Shrenuj Confidential

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

Business Profile Shreyas & Vishal Doshi

2006 World Diamond Jewellery Value Chain

Value Chain Global Indian Share Net Rough diamonds Usage 14.20 bn 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 Perspective Indian Gem & Jewellery Export CAGR : 13% since 2003 (Source: GJEPC Statistics) Shrenuj CAGR: 25% since 2003

Shrenuj: 100 Years of Excellence Global presence Presence across the value chain from diamond processing to retailing jewellery Direct sourcing of rough diamonds. DTC Sightholder since 1983 Diamond and Jewellery manufacturing expertise. Manufacturing in India, Israel, France and China Retailing in HK and India Eminent Board of Directors IPO in 1987 Revenue grown from under Rs. 620 mn in 1987 to Rs. 8,750 mn in 2007 (consolidated Rs.9,520 mn) Consolidating the group entities

Business Profile Retailing Marketing & Branding Distribution Jewellery Manufacturing Diamond Processing Deliver consumers exceptional value through Innovative designs and concepts Co-operative promotions with 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 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

DIAMOND MANUFACTURING

Niche Products Trapezoids Half Moons Twin Trapz Triple Trapz Leafz Cadi

Business Profile Retailing Marketing & Branding Distribution Jewellery Manufacturing Diamond Processing Deliver consumers exceptional value through Innovative designs and concepts Co-operative promotions with 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 Mumbai. 2 JV factories in Seepz and Lyon, France New unit to start in Jan ‘08 in Seepz(30,000 sq ft) Outsourcing office in Hong Kong working with 4 dedicated factories in China Total employee strength: 2,200 with the new factory Production: 550,000 pcs per annum (to be increased to 1,000,000 pcs/ yr in 2008) Designing and product development in Mumbai, USA, Hong Kong and Germany

Jewellery Manufacturing

Business Profile Retailing Marketing & Branding Distribution Jewellery Manufacturing Diamond Processing Deliver consumers exceptional value through Innovative designs and concepts Co-operative promotions with 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 Presence Manufacturing Facility Hub Proposed

Distribution Strategy Tactical advantage- distribution systems Stock requirements fully supported from India- inventory centrally coordinated Receivables booked on actual overseas sales

Jewellery Sales

Diamond Distribution

Business Profile Retailing Marketing & Branding Distribution Jewellery Manufacturing Diamond Processing Deliver consumers exceptional value through Innovative designs and concepts Co-operative promotions with 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 & Brands Pranava Bhargava

Business Profile Retailing Marketing & Branding Distribution Jewellery Manufacturing Diamond Processing Deliver consumers exceptional value through Innovative designs and concepts Co-operative promotions with downstream partners Exciting product propositions based on need-gap analysis Quality Cost efficiency Innovation Productivity Global Presence Joint Ventures Deliver on time/ in full

Retailing 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 Strategy

Retail Environment Old: Discount Store New: Fashion Jewellery

Promotion New: Value Centric Old: Price Centric

Amante88: Promotion

Diti 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 Profile Retailing Marketing & Branding Distribution Jewellery Manufacturing Diamond Processing Deliver consumers exceptional value through Innovative designs and concepts Co-operative promotions with 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 Jewellery Wholesalers Diamond Mining Manufacturing Wholesaler/ Traders Manufacturers Jewellery Retailers Move from purely manufacturing from consumer centric model Consolidate position in the value chain to capture value and Improve margins

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

Key Financial Information Vinod Shetye

SALES GROWTH Rs. In Crores 875 614 489 410 293 % Growth 2004 2005 2006 2007 Diamond 42% 21% 14% 44% Jewellery 26% 10% 101% 37% Total Growth 40% 19% 43%

EBIDTA Rs. In Crores 86 54 36 31 22

FINANCIAL INDICATORS March 31 2003 2004 2005 2006 2007 ROCE 6% 7% 9% 10% 12% ROE 8% 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%

Highlights 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

CAPEX Rs. In Crores

Outlook 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 & DIVIDEND FV Rs. 2 each 2003 2004 2005 2006 Dividend% 22% 25% 30% 35%

Shareholding Pattern as on 30th April 2007 Total no. of equity shares 62,630,550 of Face Value Rs. 2/- each

New Acquisition Vishal Doshi

Simon 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

SGS Structure Simon Golub & Sons IJC SGS Independents Div.

Acquisition 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

Projections 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

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