We cater to both the export market and the local market under this business segment. We buy rough diamonds from diamond traders and wholesalers, polish and process the rough diamonds at our manufacturing facilities and then sell the processed diamonds to wholesalers, jewellery manufacturers, traders and retailers. We process the diamonds in Surat for the export market and the Mumbai facility for the local market. In the last two years, our trading business - involving buying of rough and/or semi-polished diamonds from one party and selling them to another party without any processing, has reduced and now accounts for a nominal percentage of our total diamond business. Historically, we were primarily in the business of trading but after setting up our manufacturing facility in 2006 we have reduced our trading activities.

We primarily process higher carat rough diamonds which lead to a higher realization per carat. Due to the skills and technology required, most of the processing of larger sized stones is undertaken in countries like Belgium and Israel. Having mastered the requisite expertise, we have shifted to processing larger sized stones over the years. A higher realization per carat leads to higher operating margins.