Interview with Ankur Shah, Diamond Broker, Mumbai Diamond Market

How did you start your career in Diamond Industry?
In 2003 I started working in Diamond Industry; with company named Asian star.  Worked for 3 years and learned all about Diamond Assorting and related knowledge on diamonds. Later, I worked with Living stone for 3 months & after that at Venus Jewel for 3 years and worked in administration department. After having good experience in diamond industry, I started of my company in to Diamond Trading, Diamond Jewelry & Diamond brokerage.

Do you consider anyone mentor in diamond market?
I take lot of inspiration from Anilbhai, Mehulbhai & Sapanbhai from Venus jewel. They have amazing Vision and Execution in diamond market. It is very inspiring to see them working with dedication as part of the team.

How was your experience during 2008 slowdown in diamond market?
Around that time – I was working with Venus jewel and did not face major problems. Company took good care of us. Shevantibhai Permachand, owner of Venus Jewel, personally visited and told us not to worry. He assured us that they will not cut the jobs or any deduction in pays.

A gesture like that goes long way – no one will forget how well they took care of all the employees in times of economic crisis.

If not in Diamond Market which other profession you would have chosen?
Difficult to answer – may be Stock Market.

If you get to chance to change something in Diamond Market – what would that be?
It would be great to see some more use of technology, which enables Brokers do their work for efficiently.

In last few years what changes have you seen in diamond market?
Frankly most of my career has gone working for some reputed established companies. When you work for some big company, you don’t keep close touch with what happens in market on day to day basis. So I am not able to answer your question. However ever since I started working in market as an entrepreneur, I am seeing lot of excitement as well as challenges.

Do you predict or for see any changes in coming years in our Diamond Market?
Changes – I see a lot and major ones. It will keep getting challenging to grow business. Companies have changed terms of doing business. Small traders or manufacture with small team – will see more challenges. Very likely you will see many small companies joining hand with big players and merging with them.

If all diamond companies get listed on Stock Market – which company would you invest in?
No one! I am not in to investing yet so cannot name or pick any company.

Can you share any tough decision in your life?
Leaving a Job and starting to work in Market was a tough decision and this around the time I got married. I think 15 days before I got married I started working independently in Diamond market. Well-wishers had warned me that it would take about 3 years to get going in market as an Entrepreneur.
By God’s grace and parent’s support I was able to move ahead and did well.

Interview with Harshit Shah

Harshit Shah Diamond Broker

It takes courage and determination to walk out of a stable job and start a business of your own. Our diamond market is full of such stories where a regular guy leaves his job to start is company and in few years turns out to be best shape of his career. We are talking today to a person who his fresh out of such boat. Harshit left his job last month and is now working indpendently as Diamond Broker.

Harshitbhai, How did you start your career in Diamond Industry?
4 years back I started as trainee in K Girdharlal . I learned Assortment, got exposure to marketing and lately started working on stock keeping. Last month I decided to take a plunge in to world of entrepreneur and started my own company. Presently I work as Diamond Broker.

If you were not in Diamond Industry, which other industry you would have got in to?
Share market. If done things correctly you can get good return on investment. I consider Stock eiquty as one of the best investment vehicle.

How was your experience during 2008 slowdown?
I started working and soon economy went in to topsy turvy mode. I had lot of uncertainty about my job.

What do you see market condition in near future, say next 3 – 4 years?
I believe diamond markets will do really good. There will be work for lot of people here.

This is an imaginary question – if all companies of our market are listed in Stock Market and you are given money to create a portfolio – which company stock would you buy?
I would buy several – Gitanjali gems, Rosy Blue, K Girdharlal, Venus Jewel and many more.

Any tough decision or situation you have gone through in your career?
In recent time, I had to decide which way to take my Entrepreneurial route – Rough or polish. I went for rough.
Starting to work independently was another big question which I am trying to answer now, I have to see how things go.

If you get to change one [thing or trend] in market – what would you like to see getting changed ?
Well I can just hope for something but markets has its own ways of doing things. Many a times deals involve more than one broker. In such case if final service commision in just 0.5% it doesnt pay much to all participants. I wish if deals are done with bigger commision and all people involved get atleast 1%.

What is your favourite thing to in free time?
I like to spend time with friends.

Any advice for readers?
[Smile] I consider myself fairly new to industry, have spent 4 years with a company and just recently started my company. I do not have any advice at this point of time.

How Business smart are you?

Indian News Papers

Remember that horrifying Swine Flu or H1N1 crisis. Anywhere you go people were wearing mask on their face. Our news media which has to run 24 hours a day of news supply, were completely on top of situation. News TV Channels and News Paper were talking about one thing – ‘H1 N1 is here and it will kill you’

Do you know how many people have died in India due to H1N1 or swine flu in last 3 years ?
Probabaly 100 or less than that.

Now let me bring a surprising fact in front of you.

Do you know how many people have died due to Tuberculosis (TB) in last 3 years in India?
At-least 1 lakh people.

Yes TB which we never talk about has killed lot more people than Swine Flu. So why did we find Swine Flu so terrifying ?

Reason is our Mind and all information that surrounds it. Our mind can be influenced to feel things. People predict severity of something based on how easily an example can be brought to mind.

Do you remember Economic Crisis in Greece and many other European nations? Just few months back News Channel was all over it. And it looked like it will put whole Euro for toss. It brought down our stock market.

Reality is after all these months situation with Euro has even worsen. Things are worse then what they were 3 or 6 months back however no one seems to be talking about it.

Do me a favour – today when you are travelling in train or when you get quite 2-3 minutes. Ask yourself what information you have been surrounded with in last few days. Is that causing your mind to think in certain way?

Interview with Mr. Vimaldj Parmar

In past 10 years Information technology helped to change how things were done inside a company. But in coming years you will see Information technology changing the model of communication between businesses and consumers. Vimaldj Parmar is our guest today who is very bullish on technology inside Diamond market. Let’s hear more from him:

Vimaldj Parmar, Sales, R N Export

Vimalbhai, how did you start your career in Diamond Industry?
I started working on 19th July 2006. Started as Diamond Assorter, then did work for different departments – taking packets to different partner companies, Angadia account, Export department, back office work, keeping records on computer and eventually moved to selling. Worked as Sales Executive for last 2 years. I was working at Kapu Gems all these years, now I work for R.N Export

Tell us about your experience during 2008 slowdown in economy?
There were good and bad aspects of slowdown. Some of the  business were over limit in their operations. It was common to find companies which had capacity to do 2 million worth of business, but they were doing business up to 5 million. Such excessive risk taking disappeared from market due to slowdown.Huge number of people lost their livelihood and moved to other professions.

Can you share an good and not-s0-good things you have seen in our market in last few years?
Good part: there is lot of change happening due to technology and everyone is accepting changes.
Bad part: Brokers keep facing challenge when some people gets direct in trading and by pass the service already offered by broker.

So I a talking about two different aspects of technology.It makes communication easy, but the old ways of doing business keeps getting tougher.

Mumbai markets will eventually move to Bharat Diamond Bourse, what do you think about this change?
I have that facilities and arrangements are really good in BKC, however I am yet to see the place personally. All buildings are within secured area. Bharat Diamond Bourse by itself is very positive change. One of the concern many people have in their mind is – is it safe to commute from Bandra to BKC for people who carry expensive diamongs with them? Opera house is a crowded place which in a way makes it safe.

In next coming year or two what more changes do you see coming in our market?
Indian Diamond market’s adaption of internet usage is increasing day by day. There are chances that soem of the companies will do almost all business with internet help.

Why do you think Internet services are getting more important inside market?
I think slowly new generation of people are becoming active workforce. And new generation understands how internet can help. I have seen many small business who are seated in small cabin but they get together and buy a Rapnet account. It opens up lot of business for them.

If all the companies in Diamond industry gets listed in stock market, and you are given 5 lakh rupees to invest, which company stock will you buy?
I will buy none. Some of the Diamond Industry company have proved to be good for company owners but not for regular investors. Stock prices get manipulated for few.

What is your favorite passtime when you have free time?
I like reading books and watch cricket.

What advice would like to give diamondbhai.com readers?
I would ask all readers to feel free and give interviews to Diamondbhai.com. I don’t think I have seen any other website where I get to hear real life experience and life stories of people who work right here in market. It is very inspiring to know how different started their journey in Indian Diamond Industry. It is amazing to hear from people who have seen market changing in last 10 or more years. So once again I would humbly ask every reader to share their views and message on this community website.

This is why we like Gaddafi

Gaddafi going Insane - what are you doing about it?

Not really! No one should like this man, he should have stepped down last week instead he is killing his fellow citizens in Libya. We are sorry about people in Libya.

Anyways, here’s one interesting take on the situation.

Libya exports close to 1/10 of Oil that comes out of gulf land and near by area. Gaddafi is causing trouble and oil prices have gone up. Things are bad for Oil companies in India and all around the world.

Should you runway from Oil companies that have been impacted presently due to rise in oil price ? May be! May be not!

Once again let me remind you one thing.

Diamondbhai.com will always sound stupid.

We will talk about loss management, ponzy schemes, blunders, bankruptcy, saving money – when whole market is talking about India shining.

In contrast when almost all of your friends talk about how things are bad in market – diamondbhai.com will talk about taking risk, buying value and right actions.

I am making a promise (imagine me taking oath, keeping my hand on my laptop and www), this blog will always sound stupid and not in sync with rest of the world around you. We will sound negative when whole world is talking about good times. We will talk about risk taking and value investing when everyone else is talking about running away from market.

Anyways, Gadaffi is acting insane, markets went down globally, Oil companies in India are loosing money. Hindustan Petroleum, Bharat Petroleum, Indian Oil are loosing crores of rupees everyday. Mr. Pranav Mukherjee doesn’t want petrol price to go up. Hence petrol companies who buy petrol at high price have to continue to sell it at loss. The only other option they have is shutdown operation. Read somewhere that these 3 companies HP BP and IOC – all together are loosing about 400 crores every single day.

What do you think people around you are doing to these petrol companies in stock market?
These companies have got whacked!

Are these companies good? Ofcourse! They sell you Oil at petrol pump.
Will they go up sometime in future? May be! May be not! I dont know!

Diamondbhai.com says – “these oil companies are good companies at low price”
Your friends are saying – “do not touch oil companies, stay atleast 10 feet away from them”

I am making two promises today
1) I will continue to sound negative when everyone else is positive and I will talk positive when rest of the world talks negative.
2) I will never forget promise number 1. (Alright! Alright! I copied that from warren buffets saying – but still it sounds good)

India Vs Englad. India Wins! Markets go up!

A trader friend of mine who is lives, eats, drinks Cricket has a theory.

Here’s what he says – “In next few hours India plays against England. Tendulkar scores big 100 and India wins! And markets will go up starting Monday”

Sachin Tendulkar Hits 100 - markets go up next day

Stock market sometimes reflect what will happen in future, but most of the time there is disconnect from real world. Market is made up people and people have emotions. Emotional areas inside our brain are all near each other. Our decision making process always gets influenced by quality of our mood. Feeling low means making decisions with less objectivity.

Let me give example:

scenario one) India looses match badly. Funny looking Gadaffi from Libya (I have no idea where Libya is on map) said he will fight back — “this is not good. I don’t feel good – if my shares go down, I am going to sell them before I go home”

Emotions mess up our economic decisions.

scenario two) India Wins match, Sachin made a extraordinary century. Now Gadaffi from Libya says that he will fight back — “Man this Gadaffi fellow is a big fool. Anyways let me see how my shares do today. Most probabaly it’s goign to be flat or good day for everyone. I am going to stick to my plan“

Markets are going through lot of after effects from Libya, 2g scam and what not. Many stocks which have nothing to do with these news and events, are getting whacked. Indian markets in short term (couple of weeks) are probabaly going to go sideways (within a range). Any good news that makes them feel good is going to do wonders.

You are Short Seller – let me prove it!

Short Selling a Stock

Met a friend and we started talking about shorting in stock market. His first expression was – never Sell Short. It is risky and difficult to understand.

I told him that we sell short almost everything, almost everyday. You are already living a career which is in to Short Selling and you don’t even know about it.

Let me give an example. If you do something similar in life – You already are a Short Seller.

Carpenter bhai:
last year we called one of our favorite carpenter to make a Dressing table. He understood  what we wanted, took measurements, explained us our options. We have taken his help in past and we know he does good job. Next we started talking about Price. He said – 2000 rupees. We said – 2000 is too much – make it 1500. He said there is no way he can do 1500. Finally we fixed 1800 rupees. “Give me weeks time and I will get your Dressing Table ready”.

He took 1800 rupees and left.

Next Seven days:

What do you think carpenter is doing? He tries to search inside his workshop to find some good but leftover wood or any other material he can re-use. He goes to Plywood store, bargains and tries to get wood for discounted price. Month back, he got a big lot of nails, screws, fevicol etc at wholesale price (cheaper price). He is skilled and knows that he has to spends just 2 days and table will be ready. For polishing, he asks one of his assistant to do the job.

Week gets over and he hands-over Dressing table.

What do you think Carpenter did in weeks time?

First he took 1800 rupees.
Secondly, he tried to produce table for minimum price.

Lesser the cost to produce table, bigger the profit. From his experience he was confident that he will be able to produce table in weeks time for cost less than 1800 rupees. Let’s say the cost of material came down to 600 rupees and cost of man power is 600, total cost of producing table = 1200 rupees.

On delivery Carpenter made 1800 – 1200 = 600 rupees.

This is Shorting!

We do this all the time. We promise to sell/produce some product/service for certain [market price] and then go back to our workplace to produce that item for less than market price.

Interview with Mr. Nilesh Pathak

How was 2008 slowdown for you? Not good, rite? So many job cuts, inventory cut. For a change we have found a guest who is talking positive aspect of 2008 economic meltdown. Every coin has two side. Meet Nilesh Pathak who thinks 2008 slowdown brought lot of changes in the way we work in Indian Diamond Industry and it will help us to grow more efficiently in future.

Nilesh Pathak, Sales, Kapu Gems

How did you start yours career in diamond industry?
I started working in Indian Diamond industry in 1996. Started as Diamond Grader in company named ‘P D Kothari’. Got acquainted with basic knowledge of diamond Manufacturing. Over period of time learned and played various roles including Diamond Assorting, Trading, Sales. Other companies I have worked with are Munjani Brothers, Amipi Inc and few other manufacturing companies.
Presently I work in sales with Kapu Gems (Diamond Manufacturer). Working in sales requires one to be well informed about products, industry and competitors.

What do you think about 2008 slowdown?
According to me it wasn’t a slowdown rather it was learning phase for Diamond manufacturing and Diamond jewelry Industry.

If you look at the bigger picture in long run you will find that 2008 slowdown brought many good changes:
* Manufacturers now work as per actual demand of the market, there is reduction in the unnecessary inventory and working capital.
* When businesses started to lose profits and started incurring losses, they analysed each and everything they do. This disclosed many opportunities for improvement.

Recession got reed of all the money wasting unfit business model and opened the ways for more efficient practices. Only the fittest of fit will survive the game.

Where do you see Indian diamond market in the whole world?
Indian diamond industry is leading in whole diamond world according to me and it is due to perseverance and hard work.

If you get to change one thing in Diamond Industry – what will that be?
I cannot think of anything and feel industry is full of enterprising people. It will sustain the growth and make changes as per market situation. We only look for big changes, however, changes often happens slowly over a period of time.

To move forward in businesses, rather than looking for the next big events in future, consider what gradual changes have happened in our environment but have not yet had the full impact. Then make plans for redirecting your business strategy based on those changes.

Can you think of any changes we will see in next few years in our industry ?
Diamond market is getting more saturated. Personally I see Diamond Manufacturing related businesses getting more stronger and Diamond trading activities will keep getting tougher.

Lets say all the companies in India Diamond market get listed on stock market and you are given some amount to invest. Which companies would you put money in?
I like investing in Stock market. However at this point of time I don’t think I will put money in any Diamond market companies.

Do you want to give any message to diamondbhai.com readers?
I don’t want to give any message. A good learner finds and picks up good things form what comes in front of him.

 

How did you start yours career in diamond industry?

I started working in Diamond industry in 1996. Started as Diamond Grader in company named ‘P D Kothari’. Got acquainted with basic knowledge of diamonds. Over period of time learned and played various including Diamond Assorting, Trading, Sales. Other companies I have worked with are Munjani Brother’s, Amipi Inc.  and few other manufacturing companies.

Presently I work in sales with Kapugems (Diamond Manufacturer). Working in sales requires one to be well informed about product and industry.