May 24, 2017
mjunction e-auctions rough diamonds worth Rs110 crore
mjunction auctioned over one lakh carats of rough diamonds – worth a transaction value of Rs110 crore – for a public sector undertaking (PSU) mining company. A significant development amidst the global slowdown in the diamond industry, the e-auction process has successfully overcome the challenges in the gem and the jewellery sector.
Commenting on the development, Vinaya Varma, CEO, mjunction, said, "mjunction's e-auction platform has helped the PSU mining company identify the right buyers and sell their product at the correct price. The online process ensured complete transparency, safety from unfair practices and efficient time management."
To make the e-auction successful, mjunction reached out to a large number of buyers and undertook several measures, including social media marketing. Two offices were also set up, one at the company's diamond mines and another one at Mumbai, to facilitate better tripartite co-ordination between the PSU company, mjunction and the buyers. A robust auction platform was created by providing customer-centric facilities to bidders.
The gem and jewellery sector contributes about 6-7 percent to India's GDP and is an important source of employment. In the last five years, the diamond industry has witnessed a decline due to weak demand in European and Chinese markets. Imports of cut and polished diamonds dropped 60 percent in FY2016 while rough diamond imports witnessed a slump of 16.17 percent.
Recently, the Gem and Jewellery Export Promotion Council requested international miners to explore mining opportunities in India to keep up with the changing global scenario.
In the backdrop of such developments, the potential for mjunction's online auction platform to be a game changer for the diamond industry, has substantially increased. Leveraging digital technology for e-auction, e-distribution and e-procurement will be immensely beneficial in realising the right market value to obtain maximum profitability. Such mechanisms also give a much-needed impetus to the government's Digital India mission.