Mumbai diamond units focus on automation in volume push

The diamond manufacturing industry in Mumbai has moved away from the traditional manual cutting and polishing towards automation since last year to drive up volumes.

Industry sources said, all the 35 sight holders in the city have invested heavily in machines (for cutting, polishing). These stones are handled manually only at the stage of faceting.

According to Marzin Shroff, chief executive officer, Ishis, the jewellery arm of the Rs 1,000-crore Suashish Diamonds, "Besides finishing higher volumes of work, the wastage is considerably less. This is especially necessary, given the acute shortage of diamonds globally, and the ever-increasing demand." Suashish Diamonds has installed 65 laser machines.

Agreeing to the view, Mehul Choksi, chief executive officer, Gitanjali Group, said, the higher yield also prompted sight holders to add value and include as many as 30 brands in the jewellery segment in the last year alone.

Various machines for computer-aided planning and designing, bruting (a process to smoothen the stone) and shaping are being imported. These machines are either fully automatic, partially manual, or laser-based and cost anywhere between Rs 1 crore to Rs 3.5 crore.

The improved quality of diamonds, with machine processing and the possibility of customisation, has led to more export orders. "Exports have also increased as manufacturing in India works out cheaper," said Sanjay Kothari, convenor, promotion, marketing and business development, Gem and Jewellery Export Promotion Council (GJEPC).

In the April-July quarter of 2005-06, the gem and jewellery exports have gone up by 17 per cent, and in the last five years, the exports have been growing at a compounded rate of roughly 12 per cent. The Indian gem and jewellery industry contributes roughly 16-17 per cent to India's total exports.

The GJEPC has targeted exports worth $20 billion by 2007.