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Re rise to hurt gems, Indian Jewellery export: AssochamPress Trust of India / New Delhi September 23, 2007 found at business-standard.com An appreciating rupee is likely to impact India's export of gems and jewellery as the rising Indian currency would make these exports less competitive in key markets like the US, Hong Kong and UAE. Export of gems and jewellery would be adversely affected if the rupee
appreciation against the dollar is not arrested, Assocham said in a study on the
'Gems and Jewellery Pattern' in the country.
100 showrooms for a truckload of Indian Jewellery23 Sep, 2007, 0540 hrs IST,AVINASH
KALLA ,
read more at ross simons Q. You just returned after attending a conference in the US and since then there has been a lot of speculation about US based diamond makers eyeing to buy 51% stakes in your company? A. I visited the Bear Stearns and Motilal Oswal India conference, which is one of the biggest conference for Indian companies in the in US and close to sixty companies including biggies like Infosys, reliance to name some participated. We got a tremendous response there and close to 40 investors spoke to us, once back 17 of them came over and saw our facilities and were impressed. They wanted to buy stakes in the company close to 20-30 percent . However we told them that the promoters are not interested in diluting stakes and that they should try from the open market. Q. The company is also planning to venture into diamond jewellery business ? What prompted the move?
Currently we are having large top lines and small bottom lines resulting in not
so attractive profit margins . We want to build it and hence a foray into
diamonds .
Q. Apart from venturing into diamonds what is
your strategy to increase the profit margins?
We will be working on three fronts to ensure that our margins shoot upwards.
Apart from diamonds, we will be doing private label exports wherein we will be
manufacturing American and European style jewellery for our clients based
outside India and they will then sell it under their brand name. That apart we
plan to go retail in a big way with our brands Laabh and Shubh. For Shubh we
plan to have 100 stores by the end of FY09.
Q. What will be your logistics for the retail
outlets?
We have a manufacturing unit based out of Bangalore, with a capacity of
producing 250 tonnes of jewellery and this will be supplying to all our
outlets. Also these 100 new Shubh outlets will first come in the four southern
states of India (Andhra Pradesh, Karnataka, Tamil Nadu and Kerela) and then we
go Pan India.
Q. What is going to be your USP as you take on
the other established brands? And who all do you consider your competitors?
We acknowledge and respect all the existing brands in the market place. However
we don't consider any of them as competitors even though we will be new to the
space just for the reason that our strength lies in being a fully integrated
company from refining to retailing, allowing us to have a better control over
the prices. That apart our manufacturing facility is world's largest jewellery
manufacturing facility, this gives us leverage. Also our designs are among the
best in business, all this together will give us an edge. I feel it's a matter
of time; we just need to get our logistics in place.
Q. What profit margins are you eyeing?
At the moment we have a 1.5 percent profit margin after tax and we are eyeing
10 percent in the next five years.
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