LVMH (Louis Vuitton Moet Hennessey) to buy stake in Indian jeweller
France-based luxury conglomerate LVMH, through its unit L Capital, is set to acquire a significant minority stake in Gitanjali Gems’ proposed unit that will control the Indian firm’s branded jewellery and retail businesses, the Economic Times reported on Friday. The deal has been estimated at USD 100-125 million, the report said citing two unidentified persons.
L Capital will pick up stake using money from its USD 500-million L Capital Asia Fund, which was raised in 2010, the report said. Gitanjali was founded in India in 1966 as a single company specialized in cutting and polishing diamonds for the jewellery trade. Nowadays the company integrates all operations, from rough diamond sourcing, cutting, polishing and distribution, and jewellery manufacture, to jewellery branding and retail, as well as global lifestyle brands, in India and abroad. Operations span the globe, all the way from USA, UK, Belgium, Italy and the Middle East to Thailand, South East Asia China, and Japan.