GJEPC to DTC: Reconsider sightholder cuts
January 02, 2008
Mumbai, India—A total of 11 Indian firms were eliminated as sightholders in the Diamond Trading Co. (DTC)’s recent realignment, causing grave concern among industry leaders there.
India’s Gem and Jewellery Export Promotion Council (GJEPC), the main body of the gem and jewelry trade in India, released a statement today pointing out that the realignment means a 25 percent loss in processing capacity for India.
GJEPC Chairman Sanjay A. Kothari said the DTC’s move to consolidate business by having fewer sightholders will affect small and mid-sized businesses that depend on intra-trade dealings with sightholders and mid-sized manufacturers.
“The exclusion has caused discomfort even amongst the existing sightholders as the ones removed will have to bear major investment losses,” he said. “Mega expansion and investments were undertaken by companies toward integrating manufacturing facilities and now they would be deprived of assured rough supply, which will greatly affect their set-up.”
The GJEPC went on to say that the overall impact would have been reduced if the DTC increased allocation to the Hindustan Diamond Co. (HDC), a joint venture between De Beers and the government of India.
The GJEPC said it is requesting that the DTC “review and reconsider” the decision-making process behind this round of sightholder cuts.
The DTC’s new sightholder list was released on Dec. 17, but will not be finalized until later this year.
The revised list included a total of 75 sightholders, down from 93. Counting the sightholders for Namibia and Botswana, the total number of sightholders internationally now stands at 79.
According to the GJEPC, eight firms in India and three Indian-owned firms in Belgium were dropped from the list, while three Indian firms were added.
Although the DTC did not release any names, one Indian company, Gitanjali Gems, confirmed to National Jeweler that it did retain its sight.
Gitanjali made headlines in 2007 when it bought U.S. jewelry chain Rogers Ltd. for $20 million.
Editor’s note: For earlier developments in this story, see Majority of U.S. companies retain sightholder status.