Mergers, Acquisitions and Takeovers Case Study

Consolidation in the Indian Gems and Jewellery Industry: The case of Gitanjali Gems

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Abstract:
"Gintanjali Gems, India's largest integrated diamond and jewellery manufacturer had dominated the Indian gems and jewellery (GJ) market since its establishment in 1996. The company had been the largest branded diamond and jewellery manufacturer and retailer of India with a market share of 20%. The company solidified its base in the Indian GJ sector and went for aggressive expansion in the retail market by restructuring its product mix. It had introduced strong brands like D'Damas, Asmi, Sangini, Nakshatra, etc. To strengthen its base in the retail jewellery sector, Gitanjali began increasing its stake in Gili India Ltd and by March 2008, it acquired a 100% stake in Gili. Gili had been a pioneer in the retail branded Jewellery sector and had a market share of 45%. Post acquisition, Gitanjali had planned to capture 70% of the retail market by 2010. It thus remained to be seen whether acquiring a 100% stake in Gili helps Gitanjali to cope with the increased competition and successfully achieve its targets in future.This case is intended for MBA / PGDBM students and is designed to be part of the business strategies and financial management curriculum.

Pedagogical Objectives:

• To understand the developments in the Indian GJ sector.
• To understand the growth strategies of Gitanjali Gems.
• To have a brief understanding about the strategies adopted by Gitanjali in the retail jewellery sector.

Keywords : Gems and jewellery (GJ), Gold production, Cut and polished diamonds (CPDs), Coloured gemstones, Branded jewellery, Gili India Limited, Retail jewellery market, Micro insurance, Mariella Burani Fashion Group (MBFG), Gitanjali Gems Limited, Synthetic stones, Pearls, Diamond production, Nakshatra, D'Damas

Contents : 
Indian Gems & Jewellery Industry: A Brief Overview
India’s Gold and Diamond Production
Indian Gems & Jewellery (Import & Export)
Export of Different components of Gems & Jewelry Industry
Gitanjali Gems: A Case of Consolidation
Distribution Network of Gitanjali
Presence of Gili in Top 30 Cities of India