See 45% growth in H1 FY12: Shrenuj & Co

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With the festive season just around the corner Shrenuj & Co is expecting diamond jewellery sales to be at least 45% higher than last year, said Shreyas Doshi, chairman of the company.

Doshi said the company is doing extremely well in countries like Far East, China, Hong Kong, India, Middle Eastern countries and United States and sees demand emerging from these countries.

Below is the edited transcript of Doshi interview with CNBC-TV18. Also watch the accompanying video.

Q: We are entering into the festive season very soon (October through December). What is your expectation in terms of sales considering that gold prices have rallied quite significantly?

A: Our sale of diamond jewellery is expected to be at least 45% higher than last year.

Q: Can you just break up where you are seeing this demand actually coming from because that's quite interesting to know that then you could possibly factor in a 45% growth?

A: Our demands are mainly coming from Far East, China, Hong Kong, India, Middle Eastern countries and United States. We are doing extremely well in all these countries. At the retail level we have registered double digit sales  higher than the last year.

Q: Do you primarily concentrate on diamond jewellery?

A: We are mainly concentrating on diamond jewellery and diamond exports. Sales in the diamond jewellery business were about 35%.

Q: Could you tell us what the margins are in the diamond business currently?

A: The margins are quite reasonable and it is considerable into the profit of the company.

Q: Could you quantify that for us?

A: It's very difficult to quantify because the year is not complete and half year results are not yet out. As soon as it will be out, you will be notified. I can only comment that it's considerably higher than last year.

Q: You also have plans to raise about USD 22 million, any progress on that?

A: This fiscal year, we will require funds because we are looking at retail and manufacturing expansion. We have a plan, but we have not yet formalised it. Primarily, we have decided that we would like to raise the funds this year or early next year.

Q: Could you just give us some guidance in what you are factoring in for FY12? What could we expect from the company for the full fiscal?

A: I feel that the first half will be at least about 45% higher than last year when growth is concerned. For the whole year, we are expecting a considerable increase in revenue too.

Q: We understand that you are open for acquisitions also. Can you just take us through those plans?

A: Yes, we are open for acquisition from the retail funds, and mainly, we are looking at Far East and Middle East. We have no interest in the western countries for any retail acquisitions.

Q: With respect to the fund raising of USD 22 million, which you all need in this fiscal, what route are you adhering to, equities?

A: Yes, maybe. We have not yet decided which way we would like to raise the fund. At the right time, the board will decide and we will comeback to you on that.