Suashish Net Profits Double in 2005

Suashish Diamonds Limited recently reported excellent year end results, with turnover growing 18.75 percent to Rs. 8,057 million ($174.87 million), and a doubling of net profits from Rs.144.1 million ($3.1275 million) in 2004 to Rs. 282.3 million ($6.127 million) in 2005.

The publicly traded Diamond Trading Company (DTC) Sightholder reported the news at its 18th Annual General Meeting (AGM) on June 30. A 15 percent divided on the equity share capital was approved during the meeting.

Suashish managing director Ashish Goenka told shareholders that the company is in, “a performance overdrive,” as exports increased 16.32 percent to Rs. 7,479.4 million ($162.33 million).

“The company’s diamond business has made steady inroads into the South East Asian markets of Hong Kong and China. Its conscious decision of moving closer to retailers is paying off in the form of increased customer loyalty and substantially better margins,” said Goenka.

The company, which is a vendor partner with five of the leading world jewelry retailers, aims to “take these relationships to the next level,” and further expand in the current fiscal year.

One strategy for achieving this, Goenka said at the AGM, was through their jewelry brand Ishi. The diamond company wants to increase the number of outlets that carry the brand from 100 to 150.

In related news, the company announced it has signed a joint venture with the 22 Carat Gold Jewellers company, as Suashish is targeting the Middle East, primarily the UAE.

Suashish is a $200 million conglomerate based in India. It was an early user of laser technology for diamond cutting in India and its laser processing unit is the world’s single largest such facility. Its retail clientele are large and mid-sized jewelry chains, department stores and independent retailers. Apart from India, the group has a presence in the U.S., Middle East, Hong Kong, and China.