Date:08/12/2004 URL: http://www.thehindubusinessline.com/2004/12/08/stories/2004120802760200.htm

Back Hindustan Diamond to pick up 26% stake in De Beers India

Our Bureau

Mumbai , Dec. 7

HINDUSTAN Diamond Company (HDC) has entered into a memorandum of understanding with De Beers India to pick up a 26 per cent stake in the latter by investing $3.75 million.

HDC is a 50:50 joint venture between the Government of India and De Beers, set up in 1978.

The official signing of the MoU took place at De Beers' corporate headquarters at Johannesburg, South Africa on December 6.

The Indian delegation included Mr V. Madhavan Nair, Chairman and Managing Director, HDC, and Mr Rajiv Bhandari, Chairman and Managing Director, De Beers India.

"The agreement between De Beers and HDC brings together the elements from two leading diamond industry nations in a way that fosters the values diamonds represent in both the exploration and diamond cutting worlds," a news release said.

De Beers India's exploration investment in India to date has been approximately Rs 45 crore with planned expenditure in 2005 budgeted at Rs 35 crore.