by Siddesh Mayenkar and Sourav Mishra, Reuters
|15 April 2010
Mumbai, India:The world's top diamond producer De Beers expects India to maintain itsdouble digit growth in demand and hopes to globally raise production byabout a quarter on the back of better outlook, a top official said.
"In places like India and China, we have actually seen double digitgrowth in 2009, with 15-17 per cent rise in consumption of diamondjewellery in India. The double digit growth will continue in 2010,"said Varda Shine, CEO of Diamond Trading Company (DTC), the sales anddistribution arm of the De Beers.
"Diamond Jewellery has been slowly gaining momentum in India, we are seeing definitely more blended jewellery," said Shine.
De Beers expect to produce 30-32 million carats of diamonds globally in 2010 as against 24.6 million in 2009.
The group slashed output in early 2009 and its biggest unit in Botswanashut down completely for several months after demand for luxury goodsplummeted.
The mines are open again, but at reduced levels as the sector adjusts to the post-crisis economy.
De Beers, which controls around 40 percent of the rough diamond market,was hit hard during the downturn as consumers shied away from luxurygoods.
Total global sales fell to US$3.24 billion ($4.44billion) in 2009 from US$5.86 billion in the year-before period, Shinesaid, but declined to give sales figures for India.
India is the fourth biggest consumer accounting for about 7 percent of diamond consumption, while US leads with 40 percent.
Shine said retailers across India are re-stocking diamonds as demand is better than the past two years.
"For the first three months of 2010, our (global) sales were threetimes the size of 2009...that is quite a big jump and indication of thechange in the market."
The DTC has also extended thethree-year supplier of choice (SOC) contract by one year until March2012, when the new application process will start.
DTC supplies rough diamonds to select customers, who polish, cut, and use the roughs for jewellery making.
DTC has a network of 93 sightholders or customers globally, and about 40 of them in in India.
India processes about seven in every 10 of the world's diamonds, mostlycheaper stones less than a carat, and holds about 57 percent of thediamond processing industry.
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