Diamond sector set to grow at 18% this year

The domestic diamond industry is estimated to grow at 18 per cent on sales of Rs 68,000 crore this calendar year compared with 19 per cent growth recorded last year, despite volatility in the prices of precious metals (gold and silver) having hit consumer turnout. The sector witnessed growth of 20 per cent in both 2003 and 2004.

"India is the only country in the world which is witnessing double-digit growth "� and that too in its first decade of existence," said Cherie Tandon Saldanha, managing director (India), Diamond Trading Company (DTC) "� sales and marketing arm of De Beers Group.

At present, India is the third largest emerging market "� only after the US and Japan. Developed markets, such as the US and Japan, despite being in existence for the last eight-nine decades, are still growing at a single-digit rate.

DTC, which is promoting diamond jewellery in the domestic market along with its 27 siteholders, has introduced a new concept "� 'gift a diamond' "� and launched Diamond Vivah Jewellery to attract marrying couples towards the precious stone.

"This is a new concept which will surely attract not only marrying couples but also people who wish to present a gift to a couple," Saldanha said.

To maintain the growth DTC is coming up with new concepts and innovative ideas. Its existing brands "� Nakshtra and Aritia "� are two of the established names in the domestic diamond jewellery segment.

The company is all set to launch a branded jewellery "� Forever Mark "� in the market. Dynamic design plays a big role in determining the price and in setting the trend of diamond jewellery and, in a bid to attract consumers, designers always strive for introducing designs based on new ideas and style in traditional, cultural and westerner patterns. New shapes, cuts and looks attract consumers towards diamond jewellery.

The segment could successfully lure consumers by offering buyback options. Depending upon their individual policy, diamond jewellery producers make 80-85 per cent buyback offers to consumers even after many years provided the jewellery in question is not damaged.

"If the jewellery is certified by the reputed institute, for instance, IGI in India, the consumer has 'peace of mind' on the quality and the pricing of the jewellery. Ultimately, the consumer wants no hara-kiri after his investment," Saldanha said.

DTC is looking forward to huge growth prospects in diamond jewellery from small towns as there has been a radical change in the mindset regarding "investmentsfor the future".

In small towns, the wedding jewellery segment, in particular, saw a phenomenal growth "� at about 74 per cent "� last year.

In addition to a display through 11,000 retail outlets, including 5,000 outlets of its siteholders, DTC's diamond jewellery is stocked by about 30,000 retail outlets in India.

Traditionally, white diamond is more demanding than the coloured gemstones. But, colour gemstones, which contribute 12-13 per cent of the entire diamond demand in the country, too are becoming favourite with consumers because of their price competitiveness.

On De Beers' investment plans for India, Saldanha said though the parent company spends $113 million a year for diamond mining, there are no separate funds allocated for India.

"We have identified sites like Chhattisgarh, Madhya Pradesh, Orissa and Andhra Pradesh where geology is favourable. But, it would take 7-10 years to see true diamond," she added.