Company: ARGYLE DIAMONDS

State: WESTERN AUSTRALIA

Sector: RESOURCE

Argyle Diamonds plays an important role in India's export oriented
diamond cutting industry. In 2000, Argyle sold rough and polished diamonds
worth US$440 million, over 90 per cent of which went to Indian gem cutting
companies. Argyle's indirect sales to India are larger than any other
Australian company's direct trade relationship with India. In 1989,
Argyle established a representative office in Mumbai to foster closer
relations with customers and gather market intelligence.

In the last decade, the Indian diamond cutting industry has undergone
massive expansion to the point where India is now the dominant global
diamond cutting centre. With a market share over 50 per cent by value, it
leads Israel and Belgium.

Argyle Diamonds sell most of their uncut stones via the world's major
diamond trading centre of Antwerp in Belgium, where Indian companies have
offices. Indian companies, mostly family operations from Gujarat state,
directly or indirectly purchase Argyle's uncut stones and transport them
to India for cutting. The polished diamonds and finished jewellery are
then exported from India around the world.

Argyle finds relationships are the key factor when doing business with
India. It built up these relationships over a many years with regular
visits from Argyle' s senior management to customers and industry and
trade organisations. More than 80 per cent of Argyle's customer base
have dealt with Argyle for more than 5 years and over 60 per cent for more
than 10 years.

Source: Argyle Diamonds, 2001.