The International Gemological Institute (IGI) is the world’s premier lab for certifying diamonds and fine jewellery, besides training people in these skills. The Antwerp-headquartered institute has been operating in India for 12 years, playing a big role in transforming the diamond processing sector from a scattered, local-centric industry to a world-class cutter and polisher. Roland Lorie, CEO, talks to Dilip Kumar Jha. Edited excerpts:
How have investors’ overall perception changed towards diamonds?
Since the economic crisis in 2008, global investors have recognised investment in diamonds as one more avenue for high return. Diamonds have given at least 20-30 per cent return in the past two years, depending on what was purchased. Earlier, diamond prices used to be stable. Of late, some articles have doubled and tripled. America and Europe are still facing economic crisis but they’re still big buyers. Investors are today looking at diamonds as secured investment which can also be used. Prices have been rising for two years. At a certain point, they will have to stop going up but that will take time. Today, consumers follow diamonds in anticipation of a higher price tomorrow.
With Gitanjali Gems acquiring Giantti at a dirt-cheap price, do you see a consolidation in the sector?
The jewellery sector is certainly not doing well in Europe. European traders do not like much of purchase on credit like Americans do. Europe is facing a huge economic problem due to competition from Asian countries. Jewellery business in Europe needs drastic restructuring.
How comparable are consumers’ buying pattern in India with the rest of the world?
Indian consumers are price-sensitive. They think twice before investing in any renowned international brand if the same jewellery is available a little cheaper from a little less known domestic brand. In Europe and the US, consumers are ready to pay a 30-40 per cent premium for globally renowned brands.
What are the solutions for the skilled manpower shortage problem currently faced by the Indian diamond processing industry?
Do not retrench workers at a time of economic crisis. The Indian diamond processing industry retrenched 35-40 per cent of both skilled and unskilled workers, who opted for jobs in alternative industries such as textiles and embroidery. Many of them went to their home town and developed some income sources there. Hence, their return to diamond processing is difficult. Globally, we retain our skilled workforce for their use in future. India needs to adopt that practice.
What are IGI’s plans in India?
IGI started in India 12 years ago and trained 15,000 persons, including manufacturers. In major centres like Surat, IGI-trained people produce diamond pieces with high levels of perfection. We’re now switching to the level of jewellers. Our efforts are on to reach all parts of the country where processing activities take place. We have set up an office in almost all major processing centres across the country to provide technical as well as practical knowledge to labourers.
