Leading diamond jewellery maker Gitanjali has acquired a 15.3 per cent stake in Japanese retail chain Verite. This acquisition also brings a 50 per cent supply contract to Gitanjali from Verite for its 101 jewellery retail stores in Japan. “With the stake in Verite, we want to obtain access to the Japanese jewellery retail market. This will enhance supply chain advantages, economies of scale and profitability,” said Mehul Choksi, Managing Director, Gitanjali Group.

Japan being the leading diamond jewellery market of the world with the likes of the US, India, China and West Asia, Japan consumes nearly 12 per cent of the global diamond jewellery. Also with consumers high on fashion consciousness, Japan offers excellent margins over commodity prices. “With the strengthening dollar, international revenues will balance our growth and margins,” he added.

(This article was published on August 18, 2012)
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