Introduction:

DEFINITION OF DIAMOND:

“Diamond is a crystallize, mineral, essentially composed of carbon. The

word diamonds originally come from the Greek words ‘Adams’ which

means ‘unalterable’ and ‘unbreakable’”

History of Diamond

Diamonds are thought to have been first recognized and mined in India,

where significant alluvial deposits of the stone could be found many

centuries ago along the rivers Penner, Krishna and Godavari. Diamonds

have been known in India for at least 3,000 years but most likely 6,000

years.

Diamonds have been treasured as gemstones since their use as religious

icons in ancient India. Their usage in engraving tools also dates to

early human history. The popularity of diamonds has risen since the 19th

century because of increased supply, improved cutting and polishing

techniques, growth in the world economy, and innovative and successful

advertising campaigns.

In 1772, Antoine Lavoisier used a lens to concentrate the rays of the sun

on a diamond in an atmosphere of oxygen, and showed that the only

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product of the combustion was carbon dioxide, proving that diamond is

composed of carbon. Later in 1797, Smithson Tennant repeated and

expanded that experiment. By demonstrating that burning diamond and

graphite releases the same amount of gas he established the chemical

equivalence of these substances.

The most familiar use of diamonds today is as gemstones used

for adornment, a use which dates back into antiquity. The dispersion of

white light into spectral colors is the primary gemological characteristic of

gem diamonds. In the 20th century, experts in gemology have developed

methods of grading diamonds and other gemstones based on the

characteristics most important to their value as a gem. Four

characteristics, known informally as the four Cs, are now commonly used

as the basic descriptors of diamonds: these are carat, cut, color,

and clarity a large, flawless diamond is known as a paragon.

Diamonds are one of the world’s most precious natural resources. These

unique stones are almost as old as the Earth itself and have become

culturally, socially, economically, politically and even scientifically

significant. Figures from the World Diamond Council state that each year,

around US$13 billion of rough diamonds is mined (65% of which come

from Africa). The diamond value chain (from exploration, to mining,

processing and retail) employs over 10 million people around the world,

and jewellery sales alone (having grown three-fold in 25 years) are now in

excess of US$72 billion per annum.

The diamond industry has always existed in a state of pseudo

globalization. Over a thousand years ago, diamonds were mined in India,

before being cut and polished in Arabia and sold to European aristocracy.

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These are stones which have been adored for their rarity and beauty,

while being almost universally accepted as portable, untraceable and

efficient stores of value. The diamond ‘industry‘ (at least as we know

it today) began 1800′s, when an accidental find of diamonds in South

Africa kicked off a mining, exploration and trading boom that led to the

existence of one of the most successful and long-lasting cartel’s in

economic history- that being the small network of world diamond

producers.

The relative opacity and complexity of the diamond market has contributed

to a general lack of understanding of its dynamics when, in truth, the

modern form of globalization has introduced competition, transparency

and free-market behaviors to this industry.

Man began to collect diamond treasure them, built legends around them

trade in them as, use them as tools, them as gems, raise loan with them

fight over them, and eventually to give them as symbol of love and trust

his early instinct to treat diamond as unique was true, because today

probably more effect goes into research on any other material.

The desire for diamond because of its beauty of its scientific and industrial

uses has not diamond over the years but has become much more

widespread. A century ago, the possession of a diamond was the

prerogative of the rich alone since the discovery of huge deposit in Africa,

and more recently Diamond pipes in Russia, mining and marketing of

diamond has brought them within reach of large section of the population

of industrial countries, both as gems and as parts of working tools.

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Diamond can be broken with the blow of hammer yet will penetrate steel

by pressure. It is extremely durable, being able to withstand and attacks

the strongest acids and alkalis, yet is an unstable forms of carbon and will

burn or oxidizes on the surface it dropped in a fire for short times.

Hardness of a Diamond

Diamond is the hardest known natural material on the Mohs scale of

mineral hardness, where hardness is defined as resistance to scratching

and is graded between 1 (softest) and 10 (hardest). Diamond has a

hardness of 10 (hardest) on this scale. Diamond's hardness has been

known since antiquity, and is the source of its name.

Diamond hardness depends on its purity, crystalline perfection and

orientation: hardness is higher for flawless, pure crystals oriented to

the direction (along the longest diagonal of the cubic diamond

lattice). Therefore, whereas it might be possible to scratch some diamonds

with other materials, such as boron nitride, the hardest diamonds can only

be scratched by other diamonds and nanocrystalline diamond aggregates.

The hardness of diamond contributes to its suitability as a gemstone.

Because it can only be scratched by other diamonds, it maintains its polish

extremely well. Unlike many other gems, it is well-suited to daily wear

because of its resistance to scratching—perhaps contributing to its

popularity as the preferred gem in engagement or wedding rings, which

are often worn every day.

Identification

Diamonds can be identified by their high thermal conductivity. Their

high refractive index is also indicative, but other materials have similar

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refractivity. Diamonds cut glass, but this does not positively identify a

diamond because other materials, such as quartz, also lie above glass on

the Mohs scale and can also cut it. Diamonds can scratch other diamonds,

but this can result in damage to one or both stones. Hardness tests are

infrequently used in practical gemology because of their potentially

destructive nature. The extreme hardness and high value of diamond

means that gems are typically polished slowly using painstaking traditional

techniques and greater attention to detail than is the case with most other

gemstones

The Diamond Industry

The diamond industry consists of a segment that mines, processes and

markets gem diamonds and industrial diamonds.

Gem quality diamonds are mined primarily in Botswana, Russia, South

Africa, Angola, Namibia, Australia and the Democratic Republic of the

Congo. It takes an average of 250 tons of mined ore to produce

one carat of finished diamond.

The primary diamond processing centers, where they are evaluated, cut

and sold are in Antwerp; India, TelAviv and New York.

Unlike precious metals such as gold or platinum, gem diamonds do not

trade as a commodity: there is a substantial mark-up in the sale of

diamonds, and there is not a very active market for resale of diamonds.

One hallmark of the trade in gem-quality diamonds is its remarkable

concentration: wholesale trade and diamond cutting is limited to a few

locations.

92% of diamond pieces cut in 2003 were in Surat, Gujarat, India. Other

important centers of diamond cutting and trading are Antwerp, London,

New York, TelAviv, and Amsterdam.

More than 50% of the world’s production of rough, polished and industrial

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diamond passes through Antwerp.

8 in 10 of all rough diamonds in the world are handled in Antwerp.

1 in 2 of all cut diamonds passes through Antwerp.

The Antwerp diamond sector has an annual turnover of 39 billion U.S.

dollars. The diamond trade is responsible for 8% of Belgian exports, and

12% of the Flemish region’s exports.

30.000 people are directly or indirectly employed by the Belgian diamond

sector. The figures speak for themselves. Antwerp has created an

international commercial platform upon which producers, manufacturers

and traders from all over the world can meet.

Antwerp is the world’s diamond capital but there are other large centers

such as the Indian production hubs of Mumbai and Surat; Israel is a

complementary trade centre, mainly supplying North America. Dubai is the

regional distribution centre for the Middle East. New York is the primary

port of entry into the United States, and the largest market for diamonds in

the world.

Development in India

Indian diamond Industry is at the doorstep of expansion today. The Indian

government has legitimated the setting up of bonded warehouses in order

to enable diamonds to be brought into the country to be sold. The unsold

diamonds could be exported without any duty or tax. Government has

been creating the Export Promotion Zones (EPZ) and Special Economic

Zones (SEZ) in order to help and promote the export of gems and jewelry

from the country and is undoubtedly a new step for the betterment of the

industry.

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The Indian diamond industry has its origin in the villages, towns and cities

of Gujarat, where most of the processing facilities are installed; the

corporate operations of marketing and finance for all the diamond traders’

takes place from Mumbai, where all the major traders have their registered

offices. Majority of the diamantaires procure the rough diamonds from the

Diamond Trading Company which holds the maximum share of rough

diamonds in the world.

Market Capitalization

Indian Diamond Industry currently constitutes about 15% of Rs. 900 crores

approx. of the market and is growing at a rate of 40%, and this is

attributed to many factors such as higher disposable incomes, changing

outlook and attitude of the consumers, aggressive marketing and

promotional activities by the branded players.

Size of the industry

The diamond industry in India today is worth about Rs. 6000 crores and is

rated amongst the fastest growing diamond markets in the world. India

ranks third in the world in domestic diamond consumption behind only to

USA & Japan. The year 2004 had a 27% nationwide increase in diamond

sales. In the year 1994 the Branding of diamond jewellery started with Gili

from the house of Gitanjali Jewels and today the diamond jewellery market

has about 50 brands.

Total contribution to the economy/ sales

Today India exports about 90% of Diamonds to the US. In the year 2008-

09, during April-January 2008-09, the exports of cut and polished diamond

declined 2.85 % to $11.34 billion, in contrast to a 6.63 % growth to Rs

11,020 crore during the corresponding year.

Domestic and Export Share

Today Indian exports of diamonds increased and in turn it reflected greater

than before in the export of designed jewelry. The evident fact that the

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Indian jewelry designs have for centuries spell bounded everyone, from

the Indian maharajas to the monarchs of faraway lands. The Indian

diamond trades over 40% of De Beers’s exports to India, accounting for

nearly $400 million, are composed of Argyle roughs and more than half of

India's 5500 diamond manufacturers depend on this business for their

livelihood.

Top leading Companies

• Adora is the Diamond brand launched by a Mumbai based Jewelry

Corporation. The brand is themed on love and celebration of life

and is trusted by many celebrities like 'the Nightingale of India',

Lata Mangeshkar.

• Tanishq is one of the most popular diamond jewelry brands in India

and is known for its innovative designs. It is promoted by the TATA

group and launched in 1995 and boasts of 84 outlets in 61 cities.

Tanishq introduced the 'collections' strategy in Diamond jewelry.

• Kiah is another Diamond brand which is deemed stylish, light

weight and striking launched by Sheetal manufacturing company in

October 2004.

• Nirvana Diamonds were launched in 1987 by Fine Jewelry (I) Ltd.

Implementing the state of the art technology, the collection is

targeted at fashion conscious, modern and independent women.

• D'damas is one of the oldest diamond houses of India found in1966

and forming a part of the Gitanjali Digico Group.

Employment opportunities

The jobs of Gemologists or the Diamond cutter or the manufacturer

require high skills as it involves identifying and grading of diamonds,

precious and semi-precious stones and other related aspects. Due to the

increase in jewellery export there is demand for more and the national and

international companies in the field are setting up new centers in India and

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are recruiting trained professionals to keep the pace with growing

international market. A trained gemologist or Diamond jewelry designer

can find attractive jobs in India or a sparkling career abroad.

Latest developments

Today India is the largest diamond cutting and polishing center in the

world, it enjoys 60% value share for diamond cutting and polishing. 85%

volume share and 92% share of the world market in terms of number of

pieces. India has exported rough diamonds worth US$ 566 million in

2007-08 and polished diamonds of worth US$ 14.18 billion. Exports of Cut

and Polished diamonds from 14% of the total India's foreign exports. Total

gem & jewellery exports US$ 15.7 ban (2004-05) World’s largest diamond

cutting and processing center with estimated workforce - 800,000 skilled

craftsmen is India.

60% global market share by volume and 80% by volume, 94% of global

workers in diamond are Indians, 11 out of every 12 diamonds polished

pass through Indian hands.

50 banks provide US$ 3 ban credit Manufacturing and sales offices

worldwide diversified into jewellery manufacturing since 1990 the Diamond

Jewellery market inclusive of exports: Rs. 13,000 crores approx.

INDUSTRY PROFILE

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a) Diamond Industry at Global Level

Natural diamonds are among the world’s most precious natural resources.

In 2011, diamond miners, such as ALROSA, BHP Billiton, De Beers, Rio

Tinto and smaller companies, produced 124 million carats of rough

diamonds, valued at $15 billion. Once out of the ground, the rough stones

moved through the so-called diamond pipeline—a value chain that runs

from dealers to diamond cutters and polishers to jewelry manufacturers to

retail stores and finally to consumers. The value-added along the way is

impressive, as $15 billion in rough diamonds becomes $24 billion in

polished diamonds, which in turn goes into diamond jewelry with a

resulting retail value of $71 billion.

Global diamond report will be prepared by Bain & Company in association

with the Antwerp World Diamond Centre (AWDC).this report tells us that

what will be sales in future, investment in near future, growth & decline

about the diamond market at retail & global level.

• The rough-diamond market is expected to remain balanced from

2013 through 2017. From 2018 onward, as existing mines get

depleted and no major new deposits come online, supply is

expected to decline, falling behind expected demand growth that

will be driven by China, India and the US.

• Diamond jewelry retailers will be looking to capitalize on the

growing demand for diamonds. Their key challenge will be to

secure an adequate and consistent supply of polished diamonds in

the range of sizes, shapes and colors suited to their product lines.

A number of premium retailers have already integrated backwards

along the value chain by investing in mining assets and cutting and

polishing operations and securing access to primary rough supply.

This trend is expected to continue.

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• Retail sales of diamond jewelry grew 1.8% from 2011 through 2012

to $72.1 billion, but the upstream and middle-market segments of

the value chain came under pressure as overall prices for rough

and polished diamonds declined by 14% and 13%, respectively.

• The diamond market’s skyrocketing growth in the key developing

markets of China and India moderated in 2013 amid a wider

economic slowdown. Although Europe’s sales suffered because of

continuing economic uncertainty, diamond sales in the US and

Japan, the largest and third-largest diamond markets in the world,

respectively, rose on the strength of accelerating GDP growth and

seem poised for continued growth in 2013.

• The top producers defended their leadership positions. ALROSA,

the leader in production volume since 2009, turned out 34.4 million

carats in 2012, accounting for 27% of worldwide production. De

Beers remained the leader in value terms, posting $5.5 billion in

sales, but ALROSA and Harry Winston Diamond both increased

their shares of rough-diamond sales and is gradually gaining on De

Beers.

• China and India continue to power growth in diamond jewelry

production, with China surpassing India in production in 2011. Total

jewelry production hit $127 billion in 2012, of which some $47

billion was diamond jewelry. As China and India extended their

dominance of mass-market manufacturing, the traditional centers

of diamond jewelry manufacturing—Belgium, Israel and the US—

continued their strategic pivot toward the highest-quality end of the

market. The US and Belgian revenues from cutting and polishing

decreased in 2012, with Israel claiming some of those countries’

share of the premium segment.

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• Bain's proprietary forecasting tool projects that rough diamond

production will grow at an average annual rate of 4.8 percent from

2012 through 2018, reaching a peak level of 169 million carats and

a production value of $19.6 billion. Beginning in 2019, average

rough diamond production will decline by 1.9 percent annually,

leveling off at 153 million carats in 2023, with a production value of

$18.4 billion. Global demand for diamonds is expected to see

robust growth at a compound annual rate of 5.1 percent, reaching

$26 billion (using 2012 prices) in 2023--implying higher prices at

every stage of the value chain.

b) Diamond Industry at National level

India’s diamond industry, which is estimated to grow by an average 10 to

15 percent each year in the next five years, accounts for 70-75 percent of

total diamond exports in world and employs 850,000 people, making it the

largest cutting hub by value and number of employees. Last year, the

country’s import of rough diamonds rose 24.5 percent to 149.8 million

carats against a year earlier, and export of cut and polished diamonds

witnessed a surge of 28.3 percent to 59.9 million carat. The current market

is located at opera house and Prasad Chambers (Charni Road). The

majority of the people engaged in this trade belong to the Gujarati Jain

from Banaskantha and Kathiyawadi people from Saurashtra. The place

where diamond market is located is declared as non-veg free zone.

The Indian diamond cutting centers are concentrated in Bombay and

Surat, a small town about five hours away from Bombay. Small boys,

sometimes as young as 10 years old, work in hot sheds chiseling roughs

which eventually get sold in the fancy shops on Fifth Avenue and Bond

Street. Their nimble fingers and sharp eyes enable them to cut these

diamonds in remarkable shapes, but while they earn well for these skills

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many of them find their eyesight getting progressively weaker as they

grow older.

But India has a large labor force and this has made the country the

biggest diamond cutting center for small roughs. Indeed, were it not for

Indian workers, many of these small diamonds would be put to industrial

use rather than jewelry. The Indian diamond trade generates over 4 billion

dollars in exports every year -- this represents an almost 25 percent value

addition to the imports of roughs.

The trade itself is controlled by a handful of companies and families, most

of who hail from the small town of Gujarat. Many of them are fabulously

rich and divide their time between India, Belgium, Israel and other western

countries.

Indian Diamond Institute Established in 1978, IDI the most coveted

institute in the field of diamonds, gems & jeweler in India is a state-of-art

school of learning, everything within the campus, under one roof.

Recognizing the Indian Diamond Industry as a major source of

employment in a priority sector like export production with scope for

substantial value - addition for the country, the establishment of the Indian

Diamond Institute was conceptualized and later put into effect.

The IDI is a Society registered under Societies Registration Act, 1860 and

also under the Bombay Public Trust Act, 1950. The IDI is ISO 9001:2008

certified for Design Development and provision of Training, Consultancy &

Certification Services related to Diamonds, Colored Stones & Jeweler. I.e.

March 01, 2010 vide Certificate No. 44254 issued by M/s. ABS Quality

Evaluations, Inc.

India has substantial reserves of gold, diamond, ruby and other

gemstones. The gems and jeweler sector has been playing a very

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important role in the Indian economy and contributes about six–seven per

cent to the country's gross domestic product (GDP), apart from large scale

employment generations and foreign exchange earnings (FEE). Sensing

its immense potential, the Government of India has declared the sector as

a thrust area for export promotion. In FY 2013–14, the Indian gems and

jeweler sector contributed US$ 34,746.90 million to India's FEE.

The two primary segments of the sector in India are gold jeweler and

diamonds. India is the world’s largest consumer of gold, accounting for

over 20 per cent of the global gold consumption. The country is also the

world’s largest cutting and polishing centre for diamonds, with the cutting

and polishing industry being well supported by government policies. India

exports 95 per cent of the world’s diamonds, as per statistics from the

Gems and Jeweler Export promotion Council (GJEPC). The industry is

projected to generate up to US$ 35 billion of revenue from exports by

2015.

c) Diamond industry at state level

Diamonds have indeed been forever for a large number of people in

Gujarat, as about 80% of the diamond cutting and polishing industry of

India is carried out in Gujarat. Surat is often known as the “diamond city of

India”. Raw diamonds are imported from abroad and 75–80% of the cut

and polished diamonds are exported, mainly to Europe and North

America. Much of the diamond trade is controlled by a handful of wealthy

families. A workforce of more than 8, 00,000 (8 lakhs) people cut and

polish diamonds in a hodgepodge of ‘cottage industry’ style sweatshops

and cutting houses. The average cutting-house employs 50 to 200

workers. Over 12% of the value of India’s commodity exports is

contributed by diamonds alone.

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Around the world, 8 out of 10 diamonds on the market were cut and

polished in Surat. This industry earns India about 10 billion USD in annual

exports. A legacy of Old Dutch trade links, it began after a Surti

entrepreneur returned from East Africa bringing diamond cutters. The

rough diamonds themselves, however, come to Surat as rough crystals

ripped out mainly from deep under the earth of South Africa and other

regions of the continent, and go from here as smooth gems to Antwerp,

Belgium where the international diamond trade is run mainly by Hasidic

Jews and Jains from Palanpur in North Gujarat.

Since 100s of years - Surat (Gujarat) is in to diamond cutting & diamond

polishing business. Some of the other cities in Gujarat where Diamond

cutting industry has grown are – Bhavnagar, Navasari, and Ahmadabad.

Due to large population of low cost & hard working work force, Surat has

rapidly turned in to one of the biggest diamond cutting hub in the whole

world. Surat is known as “Diamond city of India“.

Bhavnagar is known for manufacturing the smallest stones, with final

polished sizes of between 0.005 cents to 0.020 cents.

d) PESTEL ANALYSIS

PESTEL is a mnemonic which in its expanded form denotes P for Political,

E for Economic, S for Social, T for Technological, L for Legal and E for

Environmental. It gives a bird’s eye view of the whole environment from

many different angles that one wants to check and keep a track of while

contemplating on a certain idea/plan. The macro environment includes all

relevant focus outside a company’s boundaries relevant in the sense that

they are important enough to have brought on the decision. An industry

ultimately makes about its business model and strategy.

Political Factor

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The Government of India (GoI) has been working to develop the Diamond

industry in India through several initiatives but under the purview of

Diamond industry. The main political factors are as follows.

Excise duty: In the budget of year 2008-09 government reduce excise duty

from 10% to 5% on cut and polished diamond units.

Marketing and control orders: Import of rough diamonds controlled by the

Jewellry export Promotion Councils .The Council provides market

information to its members regarding foreign trade inquiries, trade and

tariff regulations, rates of import duties, and information about Diamond

fairs and exhibitions.

FDI approval: India is now the third most favored destination for Foreign

Direct Investment (FDI); Government of India may permits 49% of FDI in

the Diamond industry. FDI of $ 2 billion are invested in terms of working

capital in the industry.

Government policies and taxation: It has made the import of polished

diamonds completely duty free. To reduce the transaction cost for the

diamond sector, testing facility at International Diamond Laboratory (IDL),

Dubai, has been incorporated in the list of laboratory/certifying agencies.

Replenishment Licenses: The exporters of gem and Diamond products

are entitled for REP license as per rates indicated in the Handbook of

Procedures. Such licenses are transferable.

Diamond Imprest License: Diamond Imprest Licenses are issued in

advance for import of rough diamonds and for export of cut and

polished diamonds. These licenses or the materials imported

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against them may be freely transferred after the export obligation

has been fulfilled.

Bulk Licenses for Rough Diamonds: Bulk licenses for rough diamonds

are allowed to any exporter whose annual average f.o.b. value

of exports of cut and polished diamonds during the preceding

three licensing years was not less than Rs.75crores and iv) any

overseas Company with its branch office in India whose annual

turnover in diamond during the preceding three licensing years is

not less than Rs.150 crores.

•Import of raw material (rough diamonds) is highly affected by war

and global market conditions.

•Fund contribution: As per current scenario to ease the liquidity

problem in diamond industry the task force constituted by

RBI.Task Force may propose asking banks to finance diamond

manufacturers especially small and medium ones against their

stock of polished diamonds.

Economical Factor

Per capita consumption power of customers may highly affect

diamond jewelry purchase. India`s per capita income is likely to

grow more than double over the last seven years, to Rs38,084 in

the current fiscal, reflecting improvement in the living standards of

the average Indian. Per capita income, according to the advance

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estimates for national income is expected to grow by14% during

the current fiscal.

However, after discounting for inflation, per capita income

is expected to rise to Rs 25,661 representing an increase of 5.6%.

National income: As & when the national income of the people of any

country increase it will indirectly leads to more investment in diamond

jewelry or ornaments.

Custom Act: In the Union Budget, custom duty on cut & polished

diamonds was reduced to 3% from 5%. The Council had made several

representations to Government on the exemption of custom duty on cut &

polished diamonds.

Social Factor:

The main social factors of the organization, which are deals as the

business organization are as follows:

Emergence of retail organization makes people aware about

diamond as a luxury product or an investment option.

Emergence of substitute: Diamond is preferred by consumers with

increase in the price gold.

Changing consumer preferences: with the increase in standard of

living consumer preference change from gold Diamond

to diamond, it’s also considered for status symbol.

Technological factors

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The main technological Factors are as follows.

As diamond industry try to moving up in to the value chain they

are focusing more on they use high end equipments.

Technology solutions are also available for production control, sup

ply chain and inventory management in the Diamond industry. The

Special Economic Zones and Diamond Parks developed in

various states offer technology-enabled environments that are

conductive to growth and quality production.

Environment Factors

This section draws on literature relating to the general

environmental impacts associated with ASM and related

processing activities, and where available specific information

relating to the production of gemstones. In relation to

environmental impacts of ASM and gemstone ASM in particular,

the situation in each country varies according to the type of

gemstones being exploited, the social and natural environment of

the area and cultural and organizational aspects of the mining

operation itself.

River Dredging Due to the unique geological nature of gemstone

deposits, where by mineralization is localized in

small pockets, processing of mined gemstones differs from one

gem to another. Generally, however, the processing of gemstones

that occur as distinct crystals consists of hand sorting with the aid

of the visual characteristics of the gems (fluorescence, shine, and

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colour). Typically, no equipment is used in this process. Normally,

such pieces recovered during hand-sorting in the pits and

trenches still need

Legal Factors

Trade Facilitator: The Council undertakes direct promotional

activities like organizing joint participation in international

Diamond shows, sending and hosting trade delegations.

Advisory Role: A crucial area of activity of the Council has also

been aiding better interaction and understanding between the

trade and the government.

Nodal Agency for Kimberly Process Certification Scheme: GJEPC

has been appointed as the Nodal Agency in India under the

Kimberly Process Certification Scheme.

Training and Research: The Gems & Diamond Export Promotion

Council runs a number of institutions that provide regular

and part-time training in all aspects of manufacture and design in

Mumbai, Delhi, Surat and Jaipur.

Boosting Exports:

Among the promotional activities GJEPC undertakes for the secto

r is the organizing of joint participation of member - exporters in

some important international exhibition sand puts up promotional

stalls in others.

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e) Current Trends in diamond industry

Fashion world is ready to adopt the new diamond jewellery and style

trends. Excitement is building up with surprising new diamonds, material

and color combination etc. Introduction of trendy diamonds and designs

and shiny metals on one hand and revival of classic diamond pendants,

earrings and rings on the other hand are going to sweep the women off

their feet. Geometric shapes in jewellery and natural and tribal look is

going to make an entrance again.

Diamond Brooches:

Whether twisted up in your hair, anchoring the bust line of a favorite frock

or adding a bit of glitter to any jacket from denim to cashmere, diamond

brooches are super-chic this year. From high-couture runways to Saturday

at the flea market, these posh pins are making a big comeback, especially

worn in innovative ways. Secure a scarf, adorn a beret or add a bit of

sparkle near your hemline. Whether big and flashy or tiny and sweet, a

diamond brooch is a perfect mix of modern and antique, with designs

running the gamut from classic diamond and pearl combinations to quirky

little animals and insects.

Colored Diamonds:

truly unique and beautiful, colored diamonds are a fun and lovely trend.

Pretty pink diamonds are the ultimate in gemstone femininity, while sunny

canary yellow stones are currently all the rage. For women who want to

make a bold statement using warm, earth tone colors, richly hued

chocolate and champagne diamonds are a perfect choice.

Myriad Metals:

not only are metal choices becoming more extensive; it’s now on-trend to

mix golds and other metals in diamond pieces. A dazzling and dynamic

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complement to the clear white glitter of diamonds, silvery-white platinum

continues to rule the market while the continuing growth of vintage-

inspired diamond jewelry is bringing back rose and yellow gold in a big

way.

Fanciful Flowers and Magical Moons:

From sweet buds to lush blossoms, flowers are ultra-hot among today’s

diamond jewelry customers. Bejeweled insects, yellow diamond roses,

glittery butterfly wings and lucky four-leafed clovers are among the

whimsical nature-inspired designs of some of the newest diamond

designs. You can give your beloved the moon and the stars with this

year’s dazzling celestial pieces. Bracelets, necklaces and earrings with

astrological signs, moons and stars are skyrocketing in popularity and

make wonderful gifts for special occasions.

Vintage Inspired Pieces:

Diamond jewelry inspired by the unmistakable designs of the Victorian,

Edwardian and art deco eras have always enjoyed a faithful following, and

this year is no exception. Look for pieces featuring the intricate scrollwork

and architectural designs of art deco jewelry or the floral romance of

Victorian style necklaces, bracelets and rings. Perhaps inspired by the

marriage of Prince William and Princess Kate, diamond jewelry is seeing

resurgence in royal forms of jewelry design, including multi-layered rings

in intricate patterns and rings with one large stone surrounded by many

smaller ones.

f) Major players:

Following are the top 5 Diamond companies in the world:

1) De Beers: The 125-year-old diamond institution

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2) ALROSA: The Russian rival to De Beers

3) Rio Tinto Diamonds: A multinational mine-to-market company operating

in five continents

4) Debswana Diamond Company Ltd.: A mining company from Botswana

5) Dominion Diamond Corporation: Operating from Toronto.

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Company profile

a) Company profile

Laxmi’s business operations span the world of diamonds from rough to retail. Laxmi Diamond is the flagship company of the Laxmi Diamond Group. Headquartered in Mumbai, affiliate offices are located around the world, including the United States, Belgium, Hong Kong and China.

Mr. Vasant Gajera, the driving force behind the group, laid the foundation of Laxmi Diamond back in 1972, Since then, the company has experienced rapid growth and today maintains 18 offices throughout the world. Since 1995, Laxmi Diamond has been a Sightholder of the Diamond Trading Company (DTC), the distribution arm of the De Beers Group.

Laxmi is one of the major manufacturers and distributors of polished diamonds and supplies loose polished diamonds to the jewellery trade globally. The manufacturing facilities in Surat and Amreli in Gujarat are equipped with the latest high-tech machinery. The company’s continued emphasis on state-of-the-art factories, highly skilled personnel operating the very latest technology and implementation of quality control systems has resulted in efficient production. These high standards have been intrinsic to achieving the quality reputation now expected of Laxmi the world over.

Laxmi also has a considerable jewellery business, maintaining jewellery manufacturing facilities in Mumbai and Surat. With total manufacturing capacity exceeding 100,000 square feet equipped with the latest state-of-the-art machinery and operated by highly skilled professionals, Laxmi is able to produce fine jewellery of exceptional quality and international appeal. From rough to polished, to jewellery and even branded jewellery, and now to jewellery with branded diamonds.

The success of Laxmi Diamond can be attributed to our customer-centric philosophy, the quality standards we maintain, the meticulous manufacturing skills of our employees and fair trading practices which we actualize throughout the world. This in combination with our core family values ensures a loyal customer base all over the globe.

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A twelve year boy named Vasant Haribhai Gajera whose education was till

5th in Gujarati medium left his home town of Amreli in the year 1968 and

came in Surat to learn the trade cutting and polishing diamonds.

In 1972 with a loan of Rs10000/- from his father, Vasantbhai started on

his own to cut and polish diamonds on 2 scaifes on a very small scale. He

had come to Surat with his elder brother Dhirubhai and 2 younger brothers

Girdharbhai and Chunnibhai to make. They learn the intricacies of

diamond cutting and polishing. The tough Journey which began in 1972

with 2 scaifes has now culminated in over 2000 scaifes.

Driven by his desire to shine, Vasantbhai has steered the company from

strength to strength and Laxmi Diamond today have emerged as one of

the most dynamic diamond and jewellery companies in the world.

Vasantbhai attributes this resounding success to the strength of his people

--family, business associates and above all the dedicated workforce,

without which the success of Laxmi Diamond would have been just

another dream!

In Surat unit mainly deals in manufacturing and is synonymous to quality

and precision. Equipped with the most modern technology and amenities,

and advanced machines they manufacture various cuts like Rose Cut,

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Gabriel Cut, Princess, etc. and the same is exported to USA, Europe,

Australia, Hong Kong, Bangkok, Middle East and Far East. Chunnibhai

Gajera, Managing Director, a man with firm conviction and ability to

Deliver, manages the entire operation in Surat. In the year 1989, 1st

Overseas Company – Komal Gems NV was established in Belgium.Mr.

Girdharbhai Gajera is managing the purchase and sales of Rough

Diamonds. Now there are 12 companies under the wings of the Parent

Company, in Belgium, USA, Hong Kong, and Thailand, China, Dubai.

In the Mumbai Office Distribution is handled by Mr. Ashokbhai Gajera.The

business of loose polished has been flourishing under his dynamic

leadership and Customer management skills. Our team interfaces with our

foreign Clients and provides service in tune with their expectations. Our

product ranges from the smallest to the largest and in all cuts and shapes.

ROUGH / POLISHED /JEWELLERYROUGH / POLISHED /JEWELLERY is but a logical extension and

Vasantbhai ventured into diamond studded jewellery by starting a

jewellery manufacturing unit at SEEPZ, Mumbai in 1996. With a turnover

of just $1 million in the first year, Laxmi Jewel is all set to deliver $30

million within the span of less than a decade. From unbranded jewellery,

to brand jewellery is but a step, and the CYGNUS brand of jewellery was

launched in mid-2003 in India. In the US, the NOOR brand of jewellery

was launched in September 2004. Another high -end retailer brand –

LUCCA was launched in late 2004.

Today the Laxmi Diamond group has 12 Manufacturing units across the

globe:

• Six diamond cutting & polishing factories in Gujarat, India.

• Three Jewellery Manufacturing units in India

• Laxmi Jewel Pvt. Ltd. – 43,000 sq. ft. in SEEPZ at Andheri,Mumbai

• Shree Laxmi Info solutions & Jewellery Ltd., SEEPZ, Andheri,

Mumbai

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• Laxmi Diamond Jewel Pvt. Ltd. – 20,000 sq. ft. in Kandivili, Mumbai

Three Jewellery Manufacturing units overseas:

• Laxmi Diamond Jewels (Thailand) Co. Ltd. in Bangkok, Thailand

• IJM in Chiang Mai, Thailand.

• Siberia Brothers, New York, USA.

Apart from this the group also has a global presence with several

offices & group.

THE “FOUNDATION STONES”

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Information about company

Name Of The Company : - LAXMI DIAMOND PVT LTD.

Address of Unit : - New A.K.Road, VARRACHA ,

Surat- 395008.

Email : - Laxmisurat@hotmail.com

Website : - www.laxmidiamond.com

Telephone : - (0261) 2542021, 2542185

Chairman : - Mr. Vasantbhai Gajera

MD Mr. Chunnibhai Gajera

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Mr.Vasant Gajera - Chairman

Girdharbhai:

Rough Purchases Belgium Based

Chunibhai:

ManufacturingSurat Based

Ashokbhai:

Polished Sales Mumbai Based

Bakulbhai:

US Operations New York Based

CA Mr. Rameshbhai Rajani

CEO Mr. Lalitbhai Gajera

Hospital Department Mr. Punabhai Gajera

Subsidiary Company’s:-

Laxmi Diamond Pvt Ltd- Surat

Laxmi Vidhyapith – Surat

Gajera Vidhyabhavan – Surat

Smt. Shantaben Haribhai Gajera Shaikshik Sankul –

Amreli

Vatsalya Dham

COMPANY MILESTON

1972 – Laxmi Diamond founded by Vasant Gajera. Primary business: Cutting contractor

1978 – First major factory opened in Amreli

1982 – Establishment of First Polishing Unit in Surat

1984 – Opening of the Mumbai Office at Opera House

1989 – Komal Gems NV established in Antwerp, Belgium by Girdharbhai Gajera

1989 – 2nd overseas office opened – Mili Star, Bangkok, THAILAND

1990 – 3rd overseas office opened – Komal Gems, HONG KONG

1993– 4th overseas office opened – Milistar NY Inc., NEW YORK, U S A

1994 – Flagship Factory opened at Surat employing over 2500 workers

1995 – Appointed Sight holder by DTC

1996 – First Jewellery factory established at SEEPZ in Andheri, Mumbai

1998 – First school opened by Gajera Charitable Trust in Amreli

1999 – Second school opened by Gajera Charitable Trust in Surat

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1999 to 2006 – Laxmi awarded by The Gem and Jewellery Export

Promotion Council of India.

Wins a GJEPC award for 8 consecutive years

2001 – Mili Star opens office in Los Angeles, U. S. A.

2001 to 2003 – Milistar NY Inc. receives “2nd biggest US importer from India” award For 3 consecutive years

2003 – CYGNUS Branded Jewellery Launched in India in July

2003 – First CYGNUS Showroom opened in Lokhandwala, Mumbai

2004 – NOOR Branded Jewellery launched in the U S

• LUCCA, a retailer brand of Jewellery launched in the US

• GABRIELLE, a branded diamond launched in the US

• J V with Suberi Brothers, a leading Jewellery distributor in the US

• J V with C&C Manufacturing a leading Jewellery distributor in the

US

• J V with Sumrit Marsorn (reputed Jewellery manufacturer) in

Thailand

2005 – Shree Laxmi Info solutions & Jewellery Ltd., a second Jewellery unit, set up in SEEPZ, Andheri, Mumbai

• New Training Consultant – Sir Gabi Tolkowsky

• Laxmi Diamond (HK) Ltd. receives “Largest Importer from

India” Award from the GJEPC

• Delivered a Corporate order of 117,000 pendants from

Whirlpool.

• Opened sales office in Dubai, UAE

• Opened sales office in Sydney, Australia

• Vatsalya Dham, a unique project set up for unwanted

destitute children

2006 – Jewellery with branded diamond GABRIELLE launched in India

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– Best design for daily wear awarded to CYGNUS at the IIJS

2006 – Jewellery with branded diamond GABRIELLE launched in China

• Award for export of polished diamonds by GJEPC in the Non- DTC

category -1992.

• LAXMI DIAMOND becomes 100% EOU.

• DTC sight holder-1995.

• Award for largest exporter of diamond of GJEPC DTC category

1999 & 2000.

• Award for second largest exporter of polished diamond from India

1999 & 2000.

• Award from the FIIE for highest growth in exports given by the

president of India -2000.

• Award for second largest exporter of polished diamond from India

-2001.

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