Rahil Shah, The youngest Executive Director of Asian Star Co. Ltd., represents the third generation of the Shah family. Over the past years, he has been inducted steadily in different functions of the diamond business and currently is closely involved in the everyday functioning of rough procurement and diamond manufacturing. Being technology savvy, he has been instrumental in implementing new technologies at the factory and is the custodian of the integrity and veracity of the company’s diamond pipeline.

Your comments on the state of the Indian diamond industry as 2023 comes to a close. What were the challenges, opportunities?

The Indian Diamond industry encountered numerous challenges, including increased interest expenses, the geopolitical landscape, and a fall in profitability, and generally dampened demand. Inventory experienced a cycle of excess production last year, leading to significant overstocking this year, which has prolonged the destocking process. Additionally, persistent low demand in China and the USA, the two primary consumer markets, has exacerbated these issues. This year has underscored the critical importance of manufacturing efficiency as a fundamental component of business operations.

Your forecast for 2024- both from an India perspective and overall global scenario.

I see India emerge as one of the most promising markets in terms of demand, with the overall sentiment appearing to stabilize. Many jewellery retail chains are anticipated to expand. Globally, we expect China to experience a slow recovery and the USA markets to reach stability. The Middle East market also shows promise. Additionally, with 2024 being an election year in numerous countries, this will significantly influence consumer sentiment within the luxury sector.

The diamond industry voluntarily halted rough diamond imports for two months. How effective has this move been?

Indeed this strategy has proven successful in restoring consumer trust, as evidenced by the stabilization of polished prices and the ability for manufacturers to decrease their polished inventory to more sustainable levels. Additionally, there’s been some stabilization in the rough market, where the limited supply of rough has ultimately aided in establishing a stable price point for rough goods.

Sliding demand in markets including US, China has meant a decline in exports. The Russia- Ukraine , Israel-Hamas conflict, sanctions against Russian diamonds have all contributed to global volatility and uncertainty. What is the Indian diamond strategy to tackle these challenges.

I want to emphasize that adopting a strategy to enhance efficiency is crucial from a manufacturing standpoint. Maintaining profitability with minimal inventory levels and concentrating on polished sales are particularly beneficial for strategizing until we navigate through these difficult times.

The natural diamonds vs LGD(lab grown diamonds) debates and discussions continue. Your comments on how both segments can co-exist in the market place

We aim to focus on value addition in the diamond pipeline and hence our energy and focus will be in sustaining growth in the loose diamond manufacturing space alongside with expanding our footprint in the jewellery manufacturing space, both in the Indian market as well as exports. The conversation around natural diamonds and LGDs is evolving. I’d say they both cater to their own set of audiences, who appreciate and celebrate their unique value. While natural diamonds have their timeless allure, LGDs offer new possibilities. What matters is the commitment in catering to the diverse consumer preferences, ensuring excellence and integrity in every piece being offered.

Please comment on ASIAN STAR’s strategy, roadmap going forward.

Our roadmap at Asian Star is clear: we aim to lead with innovation and integrity. Our strategy is anchored in innovation, sustainable and ethical sourcing, and a relentless pursuit of customer satisfaction. We are expanding our global footprint, investing in cutting-edge technology and our people, and remaining steadfast to our core values of integrity, teamwork, and customer-centricity.

Your message for the diamond industry.

My message to the industry is to remain steadfast and visionary. It’s imperative we embrace change, prioritize sustainability, and continually seek to understand and fulfill our customers’ evolving needs. I would urge the diamond fraternity to work with a long term vision in mind that accounts for both profitability and efficiency. At Asian Star, we’re committed to setting industry benchmarks, focusing on ethical practices, and delivering unmatched quality and beauty. Together, we can ens