Exports hold the key

IN FOCUS/DIAMONDS

India is gearing up to be the major outsourcing centre for the diamond jewellery business in the United States.

Exports of diamond jewellery touched $850 million in 2003. Experts feel exports can grow sharply in the coming years if the backroom is put in order.

Indian manufacturers and retailers exploring international markets faced problems because of their unique way of doing business.

Overseas buyers were willing to do business only with companies that followed laid-down ethical and legal processes.

Several retail chains in the US have sought out Indian companies to supply diamond jewellery. Indo Argyle Diamond Council (IADC) for example has made progress in this direction.

Buyers like Zale Corporation with 2350 stores, Wal-Mart with 2900 stores, Sterling with 1000 stores, Carlyle & Co with 80 stores and Ben Bridge with 60 stores in US have been sounded out. Indian diamond jewellers have benefited from IADC's role in such exchange.

IADC was looking at Indian jewellery manufacturers capable of doing business in the US. This would push up market share of Indian diamond jewellery makers.

IADC has been encouraging US retailers to visit IADC members in India. This would help in product development.

IADC, sponsored by Rio Tinto Diamonds (RTD), has been working to make Indian diamond business internationally competitive through the business excellence model (BEM). Global management consultancy firm KPMG was helping with the related implementation, audits and certification process.

The Rio Tinto Diamonds BEM was structured around four areas - quality, environment, health and safety and social responsibility.

It offered voluntary management tools providing general requirements of a business management system and was designed to enable organisations manage business risks and improve performance.

Rio Tinto sources said the company was keen that concerns about product stewardship and business standards were understood and addressed down the diamond pipeline. The initiative would benefit Rio Tinto as well.

All the elements of BEM had to be incorporated into a diamond and jewellery business management system. RTD was the sales and marketing division for Rio Tinto group's rough diamond production.

Rio Tinto group was the owner of Argyle Diamonds in Australia, the world's largest diamond mine, and the majority owner and operator of the Diavik mine in Canada.