Mumbai: The opening of Botswana as a major diamond trading hub has opened a new window of opportunity for Indian processing companies.
Three diamond merchants from India have secured licences for participating directly in benefication projects there to ensure supply of rough diamonds.
The move assumes significance as setting up diamond processing units will not only assure rough supplies from Diamond Trading Company (DTC), the marketing arm of the world’s largest mining company, De Beers, but also ensure control over price fluctuations, besides sustained supplies.
While Shrenuj & Co had received licences three years ago, the company has spent $5 million so far in developing a small processing unit. Now, the Shreyas Doshi-led company plans to invest another $5-10 million to set up a full-fledged large diamond cutting and polishing unit in Botswana. Suashish Diamonds and Blue Star are the other two companies that have secured licences in Botswana.
“The detailed plan is being worked out. But, we are planning to invest another $5-10 million as working capital for procuring plant and machinery for a large processing unit,” said Doshi, chairman of the company.
Shrenuj & Co started its South African operations in 2009, marking its presence in the 14th country worldwide. This development follows commencement of its manufacturing unit in Botswana in August the same year. These operations in the southern part of the African continent provide continued access to rough diamonds directly from the mining sources. In these times when diamond reserves are dwindling, these developments acquire importance. Through its South African office, Shrenuj gains access to very high quality rough diamonds from all of southern Africa. The company has already been granted a site by DTC Botswana.
Suashish’s principal manufacturing units are in India, with global distribution through subsidiaries and strategic partnerships in all major markets across the world.
Blue Star Diamonds is a private sector company that offers services in gems, jewellery and watches, with annual total turnover of Rs 250-500 crore. The government of Botswana has issued 21 licences so far to global players, of which five have been given to Indian-origin companies.
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