Topic started by Sanjiv (@ 220.226.29.126) on Sat Oct 18 15:25:29 .
All times in EST +10:30 for IST.
http://economictimes.indiatimes.com/cms.dll/xml/uncomp/articleshow?msid=155626
Gujaratis dominate world diamond trade
ISHANI DUTTAGUPTA
TIMES NEWS NETWORK[ SUNDAY, AUGUST 31, 2003 10:49:10 PM ]
It’s not just the Gujarati motel and hotel owners or the desi IT professionals of Silicon Valley who are making a splash in the US. In fact, the Indian diamantaires have gone beyond just Manhattan's diamond district and are now dominating the world trade from Antwerp to Hong Kong, Canada, China, Vietnam, Russia, and Sri Lanka.
Indeed, as a recent Wall Street Journal article pointed out, Gujaratis have displaced Jews for the diamond crown of the world. In Antwerp, the Indians’ share of the $26 billion-a-year diamond revenues had risen to roughly 65 per cent from about 25 per cent just 20 years ago.
The Jewish share had fallen to 25 per cent from 70 per cent. Almost 80 per cent of the world's polished diamonds pass through the hands of Indian merchants, some of whom are among the biggest players in the multibillion-dollar business.
India’s own export of gem and jewelery to the United States alone stands at $6.2 billion, and Indian goods account for over two-thirds of the total volume of retail jewelry sold in the US. In fact, the Indian company Rosy Blue is one of the largest customers for rough diamonds from De Beers, which controls 60 per cent of the world's supply. At least six Indian companies make up the top ten De Beers clients.
Other major companies that have a presence in several continents are Eurostar, Emby International, Vijay Diamonds, Disons Gems, Paras Diamonds, Shivani Gems and the Lakhi Group. Rosy Blue, a global company that had net sales of $1.25 billion last year, with offices or factories in 14 locations employs 15,000 people worldwide. It is the biggest exporter of polished diamonds from India, but its dealings have spread across continents.
And now the Indian diamond kings have taken on a new sector. WIth the help of the low-cost skills available to them, they have become the most prolific diamond polishers globally.
In India, the rough diamonds come from either De Beers or traders who buy in the open market in Antwerp, and to a certain extent even from New York and other places worldwide. That’s how they’re now entrenched in Antwerp, which is the hub of the diamond trade and houses four diamond exchanges.
The fact that the Mehtas, Shahs, Jhaveris and Patels, even though they are rocking the global gems and diamond markets, still remain close knit and low-profile families, is the secret of their success. In activities like manufacturing, buying or selling, Indian diamond merchants have a strong family support system. In Antwerp alone there are 300 families. Simple lifestyles, family togetherness, and vegetarian diet are their hallmark. And now, as they come of age, Indians want better representation on Antwerp's High Diamond Council, the powerful body that regulates the city's industry. Last February, the first two Indians were elected to the council's board of directors.
Interestingly, the Indian government's announcement at the Pravasi Bharatiya Divas on dual citizenship for PIOs while including USA, UK, Australia, Canada, Finland, Ireland, Netherlands and Italy has left out Belgium. This means that the financially important community of Gujarati diamond merchants have been excluded. Considering that they have often come out in support of the country, like mobilising huge funds after the Gujarat earthquake, surely their efforts need to be recognised. Perhaps the ministry of external affairs is listening.
Tell your friend about this topic