Diamond Limited Company to Collectively Procure Rough from Producers

{{The availability, procurement and reach rough diamonds to the diamond traders in India can be a lot easier with the {{Diamond Limited Company}} coming into existence. }}%% Chairman, Diamond Limited Company, {{Praveen Shankar Pandya}}, talks exclusively to ‘Diamond World’ about when, why and how the company came into existence.%% {{ Diamond World : When was it contemplated to float such a company?}}$$ {{P.S. Pandya:}} Well, the industry has been debating for a long time and need was felt to put in joint efforts to source rough diamonds directly from the mining countries. %% A year back we seriously thought over it and started to work for the same, and our company came into its final shape around four months back. %%{{ D.W.: What was the basic reason to established this company? }}$$ {{P.S. Pandya:}} Whenever we wanted to negotiate the prices with rough producing countries they wished to deal with a single entity. Thus the need for forming a singly entity was felt amongst the traders. %%{{ D.W.: Main objective of the Company? }}$$ {{P.S. Pandya:}} Now that De Beers has only approximately 45-50 per cent stake, rough diamonds are flowing through secondary channels. So we want to establish ourselves as the main collectors and distributor of rough in India. %%{{ D.W.: Will we see your Company taking up manufacturing at some later stage? }}$$ {{P.S. Pandya:}} As a part of our policy we would definitely not engage in manufacturing of diamonds. But we might go in for mining of rough. We have also applied in Chhattisgarh for an exploration license. There is a possibility that we could get into a joint venture with somebody to explore the possibility. %%{{ D.W.: What is the present membership strength of the company? }}$$ {{P.S. Pandya:}} Presently we have 60 diamond traders as members. %%{{ D.W.: What were the criteria for selecting members? }}$$ {{P.S. Pandya:}} There were no criteria. We had announced that such an effort is being made and those who wish to join us can do so. %% The reason why around 60 members came together was not that the others did not wish to procure rough but for the simple reason that everyone did not want to get involved in funding of such a company. Practically speaking, the traders who were in a position to fund the venture, joined hands with us. %%{{ D.W.: Will the rough procured be distributed only amongst members? }}$$ {{P.S. Pandya:}} A portion of the rough will definitely be given first to the 60 members, but thereafter some rough will also be given to other diamond traders. Emphasis will be to make rough available for small traders since big players themselves source rough. %%{{ D.W.: Is the company opening Overseas Offices as well? }}$$ {{P.S. Pandya:}} We will soon be appointing an experienced diamond trader as our Overseas Director. %%{{ D.W.: What is the structure of the Company? }}$$ {{P.S. Pandya:}} At present we have four permanent directors and six additional directors. We have to appoint two more directors. One would be overseas director and the other one would be some professional in this field. %%{{ D.W.: What is the company’s current agenda ? }}$$ {{P.S. Pandya:}} At the moment we are negotiating with various rough producing countries like Russia, Angola and Canada. Canada is the latest location with at least 40 new companies trying there to search diamonds. We are in touch with them. In future we may also create infrastructure for the industry.