Gitanjali Gems Limited, one of India’s leading integrated diamond and jewellery retailing and manufacturing companies, announced that a Brand Valuation study carried out by well known UK based firm Brand Finance has valued four of its major Brands viz. Gili, Nakshatra, D’damas and Asmi at Rs 1,502 crore.
The company undertook this major brand valuation exercise during the last quarter. Brand Finance, a very well renowned U.K. based firm in marketing and brand valuation was commissioned to evaluate four of these major brands from Gitanjali.
Gitanjali is gearing up towards improving the value of the brand and not just improving sales and is looking at multiplying the value of these brands by 1.5 to 2 times by 2011-2012.
The study revealed that the Value generation is driven by retail business, major drivers being heavy advertisements and promotions which contributed substantially to the increased demand and aspirations for the company’s branded diamond jewellery in the last 10-15 years. The company’s objective was to understand what the valuation of these brands would be; the identification of the demand drivers and thus this exercise will help Gitanjali Group to enhance these values through improvements in the operations on these brands.
Commenting on this announcement, Mehul Choksi, chairman and managing director, Gitanjali Gems Ltd said, “The four brands that have been evaluated today have immense value in the market. Gitanjali group is looking at using the value contributions of these brands as a benchmark for investments and strategy focus. We look forward to ascertain the value that can be unlocked from our existing brands and unravel areas where the synergies between different group brands can be leveraged.”
Unni Krishnan, managing director, Brand Finance commented, “It was observed that Gitanjali has dedicated itself to maintain product integrity. The company has managed to develop a very loyal consumer base and has consistently satisfied the core consumer motivations and aspirations for the past 15 years. The company has Zero tolerance levels towards anything which dilutes its quality anywhere in the value chain”
Apart from Gili, Nakshatra, Asmi and D’damas whose brand valuation was announced, other Gitanjali brands like Giantti, Sangini, Maya Gold, Diya and Gitanjali as a mother brand also remain to be valued. Gitanjali also has many more brands in the international arena too. Gitanjali Gems Ltd is focused on maximizing value from its existing brands and looks forward to becoming an iconic brand in the country.