The Hindu Business Line : Shrenuj Group net up 62 pc; to pay 35 pc

Gross income of the group rose by 16 per cent to Rs 648.64 crore in the financial year 2005-06. Earnings per share (EPS) rose from Rs 2.21 to Rs 3.58 (face value of Rs 2).

The board recommended an enhanced dividend of 35 per cent for the year ended March 31, 2006, against 30 per cent for the previous year.

New manufacturing unit

The year 2005-2006 saw Shrenuj expanding its operations to the UAE, Germany, the US, Belgium and France. The year also saw the commissioning of a new jewellery manufacturing unit, Kiran Jewellery Ltd to cater to the niche French market.

It also acquired SN Jewellery in SEEPZ, Mumbai, and work is in progress to set up the largest jewellery manufacturing unit in the group.

In a press release, Mr Shreyas Doshi, Managing Director, said, "We have invested in developing the distribution footprint across the major diamond and jewellery centres.

This will help us in providing value added services to our clients with whom we plan to develop region specific marketing programmes."

According to Mr Doshi, the current year will be a challenging one.

He is optimistic that the result of branding will become more evident this year and will be reflected in higher profitability.

"Economic growth in the major consuming countries is satisfactory. Consumer confidence indices globally are positive and demand will be buoyant in the second half,'' the release said quoting Mr Doshi.

Revenue forecast

Sales revenue for the year 2006-07 is expected to be significantly higher than the last year and corresponding EPS will reflect a "sizeable upturn".

The company is also likely to benefit from the changes proposed by the Commerce Ministry in the Exim Policy.

Shrenuj is one of the few Indian companies that is competing with Belgian and Israel based companies in large sized diamonds.

The consumer market is robust in this segment and the outlook optimistic for the current year.

The company has invested in updating its technology to maintain superior product quality.

The company plans to launch a new global diamond jewellery brand in Europe at the beginning of the Christmas season.

The brand is likely to be available across the globe by 2008.

The company's shares rose by 7.65 per cent to close at Rs 38.

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