The current financial year ending March 2005 will be another good year for the diamond industry. It will also be equally good for Shrenuj & Company Ltd due to positive economic indicators of the global economy, informed Kirtilal Doshi, chairman of the company.
With the two major economies of the world the US and Japan on the verge of a turnaround, the demand for diamonds and diamond jewellery is bound to grow. The management is looking forward to seize this opportunity by increasing the turnover in the domestic as well as overseas markets, Mr Doshi added, while addressing twenty second AGM of the shareholders held in Mumbai on Monday.
The company continues to develop consumer driven marketing initiatives both in India and overseas. With Indias share in the world jewellery market currently estimated at only three per cent, there is a tremendous potential for growth in jewellery exports by value addition, he added.
Talking about the competition, Mr Doshi stated that in view of the growing competition from China, it will be important to retain Indias pre-eminent position, and this cannot be achieved unless the industry is able to make reasonable return on the capital employed.
In spite of the war in the Middle East and SARS virus impacting negatively on the global economy and consumer confidence, diamond jewellery sales during the last quarter of the current fiscal picked up and consumer confidence rebounded.
The companys turnover for the period ended June, 2004 has gone up by 45 per cent. The upbeat trend continued even during the current quarter, he added.
It will be interesting to note that the companys turnover was Rs 105 crore and profit after tax was of Rs 2.01 crore for the first quarter ended June 2004. The company reported sales and gross profit of Rs 410 crore and Rs 31.10 crore respectively for the year ended March 2004.