DUA AFG ADVISES MORELLATO & SECTOR ON JOINT VENTURE IN INDIA
25-Nov-2007
Asean Focus Group's Indian affiliate, Dua AFG, has successfully partnered with Cavour Corporate Finance of Italy to complete a joint venture transaction between Morellato & Sector and Gitanjali Gems.

Morellato & Sector, manufacturer of jewellery and watches with brands including Pirelli P0, Cavalli, Just Cavalli, Miss Sixty, Moschino and John Galliano, has finalised a joint venture with Gitanjali Gems, one of India's largest jewellery retailers. The joint venture will distribute the watch and jewellery brands of the Italian group in India. The deal will see 50 new retail outlets opened in the next three years.


Press Release follows:


Gitanjali Gems forms JV with Italy's Morellato

20 November 2007
Reuters News
(c) 2007 Reuters Limited

MUMBAI, Nov 20 (Reuters) - Jewellery retailer and manufacturer Gitanjali Gems Ltd on Tuesday signed an equal joint venture with Italian jeweller and watch maker Morellato & Sector Group.

The total investment in Morellato India Pvt Ltd, formed through Morellato's subsidiary, Armo Netherlands Finance B.V., would be $15-20 million, Gitanjali Gems said in a statement.

The venture would distribute watch and jewellery brands of the Italian group in India.

"We strongly believe that in the changing retail scenario, there is a huge potential for growth in the branded jewellery and lifestyle segment," Gitanjali Gems Chairman Mehul Choksi said.

"The entry into the Indian market will allow us to protect our position with greater force in the Far East, an area that is witnessing exceptional growth," Massimo Carraro, Chief Executive Officer of Morellato & Sector said. It has 26 stores in China.

Morellato makes jewellery and watches under its own brands and under licence for fashion groups Cavalli, Miss Sixty and Moschino.

Gitanjali Gems also plans to assemble watches in India in 2009 using the technical support of Morellato group, Shashank Pathak, Vice President-Retail of Gitanjali's retail arm, Gitanjali Lifestyle said.

"Morellato, Miss Sixty and Just Cavalli--these are the three brands we are aiming to assemble in India," he said.

He added that Gitanjali Lifestyle would roll out its multibrand watch stores, Bezel, with the first launch in December in Ludhiana.

"We shall open 24 (Bezel) company owned and franchised stores across India by year 2008," Pathak said.