The HiTech that led India to cut 90% of the worlds diamonds

[Garry H (Cut Nut)]

This is a story of there brothers who converted their Fathers weaving loom factory into a diamond tech power house.
This company has now opened its services in Botswana employing local engineers to train diamond cutters and help equip manufacturing facilities with the latest equipment.
The firm runs Lexus Uni in Surat and has trained thousands of diamond cutters.
(Link posted on LGD Forum too)

Rapaport Magazine - On the cutting edge

Years before the wonders of the internet and mobile phones came to India in the mid-1990s, two brothers scripted a revolutionary tech story for Surat’s diamond industry. Utpal and Janak Mistry were both top engineers — electrical and mechanical, respectively — at what is now the Sardar...

www.diamonds.net

 

[momofive]

Thanks Gary. This was interesting and It's refreshing to read about how hard work, dedication and innovation pays off, especially in these times.

 

[Rockdiamond]

Interesting technical data!~!
I had heard that part of the shift was due to the Indian government creating low interest loans for diamond cutters....after which there was an explosion of new factories/dealers in India....one offshoot was the decimation of the Israeli diamond industry.....

 

[Garry H (Cut Nut)]

Interesting technical data!~!
I had heard that part of the shift was due to the Indian government creating low interest loans for diamond cutters....after which there was an explosion of new factories/dealers in India....one offshoot was the decimation of the Israeli diamond industry.....

Yes David, that was part of it.
The larger part was Israeli's sold the sawn off cuts and heavily included difficult lower value goods.
The outcome was Indian cutters got good at making money out of the most difficult rough.
Meanwhile, from the late 80's and early 1990's Sarin (Israel) and OctoNus (Antwerp and later India) developed scanners and technologies to get more out of the rough. Israeli cutters pooh-wooed the technology and Indians became the biggest customers.
Israel shot holes in their feet and basically gave the game to India.

 

[lulu_ma]

Thanks for sharing Gary. I am curious about this statement and I wonder why increased efficiencies have eroded profit margin? Is it strictly because the supply has spiked?

 

[Garry H (Cut Nut)]

Thanks for sharing Gary. I am curious about this statement and I wonder why increased efficiencies have eroded profit margin? Is it strictly because the supply has spiked?

If you read the post above yours - the early adopters of the new technologies had a first starter advantage over the cottage industry villagers. They also became De Beers clients. But over time everyone else caught up.

 

[Karl_K]

Thanks for sharing Gary. I am curious about this statement and I wonder why increased efficiencies have eroded profit margin? Is it strictly because the supply has spiked?

Greed by the miners.
They raised rough prices and polished could not follow so the retail pipeline shrank and margins went down to the point a lot of them folded.
Then the miners figured out they could pit the survivors against one another by selling a large percentage of rough in auctions.
Which is one reason they welcomed mmd, it gets them out from under the thumb of the miners.
De Beers tried to cut them off at the pass with limited success from the ering market by marketing mmd as just for fun jewelry.

 

[lulu_ma]

Greed by the miners.
They raised rough prices and polished could not follow so the retail pipeline shrank and margins went down to the point a lot of them folded.
Then the miners figured out they could pit the survivors against one another by selling a large percentage of rough in auctions.
Which is one reason they welcomed mmd, it gets them out from under the thumb of the miners.
De Beers tried to cut them off at the pass with limited success from the ering market by marketing mmd as just for fun jewelry.

So interesting to have this industry perspective!