MUMBAI (Commodity Online): Gitanjali Gems Ltd (GGL), one of India's leading integrated diamond and jewellery retailing and manufacturing companies, has announced that a Brand Valuation study carried out by well known UK-based firm Brand Finance has valued four of its major brands – Gili, Nakshatra, D'damas and Asmi – at Rs 1,502 crore.

The company undertook this major brand valuation exercise during the last quarter and GGL is gearing up towards improving the value of the brand and not just improving sales. It is looking at multiplying the value of these brands by 1.5 to 2 times by 2011-12. Currently, Nakshatra has a brand value of Rs 514 crore, Gili Rs 460 crore, D'damas Rs 310 crore and Asmi has a value of Rs 210 crore in the market.

The study revealed that the value generation is driven by retail business, major drivers being heavy advertisements and promotions which contributed substantially to the increased demand and aspirations for the company's branded diamond jewellery in the last 10-15 years. The company’s objective was to understand what the valuation of these brands would be; the identification of the demand drivers and thus this exercise. It will help Gitanjali Group to enhance these values through improvements in the operations of these brands.

Commenting on this announcement, Mr. Mehul Choksi, chairman and managing director, GGL, said, "The four brands that have been evaluated have immense value in the market. Gitanjali Group is looking at using the value contributions of these brands as a benchmark for investments and strategy focus. We look forward to ascertain the value that can be unlocked from our existing brands and unravel areas where the synergies between different group brands can be leveraged".

The current Indian branded diamond market stands at Rs 25,000 crore and GGL has a substantial share in it.

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