Gitanjali to double outlets

With 70 outlets across the country, Gitanjali Jewellery is planning to push up the number to 150

stores by the end of 2012. Each store will have a carpet area of 2,500 to 4,000 sq. ft. with an investment of Rs 10 to Rs 12 crores. The company relies heavily on the franchisee model. About 90 per cent of the stores are franchisee-run and the rest are company-owned. Gitanjali is particularly keen on enhancing its presence in Andhra Pradesh, where it has four stores. Within a year 15 more will be added.

The existing outlets have a jewelry inventory of Rs 700 crores, which would touch Rs 2,500 crores after the expansion. Gitanjali Jewellery is an arm of the Gitanjali Group, the Rs 7,000 crores jewelry maker and exporter. Right now retail operations contribute 50 per cent to the group’s turnover and the aim is to make this account for two-thirds in the next two years. Unlike other retail formats, which take a long gestation period to break even, jewelry retailing takes three to four months to achieve operational break even, with the payback period being between 30 and 36 months. Also on the cards is to take the number of single-branded stores across the country from the present 125 to 300 – in the next two years.

The Gitanjali Group, as a modern integrated conglomerate, produces a diverse range of jewelry. Its brands cover products ranging from loose diamonds to diamond studded jewelry and other stone-studded jewelry (precious and semi-precious), in gold, silver, steel combinations, as well as high-end watches, jewelry watches, luxury artifacts and accessories.