Interview with Mr. Hemant Thaker, Owner of ‘All Yours’

Its my pleasure to introduce Mr. Hemant Thaker, Owner and founder of ‘All Yours’. All Yours is one of the fastest growing Diamond Trading company in Mumbai. www.allyours.in portal is  truly International and customer-friendly diamond & Jewelery store. It allows customers to pick – choose – customize and buy diamonds & jewelery over internet.

I am personally Thankful to Hemantbhai for showing support for diamondbhai.com and introducing me to well respected people in our market.

Hemant Thaker, Owner of AllYours

How did you start your Career in diamond industry?
Started my career 12 years back (1998). I started working in diamond assortment. Worked for 2 years, learned various things including banking, custom etc.  For next 2 years, did diamond brokerage. This made it possible to meet many people from respected and big companies in Indian diamond industry. Many of them are good friends and associates now.  Always had passion to start something of my own, eventually started company named All Yours in diamond market.

Whom do you consider your mentor in diamond industry?

I always had people to guide me at every stage. In last 12 years I have played different roles in market, started as diamond assorter, broker, trader and now as an entrepreneur. I was fortunate to have trusted relationship with many experienced and wise people in market.

Every entrepreneur should have a mentor — someone who’s been down that road before and can share their wisdom. As of today I would say my mentor is Mr. Rajubhai Shah of Next diamond (Chiatya). He taught me most valuable lesson – ‘With courage you can make it through anything’. ‘Don’t be scared of big numbers’. I also learned importance of business accounting from him.

If not in diamond market then what profession would you have chosen?

If not Diamond market, I would have done something in field of Music. Frankly, I would have got in to any good opportunity that came in front of me.  Looking back, I realize that I was pretty open minded, didn’t have much biased for any particular profession or field. But I would have been very sincere and honest towards my work.

I am playing flute since many years now and trying to learn piano, may be in future I would like to spend more time in such things.

Where do you see Indian diamond industry in global market?

Indian Diamond Industry is already a leader in world. Previously people use to count Israel as a leading country in our field, but today everyone knows that 9 out of 10 diamonds sold in the world get manufactured in India. In addition to strong manufacturing support, involvement of the home grown IT (Information technology) is helping Indian diamond Industry to scale fast. Software infrastructure and Internet based services are helping manufacturing of diamond, marketing, getting online inventory, sharing the database. B2B businesses in our Industry has its own challenges and it will keep growing, but there is a huge potential in B2C. At last I would like to say Indian diamond Industry has a promising future, it will sustain its position and growth for longtime in global market.

If you get a chance to change one thing in diamond market what would be?
I would like to change the rough supply of diamond because rough diamond sourcing is really ridiculous. It is Biased and self protective. Impacts whole supply chain in negative way.

Overall selling confidence in diamond industry has gone down. It creates low sentiments for whole industry.

I would like to see change in rough diamond sourcing. Things can become better if there is good movement from rough – mines to manufacturer to trader to end customer. Other than this there are minor problems here & there, but people in Indian diamond industry get their work done anyway.  People in our market are good at adapting change.

Rough Diamond sourcing is also done by Indian companies, how come we still face this issue?

This problem has nothing to do with dealing between Indian to Indian or Indian to Israeli, or any other country. Problem is of self-interest. Some of these companies want to favor few of their clients at the cost of impacting whole industry. In long term it will not help anyone including themselves, they don’t realize right now, but eventually they will.

Also to clarify, when I say rough sourcing, I am talking about Miners (Diamond Mining Industry). Companies like BHP, DeBeers, Alrosa etc .

How did you fare in 2008 slowdown in diamond industry?

I do not have much to talk about 2008 slowdown because I started my business in Jan 2008 and I was starting from scratch, was happy to accept whatever amount of business that came. I was really busy in organizing my business and didn’t realize how fast time moved. However it was a major slowdown and lots of job cuts; cost cutting and lot of people made huge loss. It took just 9-10 months for Diamond market to recover from the meltdown; it was much faster than many other industries like stock market etc.

Tell us about some good and bad things you have seen in Indian diamond industry in your experience?

The level of adaptability of people in Indian Diamond Industry is very high; I have not found many people like I have seen in our market, who are open to learn new things. Many people in our market do not have high degrees but they have one of the most important skills of keeping in touch with latest changes, master it and use it to grow business. You will find ‘Been there done it’ attitude at all levels in market.  You will see many people in our market using software and online services to get best out of their deal.

Second amazing thing about our market is Creditability. My dad works in chemical business since last 35 years and he is doing pretty well. His business and name is quite established in his field, but chemical industry does not have practice of giving credit. Diamond Industry is very close-knit industry, members of Jain or Kathiyawadi community have easy entry, people like me who do not have family connections have some initial challenges, but still I am making significant progress. I have always got guidance and support from mentors and friends I have met and today I have very good credit line which allows me to grow my business.

Not so good part: like any other industry there are people in our market who are coming in news for wrong reasons. They remind me of Harshad Mehta from stock market. Recently we have heard lot of news about cheating and defaulting practice. Other than this I don’t see any major issues.

What changes will occur in diamond industry in next 10 years?

There will be lot of changes in market. Whenever next slowdown occurs, close to 40% of Manufacturers and traders will be out of business.  Businesses which are established well and have smart owners will continue to grow. There will be less middle man kind of business and reaching to end customers directly will go up. Market will keep getting more organized and transparent.

Bharat diamond Bourse is ready and everyone is looking forward to be part of it. All the important elements of market like customs, banks, assortment, buying, selling will be under one roof. There will be cost of doing business, but things will be organized and planned. It will increase lot of productivity. It is the biggest trading point in the world. “Bourse” is French word; it means trading point under one roof.

Hemant Thaker, Founder & Owner of AllYours with Chetan Parmar

Do you want to give any message to diamondbhai.com readers?

I am really glad to see this website diamondbhai.com and I believe you will continue to share unbiased information. I strongly recommend readers to keep in touch with this website. We have many commercialized magazines for Indian Diamond Market but don’t get to see simple and unbiased news/information easily.  Diamondbhai.com can cover this gap.

Why you always keep loss making product?

Once in a while you listen to some concept and feel that you should have known this 10 years back.

I was talking to my cousin brother and he told me something so cool that light bulb went on in my mind.

Who are your Winner and looser in Indian Diamond Market?

Situation:
Invested in two stocks/shares. company x and company y.
Month later company x stock goes up 20% and company y stock goes down 30% .

Now there is urgent need of money and you decide to sell one company.

Question Time:

Which one would you sell?

Be honest – take 10  seconds to think – ask yourself what would you do?

If you decide to sell company x which has gone up and made profit, you are just like anyone else. Human nature will direct you to sell company which made profit and hold on to company whihc is presently in loss.

Just because you made 30% loss on company Y, you want to hold it and not sell it. You are expecting that price will go up and you will atleast reach break-even.

Chances are company Y keeps going down and your loss keeps getting bigger. Company X which you sold for 20% profit keeps goign up after you sold it.

This is natural way people think & work. And most of these people end up with all loosers in their basket.

Smarter way is to keep winner and let go looser – if you have to.

After listening to this common human behavior – I started thinking hard – if I ever made any decision in Diamond market when I was suppose to pick one thing from two options –  a winner & looser.

Have you ever faced such situation while trading diamonds ? Have you faced such situation while making business partners ? Choosing Seller or buyer?

Drop a comment if you faced any such situation in Diamond market.

Interview with Mr. Chirag Patwa, Marketing Manager of Ratnadeep Impex

We take pleasure in introducing readers to Mr. Chirag Patwa, Marketing Manager of Ratnadeep Impex. Ratnadeep Impex is one of the leading business-house in field of manufacturing and export of Polished Diamonds.

Chirag Patwa, Marketing Manager of Ratnadeep Impex

Please tell us about your journey in Diamond Industry?

I started my career in 1993 in Navsari. Got knowledge and experience in different phases of Diamond manufacturing process – Rough to Polish, Giving Ghat/form to diamond, assortment. Worked for 7 years in manufacturing. Later for next 2 years traveled around the world – Antwerp, USA, Israel. I was responsible for buying rough diamonds and polished diamonds. Stayed in US for 6 to 7 months and was actively selling polished diamonds. Then moved to Mumbai, selling polished diamonds and handling the manufacturing of rough diamonds.

If not diamond industry, which field would you have selected for career?

I like technology and would have surely opt Software Industry or some similar hightech stuff. I like to play with computer and like to keep in touch with new software, mobile technology & telecom industry.

Where do u see Indian diamond market in global market?

I see very strong future of Indian Diamond Industry. Every 9 out of 10 diamonds in the world are manufactured here in India. Indian Diamond market has complete setup & all required elements of Diamond industry. You can manufacture, buy & sell diamonds in India. Its difficult to find such complete business setup in any other part of the world. India is becoming central location for trade related to rough & polished diamonds.

Bharat Diamond Bourse in BKC is one of the best thing to happen in market. It will support and help Industry to grow. It has potential to upgrade whole scenario of Indian Diamond Industry. It will bring pleasant atmosphere to work with good security and infrastructure.

Tell us something about 2008 slowdown in diamond industry and how was your experience ?

2008 slowdown was one of its kind – overall market was down. There was lack of Diamond Buyers and that leads to cascading effect, impacts whole chain in industry. Manufacturing slowed to down and cost cutting was all over the place. For nearly 4 – 5 months factories were not running operations, due to lack of business. However after a while things reached a bottom and started getting better, with every single day we see things improving. Collapse in other market like stock market & real estate had direct & indirect effect on diamond industry. Few of the companies kept themselves aloof from stock market and didn’t get negative impact when market went down, also helped them to grow strong when market started picking up.

If u get a chance to change one thing in India diamond market what would it be?

Surely the rough diamond sourcing. Present situation is not great. Rough trader’s are not supplying rough diamonds as per the demand. Its common practice to keep holding the rough which is in demand and sell it on higher prices. This impacts the whole chain – diamond manufacturing, traders, seller and at last consumers who have to pay higher prices. Business style of Rough Suppliers is not healthy.

One good and not so good change you have seen in last 10 years of experience in diamond industry?

Good thing: diamond market is much more open place now.
Bad thing: Profits have gone down.

Last 3 years market has seen low volume, compared to 2003-2007 period. Manufacturing is key for any Industry and fortunately India is one of leading manufacturer, this gives us lots of support. In past there was threat from china, Israel and many other countries for overtaking India in manufacturing, but because of skilled and promising workforce India is in lead.

Good thing: BDB (Bharat diamond Brouse) is here now. Bad thing: it got delayed for very long time.

What changes do you see in Indian diamond industry in next 10 years?
Internet will play major role in Market. Indian Diamond Market will lot of growth if rough diamond source make things easy for rest of the Industry by fulfilling the demand of rough diamonds. BDB(Bharat Diamond Bourse) will bring positive changes and new generation will keep evolving industry to meet customer need.

Any message for DiamondBhai.com readers?

Chirag Patwa, Marketing Manager of Ratnadeep Impex with Chetan Parmar

Don’t get caught up in common hysteria – ‘follow the herd’ mentality. Think rationally. Don’t do something just because others are doing it. Do what ever you want to do with a balanced mind. You have never missed anything at any stage. Keep in mind, there are really very few people in market who can guide you. Listen to your gut feeling, don’t be afraid of failures.

How To Talk about your competition?

Competitor by definition is one selling or buying goods or service in the same market as another.

Its very common to hear some diamond trader in market saying “we offer better rates/product than our competitors”

Well be careful next time you use such statements. Never say never – never say “my competitors are not as good as me”, while making trade. If you say that you have no one to compete – many times you are proving yourself less informed.

Lets say you accept in front of your client/customer – that you have competitors – next – do not criticize them without being honest. Criticism should be something relevant and honest.

Always learn from your competitors – always keep an eye on your future competitors.

Competing Forces in Market

Who Moved My Market

Operation: Move to New location
Present location: Opera House
New location: BKC
Challenge: Old Memories

People in market knew about new Diamond market at Bandra Kurla Complex since ages. Project started 20 years back, went through delays for unknown reasons. However past is past and heres a new day and a new location of the market.

Bharat Diamond Bourse – spreads over an are of 20 acres – 8 towers of 9 floors – 2500 diamond offices.

A crown in BKC. All facilities under one roof. More Safety. More planning. Bharat Diamond Bourse offers a great business infrastructure to both domestic and international diamond merchants trading.

If you talk to people in market you will find two different viewpoints. There are people who are excited about BDB and then there people who are reluctant to change.

If you hve made up mind to move to BKC here’s what you need to know to find right place/office:

Office location will be specified in 6 letter code:

Example ‘BE8020‘ – means:
Tower B, East core, 8th floor, office number 020.

9 towers are (A,B,C,D,E,F,G,H,J) [why we don’t have ‘I’ ???]
3 cores: East, West, Center

 

Bharat Diamond Bourse - world's largest diamond bourse

 

 

 

Chai Ho Jaye – Mumbai Diamond Market

Milan tea house

 

Milan tea House - Opera House

 

Milan tea stall is at the entrance of the diamond market. Also try Ukala, hot milk drink.

Near Flox chamber
This tea stall does not have the name. Small but very busy place. Always surrounded by 100s of people getting their dose of tea. He supplies tea to most of the office in this area.

Diamond-market

 

cutting chai

 

Traditional Diamond Trading vs. OnDemand

Many of the Diamond Trading Companies in Indian markets – these days use Internet websites to do business. Some of the projects commonly used in markets are :
Rapnet , IdexOnline , Polygon

Benefits of these online services are a lot. Everyone has used them and knows the difference it can make to your business. However one thing which I want to highlight is the impact on relationship between business (B2B relationship).

 

Growth of Rapnet Diamond Trading Network

 

In tradition style of working(the days before Internet arrived in Market) focus was more on meeting prospective buyer or Trader personally. Relations were with limited number of people or business, but there was lot of quality control and complete trust factor. Once you have done the deal you have lost connection on the transaction and one moves on. There was limited communication within fixed number of people. It was very difficult to track things like customer satisfaction. There was limitation on displaying how much credit & goodwill you have gained by doing work.

In a onDemand model where companies use Internet services it is easy to list local companies which have product as per your requirement. Once the transaction is done you can post a comment or review and those help Seller to create good image and build his future business.

Having said that each approach : tradition approach(without Internet) and new approach of using OnDemand Internet services – have their own challenges.

What do you think about each of these approaches ? Do you think Traditional style of working had more fun of doing business?

Why I started DiamondBhai.com?

Starting DiamondBai.com has been one of the best decision I have taken in my life. I envision DiamondBhai.com to become a community platform for people inside Indian Diamond market to share their point of view and learn from each other. I want to encourage people to talk about new opportunities in market. I want Experienced people from our Diamond Industry to share their knowledge that can help other entrepreneurs.

DiamondBhai.com will enable meetings of smart people in person and over internet. It will allow people to make new friends on a personal and professional level.

DiamondBhai.com will improvise with every single day to become a channel that syncs with thought process of entrepreneurs in our Diamond market. I want readers to get a feeling that ‘This is not bad’ – ‘I always thought of this’ – ‘It feels good to read about this’ and Occasionally some of these people will give me call or write an comment.

I want to encourage readers to write comments and share their point of view or any insightful knowledge to others.

I have promised myself to sincerely grow DiamondBhai.com so that it reaches more and more people and I want to regularly contribute efforts.

More than anything DiamondBhai.com has brought a new fresh light in my life and it is a challenge where I have to regualarly work with discipline.

I am going to request lot of people from our industry for an Interview. I am sure all of these interviews will bring enthusiasm and encouragement for readers(including myself)

I want to request people to reach out to me to write guest post. Just give me call tell me what you want to share and I will tell you how to go about. (you can dictate me over a phone call – I will translate it in to post) I will make sure it is no hassle for you.

DiamondBhai.com has potential to turn in to soft power which will reach desk & home of people all over world who care about Indian Diamond Industry. Please join me in building this community.

Importance of Math and calculation in Diamond market

Being good in Math indicates you are confidence and being logical. You always know what to do when and why

If people do not believe that mathematics is simple, it is only because they do not realize how complicated life is.

Many beginners arrive in market to make career in Diamond trading or Diamond Manufacturing and find that a big barrier to their progress is not the understanding of the economics or business concepts, but the mathematics that goes with it.

Some of the commonly used concepts in day to day market are:

• Calculating Manufacturing loss

Math is used to calculate the manufacturing loss of diamond form rough to polish diamond. Cost of diamond, worker expense etc.

• Pricing

It is used to calculate the diamond value. What price we should sell a diamond to make profit or loss.

• Averaging

Calculating average value or Expense – to manufacture a single stone. The average deal of the lot or if buying some carats of diamonds.

• ROI (Return On Investment)

ROI is calculated to get the net profit on the investment done.

• Running business in profit (To calculate Profit or loss)

In Diamond market – Math is used in simple as well as complex decision making. In market one makes deal in matter of few minute and these deals are worth millions or billions dollar. Sometimes done on hand, in-mind or on calculator.

Presence of Women in Indian Diamond Industry

For Indian Women – Diamond Markets which earlier was not considered a career option is now being considered as a important career option along with other careers. Diamond Jewelry industry too has seen an increase in number of women/girls playing important role.

 

 

Women in Indian Diamond Market

Working in Jewelry
Most of the jobs taken by girls are in diamond studded jewelry factory. There is lot of work that needs careful skilled hands.(Bagging, Diamond counting, wax setting, waxing, gauging, Assortment, cad-cam etc.)

Marketing
There is presence of girls/women in marketing team of Diamond studded jewelry manufacturing factory. They play perfect role for bringing in new ideas & trends. Diamond jewelry business is very dynamic model and one needs to stay tuned to latest market demands.

Accounting & Administration
Many small & big companies have girls in their team taking care of Accounts, bookkeeping and other office administration.

But statistically speaking, Diamond Markets still remains a very traditional Industry. Statistics show that there is still a very high preference for a male employee.