Austrian-based Swarovski Group is about to purchase a 10-12 per cent stake in Mumbai-based Tara Jewels, marking its first investment in India.

Swarovski, through its investment company Crystalon Finanz, will inject Rs500 crore (around US$100 million) in the Indian jeweller, said a person close to the development. It is not clear whether the stake acquisition includes agreement on the sale of products at both stores.

Founded by Daniel Swarovski in 1895, Swarovski Group owns more than 1200 boutiques and has over 1000 franchise-operated boutiques worldwide. Products include jewellery and couture, chandeliers, home décor and sculptures.

Tara Jewels entered the jewellery manufacturing business over 10 years ago. The company has four manufacturing facilities, one of which is in China. Today, Tara Jewels plays a significant role in jewellery exports from India to global markets and caters to retailers across the US, the UK, Europe (14 countries including Austria, Germany and Switzerland), Australia, China, South Africa, the UAE and Canada.

India’s luxury market has been growing rapidly driven by the rising number of high net worth consumers. It has recently attracted number of global brands, with the likes of Louis Vuitton, Burberry, Richemont, Chanel, Christian Dior and Gucci.

GB