Surat diamond units go to cyberspace to jack up sales

Microsoft, govt extend a helping hand to help them connect with the global market

Reeling under global meltdown, small and medium units in Surat’s Rs 70,000-crore diamond industry are all set to take to virtual selling to revive the sales. To help the industry in its initiative, Microsoft and the government have extended support.

Small and medium-sized diamond units depend on foreign clients for export orders. The slump in the market has meant a huge drop in demand for cut and polished diamonds from US and Europe clients who make the primary distribution channel for the industry. According to industry experts, about 20 per cent of over 10,000 processing units in Surat have already shut shops in the last couple of months, with exports tapering off.

Many diamond units have given an extended `vacation' to the labourers. Only time can tell how many will reopen after that period.

To tackle the situation, Surat units have now planned to reach out to global markets on their own, using ICT and web-based selling.

Microsoft, in association with the Union Commerce Ministry, is in the process of developing an e-readiness centre for the industry. The centre will provide consultancy services to small and medium diamond units in conceptualising and building their own brand, providing technology backup, and helping the with website development to sell their diamonds.

The implementing agency, Cluster Pulse (CP), says Microsoft will help get bank loans for units which cannot afford to pay for developing portals and IT automation, "In extreme cases, Microsoft will even partly fund them. But we believe the units will find this affordable," says Sawan Ruparel, Technical Head, Cluster Pulse.

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