Rio Tinto Diamonds eyes Indian diamond-gifting market

Rio Tinto Diamonds, part of the global metals and mining group Rio Tinto, aims to tap into the increasing demand for diamond-gifting sales in India, a company executive said.

Besides, the company's 1,000-hectare diamond mining project with 27 million carat of reserve in Madhya Pradesh is expected to get a mining lease next year, and will likely start producing by 2020.

Jean-Marc Lieberherr, Managing Director, Rio Tinto Diamonds, talked about the diamond culture in India and the company's plans on the sidelines of the two-day World Diamond Conference in New Delhi, which started on Thursday. The conference is organised by the Gems and Jewellery Export Promotion Council in association with the World Diamond Mark Foundation and with support from the Ministry of Commerce and Industry.

With Nazraana, a syndicated brand among Rio Tinto Diamonds, 150 Indian retailers, six jewellery manufacturers and four jewellery partners, the diamond mining company aims to cash in on the increasing demand in diamond-gifting sales. Lieberherr said a key element of Rio Tinto Diamonds' marketing focus in India is to support growth in domestic diamond jewellery sales.

"Nazraana, a two-year old brand, will make a mark in the $3 billion to $4 billion diamond gifting market. It will also be marketed across India's neighbouring countries such as the Gulf countries in future."

India is the world's largest centre for cut and polished diamonds, with Surat housing most of the country's polishing factories. India contributes 85 per cent in terms of volume to the $80 billion global diamond market, while Russia is the world's largest producer of diamonds.

Rio Tinto Diamonds is also developing the fashion jewellery segment with Chinese retailers.

Lieberherr said the diamond business contributes about $1 billion to its turnover.

Stephane Fischler, President, Antwerp World Diamond Centre, which is into diamond trading for over 550 years, said Rio Tinto is creating the market for low-cost diamonds.

For the first time ever, the diamond conference will be attended by global heads of mines, luxury brands and global diamond organisations such as World Diamond Mark Foundation, De Beers, Alrosa, the World Federation of Diamond Bourses, Rio Tinto Diamonds, Antwerp Diamond Bank, International Diamond Manufacturers Association and World Diamond Council.