Nazrana of Rio Tinto

Rio Tinto, a river in Spain and a British-Australian mining conglomerate. It captured my attention when I read this news 'Rio Tinto eyes marriage gifting market in India'.

http://articles.economictimes.indiatimes.com/2012-09-19/news/33952516_1_bunder-project-rio-tinto-india-diamond-jewellery


First of all I did not know that Rio Tinto was into Diamond business also. Secondly, Nazrana is being owned by Rio Tinto. It is intrigueing to see how companies leverage upon their core competancies and diversify into attractive businesses. Daimonds!

Another observation, the company wants to focus only on its core competancy and that is mining. If you read the article whose link I have posted above then Mr.Merchant has made the statement that they do not want to go into retailing, which is outside the firm's core competancy of mining. Company is soliciting retail partnerships rather than forward integration.
Though, the Indian government allows 100% FDI in gems and jwellery and 51% is now also allowed in its retail, but still the company wants to take the supplier and branding only route rather than establishing its own retail outlets.
I can't comment on whether this decision is good or not good because it depends on the culture of the company and how they percieve entering into retail as digressing from their core competancy.

 I wish the company my best wishes.

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