Looking at new horizons
Looking at new horizonsÎArgyle Diamonds, the largest diamond mine in the world in carat terms has been out of the CSO fold for three years. For the first time it has focused on the domestic jewellery markets. Sanjiv Arole of FE Thinktank chats with Argyle Diamonds manager (India).

Vital cogs in the diamond pipel
Cutting and polishing centres like India, Israel and Antwerp do form vital cogs in the diamond pipeline. The producing centres, which slog and bear high exposures, are the source of all diamonds. And finally but most importantly comes the consuming markets.

Innovation
Direct marketing has finally penetrated the highly secretive world of gems and jewellery in India. Although it has been in vogue for sometime, Dianet from Danabhai is an exclusive range of studded jewellery set in 18K gold.

Winds of change are blowing
De Beers and the diamond industry worldwide have been synonymous. The conglomerate which controls 70 per cent of the market of roughs through the central selling organisation (CSO) rules the roost in the diamond industry.

Facts -- World
The African continent is rich in diamonds. Diamonds are found deep inside the earth’s crust, on river beds and deep beneath the sea.

A giant roller-coaster ride
A leading diamantaire recently said, The Indian diamond industry will be reduced to half its present size in the next 5-7 years. It has peaked. There is no future growth in the cut and polished diamonds sector here.

Improve or languish
Most of the diamond company stocks have been bypassed in the current rally. Though there has been a modicum of appreciation, most are still ruling much below even their public issue prices. Breaking unchartered territory on the higher side is out of the question for these scrips.

Threats and opportunities
The Indian diamantaire perceives a growing threat from China as a diamond processing and cutting centre. Diamantaires believe that the Chinese are on the warpath, and it is only a matter of time before the Indian trade feels the squeeze.

Targeting the Indian buyer
Suddenly the Indian jewellery market is being re-discovered. A disastrous first outing, attempting to lure the Indian gold jewellery consumer to the studded variety, flopped miserably a couple of years ago. Now, the diamond industry heavyweights are back with renewed vigour.

Food for thought
It is a generally accepted principle that an export market is more easily captured if there is a thriving domestic market. On that basis, the concept of trying to tap the domestic market for studded jewellery cannot be faulted.

Putting on a new hat
The diamond industry has a unique three-tier structure. Diamond producing centres are neither processing centres nor do they consume diamonds. The cutting and polishing strongholds like India are not major consuming centres.