Gitanjali says deal to acquire DIT's brands in one month

Gem and jewellery major Gitanjali Group, which is in the process of sealing an Euro 20 million deal to acquire Italy's DIT Group's brands, expects to complete the process within a month, a company official said.

The DIT Group houses signature brands such as Stefan Hafner, Porrri, Nouvelle Bague and Io Si.

"Negotiations are on (with DIT) and we expect to finalise everything in a month's time," Gitanjali's Managing Director, Mehul Choksi, told PTI here.
    
The domestic major will acquire DIT's brands for Euro 20 million, he said.
    
The DIT brands would help Gitanjali penetrate into the Euro 100-115 million market, he said, adding the company would get a strong foothold in markets such as Russia, Saudi Arabia, the Middle-East, US, Japan and Europe, he said.
   
"The DIT brands have an unique style and design, which will help us penetrate into Russia, Saudi Arabia and the Middle East, besides increasing our presence in Japan, Europe and the US," he said.
   
On the company's financial performance, Choksi said, it is eyeing a 40 per cent sales growth this fiscal.
   
"We are targeting a 40 per cent sales growth this fiscal," he said.
   
The company had clocked a total sales of Rs 4,000 crore.

The company's exports, which stood at Rs 3,000 crore last year due to a blocked-up pipeline, is likely to grow 30 per cent this year on the back of the economic rebound, Choksi said.
   
Gitanjali Group plans to launch a couple of products this year, including 'Gili Signature', he said.
   
Last year, the company reported a net profit of Rs 200 crore and is expecting a one to two per cent growth in its EBIT margin, he said.
   
Asked about growth during the on-going festival season, Choksi said, the company expected a 35-40 per cent growth as compared to the year-ago period.
   
"There will be a value growth of up to 50 per cent, while the volume growth will be 15-20 per cent compared to last year," he said.
   
On expansion, he said the company which presently has 4,000 outlets, also plans to increase its retail space by 3,00,000 square feet, including franchise and own outlets, during this fiscal, he said.