Leading jewellery manufacturer and exporter Gitanjali Gems, which owns brands such as Nakshatra, D'dmas and Asmi, is looking to realign its core business operations by creating three new companies with specific focus, in an attempt to improve the visibility of individual brands and unlock better value for its shareholders.
"We are having a focussed approach toward realigning the business with an aim to significantly improve operational efficiencies," said Abhishek Gupta, group president, Gitanjali Gems.
At present, Gitanjali Gems, which is listed on Bombay Stock Exchange, has five business activities: manufacture of gold and diamond jewellery; brands; retail; construction; and international business.
In the new structure, the holding company would be spun off into three subsidiaries: brands and retail; manufacturing, wholesale and real estate infratech; and international business.
The move is also intended to boost the visibility of the company's brand business, which brought in half of the company's Rs 12,498 crore consolidated revenues in 2011-12.
"The realignment will help investors look at each business segment more carefully thus unlocking greater value," a Gitanjali Gems executive on the condition of anonymity. He said the company has not decided the ownership pattern. The promoters hold 59% stake now, and the rest is with shareholders.
Gitanjali has a strong retail and brand business comprises eight brands differentiated by price points, diverse segments and degrees of fashion-intensity. The key brands are Gili, Nakshatra, Asmi and D'damas.
At present it has 240 company-owned stores, 250 franchisees and about 4,000 sales points across the globe.