Diamond

• Submitted By:-
• Ravi bhadauria( I,C,ON)
• Ajay bansal (In S)
• Sourabh agarwal (SWOT)
• Manish tuli (P,O)
• Rohan Miglani (Int. T)
 Introduction
• Its first reported use as a simple engraving tool around 400 BC
• Four Cs’ of the diamond are cut, clarity, carat and colors
• Industrial diamonds affect all our lives:
in the home,
the car and
the office.
manufacturing and construction,
medical applications and
even in space
kitchen furniture to electric light bulbs;
granite and ceramic tiles to silicon chips;
aluminium alloy wheels to medical scalpels;
car windows to face cream;
space probes to oil and gas drilling.

The list goes on and on……………..

 Classification:
Gems & Jewellery Sector
1. Polished Diamonds: Over 83 per cent of India's Gems & Jewellery cut and
polished diamonds account for exports. Jaipur and Surat are famous as
world class polishing and designing centers.
2. Gem Stones: There is a huge demand for these gemstones especially of
Sapphire, Emerald and Ruby. India's exports of gems have crossed 50,00,000
carats this year.
3. Gold and Jewellery: India is the country that is the largest consumer of gold
in the world, In the year 2007 gold consumption in India was 850 tons 33%
up from the last year.
4. Synthetic Stones: Synthetic diamond is diamond produced
through chemical or physical processes in a laboratory.
Like naturally occurring diamond it is composed of a three-
dimensional carbon crystal.
 Indian Trade Scenario
• Today India occupies the number one position in importing,
processing and exporting diamonds
• Approx. 7 out of every 10 diamonds set in jewellery
worldwide are from India
• Gems and jewellery exports from India were
Rs. 2 crore in 1960-61
Rs. 22 crore in 1966-67
Rs. 45 crore in 1970-71
Rs. 25,790 crore in 1998-99
• India's contribution in diamond market is about 55% in terms of value
• 80/0 in terms of quantity and
• 90/0 in terms of numbers of diamond for cutting and polishing in the total
world.
• about 3.5 lacs jewellery workers are employed and 1 lac, jewellery units are
functioning and 3,000 jewellery units are established with latest, machineries
and technologies
• In India, diamond is export-oriented and import-dependent industry.
• Export based demand comprises of larger share with 80-90% as compared to
domestic demand in the range of 10-20%
• Domestic market size is USD 2237.79 million and export stood
USD 21200.08 million
Export Scenario
Import Scenario
 Gems and Jewellery Industry
• Gems and Jewellery Industry
Q2 FY 2008-09 Q3 FY 2008-09 Growth rate
• Parameters Rs. Crore in %
• Net Sales 4256.93 1796.60 -57.80
• Net Profit 90.88 33.44 -63.21
• Interest cost 54.93 54.03 -1.63
• Raw material Cost 3868.53 1627.61 -57.93
• Wage Cost 17.06 23.41 37.21
Major Players in Indian industry

 Vaibhav Gems Ltd.

 Classic Diamond (India) Ltd.

 Shrenuj & Company Ltd.

 Goldiam international Ltd.

 Su-raj Diamonds & Jewellery Ltd.

 Rajesh Exports Pvt. Ltd

 Gitanjali Gems Ltd

Diamond
Mines in
INDIA
INDUSTRIES CONTRIBUTING
TO INDIAN ECONOMY

13% Textile
Industries

7.5% IT
INDUSTRIES
8% Diamond
Industries

7% Steel
Industries

64.5%
Others
 International trade scenario of
diamond
•Approximately 130 million carats (26,000 kg) of diamonds are
mined annually, with a total value of nearly US$9 billion, and
about 100,000 kg are synthesized annually

•Roughly 49% of diamonds originate from central and southern

Africa
 Estimated production levels for countries mining at least one
Graph showing the production history of selected gem-quality
million carats of gem-quality diamonds during calendar year
diamond producing countries. Graph by Geology.com. Data
2008. Graph by Geology.com. Data from USGS Mineral
from USGS Mineral Commodity Summaries.
Commodity Summaries.
Key Players and Their Market Share
 The Diamond Business
• 60% of all diamond production is in the hands of De Beers, a company
originating from South Africa
• The company regulates the prices of the diamonds for example by selling
diamond for few sightholders, the prices are completely artificial
• Secretive nature of the diamond business
• – Traditional reasons
• – Security reasons
• – Control over the market
-> no questioning the origins of the diamonds
-> Many kind of partness and the changing the side
when useful for the business
-> This has been succesful because the company
has avoided publicity
Cont…..
• 60% of all gem diamonds are mined in Africa
• From the 1950's to mid-1980's the change in
• diamond business: from open business to
• secrecy
• Reasons for this: increased chaos and corruption
• in diamond producing countries
• Today 20% of all diamond trade is marked by
• corruption, theft, smuggling, money laundering
• etc. and many wars are financed by diamond
• trade
 Reasons for the high level of
illicitness
Opportunity Motivation
– The value
– Portability – Tax evasion
– Accessibility of diamonds – Money laundering (a
– Inherent secrecy of the tempting alternative to
diamond trade hard currency, that is often
– Lack of government control in short supply in Africa)
– Hardly any reliable – Organized crime
checking up of the – Drug money
movement of the diamonds – Conflict diamonds
on national or international
level
– Little detection
– Few penalties
 Estimated Diamond Production
Country 2007 2008
Botswana 25,000 25,000
Russia 23,300 23,300
Australia 231 230
Canada 18,000 18,000
South Africa 6,100 6,100
Congo 5,400 5,400
Angola 8,700 10,000
Namibia 2,200 2,200
Ghana 720 720
Brazil 300 200
Cent. African Rep. 370 470
Guinea 815 1,100
Sierra Leone 360 600
China 100 100
Tanzania 230 230
Guyana 350 350
Cote d'Ivoire 210 210

The values above are estimated gem- quality diamond production per calendar year in thousands of carats. Data from USGS Mineral Commodity
Summaries.
 Global Diamond Exports
Exporter 1985 1990 1995 2000 2002 2003
Belgium -Lux 3,403,628 7,696,802 11,489,341 13,683,294 14,125,201 12,229,589
Israel 1,514,118 3,550,482 5,936,447 10,199,426 10,828,803 11,862,248
India 1,206,010 2,697,328 4,620,240 6,618,259 7,829,442 8,791,322
UK 1,710,982 3,593,404 4,896,441 7,018,868 7,103,526 8,054,694
Hong Kong 180,229 794,099 1,009,917 2,028,749 2,539,449 2,776,473
South Africa 392,406 747,107 2,326,945 4,749,774 2,178,822 2,113,209
Untd Arab Em 10,314 33,892 9,083 287,792 1,039,129 1,705,987
Canada 22,429 49,597 36,594 416,593 633,396 1,274,054
China 7,356 79,842 112,496 532,888 734,065 881,167
Congo 13,090 121,363 448,867 104,968 1,010,775 601,855
Switzerland 1,114,382 2,529,556 1,853,148 1,180,022 587,590 552,174
Thailand 23,940 305,244 717,023 348,873 465,774 489,217
Angola 203   161,849 633,265 494,743 277,218
Singapore 15,034 57,349 108,611 195,175 195,798 165,774
Australia 19,580 85,534 45,560 51,541 56,724 81,263
France 51,900 113,265 96,441 131,548 166,063 76,319
Germany 63,885 130,347 135,837 109,703 80,374 74,636
Total Market 11,195,804 27,335,260 40,101,564 54,012,336 55,755,540 58,531,384
 Role of International Bodies (UN,WTO)
• To consider the many aspects of improving the legal diamond
trade and eliminating the issues that conflict
• Increasing control of the diamond trade
1. by the prevention of rebel factions
2. maintaining the authenticity
3. creating a certification system of exported and
imported diamonds like Kimberly certification scheme etc.
 The Kimberley Process
• An international certification scheme for rough diamonds
Between 2000-2002 negotiations between governments,
the international diamond industry and civil society organizations
• Open to all countries that are willing and able to implement its
requirements
• KPCS document sets out the requirements for controlling rough
diamond production and trade
• Entered into force in 2003
• System of warranties
• Sept. 2007 48 members, representing 74 countries
account approximately 99,8% of the global production
of rough diamonds
 The Kimberley Process:
Monitoring
• "The key to the whole process is monitoring"
• Some disagreement on the requirements very hesitant
wording Quarterly trade statistics and semi-annual
production statistics
• Membership criteria tightened in 2003
• Countries can also be removed from membership
• Governments been reluctant to move further on monitoring:
• cost, commercial confidentiality, national sovereignty
 Indian Government Policies

•Multiple diamond bourses .

•Import of cut and polished diamonds on grading and

certification.
•Increasing value limits on personal carriage

•Duty draw back policy

• Import duty has been reduced from 5% to Nil on rough

diamonds

•  import rough diamonds, pearl, precious & semi-precious

stones without payment of duty against various licenses e.g.

Diamond Imprest license, Bulk license, Gem Rep Licenses

• Removal of export obligation in the new Exim Poilcy, and

promote export promotion schemes

 Indian Diamond Institute
INSTITUTIONS
IDI established in 1978
It is the most coveted institute
It is ISO 9001 :2000 certified for design , development and provision
of training, consultancy and certification services related to diamonds.
It is registered under societies registrationact,1860 and under Bombay
public trust act,1950

Industrial Diamond Association of India

It is established in July 1972
They manufactures tools used in diamond industry
To follow common platforms for fellow
manufacturers to interact
 Gemological Institute of India
• Established in the year 1971
• It is the first non profit research and educational organization.
• Main objective is to promote, propagate and development of
science of gems stones and research studies in India
 Gems and Jewelry Export Promotion
Council (GJEPC)
• 17.12.07,first meeting was held between india and china

• It aims to maintain their status as the world's leading polishing

centers and jewelry manufacturers.

• Also, India estimates that by 2015 the Indian and Chinese

markets will together equal the American market (in dollar
terms)
 Gem and jewellery complex within
SEEPZ
• Initially it was founded for the world trade for
electronics
• In 1986-87 govt. decided to introduce gems and
jewellery complex for 100% export
• At present 51 units operations are in progress
• Today more than 50 % of gems and jewellery sector
includes SEEPZ exports
International Gemological Institute
• Established in 1975
• Is a diamond, colored stone and jewelry certification
organization.
• GI is headquartered in Antwerp.
• GI provides its services to the public through diamond dealers,
and jewelry manufactures.
• IGI provides independent grading reports, colored stone
reports, identification and appraisal reports, diamond
authentication and attestations of origin, and
laser inscription services. 
 World Federation of Diamond Bourses
• founded in 1947
• was created to provide bourses trading in rough and
polished diamonds and precious stones with a common set of trading
practices
• It is composed of 29 member diamond bourses:
1. Antwerpsche Diamantkring CVBA (Netherlands)
2. Bangkok Diamonds and Precious Stones Exchange
3. Beurs voor Diamanthandel CVBA (Netherlands)
4. Bharat Diamond Bourse (India)
5. Borsa Diamanti D'Italia (Italy)
6. Diamant- und Edelsteinbörse E.V.
7. Diamant-Club Wien (Germany)
And more………..
 World Diamond Council
• The World Diamond Council is an organization consisting of representatives
from diamond manufacturing and diamond trading companies.

• The Council was set up in July 2000 to examine ways to reduce the number
of conflict diamonds entering the diamond market.

• The IDC Rules are the diamond grading guidelines devised by the World
Federation of Diamond Bourses (WFDB) and the International Diamond
Manufacturers Association (IDMA).

• There are currently four gemological laboratories:

1.The Certificates Department of the Antwerp Diamond High Council (HRD),

Belgium;
2.The Swedish Testing Institute, Stockholm, Sweden;
3.The Diamant Prueflabor, Idar Oberstein, Germany.
4. The Diamond Certification Laboratory of
Australia, Sydney, Australia
 Training Institutions
• Indian Diamond Institute, Surat.
• Courses in diamond, Gems and Jewellery and Computers; Established in
1978;
• Enrolment: About 350 students.
• Gemmological Institute, New Delhi:
• Gem Testing Laboratory and Gemmology Courses; Established in 1980.
• Gem Testing Laboratory, Jaipur:
• Gem Testing Services, Courses in Gemmology, Technical services to
overseas buyers.
• Jewellery Product Development Centre, Mumbai:
• Short-term courses in Jewellery and video cassettes
and other library for free use.
• Jewellery Product Development Centre, New Delhi:
SWOT
Analysis
 Strengths
• Diamond is used for
machining plastics, glasses, and metals,
shaping drums for copying machines,
polygon mirrors in laser printers, and
aluminum-alloy pistons in engines.
• Availability of cheap labour
• Low cost of production
• Experience
• Pricing and inventory management
• Supportive govt. policy
• Low cost of production
 Weaknesses
There are no institutes for training new workers.

Insolvency

Technology is less improved compared to China and

Thailand’s company.

Less emphasis on quality

Low productivity

No contarcts

Lack of standardization
 Opportunities
1/3 of the population of Surat is a part of the flourishing
diamond industry. Population of Surat thrives on diamond and
textile related job opportunities.

New markets

Coloured diamonds

New initiatives by the government of Gujarat aim at training

diamond cutters in jewellery making thereby providing them
with a wider scope in this industry.
 Threats
• Entry of China and Thailand in the diamond
sector
• Conflict diamonds
• Use of child labour
• Anti-social activities and terrorism
• Heat of the US meltdown
 Conclusion
• In 2003, 92% of the world's diamonds were cut and polished
in Surat.
• Today India is the world’s third largest manufacturer of diamond
• We make use of automated machines, technology and tools
• India has 55% of the market share.
• But growing to 75% and above will be difficult because of
competition.
• The government will have to take steps to prevent illegal
activities
• Special attention must be given to coloured
diamonds because they are the latest trends
Brands
 THANK YOU

Sanky Kohinoor Great Star

Diamond Diamond Of Africa