Gitajanli invests in Japanese firm Verite

Jewelry manufacturer and retailer, Gitanjali Group

has confirmed that it has acquired 15.3 per cent stake in Japanese firm Verite for Rs 25 crores. In a BSE filing, it has said that the stake was bought through its wholly-owned subsidiary-Astona Luxury Group in Hong Kong. Gitanjali Group chairman and managing director Mehul Choksi said that the stake purchase will help the firm increase its presence in one of the leading diamond jewelry markets of the world. The acquisition and supply agreement up to 50 per cent will provide supply chain synergies to the group. Verite, a listed company on the Tokyo Stock Exchange, operates a network of 101 jewelry retail stores in Japan. Gitanjali has brands such as Nakshatra, Asmi, Gilli and D’Damas.

In the June quarter of the fiscal, Gitanjali reported its net profit was up 21 per cent at Rs 149 crores. Its sales rose 31 per cent to Rs 3,385 crores. On a standalone basis, the company's net profit was up 10 per cent at Rs 77 crores, even as sales increased 27 per cent to Rs 2,029 crores.

The group has completed re-alignment of its domestic Indian business by transferring all Indian businesses such as Gitanjali Lifestyle, Gitanjali Jewellery Retail and MMTC Gitanjali to Gitanjali Brands. Gitanjali Brands will become a subsidiary of Gitanjali Gems once the entire process of consolidation is completed.