jewellery jewellery

Seizing opportunities In an interview with JNA, Kothari said and jewellery downturns can be ideal Gemstone times to invest in one’s core strengths. group steps up strategic acquisitions, “We have been in this business for a long time and we will Ring with a Mozambique remain in this sector for many, organic expansion ruby centre stone with many more years to come. diamond accents by Entice The investments we have By Marie Feliciano been making prove that we believe in the future of the jewellery industry,” Kothari GK Group is reinforcing its said. “Yes, the market now is in a slow-growth core business through mode, but I think this is the K organic expansion and best time to invest in our strategic acquisitions in a time of business either by expanding slower economic growth. The capacity or acting on Entice diamond group, which has a presence acquisition opportunities that ring in white and in virtually every aspect of the will further beef up our core rose gold gemstone and jewellery sector, KGK Group Vice Chairman Sanjay Kothari competencies. Hence, when the believes that its investments market gets better, we can move will leave it well-positioned to diamond and jewellery wholesaling in Beijing. In 2013, forward more strongly.” accelerate as markets improve. KGK formed a gemstone polishing and trading unit The company official Recently, the company in Shenzhen and a production unit to manufacture anticipates a muted recovery announced it has extended jewellery for the Chinese domestic market. Today, KGK starting from 2017. “I think we will its reach to Australia with the has six companies, modern offices and production see more dynamism from 2017 to acquisition of diamond and facilities in China, with a total of 60,000 square feet of 2019,” Kothari said. jewellery company, Ausdiam factory space and 1,500 staff. It takes courage to invest in times Ear climbers set Pty Ltd. The acquisition – the “China is the biggest market in the world. How of uncertainty but the KGK executive with fancy-cut Australian company’s name has can one ignore a market of 1.3 billion said his team is in the business for the diamonds in since been changed to KGK consumers? Consumption may have long haul. white and rose Ausdiam Pty Ltd – has expanded slowed down a bit but this isn’t going “We have looked gold by Entice KGK’s global presence to 16 countries to last forever. So this economic at ways to increase in six continents. slowdown isn’t bothering us at all,” capacity in manufacturing and Established in 1905 by the Kothari family KGK Group Vice Chairman Sanjay distribution. Late last year, we of Jaipur, India, KGK Group is a global corporation Kothari said. “Eventually, demand will opened a factory in Thailand,” with fully integrated operations in the pick up, and when that happens, said Kothari. The 2,100-square- gemstone and jewellery industry. A pioneer in the world we’re ready to do business.” metre facility in Bangkok of precious stones, the group has been sourcing, KGK has also acquired manufactures diamond and manufacturing and distributing diamonds, coloured tourmaline, emerald and ruby coloured gemstone silver gemstones and jewellery for decades. It is a De Beers mining concessions in South jewellery. The factory, which sightholder, an Alrosa Alliance partner and a Rio Tinto America and Africa, giving it a is under the management Select Diamantaire, with diamond manufacturing units clear competitive mine-to-market of KGK’s Trinity Creations Co in India, South Africa, Botswana and Russia. The advantage in the industry. Ltd, occupies six floors and group has gemstone manufacturing operations in More recently, the group has employs 300 workers. Equipped India and Thailand, and jewellery production in China, commenced building its stable of with the latest casting and laser Hong Kong and India. international jewellery brands including machinery, it produces 10,000 In 1997, the company established its presence in Martin Flyer, Gregg Ruth, Judith Ripka pieces of jewellery each month. China, opening a jewellery factory in Panyu, followed and Kiros. Twelve years ago, it entered KGK plans to expand its production by diamond cutting and polishing in Shenzhen, the retail sector with its fine jewellery brand, capacity to 50,000 pieces per month. diamond trading in Shanghai and Shenzhen, and Entice, with boutiques in India and Hong Entice white and fancy The group is also investing in Kong, and points of sale in the Middle East yellow diamond and e-commerce and e-marketing, he A pair of diamond chandelier earrings by Entice including Oman, Kuwait and Saudi Arabia. emerald necklace continued.

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Top: Three-row bracelet with diamonds and Mozambique rubies by Entice. Left: A pair of chandelier earrings with rose-cut white and yellow diamonds by Entice

“We have acquired an The diamond market remains relatively slow e-commerce company in the although stones between 30 points and 2 carats US. Right now, we have are selling steadily, he said. “Diamonds between 3 a smaller e-commerce and 5 carats are seeing sluggish sales. However, platform but this will expand goods above 5 carats are the toughest to move,” in the next couple of years,” said Kothari. said Kothari. “The first two Entry-level diamond and coloured gemstone years will be focused on jewellery collections, and big-ticket items are still e-marketing, after which, the faring well despite slower economic growth. Bridal group will aggressively pursue the jewellery also remains the bread-and-butter business e-commerce route. We are doing it of jewellers, he continued. very systematically.” “We are recording strong growth in the fashion and KGK is also growing its coloured coloured gemstone product category. We are also gemstone mining and diamond performing quite well in the diamond fashion jewellery manufacturing businesses. “We are negotiating segment,” Kothari said. “It’s the mid-range goods that for more mines in Africa,” he said. “With regards are not doing so well now.” to diamond manufacturing, we opened a diamond KGK’s Entice has carved out niches in the Middle cutting facility in Botswana last year.” East’s high-end jewellery market and the US’ fashion KGK is also looking into acquiring two more jewellery space, he added. European jewellery brands, Kothari added. Nurturing partnerships Areas of growth Kothari attributed KGK’s longevity and success Sharing his insights on the coloured gemstone to its strong customer relationships. “We have a long market, Kothari said demand for ruby and emerald history with our clients,” he said. “We always add value remains solid. Mozambique ruby, he added, likewise to our offering, be it first-class facilities or after-sales possesses a “texture” that Chinese buyers favour, he services. If clients have problems of overstocking, we continued. either swap the goods or help them move the goods. “The NGTC (China’s National Our extensive sales and distribution network makes Gemstone Testing Center) rejects this possible. Today, the market is not just glass-filled or semi-glass-filled about supplying the stones and then rubies. Since most Mozambique getting out after closing the sale; it’s rubies don’t have fillers, Chinese about partnerships.” buyers prefer those. They are now Companies also need to evolve well-acquainted with Mozambique to thrive in today’s fast-changing rubies,” he said. “And since one cannot business environment. export Burmese rubies to the US, the “You have to react quickly to one good alternative is ruby from shifts in market demand. If customers Mozambique. We have been negotiating prefer lower-end products, you have with some buyers and they are opening to give them that and more in terms up to this gemstone.” of quality and service. If they prefer Soft pink gemstones have also smaller-sized diamonds, you have to be been consistently among the fastest-moving ready to move such goods right away,” goods in the market, said the company Kothari said. “You must also have the executive. “Gemstones in the pink family A pair of diamond infrastructure to support your business like morganite, kunzite and pink tourmaline earrings with emerald needs. This is an investment that will are doing very well,” Kothari said. drops by Entice undoubtedly pay off.” JNA

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