Gitanjali Gems buys Renaissance' retail business

Gitanjali Gems has acquired the retail business of Mumbai-based jewellery company Renaissance Jewellery. The company operates sterling silver brand Lucera through its wholly owned subsidiary, Renaissance Retail Venture.

The Rs 438 crore Renaissance Jewellery, a leading studded jewellery exporter, had entered the retail business a couple of years ago by launching the Lucera brand.

Hitesh Shah, executive director, Renaissance Jewellery, said, "The company has taken a corporate decision to focus on the exports market." He declined to comment on the deal size. The officials of Gitanjali Gems were unavailable for comments.

Renaissance Retail Venture has nine flagship Lucera stores and 32 shops in shop stores. It was planning to invest Rs 35 crore for setting up 250 outlets till 2010, primarily inside shopping malls.

R K Menon, CEO, recently told Business Standard that the company had signed up more than 100 properties and was exploring tie-ups with Cafe Coffee Day, Spykar Jeans and Kingfisher Airlines for cross promotions.

Renaissance Jewellery has tapped the capital markets to raise funds for setting up a subsidiary in US and expanding its manufacturing capacity. It recently acquired JBR Inc, a New York-based jewellery wholesaler, through its American subsidiary.