Vipul Shah, Chairman: GJEPC,CEO & MD: Asian Star Co. Ltd is truly an iconic leader of the Indian GJ industry. His dynamic leadership, keen business acumen and understanding the pulse of the industry has propelled both, GJEPC and Asian Star, forward. He speaks to JEWELBUZZ on his journey in the GJ industry and his leadership role at GJEPC and Asian Star amongst other things.

Tell us about your journey in the diamond and jewellery industries, the beginning and evolution.
My journey in the diamond and jewellery industries began under the profound influence of two exceptional men—my late father, Prabodh Shah, and my uncle, Dinesh Shah. Both were true artisans, infusing their love and passion into every aspect of the diamond business. As a young teenager, their enthusiasm was contagious, and I eagerly joined them to learn the intricacies of the trade. This early exposure ignited a lifelong passion within me for the diamond industry.

Starting from the ground level, I immersed myself in understanding the nuances of the trade and the dynamic market landscape. This foundation provided me with insights needed to navigate and excel in the industry. With steadfast determination, I aimed to elevate our family business. Asian Star, to new heights, expanding our reach and captivating customers worldwide. This journey has been filled with both challenges and triumphs, but it has always been driven by a deep-seated passion for diamonds and jewellery.

Take us through your journey at Asian Star and the evolution of the company. What was your strategy for growth, expansion at Asian Star?
At Asian Star, our journey has been marked by strategic growth and expansion. Establishing a rock-solid foundation was crucial for our success, so I prioritized strengthening our systems and ensuring financial stability. A significant milestone in our journey was in 1996 when we took the bold step of going public by listing Asian Star on the Bombay Stock Exchange. This move provided us further on our path to growth.

In 1999, recognizing a natural synergy between diamonds and jewellery, we ventured into the world of Jewellery. This strategic expansion allowed us to diversify and innovate, keeping us at the forefront of the industry. Our focus has always been on staying ahead of the curve in terms of innovation and design, ensuring that we remain leaders in the market.

In this journey who were your mentors, what was your inspiration that drove you to creating a successful organization?
Throughout this journey, I have been fortunate to have the mentorship and inspiration of my late father and uncle, Prabodh and Dinesh Shah. Their passion and dedication to the craft set a high standard and inspired me to pursue excellence. Additionally, my journey has been enriched by countless other incredible individuals within the industry who recognized my passion, expertise, and knowledge.

This recognition led to my election as Chairman of the GJEPC board in 2012, a role that I am honoured to hold once again in 2022. Working alongside an exceptional team, we are committed to establishing India as the ultimate sourcing destination for the most exquisite diamonds and jewellery.

My journey in the diamond and jewellery industries has been a blend of love, learning, and the relentless pursuit of excellence. Every day, I am privileged to work with something so beautiful and timeless, and I remain dedicated to driving Asian Star and the industry forward.

What are the challenges in leading an apex body like GJEPC?
Our role is to address the challenges faced by the industry, serving as the bridge between the industry and the government, and creating a conducive environment for sustainable growth. Over the years, we have successfully tackled the industry’s issues and challenges by advocating for policies that promote growth and sustainability.

What is the strategy at GJEPC for increasing growth in GJ exports?
At GJEPC, our strategy to boost gem and jewellery exports revolves around a multi-faceted approach to engagement, promotion, and market expansion.

Trade Shows and Exhibitions:
We organize three major IIJS shows annually—IIJS Signature in January,

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Exploring New Markets:
GJEPC is proactively exploring new markets. A recent delegation visited Latin American countries, including Brazil, to boost exports and strengthen economic ties to the Latin American and Caribbean (LAC) region.

Comment on initiatives, like BSMs, to increase outreach to global markets:
Buyer-Seller Meets (BSMs) have proven to be a highly effective method for connecting exhibitors with buyers. We organize BSMs both in India and international markets to facilitate these crucial interactions. The one-on-one format for these BSMs, typically lasting 30-40 minutes, allows buyers and sellers to engage in a relaxed and focused environment. These meets foster meaningful connections, enabling detailed discussions and building strong business relationships. These are essential for expanding our global market outreach.

In your opinion how do you rate the performance of Indian GJ exports? What is the potential for growth?
Despite global headwinds, geopolitical challenges, and sluggish demand in key markets like the USA and China, Indian gem and jewellery exports have performed remarkably well. The industry’s resilience stands out, showcasing its ability to adapt and thrive under adverse conditions.
Given its robust foundation, I am confident that the Indian gem and jewellery sector will bounce back swiftly as market conditions improve, making it a significant growth potential.

Foreign trade agreements like India-UAE CEPA are driving exports growth. Which other trade agreements are in the pipeline?
FTAs such as the India-UAE CEPA have played a crucial role in driving export growth. Looking ahead, several other trade agreements are in the pipeline, including those with the Gulf Cooperation Council (GCC), Canada, the United Kingdom, and the European Union (EU). GJEPC is actively collaborating with the government to advocate for favourable policies with these upcoming trade agreements.

From manufacturing, India aims to design for the world. What efforts is GJEPC making to put designers on the world map?
GJEPC is dedicated to positioning India as the preferred destination for sourcing finished jewellery and design, for men with innovative ideas via a rigorous incubator.
For designers, GJEPC has launched several programs to spotlight and nurture creativity and design talent through Artisan Awards, Design Inspiration Seminars, Jewellery Trend Books, Jewellery Design & Manufacturing Program, and various training initiatives. Prominent among these is the Artisan Awards, a prestigious design competition celebrating artistic excellence, creativity, and innovation in jewellery. The Artisan inspiration seminar focuses on educating industry professionals about global trends, while Jewellery Trend Books provide curated and future jewellery design content to enable designers and manufacturers to keep abreast of dynamic consumer preferences.

Given the current geopolitical turmoil and sanctions on Russian diamonds, comment on its impact on the local diamond industry?
The Indian diamond industry remains one of the world’s only growing markets, even continuing to grow under challenging geopolitical circumstances. With a favourable GSP growth outlook and a shift towards innovative practices, the industry is well-positioned to continue its upward trajectory.
The correlation between GDP growth and retail diamond jewellery demand is a well-established economic indicator. As India’s GDP is forecasted to grow at a rate of 7.0% in the current fiscal year, the diamond industry is poised to benefit from this economic upturn. The rising disposable income and the socio-cultural preference for luxury goods, including diamond jewellery, further bolster this trend and its prospects.

Please provide details on the EU’s 14th Sanctions Package for the diamond and jewellery industry.
The European Union’s 14th package of sanctions includes several new regulations which have a substantial impact on the diamond and jewellery industry. Thanks to the Government of India for playing a crucial role in not only facilitating engagement in diplomatic consultations with EU G7 stakeholders on some of the concerns of the Indian diamond industry, the world’s largest producer of cut and polished diamonds, are addressed.
One of the most notable aspects of this package is the refinement of the import ban on Russian diamonds, initially introduced in the 12th sanctions package by EU. The latest clarification specifies that the ban does not apply to diamonds that were already present in the EU or in third countries (excluding Russia), or were polished or manufactured in third countries before the ban’s enactment. This “grandfathering” provision is a significant and welcome decision for the Indian industry, allowing smoother transition and trade continuity.
In addition, the package permits the temporary import or export of jewellery for purposes such as trade fairs or repairs.
A critical component of the 14th package is the extension of the sunrise period for the full-traceability scheme for rough and polished natural (mined) imports by six months. The new deadline for mandatory implementation is now set to 1st March 2025 by EU. Furthermore, the decision to delay the ban on importing processed Russian diamonds (especially those not polished in Russia) until the Council decides to enforce it in a coordinated manner is also seen as a positive move for the trade.

While these measures provide some relief, it is imperative that the industry still requires more detailed information and operational guidelines. The priority concern remains the inconsistency in procedures and requirements across different countries. A uniform approach adopted by both the EU and G7 would significantly alleviate these concerns, providing much-needed clarity and stability for the global diamond and jewellery industry.

The biggest opportunity is in the form of India’s domestic lab-grown diamonds (LGD) production and processing industry, which is leveraging India’s existing strengths in cutting and polishing to gain worldwide leadership. Comment on the growth and future of India’s LGD segment.
India stands at the cusp of a golden opportunity. Not only being the world’s leading growing centre for CVD-type LGDs, it also remains the largest diamond processing centre for both LGD and natural diamonds. Through GJEPC’s consistent efforts and recommendations to the government for the promotion of LGDs, the Govt. of India in the 2023 Union Budget invested Rs 242-crore grant provided to IIT Madras over five years. This will undoubtedly accelerate the growth of the LGD industry in India.
Looking ahead, the future of India’s LGD segment appears promising. With continued government support, advancements in technology, and increasing global demand for lab-grown diamonds, the industry is poised for significant growth.