CLASSIC DIAMONDS---Bringing the Stars into Our Lives

The Nirav Bhansali run Classic Diamonds is rapidly emerging as a major Branded Retail Story, with company owned stores projected to rise upwards of 50 by 2010. Classic, which was cutting about 25 lakh Diamonds every month in the financial 2006 will now be cutting as many as 4 million stones a month. This will result in a quantitative jump in Revenues and Earnings in FY07.

Equity: Rs 7 crore
Market Cap: Rs 140 crore
Diamond Sales: Rs 650-700 crore
Jewellery Sales: Rs 100 crore

Current Retail Outlets: 5 Locations: Bangalore, Hyderabad, Hong Kong, New Delhi, Ludhiana Targeted Outlets: 15 in 3 years.
Target Outlets: 50 by 2010 including London, New York, Paris, Tokyo Brand Name: Classic Jewels Sight Holder: De Beers, South Africa

Promoter Holding: 70 per cent
EPS FY06 e: Rs 20 +
EPS FY07 e: Rs 35+


Classic Diamonds India Ltd has informed BSE that the Company has set up one of the largest diamond cutting factory in Surat at Varacha Road, measuring an area of 225,000 sq ft. housing 5000 workers.From April 2006, the factory is fully functional. The factory will produce over 1.5 million stones every month. This factory houses state-of-the-art manufacturing equipments like high end laser machines, Siren planning machines etc. Using this high end technology the Company hopes to reduce production cost, minimize wastage and deliver goods with superior cut. This factory is built in accordance to the set standards of ISO 9001, Best Practice Principles (BPP) and Business Excellence Model (BEM).This factory will cater to domestic as well as the export market, the Company currently exports to customers in USA, France, Israel, Hong Kong, Italy, Turkey, Dubai and Belgium. The Company is also planning a significant foray into the local jewellery retailing.This factory provides a major thrust to the Company's growth plans of achieving over USD 250 MM sales in the next 3 years. The Company is one of the leading players in the diamond industry and is expecting an annual turnover of approx. $130 million in 2006. The Company is a sightholder with the Diamond Trading Company and with the ABER GROUP (Canadian mines).The Company is one of the largest Diamond manufacturers in the world already producing more than 2.5 million stones every month and is the largest producers of stars (below 2pts) diamonds in the world.