Mumbai: Gitanjali Lifestyle, a unit of India’s largest branded jewelry retailer Gitanjali Gems Ltd, on Wednesday announced it was acquiring a 76% stake in New Delhi-based Salasar Retail Ltd. It will also roll out multi-format retail stores under the ’Maya’ brand, a top company official said.
The Salasar stake gives Gitanjali Lifestyle 10 multi-storey stores with 200,000 square feet (sq ft) of retail space in northern India. “We will add an additional 1.25 million square feet to 1.5 million square feet retail space over the next three years and incur a capex of Rs70 crore to Rs80 crore each year to roll out 50 more multi-format stores under Maya,” said Devasish Dutta, chief executive officer of Gitanjali Lifestyle, at a Mumbai press conference.
“Over 70% of Maya’s revenues will come from jewelry products and the rest from apparel,” he said. Gitanjali Gems accounts for 40% of the domestic branded jewelry market, estimated to be between $3 billion and $4 billion.
Shares of Gitanjali Gems Ltd on Wednesday closed 2.12% higher at Rs120.35 on the Bombay Stock Exchange, while the bellwether Sensex rose 0.21% to 16912.77.