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

Graph showing the production history of selected gem-quality diamond producing countries. Graph by Geology.com. Data from USGS Mineral Commodity Summaries.

Estimated production levels for countries mining at least one million carats of gem-quality diamonds during calendar year 2008. Graph by Geology.com. Data from USGS Mineral 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 ofillicitness

Motivation – Tax evasion– Money laundering (a tempting alternative tohard currency, that is oftenin short supply in Africa)– Organized crime– Drug money– Conflict diamonds

Opportunity– The value– Portability– Accessibility of diamonds– Inherent secrecy of thediamond trade– Lack of government control– Hardly any reliablechecking up of themovement of the diamondson national or internationallevel– 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.

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

Global Diamond Exports

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

INSTITUTIONS Indian Diamond Institute

IDI established in 1978It 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 1972They manufactures tools used in diamond industryTo 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

Opportunities1/3 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 Diamond

Kohinoor Diamond

Great Star Of Africa