Gitanjali Group may partner Oz retailer

GEMS and jewellery major Gitanjali Group is close to tying up with a leading Australian health and beauty retail chain to introduce it in India. With its foray into healthcare retail, Gitanjali would join the ranks of FMCG major Dabur and Fortis Health-World, the new entrants in the health and wellness retail space. While Fortis HealthWorld has already begun rolling out its stores across Delhi-NCR, Dabur recently announced its retail foray through a new subsidiary, H&B Stores Ltd, which plans to set up 350 stores in the next five years.
Gitanjali Group on Thursday announced its luxury retail foray through a new subsidiary, Luxury Connexions, which will set up luxury malls across the country at an initial investment of Rs 100 crore. While wedding and luxury goods would be the focus of Luxury Connexions, Gitanjali Group is expected to sign a franchisee agreement with the $80-million Australian retail chain in another week or two, sources said. The chain is learnt to have a presence in New Zealand, too. Gitanjali chairman Mehul Choksi declined comment on the tie-up.
The first of Luxury Connexions’ malls is expected to come up before year-end in Hyderabad or Delhi. With wedding and luxury goods as the focus, these malls would have premium jewellery, apparel, accessories, fine dining and gifting brands.
Luxury Connexions has finalised talks with watch brand Saint Honore and leading jewellery brands Stefan Hafner and Iosi Scavia to be part of its luxury malls. The group’s own brands like Nakshatra, D’damas, Asmi and Sangini would also be retailed at outlets inside the malls. Gitanjali would launch a high-end collection under the brands D’damas, Asmi and Sangini, available only in its luxury malls.
Apart from jewellery brands, it is also in talks with leading apparel brands in Denmark and the UK for its retail venture. The Indian luxury retail market is estimated to be about $500 million. The group is also learnt to be in talks with a couple of US fast food chains to become their franchisee in India. Mr Choksi said that fine dining would be part of Luxury Connexions’ retail venture but refused to divulge further details.

courtesy:economictimes