India - fastest growing diamond jewellery market in the world!

Company Release, November 29

NEW DELHI

The demand for diamonds in the Indian market has never been stronger! The Indian market which has shown a collective growth of 50% the past two years, according to research conducted has once again shown a 20% growth this fiscal! This makes it the fastest growing diamond jewellery market in the world for the third time in a row! Diamond jewellery has been making inroads into the jewellery market, thanks to the efforts of the Diamond Trading Company (DTC). The DTC by launching its own brands Arisia, Nakshatra, Asmi and Sangini, has been targeting separate consumer need states. This is because the concept of a diamond for everyone has ensured that more and more consumers can aspire to buy, own and possess a diamond. Once the objectives of the Brand are fulfilled, consumer need states fulfilled, the DTC looks towards progressively handing over its brands to its sightholders to run. This has been DTC’s marketing policy worldwide, DTC then will look at launching new programs and Brands targeted at different consumer need states.

For instance, DTC has recently signed a contract to hand over Nakshatra, India's largest and most successful diamond jewellery brand in 2008 to the company, Brightest Circle Jewellery Pvt. Ltd (BCJPL). BCJPL is a company owned and run by all three sightholders involved with DTC in the Nakshatra brand - Mahendra Bros, Dimexon and Digico (Gitanjali).

Asmi is the other brand that will be handed over to the Sightholder to run in 2006.

The DTC will then again look at bringing new brands after consistent research and gauging the need states of its consumers.

In the past ten years that DTC has commenced operations in India, the diamond market has slowly flourished. Today, the Diamond market in India is worth Rs 6600 crore. These booming results are because DTC has launched several diamond jewellery brands that have carved a niche for themselves, catering to different consumers.

It has been DTC’s endeavour to encourage the development of multiple competing diamond jewellery brands for the benefit of the entire industry. DTC believes that strong brands are an essential ingredient in the transformation of the market for diamonds. Like in any industry, multiple competing brands create category excitement and bring new consumers to the market. This is especially true in the industry for luxury goods.

Hence, DTC has always launched brands keeping in mind the different consumer needs. This enables the market to grow as well as gives consumers a wide choice in their purchase. DTC’s premium brands in India include Arisia, Nakshatra, Asmi and Sangini. So while Nakshatra which has the elements of mystique and beauty which satisfies the stature and identity need of the consumers, Arisia, with diamonds of a carat or more, caters to the elite segment of the market, bringing out the concept of regal and royal to the fore. Asmi was launched to cater to women of substance and satisfies the need for reward while Sangini underscores the need for enrichment within relationships.

Each of these brands have had brand ambassadors who have been ‘upto diamonds’. Women like Aishwarya Rai, Kajol, Maharani Gayatri Devi have been associated with the DTC promoting diamond jewellery. It is no wonder then that India is a very important market for the DTC worldwide.

With research conducted by the DTC showing that nothing is more desirable than a diamond and that 94% of women want diamonds, the real thing, it is no wonder that the worldwide diamond jewellery sales is expected to rise to US$ 75bn by the year 2010.

The rarity and eternity of diamonds is a highly appealing factor in diamond purchase. This coupled with the fact that for centuries diamonds have been considered as the ultimate symbol of love and relationships have contributed to the sharp rise in demand for diamonds. Diamonds complement gold and platinum. Today, diamonds are seen as an investment. Indians have been known to be fascinated with jewellery from time immemorial. Initially it was felt that only gold jewellery could be an investment, but that perception is gradually changing. Consumers see diamonds as an investment also.

India is the world leader in the cutting and polishing industry. What makes India stand out factors like a combination of enterprise and initiative of the Indian Diamantaires, cutting skills of the artisans and the favourable economic and political environment which is a result of the economic liberalization followed by successive governments since the 1990s.

For further information please contact:

Pooja Ahluwalia (IPAN)

Phone: 011-5249 2100

E-mail: pooja@ipan.com

Romita Kumar

Phone: 011-5249 2100

E-mail: romita.kumar@ipan.com