crore in one year, excluding investments in two brands aquisition.

The Group has acqired two brands, silver jewellery brand 'Lucera', owned by Renaissance Jewellery, for Rs 25 crore and a premium watch's brand 'Iris' of Trinity Watch Company, said an official. However, the group declined to reveal the deal ammount for the watch brand.

Talking to the newsmen here today, Group president Sadanand Pawar said, ''We are planning for two more acquisitions in the near future and will excel our expansion plan in 27 cities across the country by adding 52 sale points and two Gitanjali Lifestyle malls, one in Hyderabad and other in Kolkata.'' When asked about the funds for the expansion, Mr Pawar said, as for the malls are concerned the group promoters will fund and for other plans, the investments would be funded in joint venture with other companies.

For the silver jewellery brand Lucera, which was sold through 9 flagship stores, the company plans to invest Rs 25 crore in two years, the Group President said. The present business of this brand is about Rs 10 crore which might reach over Rs 50 crore within two years, while the entire luxury and lifestyle segment would grow up to Rs 250 crore from Rs 75 crore presently, Mr Pawar said.

The group has also announced its foray into the business of providing gold loans, safe deposits vaults through incorporation of its wholly owned subsidiary in the name of ''Mohar Jewels''. The main objects of the new company inter alias includes providing safe deposit vaults and gold loans to individuals, entities or any other person and to do the business of manufacturing, buying, selling, importing, exporting of diamonds and other precious stones, a release said.

UNI PP/VK DB SKB1957