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Stargems Group

Establishing a Leadership status with ethically driven business model


In an exclusive with Mr Shailesh Javeri, Chairman, Stargems Group, The New Jeweller Bureau gets an insight about the key factors responsible for the commendable growth of the company and its expansion plans in the African region. Excerpts:

Stargems Group has been servicing the Diamond and Jewellery sector right from 'Rough to Retail'. What according to you are the key factors that have led to the exemplary growth of the company?

There are many factors that have contributed to our growth. Strong business ethics and transparency towards our partners and stakeholders have attracted more and more business to us. We believe in having strong and sustainable relationships with our partners. We have branched out and tapped into new markets but not diversified away from our core business. In the diamond industry, working with conviction is a recipe for success. We have our presence in key diamond centers with a focus on Africa. After recently acquiring mining stakes in South Africa, we are inaugurating another factory in Botswana this September. The future of the diamond industry is at its heart - which is in Africa, and we will continue to invest and focus on growing our business in the continent.

Tell us something about Stargems’ procurement of Diamond subsidiaries in the African continent. How significant is this for the International Diamond supply chain?

Stargems recently acquired Rooiport and Jagersfontein mines in South Africa. With this move, Stargems has entered into the diamond mining space. As regular rough is in short supply more companies will look to secure their procurement with investments higher up the value chain.

The current economic volatility is inadvertently affecting the Diamond Industry with reduced supply or no Rough especially from Alrosa, the largest rough supplier. What is your take on this, and do you think the African Diamond supply should increase and strengthen the supply chain? If yes, how?

The reduced supply from Alrosa is definitely creating a vacuum in rough diamond supply. The manufacturing infrastructure created in India and globally is struggling to procure the right quantum of rough supply.

I believe even if Africa wants to increase its production it cannot replace Alrosa’s supply in the short term. In these circumstances, Africa can attract more mining companies to invest and hopefully create a stronger African supply chain in the future.

Angola will shortly be launching the Angolan Diamond Exchange. How do you see this development helping Angola to become an important diamond destination? What would be Stargems’ role in the Angola Diamond Exchange?

The launch of the Angola Diamond Exchange is major progress in the organisation of the Angolan Diamond sector. Angola is one of the few destinations to have a growing mining industr y and the new Exchange will positively attract investment.

Stargems will be an important member in the Angola Diamond Exchange and we will continue to invest in Angola as the country is a major supplier for us.

Tell us something about the “Light of Africa” diamond and the huge news that it generated during the recent Christie's auction in the US?

The ‘Light of Africa’ has been a milestone achievement for us. The rough was a 299.3 carat mined at the Cullinan Diamond Mine. We acquired the exceptional stone from Petra Diamonds. What is unique about this stone, is its journey. The exceptional diamond was mined, cut, and polished in-house at our state-of-the-art diamond manufacturing facility in Johannesburg. We transformed the rough into a 103.49 DFlawless Emerald cut diamond. This exceptional stone was the highlight of the June Magnificent Jewels auction at Christie’s and surpassed its estimate to achieve over USD20 million. The result demonstrated the resilience in demand for the highest value of diamonds and proved even the rarest diamonds can be polished by Stargems in Africa.

Lastly, how do you see the family business growing in the diamond sector and what would be your advice to the next generation in terms of business transition and growth?

We see our family business growing over the years and generations by focusing on our key strengths and by paying attention to our core values, relationships, and ethics that have got us here so far. My advice is, always to stick to your values, never forget your roots and adapt to the changing market dynamics. All generations of our business brainstorm and strategize on the next steps together, which I believe is the best way to ensure a smooth transition for future generations.