Gitanjali Gems Ltd. is planning to divest 25% of its holding in each of its brands from September this year, to ‘unlock consumers’ acceptability level.’ Beginning with Gili India Limited, the exercise would move gradually into other brands, including Nakshatra, Asmi and Ddamas Jewellery (India) Pvt., Ltd., to complete the planned exercise by the end of financial year 2011-12. The plan is in a nascent stage, though, and is expected to be taken up at the company’s annual general meeting, scheduled next month. Brand Finance, in October 2009, valued the four leading brands of the company at INR 5.14 billion (Nakshatra), INR 4.68 billion (Gili), INR 3.09 billion (D’Damas) and INR 2.10 billion (Asmi), respectively. Mehul Choksi, Managing Director of the firm said, “Having been the pioneer in establishing branded jewellery as a category in India 15 years ago, we felt a need to look back and take stock of where the brands stand at present.
” The valuations now show the brand’s presence and potential for further development, Mr. Choksi said. “The valuer had suggested new designs, presence in bigger cities, etc, which (we) are currently undergoing. On implementing all the given suggestions, the brand value will double in two years and we are moving aggressively towards that,” he added. He noted, “We will divest the minimum prescribed (by the valuer), perhaps at 25%, with approval from the Securities and Exchange Board of India.
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