Press releases

Mumbai, (October 29, 2009)

Shrenuj commences operations in South Africa Announces increase in net revenue in Q2 by 16 %. PAT up 120%

Result Highlights:

H1: FY10
  • Revenue at Rs. 722.60 crs up by 6%
  • PAT up by 16.7% to Rs. 23.03 crs
  • EPS: Rs. 3.32 (FV Rs. 2)
Q2: FY10
  • Revenue up by 16%
  • PAT up by 120% to Rs. 12.97 Crs
  • EPS: Rs. 1.87 (FV Rs. 2)

Shrenuj & Company Limited announced opening of its South African operations, marking its presence in 14th country worldwide. This development follows commencement of its manufacturing unit in Botswana in August this year.   These operations in southern Africa shall provide continued access to rough diamonds directly from the mining sources. In the times when diamond reserves are dwindling, these developments acquire immense importance. Through its South African office, Shrenuj will gain access to very high quality rough diamonds from entire southern Africa. The company has already been granted a sight by DTC Botswana.

In a meeting of the board of directors held today, the financial results of the company were also taken on records. Shrenuj announced 6% increase in its sales revenue (consolidated) in H1-FY10 to Rs. 722.60 crores (Rs. 680.98 crores; FY09). Net profit registered a growth of 16.7% to Rs. 23.03  crores up from Rs 19.73 crores (H1-FY09). EPS stood at Rs. 3.32 as against Rs. 2.85 in the corresponding period last year.

For the quarter ended September 30, 2009, Shrenuj posted a PAT of Rs. 12.97 crores, recording an increase of 120% over corresponding period last year. Net Sales in the same period recorded substantial increase of 16 %, from Rs. 342.16 crores to Rs. 396.86 crores.

Commenting on the performance, Vishal Doshi, Group Executive Director, said, “the results are remarkable in view of the sluggish growth in western markets and Far East. We are witnessing high growth in our operations in India and China. The stability in USD-Rupee rate has helped us to wipe out the MTM loss provided in foreign currency reserves. With the ensuing gain in forex, we have restored the net worth of the company, in line with our revised projections.”

Shreyas Doshi, CMD, expressed satisfaction with the performance in the first half. He said, “we are optimistic about the approaching Christmas season as well as the wedding season in India. I am happy that our order books are already full for entire season. Consumer interest in jewellery has been renewed worldwide, which augurs well for us. We are progressing well with our retail expansion in India, under Diti brand, adding new stores at regular intervals.”

Vishal Doshi added that the recent volatility in gold prices has helped in increasing the diamond content in jewellery. Explaining the trend, Vishal said, “with the increase in gold prices and a relatively stable diamond prices, the consumers shifted towards higher diamond content in their jewellery, maintaining same price points. There was a marked shift from plain gold jewellery to diamond studded jewellery, including many first time buyers. Diamonds are attracting more consumers based on the awareness that diamond prices will move upwards in the years to come as the demand-supply gap increases.”

About Shrenuj and Company Ltd.:

Shrenuj & Company Limited is an integrated gem and jewellery conglomerate having presence across 14 countries with activities ranging from diamond processing, jewellery manufacturing to branding and retailing. It employs over 2,000 people in its worldwide operations. Shrenuj Group’s state of the art diamond manufacturing facilities in India, Botswana and Israel specialize in processing high quality diamonds in larger sizes, a traditional non-Indian product and one of Shrenuj’s key differentiators.  Shrenuj also processes smaller diamonds, regular Indian products, in its other units.

Shrenuj’s international distribution model compliments its international manufacturing platform. Based on hub-and-satellite approach (logistical hubs located in key trading centers and satellites operating in the consumption markets), its 15 offices cater to almost all corners of the world. The company has entered into JVs in Israel, France, USA and Hong Kong, in addition to its own offices worldwide. The acquisition of Simon Golub and Sons, one of the top US jewellery distributors, has added to the reach of Shrenuj in USA and Canada. 

Shrenuj’s jewellery manufacturing operations are located in India, in addition to dedicated outsourcing facilities in China, controlled by a strong outsourcing and quality assurance office in Hong Kong. The product development team of designers and merchandisers is spread across the globe, to cater to national as well as international markets to quickly respond to the changes in fashion trends. Shrenuj is a recipient of many national and international jewellery awards.

Shrenuj has developed many successful international diamond jewellery brands, such as Arisia, Sveni and Bhavya (India and Middle East), Valina and Caro 74 (USA), Fiana (France), Scintilla88 and MasterCut (Australia), and Amante88 (Hong Kong). In addition, Shrenuj is a leading participant in DTC’s Forevermark Programme in Japan and India one of the authorized manufacturers of Platinum Guild International. These brands are managed independently by Shrenuj’s own marketing teams in each country, backed by a strong downstream distribution worldwide.

Shrenuj’s retail strategy focuses on leveraging the potential in high growth- low risk developing markets in India, China and Middle East. Shrenuj has its own jewellery retailing operations in Hong Kong, the fashion capital of China. The fashion jewellery retail chain operates under Joliesse brand. Strategically located Joliesse stores offer contemporary and stylish jewellery to Hong Kong residents and the visitors from Mainland China. Shrenuj has also launched its jewellery retail operations in India under Diti brand. Diti is expected to grow to 170 POS in 29 Indian cities in the next two years.

Shrenuj has always pioneered in introducing various systems and procedures in an effort to bring about efficiency and transparency in dealing with its internal as well as external customers.

For more information, please contact:
Pranava Bhargava
Group General Manager
Tel: (91 22) 66373500
Fax: (91 22) 23632982