Su-Raj Diamonds: sparkling globally

Updated: Aug 1 2005, 06:45am hrs
Incorporated in 1985, Su-Raj Diamonds & Jewellery Ltd. (SDJL) is one of India's leading exporters of CPDs and jewellery. Its business comprises of diamond manufacturing and also jewellery manufacturing and retailing. The company's plant at SEEPZ, Mumbai, set up for manufacturing diamonds & jewellery, commenced operations from July 1988. SDJL is also a pioneer in the manufacture of sawn diamonds in India, and has a large sawing factory at Jodhpur, Rajasthan. The company has also recently set up two new diamond and jewellery manufacturing facilities at Bangalore, Karnataka. It is also setting up manufacturing facilities at Goa.

Exports of CPDs constitute the major portion of SDJL's business, accounting for 68.4% of sales turnover of Rs. 7,239 million in FY2004. Jewellery sales have also increased in recent years and accounted for 28.4% of sales in FY2004. Exports were estimated at Rs. 6,721 million in FY2004. While CPD exports in volume terms have increased from 0.57 million carats in FY2002 to 12.41 million carats in FY2004, sales value of CPDs have increased from Rs. 4,303 million to Rs. 4,984 million. However, per carat (p/c) realisations of CPDs have declined from Rs. 7,579 in FY2002 to Rs. 3,987 in FY2004. Realisations were adversely impacted by the appreciation in rupee during FY2004. SDJL's sales increased 42% during FY2005 to Rs. 10,280 million. However, high increase in raw material costs resulted in a 7.1% increase in operating profits. Operating margins declined to 3.9% in FY2005. However, interest costs declined significantly. As a result, while net profits increased 38.6% in FY2005 to Rs. 303 million, net margins remained at 3% in FY2004 and FY2005.

In recent years, SDJL has increased its focus on jewellery, resulting in increased sales contribution. The recent acquisition of 100% share capital of a going concern viz. Koradiam N.V., in Antwerp, Belgium is expected to enhance the image as being a Company with world class expertise in the industry.