Shrenuj Shrenuj

Confidential

Presentation PlanPresentation Plan

Business Profile: Shreyas/ Vishal Doshi Financial Performance: Vinod Shetye Branding: Pranava Bhargava New Acquisition : Vishal Doshi Q&A

Business Profile: Shreyas/ Vishal Doshi Financial Performance: Vinod Shetye Branding: Pranava Bhargava New Acquisition : Vishal Doshi Q&A

Business ProfileBusiness Profile

Shreyas & Vishal DoshiShreyas & Vishal Doshi

2006World Diamond Jewellery

Value Chain

2006World Diamond Jewellery

Value Chain

Value ChainValue Chain

Global Indian Share

Net Rough diamonds Usage 14.20 bn 8.41bn

Polished Diamond Value 18.72bn 10.84bn

Diamond Jewellery Value (Wholesale) 37bn

estimated

2.7bn

Retail Sales of Diamond Jewellery 68.51bn 2.23bn

2006:Tacy Limited

Indian PerspectiveIndian Perspective

Indian Gem & Jewellery Export CAGR : 13% since 2003 (Source: GJEPC Statistics)

Shrenuj CAGR: 25% since 2003

Indian Gem & Jewellery Export CAGR : 13% since 2003 (Source: GJEPC Statistics)

Shrenuj CAGR: 25% since 2003

Shrenuj: 100 Years of Excellence

• Global presence Global presence • Presence across the value chain from diamond Presence across the value chain from diamond

processing to retailing jewelleryprocessing to retailing jewellery• Direct sourcing of rough diamonds. DTC Sightholder Direct sourcing of rough diamonds. DTC Sightholder

since 1983since 1983• Diamond and Jewellery manufacturing expertise. Diamond and Jewellery manufacturing expertise.

Manufacturing in India, Israel, France and China Manufacturing in India, Israel, France and China • Retailing in HK and IndiaRetailing in HK and India• Eminent Board of DirectorsEminent Board of Directors• IPO in 1987 IPO in 1987 • Revenue grown from under Rs. 620 mn in 1987 to Rs. Revenue grown from under Rs. 620 mn in 1987 to Rs.

8,750 mn in 2007 (consolidated Rs.9,520 mn)8,750 mn in 2007 (consolidated Rs.9,520 mn)• Consolidating the group entities Consolidating the group entities

Board of Directors

Vishal DoshiGp. Exec. President

Shreyas K DoshiManaging Director

Nihar N ParikhExecutive Director

B R BarwaleDIrector

S S ThakurDirector

S N TalwarDirector

Minoo R ShroffDirector

Dr. S A Dave Director

Pinakin D DesaiDirector

Kirtilal K DoshiChairman

Board of Directors

Vishal DoshiGp. Exec. President

Shreyas K DoshiManaging Director

Nihar N ParikhExecutive Director

B R BarwaleDIrector

S S ThakurDirector

S N TalwarDirector

Minoo R ShroffDirector

Dr. S A Dave Director

Pinakin D DesaiDirector

Kirtilal K DoshiChairman

Business ProfileBusiness Profile

Retailing

Marketing & Branding

Distribution

JewelleryManufacturing

DiamondProcessing

• Deliver consumers exceptional value through Innovative designs and concepts

• Co-operative promotionswith downstream partners•Exciting product propositions based on need-gap analysis

• Quality

• Cost efficiency

• Innovation

• Productivity

• Global Presence• Joint Ventures• Deliver on time/ in full

Diamond ManufacturingDiamond Manufacturing

3 factories in Mumbai 1 factory in Tel Aviv for niche cuts Total Manpower: 1,000 Competitive advantage: unique skill set leading to

high end product Rough intake: US$ 120 mn per annum Proprietary Factory Management System Software Focus on product, process and technology

development and skill development

3 factories in Mumbai 1 factory in Tel Aviv for niche cuts Total Manpower: 1,000 Competitive advantage: unique skill set leading to

high end product Rough intake: US$ 120 mn per annum Proprietary Factory Management System Software Focus on product, process and technology

development and skill development

DIAMOND MANUFACTURINGDIAMOND MANUFACTURING

Niche ProductsNiche Products

Trapezoids Half Moons Twin Trapz Triple Trapz Leafz Cadi

Trapezoids Half Moons Twin Trapz Triple Trapz Leafz Cadi

Business ProfileBusiness Profile

Retailing

Marketing & Branding

Distribution

JewelleryManufacturing

DiamondProcessing

• Deliver consumers exceptional value through Innovative designs and concepts

• Co-operative promotionswith downstream partners•Exciting product propositions based on need-gap analysis

• Quality

• Cost efficiency

• Innovation

• Productivity

• Global Presence• Joint Ventures• Deliver on time/ in full

Jewellery Manufacturing

• 4 jewellery manufacturing units in Seepz and 4 jewellery manufacturing units in Seepz and Mumbai. 2 JV factories in Seepz and Lyon, FranceMumbai. 2 JV factories in Seepz and Lyon, France

• New unit to start in Jan ‘08 in Seepz(30,000 sq ft)New unit to start in Jan ‘08 in Seepz(30,000 sq ft)• Outsourcing office in Hong Kong working with 4 Outsourcing office in Hong Kong working with 4

dedicated factories in Chinadedicated factories in China• Total employee strength: 2,200 with the new factoryTotal employee strength: 2,200 with the new factory• Production: 550,000 pcs per annum (to be increased Production: 550,000 pcs per annum (to be increased

to 1,000,000 pcs/ yr in 2008)to 1,000,000 pcs/ yr in 2008)• Designing and product development in Mumbai, Designing and product development in Mumbai,

USA, Hong Kong and GermanyUSA, Hong Kong and Germany

Jewellery ManufacturingJewellery Manufacturing

Business ProfileBusiness Profile

Retailing

Marketing & Branding

Distribution

JewelleryManufacturing

DiamondProcessing

• Deliver consumers exceptional value through Innovative designs and concepts

• Co-operative promotionswith downstream partners•Exciting product propositions based on need-gap analysis

• Quality

• Cost efficiency

• Innovation

• Productivity

• Global Presence• Joint Ventures• Deliver on time/ in full

Global PresenceGlobal Presence

Manufacturing Facility

Hub

Proposed

Distribution StrategyDistribution Strategy

Tactical advantage- distribution systems Stock requirements fully supported from

India- inventory centrally coordinated Receivables booked on actual overseas

sales

Tactical advantage- distribution systems Stock requirements fully supported from

India- inventory centrally coordinated Receivables booked on actual overseas

sales

Jewellery SalesJewellery SalesJewellery SalesJewellery Sales

Diamond DistributionDiamond DistributionDiamond DistributionDiamond Distribution

Business ProfileBusiness Profile

Retailing

Marketing & Branding

Distribution

JewelleryManufacturing

DiamondProcessing

• Deliver consumers exceptional value through Innovative designs and concepts

• Co-operative promotionswith downstream partners•Exciting product propositions based on need-gap analysis

• Quality

• Cost efficiency

• Innovation

• Productivity

• Global Presence• Joint Ventures• Deliver on time/ in full

Marketing & BrandsMarketing & Brands

Pranava BhargavaPranava Bhargava

Business ProfileBusiness Profile

Retailing

Marketing & Branding

Distribution

JewelleryManufacturing

DiamondProcessing

• Deliver consumers exceptional value through Innovative designs and concepts

• Co-operative promotionswith downstream partners•Exciting product propositions based on need-gap analysis

• Quality

• Cost efficiency

• Innovation

• Productivity

• Global Presence• Joint Ventures• Deliver on time/ in full

RetailingRetailing

Acquired Daily Jewellery in HK in 2003 Successful transformation from discount store to

fashion jewellery Launched Diti (shop-in-shop) in India in H2 -2006

with 3 stores. To be increased to 30 POS in 2007-8. Revenue contribution of retailing: 5% of jewellery

segment. To grow to 10% over next 3 years

Acquired Daily Jewellery in HK in 2003 Successful transformation from discount store to

fashion jewellery Launched Diti (shop-in-shop) in India in H2 -2006

with 3 stores. To be increased to 30 POS in 2007-8. Revenue contribution of retailing: 5% of jewellery

segment. To grow to 10% over next 3 years

Retail Transformation StrategyRetail Transformation Strategy

Retail EnvironmentRetail Environment

Old: Discount Store New: Fashion Jewellery

PromotionPromotion

Old: Price Centric New: Value Centric

Amante88: PromotionAmante88: Promotion

QuickTime™ and aTIFF (Uncompressed) decompressor

are needed to see this picture.

DitiDiti

B2C Initiative across India Shop-in-shop concept in malls Average retail price point- Rs.

8,000 Products: Solitaires, Multi-stones

in gold and platinum Each jewellery piece is certified by

Shrenuj Planning to grow to 170 outlets in

3 yrs.

B2C Initiative across India Shop-in-shop concept in malls Average retail price point- Rs.

8,000 Products: Solitaires, Multi-stones

in gold and platinum Each jewellery piece is certified by

Shrenuj Planning to grow to 170 outlets in

3 yrs.

Business ProfileBusiness Profile

Retailing

Marketing & Branding

Distribution

JewelleryManufacturing

DiamondProcessing

• Deliver consumers exceptional value through Innovative designs and concepts

• Co-operative promotionswith downstream partners•Exciting product propositions based on need-gap analysis

• Quality

• Cost efficiency

• Innovation

• Productivity

• Global Presence• Joint Ventures• Deliver on time/ in full

Our Strategy: Value Chain Consolidation

Our Strategy: Value Chain Consolidation

Jewellery Retailers

Jewellery Wholesalers

Diamond Mining

Diamond Manufacturing

Diamond Wholesaler/

Traders

Jewellery Manufacturers

•Move from purely manufacturing from consumer centric model•Consolidate position in the value chain to capture value and Improve margins

To sum up:To sum up:

We are fully integrated from rough diamonds to retailing

Excellence in manufacturing Efficient and effective distribution network Growth oriented business model Focus on branding and retailing

We are fully integrated from rough diamonds to retailing

Excellence in manufacturing Efficient and effective distribution network Growth oriented business model Focus on branding and retailing

Key Financial InformationKey Financial Information

Vinod Shetye

SALES GROWTHSALES GROWTH

247

46

352

58

425

64

485

129

698

177

0

200

400

600

800

1000

2003 2004 2005 2006 2007

JEWELLERY

DIAMOND

247

46

352

58

425

64

485

129

698

177

0

200

400

600

800

1000

2003 2004 2005 2006 2007

JEWELLERY

DIAMOND

Rs. In Crores

% Growth 2004 2005 2006 2007

Diamond 42% 21% 14% 44%

Jewellery 26% 10% 101% 37%

Total Growth 40% 19% 26% 43%

293410

489

614

875

EBIDTAEBIDTA

11326

2

17

3

9

3

16

6

11

3

22

11

18

3

36

17

30

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006 2007

Depreciation Interest Tax PAT

11326

2

17

3

9

3

16

6

11

3

22

11

18

3

36

17

30

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006 2007

Depreciation Interest Tax PAT

22

3136

54

86

Rs. In Crores

March 31 2003 2004 2005 2006 2007

ROCE 6% 7% 9% 10% 12%

ROE 7% 8% 10% 13% 17%

EBIDTA (% to sales)

7.5% 7.6% 7.4% 8.8% 9.8%

PAT (% to sales)

2% 2.2% 2.3% 2.9% 3.4%

FINANCIAL INDICATORS

Highlights 2006-7Highlights 2006-7 Merger

Shrenuj Diamonds Pvt Limited (Diamonds) Lavanya Jewels Ltd. (Jewellery- Domestic Market) Moon Diamonds Limited (Jewellery- Exports)

Advantages: Operational synergies & cost savings FCCB Issue of US$ 15mn

Subscriber: Lehman Bros. Utilisation: Overseas expansion and growth

Optionally fully convertible 3,944,500 share warrants issued to the promoter group

Merger Shrenuj Diamonds Pvt Limited (Diamonds) Lavanya Jewels Ltd. (Jewellery- Domestic Market) Moon Diamonds Limited (Jewellery- Exports)

Advantages: Operational synergies & cost savings FCCB Issue of US$ 15mn

Subscriber: Lehman Bros. Utilisation: Overseas expansion and growth

Optionally fully convertible 3,944,500 share warrants issued to the promoter group

CAPEXCAPEX

8

144

15

Branding Retailing Capital Goods New Factory

8

144

15

Branding Retailing Capital Goods New Factory

Rs. In Crores

Outlook 2007-10Outlook 2007-10

•Sales to grow by 30% p.a. over next 3 years

•EBIDTA to increase to 14% by 2010

•Budgeted Capex of Rs. 410 mn over next three years, to enhance value, expand retail segment and strengthen manufacturing base.

EPS & DIVIDENDEPS & DIVIDEND

1.14 1.61 2.052.9

4.72

0

1

2

3

4

5

2003 2004 2005 2006 2007

EPS

1.14 1.61 2.052.9

4.72

0

1

2

3

4

5

2003 2004 2005 2006 2007

EPS

2003 2004 2005 2006

Dividend% 22% 25% 30% 35%

FV Rs. 2 each

Shareholding Patternas on 30th April 2007Shareholding Patternas on 30th April 2007

Total no. of equity shares 62,630,550of Face Value Rs. 2/- eachTotal no. of equity shares 62,630,550of Face Value Rs. 2/- each

67.146.18

10.18

16.5 Promoter, Director,RelativesFinancial Institutions,Mutual Funds, BanksNRIs and OverseasBodies CorporatePublic

New AcquisitionNew Acquisition

Vishal DoshiVishal Doshi

Simon Golub & SonsSimon Golub & Sons

80 years old jewellery distribution company based in Seattle, US

US$ 100 mn supplies to majors like JC Penny, Wal-Mart, Sterling, Zales on commission basis

US$ 36 mn sales to independent retailers (Mom & Pop stores)

2,400 accounts: 650 very active accounts Total employee strength: 100

80 years old jewellery distribution company based in Seattle, US

US$ 100 mn supplies to majors like JC Penny, Wal-Mart, Sterling, Zales on commission basis

US$ 36 mn sales to independent retailers (Mom & Pop stores)

2,400 accounts: 650 very active accounts Total employee strength: 100

SGS StructureSGS Structure

Simon Golub & Sons

IJCSGS

Independents Div.

Acquisition DetailsAcquisition Details

Acquisition cost: US$ 22.63 mn for 84.6% stake Source of funds: Long term debt, FCCB and

internal accrual 10% stake retained by original promoters and

5.4% equity with key employees Balance stake to be acquired after 7 years Entered into a 6 yrs contract with key employees

and management

Acquisition cost: US$ 22.63 mn for 84.6% stake Source of funds: Long term debt, FCCB and

internal accrual 10% stake retained by original promoters and

5.4% equity with key employees Balance stake to be acquired after 7 years Entered into a 6 yrs contract with key employees

and management

Projections for SGSProjections for SGS

Sales to independents to grow to US$ 50mn from US$ 36 mn over 3 years

Agency sales to majors to grow to US$ 150 mn from existing US$ 100mn. Shrenuj’s share to increase from US$10mn to US$50mn.

Gross margin to improve to US$ 21mn from existing US$ 16mn, including agency commission

Sales to independents to grow to US$ 50mn from US$ 36 mn over 3 years

Agency sales to majors to grow to US$ 150 mn from existing US$ 100mn. Shrenuj’s share to increase from US$10mn to US$50mn.

Gross margin to improve to US$ 21mn from existing US$ 16mn, including agency commission

VisionVisionVisionVision

Shrenuj envisions itself to generate Shrenuj envisions itself to generate US$ 1bn in revenue by 2012 US$ 1bn in revenue by 2012