Sea News recently interviewed Group CEO of BVC Logistics, Bhavik Chinai who gave a detailed insight on diamond, gold and jewellery value chains. From automation to the impact of COVID-19, the interview covered a range of topics. Below are the excerpts…
Can you give us a brief overview of BVC?
BVC is India’s largest secure logistics enterprise with logistics solutions for the diamond, gold and jewellery value chains, working with over 20,000 businesses from mine-to-market.
What are the current trends in the industry, with respect to supply-chain automation?
In India, identification of each piece of jewellery was an investment made only by jewellery retailers and not wholesalers or manufacturers. Due to the volume of pieces handled by manufacturers & wholesalers, each unique design used to be sold in a ‘lot size’. The Indian government has made hallmarking mandatory and that has made each manufacturer and wholesaler uniquely identify each piece. Investments in RFID for inventory tracking is now a priority for the industry. Among logistics enterprises, use of robots at hubs have become viable for the purpose of higher security & lower human dependence, not cost.
How serious are stakeholders in Logistics when it comes to automation?
Diamonds and jewellery are high value but low in volume and due to its nature of low volume, investments in warehouse automation, drones for delivery etc. aren’t viable. The reason by why some investment is being made now is higher security to eliminate human intervention. Also, post Covid, the value of real-time information has become much higher among customers and SME shippers have started paying a price premium for reliable LSPs, creating a reinforcing cycle allowing large LSPs to invest in automation first.
Please give us a brief idea of Logistics solutions offered by BVC?
BVC offers secure logistics for B2B and B2C high value cargo for diamonds, jewellery, bullion, luxury products and art. Among solutions, BVC offers secure import & export, customs brokerage, domestic logistics, vaulting, exhibition management, consulting, and e-commerce logistics.
How have you seen jewellery exports rising over the past one decade, from India?
India has been a diamond manufacturing hub for over 4 decades, with 9 out of 10 diamonds being manufactured in India. For jewellery, the Indian government & the jewellery trade bodies have made an aggressive push to make India a manufacturing leader in jewellery as well. In the past 10 years, jewellery exports have risen to over $5 billion per year. The goal of the government is to take the total exports of Indian gem & jewellery from ~$30 billion to $50 billion in the coming decade.
How do you see jewellery exports scenario over the next five years?
The demographic profile of the exporters is rapidly changing and we’re experiencing hundreds of new exporters starting international business each month. The Indian jewellery industry has over 300k domestic focussed jewellers and almost everyone aspires to have global clients, which is what BVC is helping facilitate. The second trend if value of shipments is changing from B2B to B2C, where exporters are using Amazon and Ebay to start international sales. E-commerce logistics of high value cargo is growing exponentially.
Jewellery is delicate. How is it ferried, with care, across continents, please educate our readers?
Over 98p of all diamond, jewellery and bullion is transported via air. Silver, luxury, and a few other commodities are the exceptions using ocean. Each piece of jewellery is securely packed followed by BVC Secure Packaging. Each on-ground personnel is trained on how to safely & securely handle high value cargo. We’re proud to share that we have close to zero damages during transit.
How has been BVC’s journey so far since inception?
We’ve grown from a one city customs broker to a conglomerate into several businesses. Within logistics, our high value cargo logistics now facilitates shipping in over 130 countries & 60p of India’s pincodes. As a trusted stakeholder of the gem & jewellery industry, BVC is recognised by awards from the Indian government & trade bodies, is recognised by the Responsible Jewellery Council and Ease of Doing Business Committee of the government.
How has COVID-19 impacted the Supply Chain business and how has the pandemic affected your business, if so?
Covid affected our business for roughly one quarter last year and the impact has been different between international and domestic. For our international business, the stimulus package in USA changed the diamond industry and made 2020-21 its best year in over 40 years. 2021-22 looks even better, with prices staying consistent, factories running on full capacity and every waiting list of customers. Our domestic business took heavy hits due to multiple lockdowns which shut the non-essential gem & jewellery industry. Despite the heavy hits, we’re happy to have recovered and are now at over 120% of pre-Covid levels. Our journey to become IPO ready remains unaffected.
