India and Russia ink diamond trading pact

Press release April 10,2014

India, the world’s largest diamond-processing nation and Russia, the world’s largest rough diamond producer, have taken a significant step towards greater direct diamond trade between the two countries. India’s Gem & Jewellery Export Promotion Council (GJEPC) and state-owned Russian diamond mining firm Alrosa signed a memorandum of understanding to share trade and statistical data on the diamond trade between the two countries.

The MoU, inked by GJEPC Chairman Vipul Shah and Alrosa President Fyodor Andreev, is more evidence of warming trade relations between the two countries. 

Russia produced 34.9 million carats of rough diamonds in 2012.India imported 163.11 million carats of rough worth $16.34 billion and exported 36.46 million carats of polished diamonds worth $20.23 billion during the calendar year 2013. Total Indian provisional exports of gems and jewellery during calendar year 2013 stood at $36.04 billion.

ALROSA and GJEPC agreed to exchange information pertaining to the development of the co-operation between Indian and Russian diamond sectors, including overviews of the diamond market situation, the Indian and Russian trade figures, information on Indian diamond market research.

Speaking at the Event, Mr. Vipul Shah, Chairman GJEPC said, “India has long sought long-term contracts between Alrosa and the Indian cutting and polishing industry. With this association, both trade bodies look forward to cooperation and exchange information in the framework of implementation of Kimberley Process Certification Scheme and jointly seek to maintain separate sales of natural and synthetic diamonds and diamond jewellery. This is just the beginning and we look forward to strengthened trade relations between India and Russia.”
Last February, Indian Commerce Minister Anand Sharma brought up the subject with visiting Russian Deputy Prime Minister Dmitry Rogozin. Sharma suggested that the state-owned Minerals & Metals Trading Corporation (MMTC) be made a nodal Indian agency with a long-term contract with Alrosa.

An Alrosa study team visiting India recently stated that that most of the rough diamonds produced in Russia are cut and polished in India. However, direct imports of rough diamonds from Russia to India are modest, with the fiscal 2013 figure standing at some $767 million.

Fyodor Andreev, the President of ALROSA said, “India is one of the major participants of the world diamond market. The amount of ALROSA rough diamonds sales to Indian companies has been steadily growing for the last 5 years and resulted into $700 mln of sales in 2013. Customers from India successfully work with ALROSA on the basis of competitive bidding and long-term contracts. The partnership between ALROSA and GJEPC will improve our cooperation with Indian diamond market.”
Alrosa accounts for close on 25 percent of the world output, while the Indian diamond processing industry accounts for some 60 percent by value of global polished diamond output. An estimated 14 out of 15 polished diamonds studded in jewellery globally are cut and polished in India.  An Indian think tank recently stated that more direct supplies of rough diamonds to India could easily boost the current figure to between $4 and $5 billion.

The Indian diamond industry has long said that the indirect routing of rough diamonds into India simply adds to cost and increases the complexity of sourcing steady raw material supplies. Direct imports would bring benefits to both Alrosa as well as the Indian cutting industry, Indian diamond dealers say.

Streamlining overall trade procedures could also see increased Indian exports of polished diamonds to Russia. Indian dealers already have a significant presence at the Moscow Diamond Bourse and relations between the diamond dealing communities of both nations are warm and close. Russian buyers have been a steady presence in India and particularly at the India International Jewellery Show (IIJS), one of the four largest gem and jewellery trade shows in the world.

Procedural matters are all that stand between the two countries and sharply increased trade in polished diamonds between the two countries. The engagement between the Commerce Ministries of both nations in sorting out these procedural matters has diamond industry watchers hopeful of a major increase in trade in coming years.

Sotheby’s pink diamond buyer defaults on his record offer

Bloomberg | 1 Mar, 2014, 12.40PM IST 

In a Sotheby's auction in November, a New York diamond cutter defeated three bidders to win the most expensive gemstone ever. On Thursday, the auction house said the buyer couldn't pay.

The 59.6 carat oval-cut pink diamond , which fetched $83.2 million in a transaction guaranteed by Sotheby's , was acquired by the auction house after the buyer defaulted. The stone is recorded in Sotheby's inventory at about $72 million, the US dollar equivalent of the corresponding purchase price in Swiss francs, Sotheby's said.

"We are currently in discussions with the buyer while also considering other alternatives," Patrick McClymont, Sotheby's chief financial officer, said. "In the meantime, we are comfortable with our valuation and see real value in owning the diamond at this price."

The November 13 sale was seen as a sign of market buoyancy and a highprofile success for Sotheby's , which has faced pressure from investors, including hedge-fund billionaireDan Loeb, to become more competitive.



Loeb, on Thursday, indicated he may engage in a proxy contest after New York-based Sotheby's didn't accept his proposal to add three directors backed by Third Point to the company's board.

Third Point, the largest shareholder of Sotheby's with a 9.5% stake as of February 26, proposed the company add Loeb; Harry Wilson, who helped restructure General MotorsCo; and jewelry designer Olivier Reza to the board, according to a filing with the US SEC.

5 Indian Diamond Moguls Who Rule Global Empire

Diamonds speak louder than words, making it easier for many to express themselves with ease, suave and style. 

As the world is smitten by the glitter of diamonds, here are five Indian diamond sultans who have mastered the craft and reached the paramount of success in the global diamond regime,

 as reported by ET.

Mehul Choksi
Turnover Rs 13,000 crore
Chairman and MD, Gitanjali Group

The Chairman and MD of Gitanjali Group, Mehul Choksi has been running the company since 1985. At first, Gitanjali’s core business was trading in rough and polished diamonds and was one of the biggest exporters of raw diamonds worldwide. Gitanjali entered the international jewellery market and gradually expanded the business over the years. When Mehul realized that by selling diamonds as a commodity Gitanjali was not attaining its full potential, and then Gitanjali products were released.
At present, Gitanjali's product portfolio has several brands that include Nakshatra, Gili, D'damas, Asmi, Sangini, Diya and Maya. Gitanjali group acquired Samuel Jewelers Inc in U.S. in 2006.  Gitanjali has direct access to the U.S. retail market with its 111 high-end stores under Samuel Jewelers Inc. Some of the popular brands sold in the U.S. are Passion Stone, Love Universe, Lune Dargent, Affiance and REVV. The company has got its grip on Italian brands too like Stefan Hafner, Valenete, IO SI, Porrati and Nouvelle Bague.

Mavji Bhai Patel
Turnover Rs 7,700 crore
Kiran Gems Private Limited

Mavji Bhai Patel is the managing director of the family-run industry Kiran Gems Private Limited, which is the world’s largest manufacturer of small white diamonds. About the business, Mavji said, “My father was cotton farmer living in a village of 500 people in Gujarat's Bhavnagar district. We are first-generation entrepreneurs,” as reported by ET. Mavji's eldest brother and chairman, Vallabhbhai S Patel shifted to Mumbai with some start-up capital from their father in 1985 and started the company.
Today Kiran Gems is the country’s largest exporter of diamonds and jewellery. It also has the largest number of employees in the diamond industry, with the strength of 30,000 craftsmen who handle over 5 million carats in rough diamonds every year.
Mavji considers Kiran Gems getting sight holder status from DeBeers, as his most precious memory in business, he said, “It was fantastic.” He also said that the company is one of the largest suppliers of jewellery to stores in the U.S. However, there aren’t any immediate plans to enter the Indian retail market by the company. The most unique selling proposition of the company is selling diamonds of all sizes, from 1/100th of a carat to 10 carats.

Nirav Modi
Turnover Rs 5,000 crore 
Firestar Diamonds

Being from a diamantaire family  Nirav Modi stepped out in 1999, in the search of world’s finest and rarest diamonds. Modi started buying white stones from Russia, yellow diamonds from Sierra Leone and pink diamonds from Argyle. By 2005, Firestar Diamonds acquired a company with a network of jewellery sales in New York. It also acquired Sandberg & Sikorski in 2007 and became the sole jewellery supplier in all defence bases in U.S. Modi took his biggest chance in 2009, in spite of the market slowdown, he set up seven manufacturing units in six countries, including Russia and Armenia, where he is the only Indian contender.
He started his ‘Nirav Modi’ brand after by chance discovering the artist in him when he designed a pair of earrings for a friend.
Sourcing rare diamonds like the renowned Golconda diamonds is Firestar’s unique selling proposition.
As a mark of achievement, in 2010 Modi’s Golconda Lotus necklace in a cut, patented by him was auctioned at Christies's for Rs 16 crore.

Dharmesh Shah
Turnover Rs 1,835 crore
Joint MD & CFO, Asian Star Company

In 1971 the Asian Star Company was kick started in partnership by three cousins Arvind Shah, Dinesh Shah and late Prabodh Shah, a firm set-up for diamond processing with a small diamond processing unit in Surat.
In 1990 the second generation of the Shahs took up the business and ventured further. Dharmesh Shah is the firms joint MD and CFO with his brother Vipul Shah of Gem & Jewellery Export Promot Council.
When Dharmesh took the reins, the turnover of the company was around Rs 350 crore. In the 2012 financial year the company’s turnover figure stood at Rs 1,835 crore. Asian Star has plans to merge its position in the core business of diamond processing, with further exploring in the jewellery manufacturing business in future. The company does not promote consumer brands as it is a B2B company. The expansion of the business in the emerging markets is the company’s key element of success and the unique selling proposition is its fine craftsmanship.

Russell Mehta
Turnover Rs 4,000 crore
Rosy Blue (India)

Belgium-based Rosy Blue is among the world's largest diamond jewellery companies which own the retail brand Orra. Run by the Mehta family Rosy Blue is a privately-owned company which today owns two legal entities, one operating in India labeled as Rosy Blue (India) and the other is branched out in the rest of the world, which shares the Rosy Blue trade name. The head of the company, Russell Mehta said, “Rosy Blue is a 'family corporation'. We have evolved differently from most diamond companies, which are managed by the core family. We have trained and groomed professionals to take over key job of trading diamonds which I don't think many other companies have done. This allowed us to scale up,” as reported by ET.
Orra is the Indian retail chain of Rosy Blue, it has over 30 shops in the country. Rosy Blue is a grand veteran in the industry and stays at the top with sustainability integrated into heart of business.

The sale of global diamond jewellery continues to grow and has shown a threefold increase in the past 25 years, which has a current worth in excess of $72 billion per year. Icing the world with the most amazing selection of diamonds these men know how to play with the rock and stay on top.

World running out of diamonds: De Beers

 
 

 

Source:I A NS :Apr 26 11:10 AM

London, April 26 : The supply of diamonds in the world is dwindling, said De Beers, the biggest miner of the sparkling gem.

De Beers said it will reduce its production to extend the life of its mines, The Telegraph reported Monday.

Des Kilalea, a diamond analyst at RBC Capital Markets, said that taking into account the moderated output diamond prices could rise by at least 5 percent a year for the next five years.

The diamond industry, in the past 20 years, has not found new diamond deposits to match the two biggest mines in Africa, which are owned by De Beers, or the Russian mines of Alrosa.

De Beers accounts for 40 percent of global rough diamond sales.