Together, the companies have launched 10 international watch and jewelry brands in India. Gitanjali Gems Ltd entered into a 50-50 joint venture (JV) yesterday with Italian jewelry and watch manufacturer, Morellato and Sector Group, through its subsidiary Armo Netherlands Finance B.V.
Morellato India Ltd, a product of the JV plans a total investment close to US$ 15-20mn. With the inking of this venture, all watch and jewelry brands of Morelatto and Sector will be sold in India through prestigious watch and jewelry stores as well as dedicated stores; said an official statement.
Mehul Choksi, MD, Gitanjali Group said, "We strongly believe that in the changing retail scenario, there is a huge potential for growth in the branded jewelry and lifestyle segment." The Group's aim is to promote the identity of all its brands irrespective of they are owned brands or licenses.
Morellato India ltd's manufacturing base will be in India. Gitanjali and the Morelatto and Sector Group are currently looking for a suitable location to set-up its watch assembly plant.
The branding and distribution of the brands will be done through the Gitanjali's extensive network.
Gitanjali and the Morelatto and Sector Group plan to open 151 outlets by end of 2009 that will offer Morellato and Sector jewelry and watches for sale.
Morellato and Sector owns brands like Morellato, Molecole, Sector, Philip Watch, Just Cavalli Jewels, Just Cavalli Time, Miss Sixty Jewels, Miss Sixty Time, Roberto Cavalli Timewear, John Galliano and Pirelli Pzero Tempo.
Of these, "Morellato, Miss Sixty and Just Cavalli will be assembled in India," said Shashank Pathak, VP-Retail, Gitanjali Lifestyle.
The JV will help Gitanjali diversify into the watch segment and enable it to have more brands under its umbrella he continued. Poised at Rs 4,000cr, the Indian watch industry is growing at a rate of 32 per cent per annum, he further added.
Massimo Carraro, CEO, Morellato & Sector said that this JV is not just mere distributorship given to Gitanjali. He added, "The entry into the Indian market will allow us to protect our position with greater force in the Far East, an area that is witnessing exceptional growth."