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Wednesday, 10th May 2006 (5178 views)

A leading Indian diamonds expert has declared that the jewellery sector of his company's business, which trades largely in gold items, is flourishing.

Jatin Mehta, CMD of Su-Raj Diamonds, told CNBC that the firm's jewellery business is likely to generate around 65 million rands in 2006/07, 20 million rands more than last year.

Mr Mehta revealed that the business-to-business company plans to focus on and expand its jewellery arm during the 2007 financial year and open a US subsidiary.

He predicts that gold prices in India will dictate the company's topline profits in financial year 2007, with any increases towards the $1,000 mark placing profit margins under pressure, Money Control reports.

Gold prices are rising fast at the moment, standing at around $700 an ounce as worldwide demand continues to grow, driven by uncertainties over oil supplies, a falling dollar and global inflation.

 

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