Gitanjali Believes in the Indian Market, Buys Another Retailer

Mumbai based diamond jewelry giant Gitanjali is expanding its local retail presence after it bought a 70 percent stake in MobileNXT Teleservices Pvt Ltd, a Bangalore headquartered chain of 21 stores in South India, Reuters reported.

The Diamond Trading Company (DTC) Sightholder will re-brand the chain under the name 'Hoop' and will add fashion jewelry, watches and eyewear to MobileNXT's existing mobile phone products and services. MobileNXT targets the youth and young adult as its primary customers.

Gitanjali purchased the retailer through its Gitanjali Lifestyle Ltd subsidiary, according to a notice filed with the stock exchange.

The announcement comes a week after Gitanjali reported a 6.29 percent decline in its annual net profits. Gitanjali reported a net profit of Rs. 1.506 billion ($31.1 million) in the fiscal year ended March 31, 2009.

Net sales rose to Rs. 50.09 billion ($1.03 billion) from Rs. 48.32 billion in sales in fiscal 2008 ($1.00 billion).