Asian Star scouts for a US brand

MUMBAI: Asian Star, leading diamantaire and a DTC site-holder, has big plans for retailing diamonds in the country and abroad.

A source said it is in talks with a few established jewellery retailers in the country for a joint venture or strategic partnership. The JV would be for both domestic and overseas business and could be sealed by the end of next fiscal.

Asian Star is also looking for brand buyouts in United States and is ready to foray into the Russian and Chinese markets, said the source.

Priyanshu Shah, director, Asian Star told DNA Money, “Anything can happen, as we have big plans for retailing. I can’t share anything at this stage, but a final decision for our retailing initiative in the form of a JV or buyout would be taken next fiscal.”

Uday Sheth, GM (administration & finance), Asian Star said, “If appropriate opportunity comes, the company will definitely look into it (the US buyout). We are open to things which give our retailing plans a boost.”

Asian Star supplies over 50% of the diamond and diamond jewellery requirements of Tanishq, which commands a 30% share of the branded diamond jewellery market in the country.

The company also supplies the entire requirement of special diamond cuts by retail chain LeeHwa of Singapore and handles 50% of the polished stone requirements of Favero, a well-known Italian jewellery manufacturer.

Asian Star imports diamonds and after cutting and polishing, exports them to major diamond markets like US, UK, Belgium, Japan, Singapore, Hong Kong, Israel, China, UAE, Germany, Switzerland and UAE.

The Rs 1,500 crore company has been shifting its focus to the growing Asian markets of Hong Kong, Singapore, India, Gulf and Turkey. Currently, it has six offices and seven marketing arms in this region.

Vipul Shah, CEO and MD, Asian Star said, “The sale of diamond jewellery is concentrated in key world markets, the US being the world’s largest market. India and China are the emerging centres of diamond jewellery manufacturing and consumption.”

India accounts for 57% of the world’s net exports of cut and polished diamonds in value terms ($10.9 billion), 90% in terms of pieces and 80% by caratage.

Pranav Kapadia, senior manager (finance), Asian Star said, “We will focus on customer segments who are volume players, such as large retailers, and who can add value to diamonds through downstream activities. We will increase the business garnered from large retailers, from existing 30% to 45%.”

More than 90% of the company’s turnover is generated from overseas markets in the US, Europe and Asia. The global diamond market being very fragmented, no single player holds a significant share of any one segment or region.

Asian Star’s clientele includes J M Garel (France), Mondial (Germany), Apart (Poland), Prime Diamond (Thailand), Browns (Africa), Aris (Istanbul), Michael Hill (Australia), The Palace (Indonesia), Zydo (Italy), and Rogers & Hollands (USA).

Asian Star was set up as a partnership firm in 1971 by the Shah and Kothari families to trade in diamonds. In 1990, management control passed to the Shah family. In 1995, it became a public limited company and subsequently, in 1996, it came out with an initial public offer.

r_mithun@dnaindia.net