Classic plans diamond store in Hong Kong

Classic Diamonds India (CDIL), the $150 million global manufacturer and exporter of diamonds, will open its first international retail diamond jewellery store in Hong Kong under its flagship brand 'Classic Jewels' by March 2005.

The company will invest Rs 40 crore for expansion of operations. The international store will be catering to the high-end segment and would be located in Hong Kong's high street area Mongkok.

Classic Diamonds director Nirav Bhansali said, "The European and Japanese markets have traditionally been major consumers of Indian diamond jewellery and globally the industry potential is estimated to be $60 billion."

Among emerging markets, south-east Asia had great potential. It witnessed healthy retail jewellery sales growth. The market was estimated to be roughly $25 billion. To tap this, Classic would set up a chain of 24 stores internationally in the next three years.

Classic Diamonds would increase its retail presence within India through retail stores in Gurgaon and Chennai in addition to existing stores in Hyderabad and Bangalore. It had launched its jewellery in 2003.

Classic was one of the key sightholders with Diamond Trading Company (DTC), processing more than 1,25,000 stones on a daily basis.

It posted 13 per cent rise in net profit at Rs 3.49 crore for the first quarter of 2004 ended June 30, 2004, as against Rs 3.08 crore in the same period last year. The net sales for the quarter rose to Rs 137.19 crore from Rs 125.42 crore in April-June 2003.