The Hindu Business Line : `Classic Diamonds to set up more retail outlets'

Mr Nirav Kumar Bhansali, Director of Classic Diamonds, says that the company will be setting up a lot of retail outlets. In the next three years, he says, it will set up another seven retail outlets just in the Hong Kong and Chinese sector.

He adds that the company's Dubai operations have also been very lucrative, in terms of the loose diamond business as well the jewellery business.

Excerpts from CNBC-TV18's exclusive interview with Mr Nirav Kumar Bhansali:

Tell us about your retail plans and the tie-up that you have with Diamond Direct LLC for setting up a retail chain in South East Asia, could you give us the kind of rollout plans that you have on that front?

Today Classic Jewels, which is a brand owned by Classic Diamonds has got seven retail outlets across India as well as in Hong Kong.

For the South East Asian market, we have set up our first flagship store in Hong Kong as it looked very lucrative for us.

We will be setting up a lot of retail outlets. We can say that in the next three years, we would be setting up another seven retail outlets just in the Hong Kong and Chinese sector. As the import duties have also gone down, it is more lucrative.

What will be the cost of setting up these seven retail outlets on an average basis?

It all depends on an average basis because India and Hong Kong are two different countries, with different fundamentals.

But on an average you can say that with the stock and everything, it's a million dollars.

Give us an idea of the kind of revenues that you hope to get by way of these export orders since you have also gone ahead and sought the Export Oriented Unit status for about 50,000 square feet in the Surat facility. Would you be looking at increasing that given your focus overseas?

Absolutely, we would be, but maybe on an installment basis. In the future, we will be going higher also in the EOU because we have about 2,10,000 square feet factory area, which is up and running already.

This factory will help us when it comes to increasing the production and meeting the existing client needs also.

We set up operations in Dubai six months ago, which has also been very lucrative for us when it comes to loose diamond business as well the jewellery business.

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