Exclusive Interview: 10 June 2009 Kaushik Mehta, Chairman of Eurostar Diamond Traders ADL International Magazine met Kaushik Mehta, Chairman of Eurostar Diamond Traders in order to understand how he observed the evolution and the state of the diamond industry in Antwerp. Firstly, Mr. Mehta, how do you perceive the present state of the Antwerp diamond industry? What are your general observations of the world diamond community? As we speak, the Antwerp diamond industry has shown definite signs of stabilisation and this will continue providing that the miners do not become too greedy. Business momentum is once again starting up and we’ve noticed slight price increases from previous lows in certain categories of goods. We are at this point cautiously optimistic over the short term. At the same time, there is no denying that the long term value of diamonds in general is very much on solid ground. China especially has proven to be an increasingly important market for us. Is Antwerp still the world diamond centre? As about 90% of the world’s rough diamonds still pass through Antwerp, Antwerp is most definitely still the world diamond centre. At the same time, we require the Belgium government’s support in keeping Antwerp’s foothold on the rough diamond market strong and resilient. In particular, the justice system must be reformed so that punishments for any alleged wrongdoing are carried out after guilt is proven rather than wrongly accusing an innocent person with no solid proof. These types of incidents shatter business confidence. How is Eurostar coping with the current crisis? What measures are being taken by Eurostar to mitigate the effects of the financial crisis? At the start of the downturn, we organised a series of strategic meetings with all department heads to determine ways we can cut costs yet at the same time ensure efficiency optimisation throughout the company. This has been especially effective with our cutting and polishing operations, where we have used the industry challenge as a springboard to introduce next-generation technologies into our diamond cutting and polishing processes. At the same time, we learned an important lesson from 2008 and this is to ensure that our margins are sufficient to sustain the business. Margins immediately prior to the recent market collapse were simply too narrow, which is quite risky. Nonetheless, Eurostar is very fortunate to have a strong client base, which we have always considered to be our partners. These downstream relationships have been cultivated through many years of close collaboration and we saw the crisis as an opportunity for us to further strengthen our relationships with key clients. In terms of banks and credits, are banks helping customers like Eurostar? Do you believe they should support even more diamond companies? Indeed, Eurostar has been fortunate to have built up longstanding relationships with our bankers. To my knowledge, the banks have kept up their commitments according to their agreements with individual companies in the diamond industry. As a leading diamond company, what advice do you have for smaller companies that are facing harsh times? The key is to remain persistent even in the face of fears. Until there are definite signs of a broader economic recovery, we all need to remain vigilant by optimising every facet of the business more than ever before. Moreover, do not be afraid to reach out to your network within the industry. To smaller players especially, it is essential to develop a niche and to differentiate. Share ideas, listen to new perspectives, optimise costs, implement new technologies, and perhaps most importantly – ADD VALUE. ----------------------------------------------------------
Good advice Kaushik , maybe DON can come up with something in the next few months. In NW Queensland , perhaps ? Check out the next quarterly report due out next month to see if DON is good...........or not.
DON Price at posting:
4.5¢ Sentiment: Hold Disclosure: Not Held
