A manufacturer and retailer of jewellery, Gitanjali Gems has clocked healthy growth over the past several quarters. Demand pick-up in export markets and its gems and jewellery SEZ helped the company expand export revenues. It made further forays into international markets by acquiring brands such as Giantti; also its US jewellery chains Samuels and Rogers broke even. Now it has international outlets over 400.

Meanwhile, the Indian consumer, the poster-boy of the India growth story, began to shift away from gold and showed an increasing preference for diamond jewellery, the bastion of Gitanjali's product lines. As Indian consumer habits develop, brand-consciousness also improves. The branded jewellery market in India is yet nascent, with only a few strong national brands. Among these are Gitanjali's flagship Nakshatra, and its other well-known brands such as Gili, D'damas and Asmi. It also has gold jewellery lines and luxury watches such as Morelatto and Nina Ricci.

These factors helped the company post consistently increasing growth over the past four quarters, though much of this comes from higher prices rather than volumes. Backward integration into manufacturing of jewellery helped it control costs even as prices of raw materials such as rough diamonds and gold spiralled over the past year. Operating margins have been maintained at 7 per cent for FY-11, though the March '11 quarter did see margins dip to 6 per cent.

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