Mumbai: Gitanjali Gems’ premium diamond jewellery brand Gili plans to expand its retail network in smaller towns even as it eyes a 50% top-line growth this fiscal, a top company official said.
Gili, the wholly-owned subsidiary of Gitanjali Gems, is looking at opening 31 stores this fiscal at an investment of Rs200 crore, the official said.
“We are looking at expanding our store network to 50 this fiscal. Currently, we have 19 EBOs besides 400 shop-in-shops. Our focus will be on Tier II and III cities as the growth is coming in from there,” Gili CE0 Rahul Vira told PTI here on Wednesday.
The demand for diamond jewellery has increased manifold in the last two years due to spiralling prices of gold, Vira said, adding that consumption has increased in smaller markets following a rise in income and spending capacity.
On sales, Vira said that the company is eyeing a 50% growth this fiscal.
“Diamonds give good margins and with a possible rise in prices this year, we expect good sales. Diamonds are still cashable,” he said.
The company’s revenues in FY’10 stood at Rs428 crore.
The company is also investing substantially on marketing activities and advertising, Vira said, adding that Gili alone invests around Rs15-20 crore on such activities annually.
“People have become more brand conscious today, and we are looking at connecting with people through their favourite celebrities. We are spending Rs15-20 crore every year on advertisements and campaigns,” Vira said.