Company: ARGYLE DIAMONDS
State: WESTERN AUSTRALIA
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.