New diamond sourcing company in Surat

Surat (Gujarat), Aug.17 (ANI): Around 1500 small, medium and large diamond merchants of Surat are floating a company to directly source roughs from mining companies across the globe.

The new company will source raw material from across the globe and sell to its members through a tender system.

India already polishes about nine of every ten diamonds, which are mostly tiny and cheaper stones, less than a carat.

Rohit Mehta, Vice-President of Gujarat Chamber of Commerce and Industry (GCCI), told reporters that Surat Diamond Sourcing (India) Ltd. (SDSL) aimed to generate business worth two billion dollars soon.

"The main aim of this company is to acquire rough diamonds from all the available mines all over the world. With the amount of money that is being generated by this company, we are expecting that this is going to be very shortly a 10 billion rupees plus company by virtue of equity participation of all the persons associated with the diamond industry," Mehta said.

Parag Shah, Managing Director of K Girdharlal, a diamond firm, said that Surat's good standing will help the company in a big way in the eyes of miners from across the world.

"As a group of manufacturers, with the expertise and competitive advantage we have in Surat we will be able to convince each and every miner to be a preferred client in their list because of our strength," said Shah.

The company will target diamond-producing countries like Canada, Russia, South Africa, Namibia, Zimbabwe, and Angola for sourcing roughs.

Surat city receives 60 to 70 per cent of the rough diamonds mined across the globe, and the new firm aims to increase the share and reduce overall costs by eliminating middlemen.

Surat is the heart of the industry, built on the skills of its craftsmen, its cheap migrant labour and its legendary entrepreneurial spirit.

In 2006-2007, India imported 8.8bn dollars of rough diamonds and exported 10.9bn dollars of polished gems, much of which is sent to Hong Kong and the United States to be used in jewellery. By Dharmesh (ANI)