Russia's Kristall expects record 2011 sales_结婚小岛岛主-钻饰

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Russia's Kristall expects record 2011 sales

(2011-07-02 20:01:24)

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分类： Diamond

Russia's <wbr>Kristall <wbr>expects <wbr>record <wbr>2011 <wbr>sales

Smolensk Kristall, Russia's state-owned cutter and polisher and the dominant manufacturer in the Russian market, expects to hit record sales for 2011, according to Maxim Shkadov, Kristall's chief executive.

Shkadov presented his company's strategy in a Moscow newspaper yesterday.

Kristall has reported sales revenues for last year were at an all-time high of Rb12.1 billion ($403 million). That marked growth of 56% over the 2009 level.

Profit was Rb187.8 million ($6.3 million) in 2010.

This year, without state funding or buying support, Shkadov expects to hit a new sales record.

"Our competitors are weakened, because they were forced to completely or partially shut down for several months, resulting in the loss of highly qualified personnel," Shkadov told the Moscow newspaper.

"Many simply went into other industries. Kristall in the meantime did not stop work for a single day because of ... government assistance in the form of the Gokhran, which bought from us a significant part of production. Therefore, when the market perked up, we took advantage of this to the maximum benefit..."

With regard to the supply of rough, Shkadov said he company had a three-year contract with Alrosa and was entering a new period for signing agreements with De Beers. “We plan to extend the sightholder's position for another three years," he said.

Kristall is also planning to invest Rb1 billion ($36 million) in the development of new technology and training, he said.

"Design improvements for exports of diamond jewellery have been provided by Italian designers, and with them Smolensk has created its Hermitage range of diamond jewellery, based on tsarist-era pieces by court jewellers such as Faberge, Agapoff, and others."

"For us this (diamond jewellery) business is secondary. It takes just 1% of turnover. It will take longer to develop the Russian market. And to enter the international market with jewellery we are still not planning. We must seriously prepare for that, clearly know the product. But with (polished) with diamonds, here we have mastered the entire world from Japan to Los Angeles.”

The Russian market diamond for diamond jewellery remains primitive, Shkadov added, which has encouraged counterfeiting.

"There is a low culture of consumption of jewellery and almost complete lack of knowledge about the diamond itself. This is despite the fact that the value of a diamond in the decoration is usually at least 90%. Sadly, the Russian jewellery industry has proved itself so that the market has a lot of fakes and scandals with the importation of diamonds."

"Kristall's plan is to bring sales of loose polished to the domestic market up to one billion rubles, which represents about 8% of total sales. But it will take at least three years."

Shkadov also signalled that he is discussing with the Russian Finance Ministry the conversion of the enterprise into an open shareholding company, and its eventual privatization.

"I would not want to give a hasty assessment, but I think that in the foreseeable future, its (market asset) value can be increased to $ 1.5 billion to $2 billion." By John Helmer in Moscow.

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