'The Middle East will be the dominant market' Pankaj Diamond, established in 1992, has its offices in USA, Europe and Hong Kong, and a clientele based in Japan, UAE, Israel, China and the Middle East. Having an annual turnover of more than Rs 250 crore and over 2,000 employees, the company produces diamonds on an OEM basis at its manufacturing centre in Surat, to the quality specifications of its customers demand. Promoter Pankaj Bhadiyadra talks about his plans and issues facing the Indian diamond industry.
There is a slack in global demand for cut and polished diamonds. What are the prospects for the next one or two years?
Yes, there is a slack in the cut and polished diamonds market due to increase in rough prices, low demand in the international market and currency fluctuation. But we have to look at such factors positively, because it provides an opportunity for us to think in-depth and find out ways and means to reduce the processing cost and optimise the yield. Ups and downs in demand are a pattern of every business. One should not worry about them. Rather, we can find ways to overcome this through innovative ideas. For the next one or two years, I feel there will be demand for quality goods and those who do innovative things will not have any trouble.
What is the potential for export of Indian diamond studded jewellery?
As the purchasing pattern in the US has changed (the majority are investing in electronics and other items instead of diamonds), it will be difficult to rely solely on such a market. On the contrary, the Middle East market is emerging, and I think it will be the dominant player in the near future. Shopping fairs are organized there yearly and large numbers of people visit them, so there is good scope for companies who can identify their market segment for jewellery exports. Apart from this, I feel that there will be a trend towards online selling through portals, and companies which can establish themselves here can gain a lot from such virtual businesses.
How do you assess the scope for diamond studded jewellery in the domestic market?
The scope is good in India and that's why we have started our own jewellery company under the name Inspire Jewels Pvt Ltd. As India is a big hub for consumables and the purchasing power of the Indian people is increasing, I feel that there is a market. But one needs to identify it properly. I think diamond studded jewellery is a new-born baby in the Indian retail market, and it needs proper 'modelling' and a brainstorming among the major key players. As the mall culture is spreading in Indian metros and suburbs, there is a need to set up a proper retail network for diamond jewellery, so that it can reach the consumer at a minimal logistical cost.
What are the prospects of the branded jewellery sector?
There is very good scope for branded jewellery in the metros, as brand awareness among Indian yuppies is increasing. But in the rural areas I feel non-branded products will sell, as rural consumers rely on the people they trust, so one needs to establish a rapport with the local jeweller for channelizing products. There is a need to work out a business model for this. Where do you see your company three to five years from now?
We have big plans for the next five years. We are working according to the vision of Shri Naran Bhadiyadra. In the coming years, we are going to increase our global operations and are planning to have jewellery retail chains in the suburbs and metros through strategic tie-ups with super malls and virtual portals for our diamond studded jewellery. Apart from this we are planning to increase our customer base for cut and polished diamonds through our core competency of manufacturing on an OEM basis.
"Ups and downs in demand are a pattern of every business. One should not worry about them"
Pankaj Bhadiyadra
Promoter, Pankaj Diamond
