Mumbai: The Indian diamond market is poised to grow at 20% annually to over Rs1trillion in the next five years on the back of improved demand, a top industry player said on Friday.
“Demand for diamond jewellery is improving world-wide and people in India are buying more diamonds these days as it is a good mode of investment. The Indian diamond market is likely to grow at 20% to touch Rs 1trillion in the next five years whereas gold will grow at 8-10% year- on-year,” Vivek Jain, chief executive of leading diamond retail chain Orra, told PTI in Mumbai.
At present, the domestic diamond market is pegged at Rs12,000 crore, Jain said, adding the total jewellery market in the country is worth Rs70,000 crore.
Orra, a part of the $1.8 billion Belgian Group Rosyblue, is poised to grow at 20% year-on-year, Jain said, adding it will be opening five large-format exclusive stores in the next three years at Delhi, Mumbai, Bangalore and Hyderabad.
“We will open five large format stores (3,000 sq ft) in the next three years at an investment of Rs70 crore. We will be raising funds through the private equity route by August this year. The process has already started and we have shortlisted three investors,” Jain said.
The company, that has 30 stand-alone stores across 20 cities in India, exports diamonds to 15 countries, the largest market being the US.
According to Jain, the economic downturn in the US has not affected Orra from a price point of view. The company is expecting a double-digit growth in its exports to the US in the current year.
Jain also said the company’s same-store sales rose by 30%t month on month.