The ring went on to become the Guinness World Record Holder for the 'Most Diamond Set in One Ring'.
Shree Ganesh Jewellery House Ltd (SGJHL) is geared to cut down its exposure to overseas markets to hedge the foreseen losses owing to the downtrend in demand and a likely credit risk involved in exports. %%
A high percentage of SGJHL’s sales in the abroad markets are non-LC (letters of credit) backed involving a big counter party payment risk. %%
Nilesh Parekh, Chairman, SGJHL, “SGJHL’s exposure to overseas market was growing very strong and is in fact becoming a cause of worry following the global crisis. Exports account for nearly 80 per cent of its turnover. We are a bit worried about it (our exposure in overseas markets). This is because the overseas markets are going through a number of changes. So we want to reduce our exposure. SGJHL typically extends a three-month credit period on gold jewellery exported. Nearly 100 per cent of our exports are done on a credit basis where the payment is received after the dispatch of the consignment.†%%
About 70 per cent of SGJHL’s creditors are from West Asia. With an understanding to allay the credit risk, the company has established up a factory in Dubai to gratify the local market demand on cash basis. %%
“This way, our Indian entity will have less exposure to overseas markets. The Dubai factory will work on job work basis. By setting up a factory in Dubai, the company will be able to scale down the exposure of the Indian entity to that market by 15-20 per cent. Increasing the share of domestic sales would offset the reduced exposure in overseas markets,†he said. %%
Domestic market, which currently accounts for 20 per cent of total sales, would be scaled up to 25 per cent, Parekh added. %%
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