Surat's diamond traders want the Chinese edge
The Indian diamond industry is looking to China to add sparkle to its branded jewellery business.
By Melvyn Thomas, TNN |
SURAT: India’s diamond industry wants the Big Dragon to fire up its branded jewellery business. The Rs 45,000-crore diamond trade in Surat is already on the hunt for Chinese partners for technology, designs and global marketing skills. Traders here, who have traditionally stuck to cutting and polishing rough diamonds, are now upgrading to jewellery manufacturing, including the diamond-studded variety, and want the Chinese to cut a finer edge for them.
“They have an advantage in terms of costs, technology and experience in global marketing. Our industry, where jewellery manufacturing is at a nascent stage, wants to join hands with the Chinese for enhancing our jewellery business,” says Chandrakant Sanghvi, regional chairman of the Gems and Jewellery Export Promotion Council (GJEPC). Mr Sanghvi will travel to China as a part of chief minister Narendra Modi’s delegation to the Dragon Land next week. He plans to seek tie-ups for his own business while selling the idea of a Surat-China partnership.
China has emerged as a major player in the world jewellery trade in recent years. Experts are already calling it a global jewellery process centre of the future. Low cost of production has started showing results, as the Chinese share in the total global trade is growing. The country’s jewellery export grew around 25% year-on-year to $4.96bn during January-November ’05, according to its customs figures. According to agency reports, exports of noble metal jewellery totalled $1.8bn, while diamond exports stood at $1.3bn and pearl exports at $128m. India’s jewellery exports are valued around Rs 20,000 crore (or $4bn).
There are close to 200 factories in mainland China, wholly processing jewellery for the global markets. “If the Chinese have an advantage, there should not be any hesitation in learning from them. We should even invite them to set up units in our SEZ,” says Nanubhai Vanani, secretary of the Gujarat Heera Bourse.
Mr Modi’s trade delegation will visit the Shenzhen and Pudong SEZs where most of the jewellery manufacturing units are located. The delegation will also visit the Shanghai Diamond Exchange (SDE) to gain an insight into the Chinese jewellery industry’s success.
Says Mr Sanghvi, “China’s main items of export are gold and diamond jewellery, and they bag most of the business orders from the US. We have an opportunity to learn how the Chinese government has supported the jewellery industry and the technical expertise of the Chinese jewellery manufacturers.”
According to Mr Sanghvi, the GJEPC’s role as a trade facilitator is to aid intra-regional investments by encouraging co-operation and joint ventures in jewellery manufacturing, especially in the various EPZs and SEZs which offer special facilities for FDI in jewellery units through foreign collaboration or partnership.
“They have an advantage in terms of costs, technology and experience in global marketing. Our industry, where jewellery manufacturing is at a nascent stage, wants to join hands with the Chinese for enhancing our jewellery business,” says Chandrakant Sanghvi, regional chairman of the Gems and Jewellery Export Promotion Council (GJEPC). Mr Sanghvi will travel to China as a part of chief minister Narendra Modi’s delegation to the Dragon Land next week. He plans to seek tie-ups for his own business while selling the idea of a Surat-China partnership.
China has emerged as a major player in the world jewellery trade in recent years. Experts are already calling it a global jewellery process centre of the future. Low cost of production has started showing results, as the Chinese share in the total global trade is growing. The country’s jewellery export grew around 25% year-on-year to $4.96bn during January-November ’05, according to its customs figures. According to agency reports, exports of noble metal jewellery totalled $1.8bn, while diamond exports stood at $1.3bn and pearl exports at $128m. India’s jewellery exports are valued around Rs 20,000 crore (or $4bn).
There are close to 200 factories in mainland China, wholly processing jewellery for the global markets. “If the Chinese have an advantage, there should not be any hesitation in learning from them. We should even invite them to set up units in our SEZ,” says Nanubhai Vanani, secretary of the Gujarat Heera Bourse.
Mr Modi’s trade delegation will visit the Shenzhen and Pudong SEZs where most of the jewellery manufacturing units are located. The delegation will also visit the Shanghai Diamond Exchange (SDE) to gain an insight into the Chinese jewellery industry’s success.
Says Mr Sanghvi, “China’s main items of export are gold and diamond jewellery, and they bag most of the business orders from the US. We have an opportunity to learn how the Chinese government has supported the jewellery industry and the technical expertise of the Chinese jewellery manufacturers.”
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According to Mr Sanghvi, the GJEPC’s role as a trade facilitator is to aid intra-regional investments by encouraging co-operation and joint ventures in jewellery manufacturing, especially in the various EPZs and SEZs which offer special facilities for FDI in jewellery units through foreign collaboration or partnership.
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