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  Consortium of Jaipur manufacturers set up gem sourcing and marketing company


June 11, 2012


A group of leading gemstone processing companies in the Indian center of Jaipur have established a company called Color Stone Gems India, the goal of which is to source rough supply from outside of the country, market polished output produced by members of the consortium and to share technology.

The new company will be a subsidiary of Diamond India, which was formed in 2006 by a consortium of diamond manufacturers with an equity capital of 1 billion rupees. That has since grown to 20 billion ($360 million) in six years.

According to a report in Economics Today, the new company pools the resources of about 50 Jaipur-based colored gemstone manufacturers. The company currently has equity capital of about 1 billion rupees, but that is expected to grow five fold over the coming two to three years as more members join the consortium.

Among the prominent figures associated with Color Stone Gems India is Rajiv Jain, president of the country's largest jewelry trade organization, the Gems and Jewelry Export Promotion Council. "With this company, color stone processors would be able to earn long-term supply contracts from rough mining nations and can make an impact in export markets by jointly working on creative issues," he stated.

The new company's structure is expected to be complete by the end of July, when it will begin bidding for stones in Latin America and Africa.

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