Gitanjali buys mid-size retail chain

The Gitanjali Group is stepping up its focus in the organised retail segment. The company has acquired a 76 per cent stake in Salasar Retail, a chain of mid-size departmental stores across India and will soon re-brand the Salasar stores as Maya.

These outlets will offer jewellery and different lifestyle products including apparel. Gitanjali is expecting to clock a turnover of about Rs 1,000 crore from Maya stores over the next three years, with nearly 70 per cent coming from jewellery sales.

Mehul Choksi, CMD of Gitanjali Group, says that the acquisition would help Gitanjali to expand its retail footprint and grow its jewellery business.

Gitanjali, which owns jewellery brands like D'Damas, Asmi, Sangini, Nakshatra and Gili, has nearly 1,250 outlets. It also has more than 500,000 sq ft of retail space and is planning to increase it up to 1.5 million sq ft within the next three years. Gitanjali also operates 143 retail jewellery stores in the US through the acquisitions of Samuels Jewelers and Roger Jewelers.

With Salasar’s 10 stores, the groups adds about an estimated 200,000 sq ft operational area, in cities like Delhi, Cuttack, Kanpur, Gwalior, Guwahati and Indore. Devasish Dutta, CEO, Gitanjali Lifestyle, says “There will be a revenue sharing model for national and international brands that will be retailed through Maya stores.” Gitanjali has roped in various leading mall developers under the revenue sharing model.

The average ticket size in Maya stores in the tier 2 and 3 cities should be about Rs 25,000 per customer for diamond jewellery. The company expects jewellery to remain the major selling item in Maya stores.