The diamantaires in Gujarat are exploring the possibilities of replicating the Amul Co-operative model for survival in these turbulent times.

The Gems and Jewellery Export Promotion Council (GJEPC) will explore the co-operative model to procure rough diamonds from the international market.

Chandrakant Sanghvi, Regional Convener for Gujarat, GJEPC said: “We are considering an idea where the gem and jewellery council will import rough diamonds collectively to cut down on costs. The same council will be responsible for marketing the finished product under one brand.”

Those associated with the business say this is a requirement. “If this happens, it will be of a great help to the small and medium sized units. This will bring down the cost and also help them to sustain,” said Savji Dholkia of Hare Krishna Exports.

He added that the council is also considering buying a mine, so that the cost of rough diamonds is sufficiently reduced.

Meanwhile, the diamantaires are also in the process of restructuring their businesses and adapting to the new technologies to survive the meltdown. The small and big diamond units are in the process of changing their marketing strategies, processes, technology and culture.

CP Vananai, president of the Surat Diamond Association seconded Sanghvi's views, and added that this is the time to change the marketing strategy.

"The idea is good, but everything depends on the demand. Right now, the focus needs to be on countering the slowdown in the industry by marketing products in countries other than America. The focus should shift from the US and Europe to other developing countries," he said.

Till now, 50 per cent of the total diamond polished in Gujarat was sold in the American markets. "If we want to compete globally, we should also adapt to newer technology," he said.

The suggestions came up during 'Sparkle 2008,' the international conference and exhibition of gems and jewellery, which is being organised to promote the diamond polishing industry in Gujarat.