Gitanjali to evaluate its brand

Gitanjali Gems, the integrated diamond and jewelry retailing and manufacturing company,

plans to evaluate four more brands — Gitanjali, Sangini, Gianti and Diya — by December. The purpose of the valuation is to understand customer’s acceptability of these brands and suggestions by the valuer to tighten any loopholes. The company’s objective is to understand what would be the value of these brands at the time of divestment, if any, and listing of individual brands in bourses. The brand valuer may possibly be KPMG or UK-based Brand Finance. Though KPMG has never done a jewelry brand valuation, it prepared a report on the Indian jewelry industry on behalf of Gems & Jewellery Export Promotion Council two years ago.

Last year, Brand Finance, which specializes in brand valuation and valuation of intangible assets had valued four leading brands of GGL — Gili at Rs 468 crores, Nakshatra at Rs 514 crores, D’Damas at Rs 309 crores and Asmi at Rs 210 crores. The total worth of these brands was pegged at Rs 1,502 crores with a potential for 1.5 to 2 times improvement by 2011-12.

Founded as a single company cutting and polishing diamonds for the jewelry trade at Surat, Gujarat, in 1966, the Gitanjali Group became, many times over, a pioneer among major diamond and jewelry houses. Having won over 50 awards from the Union ministry of commerce for outstanding exports of diamond and jewelry it is today over $1,000 million multinational group and a publicly listed entity.