Nine of Gitanjali Gems Limited's major brands have been valued at Rs 5,584 crore. The valuation study was carried out by London based Brand Finance Plc.
The brand valuation exercise was conducted by Gitanjali to restructure its business based on three of its verticals – the diamond and jewellery manufacturing vertical, the domestic branded jewellery vertical and the international branded jewellery vertical, a note from the company said. The discounted cash flow method was used to calculate these values, it added.
The valuation has been conducted for the domestic branded jewellery vertical, which included the likes of Gili, Nakshatra, Asmi D'Damas, Maya and Shuddhi. The brand Gitanjali has been valued the highest at Rs 2,261 crore.
Valuation doubles
The study shows that the valuation of four of Gitanjali's brands — Gili, Nakshatra, Asmi and D'Damas — have almost doubled over the last valuation conducted by Brand Finance in 2009. The valuation given at the end of 2009 was Rs 1,502 crore.
The valuation has doubled in the last two years primarily because of “strategic implementation or innovation in product mix, penetration in new geographies and shifting the sales channel.
The group is looking to further unlock potential of these brands multiple times in the next two or three years,” the company said.
The international brands of the group have not been valued as yet.