You Can Buy Diamond In Bits And Pieces

New Business Models: (via Times News Network) Moinak Mitra writes:
Diamonds are forever but can’t be bought loose. That’s when the Rs 3,467-crore Gitanjali group had this gem of an idea. Starting August 15, diamonds ranging from 0.25 to 1-carat will be loosely available in retail. The company calls them Ezee Diamonds, and has released 500 such boxes on Independence Day. A box may have one big diamond of, say, 2-carat, or several small diamond pieces measuring up to 1-carat, and so on and so forth. So every box will have different carat-age. And for the first time, like prices of bullion, Ezee diamond prices will be listed and updated fortnightly across the media by the Mumbai-based Ezee Diamond Council. ET gets the sparkle on the loose. For one, the mood at the Gitanjali headquarters in Mumbai is ebullient. “This is the first time diamonds would be available loose and priced pegged to changing global benchmarks,” says Mehul Choksi, managing director of Gitanjali group. “Prices would be updated every fortnight and moderated by the Ezee Diamond Council, which consists of 8-10 representatives from different verticals of the diamond industry,” he adds. ET learns that some of the moderators doing the rounds hail from International Gemological Institute, Retailers’ Association of India, Diamond Trading Company, Indian Institute of Jewellery, Gem & Jewellery Export Promotion Council, Franchise India Holding. “The council has been specially set up to keep track of the Ezee Diamonds. It’s a fair and transparent module, which ensures an unbiased way of pricing the diamonds. Consumers can be sure of the quality of the diamonds and the price they are paying for it,” says Nilesh Shah, head, Diamond Panel Committee, Gem & Jewellery Export Promotion Council. The road ahead looks easy too. “In a year, we can do more than a million boxes. The cheapest diamond box would be available for Rs 5,000 and go up to Rs 5-lakh,” says Anuj Rakyan, vice president – retail, Gitanjali group. The Ezee diamond initiative is in line with the company’s mass-market strategy to make diamonds more affordable. In 1994, the group launched its Gili brand of jewellery across retail and popularised the 18-carat gold concept. Today, Gitanjali is present in the market with a wide spectrum of gem and jewellery brands catering to most market segments. Mr Choksi wanted “to make diamonds more affordable to the middle-class”. The fortnightly pricing on I-Day is another step to that end.