THE GOOD, THE BAD AND THE UGLY

Since I first visited Mumbai in 1968 I have developed a deep attachment to India, its culture, its people and huge respect for what the Indian diamond industry has achieved, so all my comments should be viewed in that context of love and respect.

I was so happy to be back in India participating again in the DTC Sightholder Business Review meetings which have, as ever, proved that the quality, depth and candour of this dialogue is what continues to set the DTC and its Sightholders apart from the other mining companies and why the DTC is still the world’s most respected and important diamond company based not just on its proud heritage but on its exciting future and why Sightholder status still represents the pinnacle of achievement and recognition in our industry.

BILLBOARD PROCLAIMING VARDA'S OPENING OF THE INDIAN DIAMOND INSTITUTE

However, this being fully recognised and accepted there are times during these visits when I am reminded of the title of one of the most famous films ever made ‘The Good The Bad and The Ugly’ the classic spaghetti western that launched the career of Clint Eastwood the legendary American film actor and director.

The Good – because in our trade and industry the majority of businesses retain a strong commitment to strive for excellence and ongoing improvement, whether it be across manufacturing, marketing or both and in order to achieve this management knows it needs to do the right thing by its staff and behave consistently and fairly so they know what is expected of them and consequently ‘deliver the goods’ to the required level.

The Bad - however, in contrast there are those whose business model (if you can call it that) is so shifting and impermanent in character and opportunistic by nature that if they are specialists in anything at all it is the constant attempt to redefine their role and reinvent themselves in a way that defies credibility let alone business coherence when the presentation and reality of the model as presented bears little relationship to their actual activity. In fact the most transparent part of their business is often the cynicism and shamelessness of how they go about this.

While it is normal for any company to adapt and improve and indeed from time to time adopt other companies’ innovations, where it beneficial and appropriate to their existing model, these are those companies who indulge in mindless and poorly executed copying and scheming, engage in silly gossip and petty intrigue because for them diamonds are just a means to an end and a vehicle to make money and speculate. While they may pay lip service to sustainability and customer experience, they are really much more interested in what is going on in the secondary market.

There has been some debate, although actually surprisingly little (as moderators and trade press seem prefer to take the conventional wisdom and politically correct position) as to the impact of reduced rough supply on the Indian manufacturing industry as a result of some producers’ politically driven beneficiation agenda, however worthy its aims are. However, there is a particular debate that needs to take place, and sooner rather than later, around the link between reduced supply of rough to India and its likely impact on reduced polished sales into, what everybody agrees, is the most rapidly increasing and potentially world beating diamond consumer market.

The correlation between rough supply and polished production, and polished sales and creative downstream marketing efforts, is the marketing dynamic which has driven the huge increase in sales to India and direct to market and it would be ironic if the producers and Sightholders, who have created this genuinely win/win situation, undermine its potential themselves by underestimating the importance of the connections that have driven this extraordinary success story.

‘Living up to diamonds’ in India is not just about full compliance with BPP and the Kimberly Process for both the moral and reputational issues clearly recognised by all legitimate diamond companies, but there is an additional Indian dimension too at a time when, as elsewhere in the world, there is a growing movement of social activists in India, utilising Facebook, who are pressing the government and its agencies to be more accountable in general and address the corrosive effect of corruption on civil society (The Ugly).

There are some Indian diamond companies who while they give back to society in many admirable and practical ways, including charitable institutions founded and funded by themselves, need to recognise that corporate responsibility has to be extended into the wider domain across all areas of political and social concern and supporting the ethical value chain at all levels of society is the right way forward.

ANNA HAZARE

KIRAN BEDI

SWAMI AGNEWESHA

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While the Indian industry has often been accused of irrational exuberance in the past, and some might argue that this is the case at the moment, the fact is that the success of the Indian manufacturing and distribution network is really what dominates and drives the entire diamond industry and the operation of the new bourse is likely to increase and not reduce its central importance and who will come to the rescue of the industry next time it loses its nerve? But as we know, sometimes memories are short and selective.