Many diamond firms have come together to form a company called Diamond India with the seed capital of Rs225 crore, with the main objective of emerging as a formidable buyer of rough diamonds from across the globe.
The idea was to negotiate directly with entities and nations that are a source for rough diamonds, as informed by Sanjay Kothari, Chairman of the Gem and Jewellery Export Promotion Council (GJEPC).
The new company is also exploring the possibility of buying diamond mines in Africa/Canada and aims at distributing the rough among members as well as selling it in the open market.
Companies and countries producing rough across the globe had time and again indicated that they would be more comfortable dealing with a big company rather than single individual buyers, according to the new company chairman Pravinshankar Pandya.
The new company will solve the problems of many small players in the industry, who have closed businesses because rough available in the market are too limited or overpriced.
Indian diamond merchants, who never had the luxury of getting the best rough directly from rough producing nations or even big companies like Alrosa of Russia, can now negotiate from the position of strength.
The new company boasts 60 leading diamond merchants as members who have contributed to the seed capital ranging from Rs1 crore to Rs12 crore.
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