Interview with Mr. Premal Patel

Premal Patel - Assistant Buyer, Supergems India

Indian Diamond Industry has turned in to one of leading player globally and its one of the successful case study of Strong Indian Economy. Today we are glad to talk to Premal Patel who is part of industry for last 15 years and has seen Diamond industry skyrocketing in to best in the world.

How did you start your career in Indian Diamond Industry?
I got into Diamond Manufacturing field in 1994; learned how rough diamond is polished; worked for 5 years and learned step by step process of manufacturing; 10 years back moved to Mumbai; I started working in Diamond assortment and learned insights of buying & selling diamonds in Mumbai Diamond market; I have worked with many firms as Consultant (contract basis) including Asian star, AP gems, Nirav Impex; Presently I work for Supergems India Pvt. Ltd. as an Assistant Buyer.

How was your experience in Diamond Industry during 2008 slowdown?
2008 slowdown was a big blow for Indian Diamond Industry. For many the financial crisis over the last 24 months was an expensive education. Good companies which decided to face the crisis didn’t disappear in a bear market and now they are in very good position. They are in much better position to invest, step on their competitors, and steal market share.

Unfortunately many owners and leaders were unable to take care of their employees. They left all skilled people in middle of ocean and theses people were completely helpless. Some of these people struggled and stayed in Industry, many are out.

If not in Diamond Jewelry Industry which industry or profession you would have chosen?
I could have done business of color stone (Semi Precious). My family is into this business for a while.

Who is your mentor in diamond market?
At my first job I got lot of support and guidance from VinayBhai Patel. He had very good people skills and was expert in Manufacturing process. People with different level of experience were comfortable working with him.

If you get a chance to change one thing in diamond market what would that be?
Indian Diamond market is made up of all size of companies. Big companies keeps getting bigger and small companies keeps facing challenges to survive. We are not seeing shared prosperity. I would like to see change in this situation.

What changes you have seen in Diamond Industry in 10-15 years?
*Diamond Industry was previously close-knit industry, one would find people from only few selected Gujarati community/background : namely Jain and Kathyawadi. Today you will find people from all culture playing important role in market.
* Starting from a very small number of companies – Indian Diamond industry has rapidly grown in to worlds leading player in Diamond business.
* Markets have become more transparent – profit margins have gone down. Today you will find many companies doing business on hardly 2% 3% margin.

If all diamond market company are listed in Stock exchange which company would you invest and why?
Gitanjali Gems, Venus and in traders Dhanera, Apgems – some of these companies also do business for local market and they have grown in to big traders from small start.

Can you think of any tough decision you made in your career?
I left my job and came to Mumbai diamond market without any contacts. I can still remember that phase of my life. After lot of hard work and sincere efforts today I have made good image in diamond market.

Do you consider any particular job as more crucial than others in diamond market?
All the aspects of process are crucial and cannot be compromised. However with respect to Manufacturing process – Rough cutting and assortment can make or break whole process. If rough diamond is not cut in proper parameters the value of diamond goes down. This mistake is irreversible. Diamond Assortment is a skill using which you understand and categories diamonds as per the value.

Interview with Mr. Dilip Gajera

After enduring year of falling prices and eroding confidence, India’s Diamond Jewelry Industry is counting on it’s skilled people to bring strong recovery back to the market. Lets meet one of the member of Indian Diamond Jewelry Industry today. Mr. Dilip Gajera, presently Assistant Diamond HOD for A’Star Jewellery

Dilip Gajera, works for 'A'Star Jewelry', Mumbai

How did you start your career in Diamond Industry?
Started my career in diamond industry in 2005 with Sundaram Jewelry ; Worked as a trainee for 2 years. Got lot of guidance and support from Pushpak Desai (owner, Sundaram Jewelry) and Hemant Shah (GM, Sundaram Jewelry).  Later started working for Renaissace Jewellery Ltd in seepz, Mumbai as third party Quality Control for a year. Presently I work as Diamond HOD for A’Star Jewellery.

Tell us about your experience in 2008 slow down?
Company I worked for was doing lot of diamond jewelry manufacturing for local market, hence there were no immediate effects, however there was lot of fear for job security. I even started thinking about what other profession I can get in to if things go bad for me in Diamond Jewelry Industry.Now when I think about 2008, I feel thankful to my employer for taking care of me in bad economic times.

If not Diamond Jewelry Industry – which industry would you have preferred?
I think I’ve always had a fascination with stock markets and trading. I never did lose my fascination with the stock markets and in addition to my regular work I actively do stock trading.

What’s yours dream job in diamond jewelry Industry?
I take lot of inspiration from my uncle Mr. Vithalbhai Patel, who is old timer in Diamond Trading. I always find him well-positioned in the flow of the business and never disconnected from current realities. I want to work very closely with him in future.

Who is yours mentor in diamond market?
I consider Mr. Deven Tank, Production Manager, Sundaram Jewelry as my Mentor. It is very important to have a mentor – someone with more experience than you, someone who is in a position in life that you desire to be in the future.

If you get a chance to change one thing in diamond market what would that be?
Reference-bias – unless you know some reputed or well established person well enough to vouch for your character – you keep facing challenges. Like all other industries I wish that Diamond Industries gets more transparent in hiring people on basis of skills and not because you know someone.

Do you want to give any message to DiamondBhai readers?

Dilip Gajera and Chetan Parmar

I would like to pass regards to all readers; blog like diamondbhai.com can help to grow networks and learn about what other member think in market; with lots of humility I have following two lines for readers – I personally try to practice them as much as I can –
1) Don’t be afraid to make a mistake. But make sure you don’t make the same mistake twice.
2) Trust yourself. You know more than you think you do.

Let’s make some Loss in business..What!?

I really want to talk about making Loss today. If you are thinking ‘Why Loss, always talk about making Profit instead?’, you have come to right place.

We always find people talking about how to make more money or expand business or grow in career or how to get rich ..etc We rarely hear people talking about making Loss. You will find very few people who want to talk about how much loss they made in business in past few months. Loss is a topic which we want to lock in a room and throw key in to Bandra khadi(or is it Mahim Khadi? doesn’t really matter).

However – can you find any one business which never made any loss?

We live in middle of uncertain situations all the time. Look at present stock market – why is market going down since last 2 weeks. No one really knows. News channels always come up with valid reason for why market went down. Is news channel correct?

NO!

Markets can go down when news is good and can turn North when news is horrifying. Markets are made up of people and people sometimes do things without valid reason. If I was already under peer pressure to sell my stocks – I will do it as soon as I hear something stupid. North Korea bombed South Korea – I have no idea where exactly is Korea on the map but I think its good enough reason to sell my stocks.

You are surrounded by people who would run away from market when some bank in Greece declares that they cannot payback loan because they paid all money to employees to have nice holidays and get all kinds of benefits.

You cannot stay bull all the time – you cannot stay bear all the time. You have to flow with people. And always have a backup plan(loss making plan).

No one really wants to make loss. But every trade you do has potential to turn in to loss.
What is your backup Plan?
Do you plan your trade or you trade your plan ?
Do you know what is the maximum Loss you can handle in your annual overall finance if things go wrong?
Do you know what is the maximum loss you can handle in each individual deal ?
If you are thinking why the hell I am thinking about all these loss making questions? go back to first line and read whole post again.

Interview with Mr. Maulik Parekh

Few of us are born to be an excellent communicators.  A clear understandable message always gains the support of the listeners. Maulik Parekh is one such person who always comes out to be clear and to the point in his message.

Maulik Parekh, Assistant Production Manager for Gitanjali gems (Allianz Jewelry)

Tell us about your career path in diamond industry?

I started my career in diamond industry in March 2001 as a management trainee at Core Jewelry (Lucid Gems), company is owned by respected Mr. Kamal Bhansali. I worked here for 3 years and gained practical knowledge and experience of diamond jewelry manufacturing. I also learned about different types of jewelry used in different sectors – with quality control parameters. I was responsible for European business for the organization. Later worked at MK Jewelry, Supergems Jewelry Manufactures Pvt. Ltd., Jewel Goldie (Shree Ramkrishan Exports).  Currently I am working as Assistant Production Manager for Gitanjali gems (Allianz Jewelry).

Please comment on 2008 slowdown in diamond industry?

Common people got the biggest hit due to 2008 slowdown. Due to loss of jobs, many people who were trying to settle in big cities had to move back to their hometown.  Many of them were here with their family.

What’s yours [dream]/[dream job] in diamond jewelry Industry?

I would love to see some day running my own company in diamond jewelry with a good corporate standard. Have a strong and skilled production team. Company that does business globally; strives to be best in customer satisfaction.

If you were not in diamond jewelry industry which industry would have preferred?

I guess I could have opted for fashion industry.

If you get a chance to change one thing in diamond market what would that be?

If I could get a chance to change one thing in diamond industry – it will be importance that is given to personal reference. In Diamond industry Personal reference is given priority over talent and skills. A family connection makes more difference then aspirations and capabilities of an individual. Today I cannot think of any other field with such a bias except for diamond industry.

If all diamond market companies get listed on Stock exchange – what shares would you buy and why?

Companies that come to my mind are Jewelex ( P.D.Kothari). These companies have good management team and excellent industry quality standard. There are many other companies I can think of including Kiran Exports.

Tell us about one tough decision you have taken in yours career?

I made a plan to move from my existing job at SuperGems during 2008 slowdown. I resigned without any new opportunity in hand and felt it was one of the toughest things I have tried. Fortunately I had a new opportunity within couple of days and started working.

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

Technology is changing very rapidly. Everyone faces challenges when a new technology or software becomes way of working in our diamond industry. However if we approach changes with smart preparation, we will be able to harness the power of new technology and benefit whole organization as well.

I want all your Diwali Bonus back…

If you work for Diamond Polishing company or Diamond Jewelry company in India, you are on leave right now and probably you will read this only when you are back from holiday.

Once upon a time - I got some bonus

Most of the employer in Indian Diamond market give bonus on Diwali. You worked hard for company for whole year and now its your employer’s turn to say thanks. Bonus by definition means extra pay due to good performance.

We look at money we get in a regular salary and money we get in Bonus differently. This doesn’t make sense, because any money you spend is reducing your total wealth. But there is something strange about money we get in Bonus. In most cases we end up spending Bonus money in things we would have never bought using our regular salary.

Spending is spending – it doesn’t matter whether money is from your salary or from bonus money.

Here’s one tip on how to decide if you really want to spend that bonus money.

Ask yourself – “Would I buy this using regular salary ?”

Let’s say your salary is 20 thousand per month; you get a bonus of 50 thousand rupees; do not think of this 50 thousand as extra money or free money; instead think of this 50 thousand as your 2.5 months worth of salary.(since your monthly salary is 20 thousand, 50/20 = 2.5 months of salary)

Ask yourself – “Would I spend my 2.5 months of salary for something I am planning to? ”

And if you are not sure about the answer then chances are you are buying something you can avoid.

Other problem with bonus money is we consider it as a small amount and think it hardly makes any difference to your financial status. A 50 thousand in or out – is not going to make me rich or poor. Well I have a good/bad news for you and the news is – You are doing it wrong!!!

Have you heard a saying – “boond boond se sagar banta hai“. People who are wealthy consider small and big amount equally. Cash is king save it and use it only when time is right. By spending that bonus money easily you are not doing anything wrong but you are not doing anything rite either.

Do I really know why I bought this?

Few months back my cousin was getting married and family members were at jewelery store in Santacruz west, shopping for some wedding jewelry. This is our official jewelry store, most of the jewelry our family has bought comes from this store. This store owner showed 5 – 6 different necklace designs which family didn’t like and then the next design he showed was just what everyone was looking for. All members got stuck to the design and eventually it was finalized.

To Buy or not to Buy - that is the question

My aunt was waiting for final billing, owner got some tea for everyone and we started talking.

Owner: “design you chose is doing very well amongst customers, its latest design and I have sold same design to many customers recently”

Aunty: “if that was the case – why didn’t you show us this design first?”

Owner: “If I had shown you this design first, chances are you would have not liked it”

What happened here has some interesting aspect which influences our decision making. We understand physical world and know its limitation. I cannot lift a stone, which is more then 60kgs; I cannot jump from a ladder which is more then 10 feet high; I cannot eat more then 8-10 rotis;

But we know very little about limitations of our mental capacity. When we make decision of buying and selling there are many hidden factors which influence our decision making. You decide to buy some item to trade, thinking it is a good deal and you will make money in trading. But other then economics and business knowledge there are many non-economic factors that influence decision. Every act of buying or selling is influenced by many mental factors, many of them we never care to think about.

Lets talk about one such factor which influences our buying or selling action.

Lets say traders from Mumbai Diamond market decide to organize a tour of Hong kong, 100 traders signed up for tour. At Hong Kong airport there is a camera man who gives you traditional dress & clicks your picture and tries to sell picture back to you. His offer is:

Case 1

Option A) Only digital copy – 10 Hong Kong dollars

Option B) Only print copy – 15 Hong Kong dollars

Option C)digital & Print copy – 15 Hong Kong dollars

Chances are : 40 people select option ‘A’, zero select option ‘B’ and 60 select Option ‘C’

Now lets say if this offer was presented differently and there were only two options:

Case 2

Option x) digital – 10 Hong Kong dollars

Option y) print & digital – 15 Hong Kong dollars

Now chances are less people want option y. Now 75 people select option x (digital) and only 25 people select option y (digital + print)

What happens here is: in first case when people see price of option B & option C being same. All of sudden Option C looks like a good deal. Just by adding one not so cool offer(B) for same price makes the other offer(C) look more like a deal.

A product which was 1 lakh rupees for last few weeks is today available for 65 thousand looks like a bargain. If this same product would have come in front of your eyes today for the first time for 65 thousand you may not have got so excited. Background Knowledge of past few weeks influences your decision making.

Interview with Mr. Digesh Vora, Owner of Star Impex

In order to succeed, your desire for success should be greater than your fear of failure. Today we are glad to introduce Mr. Digesh Vora, Owner of Star Impex. Digesh Vora is ambitious Entrepreneur who is driven to succeed and expand his business.

Digesh Vora, Owner of Star Impex

Tell us about your career path in Diamond Industry?
I started my career in Mumbai Diamond Industry in 2000. In last 10 years – got experience in brokerage for 2 years; worked in sales for Rupam Impex (Ratnadeep Impex) and eventually started my own business under name Star Impex.

My father is part of Diamond Industry since last 30 years. He introduce me to Diamond industry.

Who is your mentor in Diamond Industry?
My Father, Mr. Vikram Vora, is my sole Mentor. He was the person I would turn to when I came to a crossroads or when things weren’t going quite as I planned. He encouraged me throughout my life to always improve myself, to challenge myself, and never stop learning.

He is part of Diamond market since last 30 years and more popularly known as Vikram-Mama.

If not diamond market – which profession would you have chosen?
I cannot think of any other profession. I like Diamond Industry and I like and take lot of inspiration from people I meet in our market. Diamond industry sees ups and downs like any other field. Risks and rewards go hand in hand.

How was your Experience in 2008 slowdown ?
Everyone knows that Slowdown started in global financial industry and impact reached each & every domain, including Diamond Industry. Stock Market, real estate, currency, and eventually effects reached diamond business. People in Diamond market are known for taking huge risks, many from our Industry burned their fingers in Stock market and foreign exchange. Their Diamond inventory had to take a cut, prices got correction.

I got a first hand experience of recessionary job cut, I lost my job.

I took this in right spirit. I had heard that recession is the best time to start a new business. Many well-known businesses began during a recession. I did my research, some careful planning and decided that now is the time for me to launch my company – ‘Star Impex’ was born. Today I am glad that I made a right move.

Where do you see Indian diamond industry in world?
India has grown in to biggest and most promising Diamond manufacturing base. There are many new small and medium size manufacturing companies and they are the backbone of the Diamond business economy. Its my belief that at this point of time small companies have more flexibility to adapt change and meet client’s expectation. A speedboat can go places a ship could never attempt. It is faster, agile, and can turn quickly to avoid danger. Small companies can respond to their clients and provide more personalized service.

What good or bad changes occurred in diamond industry?

I would talk first about not so good things, because good news always comes after bad one. I made a move in to Entrepreneurship when things were bad and believed that only thing I will see from here on is – Improvement.

Bad thing: there is too much impact of global economic ups and downs in Diamond market. In 2008 markets in USA were event driven. Eveyrtime a big company declared bankruptcy our Diamond market kept loosing steam. I wish this changes in future.

Good thing: Indian Diamond Industry is moving towards self reliant model. Previously costlier diamonds were traded in outer countries and low range products were traded in India, however that gap is slowly getting filled. Traders in India market use Online services to display their products and get potential deals done. You find buyers from all over the world ready to buy polished diamonds of all ranges from India based companies.

What changes will occur in diamond industry in next 10 years?
There is a new generation of people playing role in Diamonds industry now. Competition will rise and dynamics will change. People in past took lot of pain and their share of risks, however new generation will have to do more hard work sine market will keep getting more transparent. I believe market will getting more organized and standards will be followed. Customers will have faith in to pricing.

I am also very happy that we have Bharat Diamond Bourse ready to grow our business. It was must needed for growing business need. It will bring more productivity. It will give relief to small business owners who take risk of carrying costly products when they have to travel from one part of city to other. In bharat Diamond Bourse – we have all required elements like customs etc under one roof.

If all diamond market companies get listed on Stock exchange – what shares would you buy and why?
Companies that come to my mind are Venus Jewel, Rosy Blue, Blue Star (Manufacturing giant). Shernuj is good company. I would compare Venus of Diamond market to what Infosys is for technology. These companies are well managed and established. They will see lot of growth in future. These and many other companies have competitive advantage. They have above-average management and market leadership. I would definitely put my money with them at right price.

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

Digesh Vora - Owner of Star Impex, with Chetan Parmar from DiamondBhai.com

Diamondbhai.com is very good base for sharing information, it connects people in Diamond Industry. It allows people in market to share their opinion. Small business owners usually do not get interviewed, but they have lot of interesting ideas to share.

Make your company World Famous inside whole Dombivali

Title is just a joke but here’s a trick which can allow you to  display global presence and show that you care about customers.  Chances are – you are already using this Magic-thing called Skype.

Skype - voice calls over the Internet.

What is Skype? How is Skype used? How to start using Skype?
I do not need to answer any of these questions. Everyone knows it, if you don’t – give me a call.

I am here to talk about some really interesting thing you can do using Skype.

I know a guy who is a Software freelancer. He use to work from his small house in Dombivali (Thane). He had short term and long term clients from all over the world (USA, UK, Australia, Switzerland, Norway etc).

He had a local Phone number for almost 10-12 different countries/cities. Skype allows you to buy a number which is local number to some City around the world and route it to your single skype account.

When he use to find client in Germany he would give local German number. If client is from London, he will give UK local number. If client is from Chicago, he will use USA number. This way he had local experience for most of his clients. And all the while he was receiving calls on his laptop in Dombivali.

He said, all his clients knew that he is based out in Mumbai/India. However all clients used to be very happy to know that there was a local number to call if they had any question or wanted to follow up. (when he was sleeping calls use to go on a single voice mail)

Now you know how to make your Diamond Trading company world famous inside whole Charni Road!