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Suashish Diamonds > Company History > Diamond Cutting & Jewellery & Precious Metals > Company History of Suashish Diamonds - BSE: 526733, NSE: SUASHDIMON

Suashish Diamonds

BSE: 526733|NSE: SUASHDIMON|ISIN: INE658A01017|SECTOR: Diamond Cutting & Jewellery & Precious Metals
Suashish Diamonds is not traded in the last 30 days
Suashish Diamonds is not traded in the last 30 days
Company History - Suashish Diamonds
Suashish Diamonds Limited (SDL) has been promoted by Mr.Rameshkumar S.
 Goenka.  The Company was incorporated on 5th October, 1988 as a public
 limited company in the State of Maharashtra and obtained the
 Certificate of Commencement of Business on 12th October, 1988 from
 the Registrar of Companies, Maharashtra at Bombay.
 The registered office of the Company was situated at 309, Panchratna,
 3rd Floor, M. P. Marg, Opera House, Bombay - 400 004 which was shifted
 to 347, Panchratna, 3rd Floor, M. P. Marg, Opera House, Bombay - 400
 004 with effect from 15th November, 1993. The Company has a
 manufacturing unit - Laser kerfing & sawing division at Unit No. 102,
 220 Keytu Industrial Estate, Kondivita Village Road, Andheri (East),
 Bombay - 400 059. The Company's main activities are import of rough
 diamonds, cutting
 and polishing the same and export of cut and polished diamonds. The
 contractors working exclusively for SDL have factories at Ahmedabad
 and Bombay.  The clientele base of the Company is spread across USA,
 Japan, Europe, Far East and Israel. SDL is a privileged sightholder
 of the Diamond Trading Company, London (DTC) whereby it enjoys
 uninterrupted supply of raw materials at competitive rates.
 SDL has been granted STAR TRADING HOUSE status under the Export
 Import Policy of the Government of India vide letter No.
 1N/58/94-95/EP.III/796 dated 04/08/94 which is valid for a period of
 three years from 01/04/94 to 31/03/97. Over the last three years the
 Company has reported a compounded annual growth rate of 79.94% for
 sales and 128.5% for net profit. 
 The Company has received the following awards: 
 Year					Awards						Awarding Agency
 1993-94	3rd Largest exporter of			The Gem & Jewellery
 			cut and polished diamonds		Export Promotion
 			in the category					Council.
 			of DTC Sightholder.
 1992-93	3rd largest exporter of			The Gem & jewellery
 			cut and polished dia-			Export Promotion
 			-monds in the category			Council.
 			of DTC Sightholder.
 1991-92	4th Largest exporter of			The Gem & jewellery
 			cut and polished dia-			Export Promotion
 			-monds in the category			Council.
 			of DTC Sightholder.
 1991-92	Trophy for meritorious			Government of India,
 			performance in the				Ministry of Commerce.
 			field of Export.
 1990-91	Certificate of Merit for		Government of India,
 			outstanding Export				Ministry of Commerce.
 			performance							(National Export award
 													for outstanding
 The Company has not faced any labour problems/defaults/litigations
 that have resulted in closure or suspension of business activities in
 the past.
 India has a glorious historical past in diamonds and has revived the
 past tradition in the sixties when she entered the fray as a
 manufacturer exporter of cut and polished diamonds, and later on
 jewellery as well. After spending initial years in establishing the
 industry in a defined global market place, India established herself
 among the top manufacturer and exporter of cut and polished diamonds.
  The main reason among others for her excellent growth is attributed
 to India's skills in converting small diamonds which had so far been
 discarded as uncuttable into gems.  Further India's advantage is its
 cheap labour, which gives a comparative price advantage.
 Today the gems and jewellery industry is India's second largest
 foreign exchange earner.
 Net Foreign Exchange earnings of Gem & Jewellery
 Year								Net Earning i.e. excess of
 	 								exports over imports
 									(Rs. in Crore)		(In US $ million)
 1984-85								353.40					302.10
 1985-86								369.80					292.96
 1986-87								607.40					468.18
 1987-88								557.20					428.58
 1988-89							  1261.10					865.78
 1989-90							  1078.90					648.01
 1990-91							  1420.60					791.78
 1991-92							  1838.90					762.86
 1992-93							  2045.80					863.65	
 1993-94							  4131.14				  1345.74
 (Source : The GJEPC)
 During the year ended March 1994, Indian exports soared to US $
 4139.26 million - 27% higher than the previous year 1992-93 despite
 the fact that the world has witnessed a recession in the diamond
 industry during the same period.  The average price realisation was
 US $ 260 per carat. During the same period i.e. 1993-94 import of
 rough diamonds increased by 16% over the previous year to US $
 2793.52 million.
 India's Imports and Exports of Gems & Jewellery
 Year				Value of Exports					Value of Imports
 					(Rs. in		(US $				(Rs. in)		(US $
 					Crore)		million)			Crore)		million)
 1989-90			5479.38			N.A.			4400.50			N.A.
 1990-91			5360.24			N.A.			3939.57			N.A.
 1991-92			7233.73		2934.34			5394.75		2171.48
 1992-93			9503.50		3272.36			7457.67		2408.71
 1993-94		  12942.90		4139.26			8811.77		2793.52
 (Source : The GJEPC)
 The composition of Gem & Jewellery Industry items of volume of export
 in 1993-94 is as follows:
 Item											US$				Volume
 											In Million		(Rs. in lacs)
 Diamonds									3,649.03			11,40,988.63
 Gold Jewellery							  367.35			 1,14,868.82
 Non Gold Jewellery						 7.43				 2,328.56
 Coloured Gemstones						99.61			   31,152.99
 Pearls										 4.60				 1,437.80
 Costume Fashion Jewellery				 5.81				 1,817.45
 Synthetic Stones							 0.45					137.56
 Sale to Foreign Tourist					 4.98				 1,558.46
 											--------			------------
 TOTAL										4,139.26			12,94,290.27
 (Source : The GJEPC)
 As the Company is proposing to deal in the proposed projects with
 diamonds segment of the Gem & Jewellery Industry the focus is
 concentrated on the same only.
 Diamonds, the best known and most popular gemstones, are composed of
 a single element, carbon.  Diamond crystals have such a strong
 cohesion that it attains a degree of hardness unequalled in the
 mineral kingdom.
 The value of cut diamonds is determined by an internationally
 practised extremely rigid system of evaluation based on four c's -
 colour, carat, cut and clarity.
 By virtue of the availability of the cheap highly skilled labour,
 India has enjoyed a considerable competitive advantage in the
 processing of smaller and lower value diamonds. This competitive
 advantage permitted the Indian diamond processing industry to
 consolidate its position as demand during the period of recession in
 the international markets shifted towards smaller diamonds.
 The export of cut and polished diamonds and the growth rate during
 last 10 years are given in the following table 
 Year	 								Export of			Growth over
 								  	   Diamonds				Previous Year
 									(Rs. in Crores)
 1984-85								1172.08							 -
 1985-86								1344.25						+ 14.7 %
 1986-87								1959.73						+ 45.8 %
 1987-88								2439.74						+ 24.5 %
 1988-89								4238.18						+ 73.7 %
 1989-90								4971.93						+ 17.3 %
 1990-91								4738.71						-  4.7 %
 1991-92								6162.64						+ 30.0 %
 1992-93								8316.15						+ 34.9 %
 1993-94							  11409.89						+ 37.2 %
 The Compounded Annual Growth Rate (CAGR) of the Indian industry's
 export of cut and polished diamonds over last 9 years i.e. from
 1985-86 to 1993-94 works out to 28.77% p.a. and in the last 3 years
 i.e. from 1991-92 to 1993-94 it was 34.03% p.a.
 90% of India's exports of cut and polished diamonds are accounted for
 by five major centres viz., USA, Hong Kong, Belgium, Japan &
 During 1993-94 the growth in India's exports in terms of value of
 exports to the following consuming centres has been above 15 % over
 the previous financial year:
 Consuming Centre										Growth over
 															Previous Year
 Hong Kong														73	%
 U. S. A.															30	%
 Belgium															25	%
 Japan																19	%
 [Source : SOLITAIRE (May-June 1994 issue)]
 The market for cut and polished diamonds of various sizes is
 estimated at about US $ 8 billion. The Indian exports account for
 approximately 70% in terms of quantity i.e.  number of pieces and
 approximately 45% in terms of value.  [Source : SOLITAIRE (May-June
 1994 issue)]
 The performance in the last year has been particularly encouraging
 and spurred by a recovery in the US and European markets, exports
 have risen by 37.2% in Rupee terms. This trend is expected to
 continue in the near future, auguring well for the diamond processing
 Further, with the Asian countries registering a higher rate of growth
 in income, the Hong Kong and Japanese markets are likely to witness a
 higher rate of growth. This would provide additional fuel to the
 Indian diamond (cut & polished) industry to rise to greater heights.
 The Company is presently engaged in the activity of export of cut and
 polished diamonds and processing of rough diamonds. The Company has
 firm arrangements with contractors having manufacturing facilities
 who work
 exclusively for the Company. While some of the polishing is done by
 workshops in Bombay, most of the cutting and polishing of the
 Company's goods are done by units in Ahemadabad in Gujarat. Recently,
 the Company has set-up a Laser processing unit from July, 1993 which
 is not only
 used for in house processing but also for rendering services to
 outsiders on job work basis.
 Over the last three years from 1991-92 to 1993-94, sales have
 increased from Rs. 43.14 crores to Rs. 251.33 crores and net profit
 (PAT) from Rs. 1.93 crores to Rs. 23.02 crores which implies a
 Compounded Annual Growth Rate (CAGR) of 79.94% for sales and 128.5%
 for net profit.
 SDL has developed itself into one of the largest net foreign exchange
 earners in the diamond industry within a short span of time as shown
 														(Rs. in lacs)
                        Foreign exchange
 							Revenue										Growth
 Year			Incoming		Outgoing		Capital		Net		over
 												Outgoing	(Outgoing/  Previous
 															Incoming)   Year %
 1993-94		25,313.11	11,607.47	180.74	13,524.90	303.6
 1992-93		19,625.67	16,274.95		-		 3,350.72	 54.6
 1991-92		11,765.69	 9,598.28		-		 2,167.41	 97.4
 l990-91		 4,308.01	 3,209.79	   -    	 1,098.22  1266.5
 l989-90			559.69		479.32		-			 80.37	177.8
 1988-89			 28.93			-			-			 28.93	   -
 Revenue income is E.O.B. value of exports which is inclusive of the
 unrealised export proceeds made during the relevant year while the
 outgoing of foreign exchange is taken on actual remittance or cash
 At present, the Company buys 'Roughs' mainly from DTC and contracts
 out for cutting and polishing. The entire cut and polished diamonds
 are then exported to clients all over the world and in particular, to
 Hong Kong, U.S.A., Japan and Belgium. During the year 1993-94, the
 laser processing unit of the Company commenced its operations. 
 Suashish Diamdeal (India) Limited (SDIL)
 Suashish Diamdeal (India) Ltd. is a 100% subsidiary company of
 Suashish Diamonds Limited. It was incorporated as a public limited
 company on 18th September, 1992 and has become a 100% subsidiary
 company of Suashish Diamonds Ltd. with effect from 24th May, 1993.
 The Company has commenced business operations in 1994-95. During the
 first 5 months ended August '94, the Company has made export of
 diamonds for Rs. 75.6 lacs apart from local sales of imported gold
 for Rs. 363.5 lacs. The Company has been issued a bulk licence under
 the Exim Policy of US,759,588.
 The financial highlights of the subsidiary company are as
 The main objects of the subsidiary company to be purused are
 1.  To act as importers, exporters, manufacturers, processors,
 wholesalers, distributors, retailers, dealers and indenting agents of
 diamonds, synthetic stones, gems & jewellery precious and
 semi-precious stones.
 2.  To carry on, conduct, manage and administer the business of
 refining, boiling, processing, assorting, cleaning, classifying,
 clifting, blocking, polishing, preparing, chiselling, kerfing,
 cleaving, sawing, drilling, bruting through laser or other process
 cut or uncut coarse and or polished gems, diamonds including
 industrial diamonds.
 b) Suashish Jewellery Exports Limited (SJEL) 
 SJEL was incorporated on 28th October, 1992 to act as importers,
 exporters, manufacturers, wholesalers, distributors, retailers,
 dealers and indenting agents of jewellery, studded gold jewellery
 plain gold jewellery gems, diamonds, synthetic stones, precious and
 semi- precious stones. SJEL has become a subsidiary of SDL from 24th
 October, 1994. SJEL is setting up a jewellery manufacturing unit at
 Santacruz Electronics Export Processing Zone. The Company has not
 commenced commercial production till 31st August, 1994.
 c)	Suashish Diamonds (Hong Kong) Ltd. - Proposed subsidiary
 The above Company has been incorporated on 23rd June, 1994 at Hong
 Kong and the proposed investment by SDL in the shares of the above
 Company is yet to be made.
 There is no holding company of Suashish Diamonds Ltd.
 - Suashish Diamonds Ltd has informed that Mr. Mayank Pramodchandra
 Bajaj has been co-opted as an Additional Director of the Company with
 effect from June 25, 2009 by means of Circular Resolution passed by
 the Board of Directors of the Company. Mr. Bajaj shall act as
 Non-executive and Independent Director of the Company.
 - Scheme of Amalgamation of the Company's Wholly-owned subsidiary
 Suashish Jewelry India Ltd. with the Company (Suashish Diamonds Ltd.)
Source : Dion Global Solutions Limited
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