India, the biggest Jewellery market: GGL's expertise lies in diamond processing and manufacturing and branding jeweler. India is the biggest market for gold jewellery. 65% of the company's jewellery sales in India are from gold jewellery. India's total gold imports this year are estimated to be around 700 tonnes. The demand for gold jewellery is perennially high. This is because of the traditional preference for gold ornaments. Which is also why demand for gold in India is relatively price inelastic. This has been validated by the insignificant impact on demand for gold in the wake of spiralling gold prices this year. India processes approximately 90% (by volume) of the total diamonds polished globally.

Lifestyle changes have resulted in a preference for branded jewellery:

There is immense potential for the jewellery business in India. The Indian market is largely unorganised as people prefer their local/family jewellers to branded jewellers. But a change in lifestyle, rising disposable incomes and changing preferences have resulted in the growth of organised retail. With changing consumer preferences and with the overall Indian jewellery market slated to grow at 18-22% in the next 5 years, the prospects for organized players are bright.

Most established Brand:

Gitanjali Gems has an extensive brand portfolio. Some of its major brands are Gili, Nakshatra, Asmi and D'Damas. These brands feature among the top ten jewellery brands in the country. The company occupies more than 60% of the organised mall space in the jewellery category in India.

Robust increase in Sales:

The company has witnessed flat growth in the Diamond segment, though maintaining its leadership. The jewellery segment witnessed an impressive growth of 59% during the last quarter. Gold jewellery contributes approximately 60% of the company's total jewellery revenues in India. The growth of the diamond segment was muted in the last quarter but still recorded a 5% growth in revenues. The company is performing well in international markets as well. The company's retail chain in US - Samuels, which operates through more than 100 doors, turned profitable in FY12.

Aggressive expansion by realigning business model:

GGL has realigned its business structure by segregating its businesses into three verticals - The first vertical has to do with the traditional diamond business of the organization. The second vertical focuses on the Indian Branded jewellery business. The third vertical has been constructed to focus on the company's international operations. GGL plans to expand its retail presence to reach 4200 points of sale by the end of FY13. Total retail network size reached 1.7 million sq feet in FY12 from 1.3 million Sq feet in FY11. The company plans to reach 2 million sq feet by FY15. It has reached 233 own outlets, 319 Franchisees and 577 shops. Along with that, the company is rapidly making its mark in major global jewellery markets such as China, US, Japan and UAE. It has opened three stores in Dubai and one in Singapore this fiscal. GGL has also entered into fastest growing jewellery markets such as Brazil and Russia.