Gems London Co Ltd, an associate firm of Gitanjali Gems Ltd, has merged with Tokyo-based Imacbc Co Ltd, the firm disclosed to the stock exchanges on Monday. Before the merger, Gitanjali Gems held 30 per cent stake in Gems London through its Hong Kong-based wholly owned subsidiary, Aston Luxury Group Ltd.
It did not disclose how much stake it would hold in the combined entity.
Currently, Gems London is one of the largest sellers of jewellery through its TV channel, Gems TV in Japan. Its revenues for FY2013 exceeded $90 million.
After the merger, Imacbc has become an integrated company from sourcing raw material from Thailand and China, manufacturing in two facilities in China, to retailing in Japan. Imacbc, which was founded in 1975, has manufacturing and distribution of gems and jewellery as its main operations.
In addition to selling through Gems TV, the merged Imacbc plans to expand its existing jewellery retail network in Japan. The combined revenue of consolidated business is expected to more than double in next two years, the company mentioned in the statement.
Gitanjali Gems scrip shot up 4.5 per cent to close at Rs 631.3 a share on the BSE in a strong Mumbai market on Monday.
Gitanjali Group is one of the largest branded jewellery companies in India with interests in diamond jewellery, retail and lifestyle businesses. The company operates across the US, the UK, Belgium, Italy, the Middle East, Thailand, South-east Asia, China and Japan. The bouquet of brands owned by the group in Italy includes Stefan Hafner, iO Si, Porrati, Novelle Bague and Valente. It has been active in inorganic expansion to add to its roster of brands.
It is not clear when Gitanjali bought into Gems London but it has been active in building presence in Japan, one of the leading diamond jewellery markets of the world.
Last August it, acquired 15.3 per cent stake in Japanese jewellery retailer Verite Co. Ltd for Rs 25 crore ($4.5 million). This acquisition was also through Aston Luxury Group Ltd.
Founded in 1948, Verite Co. Ltd was originally known as Ohkubo Tokei-ten and began as retailer and repair service of clocks/watche6s, glasses and jewellery. It currently operates a network of 101 jewellery retail stores in Japan. Tokyo Stock Exchange-listed Verite was already controlled by the promoters of Gitanjali.
One year ago, Gitanjali Gems had also acquired Japan-based Leading Jewels of Japan K K for an undisclosed amount.