Over 1 lakh carats of rough diamonds with a transaction value of INR 110 Crores have been eAuctioned by mjunction for a PSU mining company. A significant development amidst the global slowdown in diamond industry, the eAuction process has successfully overcome the challenges in the gem and jewellery sector.
Speaking on this development, mjunction CEO Mr. Vinaya Varma said, “mjunction’s eAuction 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”.
mjunction reached out to a large number of buyers and undertook several measures to make the eAuction process successful. The widening of the bidder base was done with the help of social media marketing.
Two offices were setup, one at the company’s diamond mining project site and another one at Mumbai. The offices were established for a 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.
In the last five years the diamond industry’s growth has been declining because of recessive demand in European markets and Chinese economic slowdown. The 2016 financial year saw a 60% slump in imports of cut and polished diamonds and a 16.17 percent downfall in imports of rough diamonds. The gem and jewellery sector contributes about 6-7 % of our GDP and forms an important source of employment.
Recently the Gem and Jewellery Export Promotion Council (GJEPC) has requested international miners to explore mining opportunities in India to keep up with the changing global scenario. Reports have appeared that a private entity is also open to taking charge of the diamond mine which Rio Tinto gave up in Madhya Pradesh. With such developments in the fray, mjunction’s online auction platform can be a game changer for the diamond industry. Leveraging digital technology for eAuction, eDistribution and eProcurement will be immensely beneficial in realizing the right market value to obtain maximum profitability. The adaptability to such mechanisms also gives a much needed impetus to government’s ‘Digital India’ mission.