Gitanjali Gems forms JV with Italy`s Morellato

Jewellery retailer and manufacturer Gitanjali Gems Ltd has signed an equal joint venture with Italian jeweller and watch maker Morellato & Sector Group. The total investment in Morellato India Pvt Ltd, formed through Morellato`s subsidiary, Armo Netherlands Finance B.V., would be $15-20 million, Gitanjali Gems said in a statement. The venture would distribute watch and jewellery brands of the Italian group in India. "We strongly believe that in the changing retail scenario, there is a huge potential for growth in the branded jewellery and lifestyle segment," Gitanjali Gems Chairman Mehul Choksi said. "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," Massimo Carraro, Chief Executive Officer of Morellato & Sector said. It has 26 stores in China. Morellato makes jewellery and watches under its own brands and under licence for fashion groups Cavalli, Miss Sixty and Moschino. Gitanjali Gems also plans to assemble watches in India in 2009 using the technical support of Morellato group. “Gitanjali Lifestyle would roll out its multibrand watch stores, Bezel, with the first launch in December in Ludhiana. We shall open 24 (Bezel) company owned and franchised stores across India by year 2008," Pathak said.