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    Indian Jewellry Industry

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    arnabnitw
    The gem and jewellery industry in India is an important sector that is among the fastest growing and leading foreign exchange generators. It has two major segments - gold, which comprises 80% of the market, and diamonds, with India being the world's largest diamond cutting and polishing center. The industry has an annual growth rate of 15% and exports over $15 billion worth of gems and jewellery annually. India consumes 800 tons of gold annually, accounting for 20% of global gold consumption. The industry employs over 2 million skilled workers and is financially strong with a net worth of over $415 billion.

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    Indian Jewellry Industry

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    arnabnitw
    153 views30 pages
    The gem and jewellery industry in India is an important sector that is among the fastest growing and leading foreign exchange generators. It has two major segments - gold, which comprises 80% of the market, and diamonds, with India being the world's largest diamond cutting and polishing center. The industry has an annual growth rate of 15% and exports over $15 billion worth of gems and jewellery annually. India consumes 800 tons of gold annually, accounting for 20% of global gold consumption. The industry employs over 2 million skilled workers and is financially strong with a net worth of over $415 billion.

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    Jewellery

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    The gem and jewellery industry in India is an important sector that is among the fastest growing and leading foreign exchange generators. It has two major segments - gold, which comprises 80% of the market, and diamonds, with India being the world's largest diamond cutting and polishing center. The industry has an annual growth rate of 15% and exports over $15 billion worth of gems and jewellery annually. India consumes 800 tons of gold annually, accounting for 20% of global gold consumption. The industry employs over 2 million skilled workers and is financially strong with a net worth of over $415 billion.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    153 views30 pages

    Indian Jewellry Industry

    Uploaded by

    arnabnitw
    The gem and jewellery industry in India is an important sector that is among the fastest growing and leading foreign exchange generators. It has two major segments - gold, which comprises 80% of the market, and diamonds, with India being the world's largest diamond cutting and polishing center. The industry has an annual growth rate of 15% and exports over $15 billion worth of gems and jewellery annually. India consumes 800 tons of gold annually, accounting for 20% of global gold consumption. The industry employs over 2 million skilled workers and is financially strong with a net worth of over $415 billion.

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    © All Rights Reserved
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    Download as ppt, pdf, or txt
    of 30
    At a glance
    Powered by AI
    The key takeaways are that the gems and jewellery industry in India comprises two major segments - gold and diamonds. Gold accounts for around 80% of the Indian jewellery market while India has the largest diamond cutting and polishing industry in the world.

    The two major segments of the gems and jewellery industry are gold, which comprises around 80% of the Indian jewellery market, and diamonds.

    India is the world's largest cutting and polishing center for diamonds, accounting for 60% value share, 82% carat share and 95% of pieces sold worldwide. Nearly 9 out of 10 diamonds sold worldwide are cut and polished in India.

    Indian

    Jewellry
    Industry

    GEMS & JEWELLERY INDUSTRY

    GEMS AND JEWELLERY


    Gems and Jewellery is an important emerging sector in the
    Economy. Ranked among the fastest growing sectors, it is also
    a leading sector for foreign exchange generation.
    Major Segments
    The sector comprises of two major segments
    Gold
    Comprises around 80% of the Indian jewellery market, balance
    comprising fabricated studded jewellery (Diamonds and
    Gemstones).
    High levels of manufacturing and domestic consumption.
    Diamonds
    World's largest cutting and polishing Industry for diamonds.
    Well supported by the banking sector and government policies.
    Export potential for polished diamonds / finished diamond
    jewellery.
    3

    GEMS & JEWELLERY


    INDUSTRY
    One of the fastest growing segments in the Indian
    economy with an annual growth rate of
    approximately 15 percent.
    The current market size of the Indian Gem &
    Jewellery Industry is US$ 25 Billion.
    Total export of gems & jewellery in the year AprilMarch,2010 was 29081.11 with a 2.36% growth rate
    & 16.27% share in the total export.
    The domestic market was guessed to be
    approximately USD16.1 billion in financial year 2009.
    Consumes nearly 800 tonnes of gold that accounts
    for 20 percent of world gold consumption, of which
    nearly 600 tonnes go into making jewellery

    CONTD
    India's strength lies in the 2 million highly skilled
    workforces in the country in the gem & jewellery
    sector, out of which 1 million are exclusively
    engaged in export production.
    The Gem & Jewellery Industry has started
    showing positive signs of revival and growth.

    DIAMONDS INDUSTRY

    DIAMONDS INDUSTRY
    Largest diamond cutting and polishing centre in
    the worldwith 60 per cent value share, 82 per
    cent carat share and 95 per cent share of the
    world market in terms of number of pieces.
    In the period of 9 months from April to
    December09 exports of rough diamond declined
    by 37% to 157.09 lakh carats whereas the exports
    of cut & polished diamonds mounted by 18% to
    407.36 lakh carats
    Nearly 9 out of 10 diamonds sold worldwide are
    cut and polished in India.
    Exported cut and polished diamonds worth US$
    14.18 billion in 2007-08.

    Contd
    Manufactures diamonds of all cuts,
    shapes and sizes of all varieties like
    round, princess, baguettes and all
    fancy cuts.
    Has democratized Diamonds by
    mastering the art of cutting near
    gem quality diamond.

    SWOT
    Analysis

    Strengths

    Large integrated diamond & jewellery players and having an


    international presence.

    Strong marketing & distribution network. Strong retail presence in


    India and in U.S.

    Strong brand equity and broad product range like Gitanjali, Tanishq.

    Net Worth of the total size of the gems and jewellery


    sector (both domestic and exports) is about Rs 4,15,000
    crore . So we can say that it is financially very strong sector.

    Highly skilled, qualified and motivated employee.

    Weaknesses
    There may be conflicts of interest between organized & unorganized
    players.
    As the major raw material requirements need to be imported, companies
    normally stock huge quantities of inventory resulting high inventory
    carrying costs.
    Technology is less improved compared to China and Thailands company.
    Opportunities
    New markets in Europe & Latin America.
    Growing demand in South Asian & Far East countries.
    Industry moving from a phase of consolidation.
    Expansion possibilities in lifestyle and luxury products in India like
    watches, leather goods, Platinum jewellery because increasing disposable
    income of people.
    Threats
    International Competition:-China, Sri Lanka and Thailand's entry in
    small diamond jewellery.
    Increase in the price of Gold & Diamonds.
    Other local competitors. According to the data 97% jewellery sales are by
    family jewelers.
    Threat from producing nation like S.A. & Russia.

    OVERVIEW
    Large market for Gems & Jewellery with domestic
    sales of over $10 billion
    4% of the global Gems and Jewellery market
    Exports of over $15.5 billion; over 18% of worlds
    exports
    India is the largest consumer of gold jewellery in the
    world
    Accounts for about 20% of world consumption
    India is the largest diamond cutting and polishing
    centre in the world
    60% value share, 85% volume share and 92% share
    of the world market by number of pieces
    Third largest consumer of polished diamonds after
    USA and Japan
    12

    Cont.The sector may be further categorized into the following subsectors based on characteristics, processing techniques,
    preciousness in terms of price range and marketability.
    1. Gemstones

    Diamonds

    Colored Stones-precious, semi-precious, synthetic


    2. Jewellery

    Plain gold Jewellery

    Studded Jewellery

    Silver Jewellery

    Costume Jewellery
    3. Pearls
    13

    Indian retail jewellery overview


    Yesterday

    Today

    Unbranded

    Branded

    Silver & Gold jewellery

    Gold & Diamond jewellery

    Investment

    Investment + Fashion

    Traditional design

    Fashionable & innovative design

    Marriage & festival is peak season Wearability and gifts


    Jewellery sold on commodity basis Jewellery being sold on a per piece
    with labour charges

    basis

    Conti
    Major Players:
    Vaibhav Gems Ltd.
    Classic Diamond (India) Ltd.
    Shrenuj & Company Ltd.
    Goldiam international Ltd.
    Su-raj Diamonds & Jewellery Ltd.
    Rajesh Exports Pvt. Ltd
    Gitanjali Gems Ltd

    GITANJALI GEMS LTD.


    Business Overview
    Established presence
    The company is one of Indias largest integrated diamond and jewellery
    companies Established in 1986. Sight holder status with DTC
    through a promoter group company
    Sophisticated and scalable diamond and jewellery manufacturing
    facilities
    Approximately 1,246 retail outlets in India and 143 outlets in the U.S.
    Leading brands

    MAJOR
    PRODUCTION CENTRES IN
    INDIA

    17

    Source: official website of Gujarat ,as on 17/12/08.


    www.vibrantgujarat.com/detailed-sector-profiles/gems-jewellery.pdf
    & KPMG ANALYSIS

    Trends in exports

    19

    EXPORTS
    Total export of gems & jewellery in the year AprilMarch,2010 was 29081.11 with a 2.36% growth rate
    & 16.27% share in the total export.
    Exports posted a modest growth of 1.45 per cent
    during 2008-09 at US$ 21.1 billion, primarily driven
    by gold jewellery exports, including medallions and
    ornaments.
    The country exported US$ 20.8 billion of gem and
    jewellery in 2007-08.
    The United Arab Emirates (UAE) was the largest
    importer of gems and jewellery from India in 200809, with a share of 31 per cent followed by HongKong(25%) and U.S.A(20%).

    CONTD
    The sector accounted for 13 per cent of
    Indias total merchandise exports.
    The export industry mainly comprises
    of small-to-large units based in various
    special
    economic
    zones
    (SEZs)
    supplying primarily diamond-studded
    jewellery

    EXPORTS DATA
    ITEMS

    2006

    2007

    2008

    53892.0 48905.
    2
    57

    57117.
    17

    58649.
    45

    45365.09

    GOLD JEWELLERY 16498.2 22567.


    1
    44

    11637.
    12

    9406.4
    9

    5572.37

    COLOURED
    GEMSTONES

    975.07

    1062.2
    7

    1111.0
    5

    1197.5
    5

    834.80

    ROUGH
    DIAMONDS

    1865.49 2388.2
    6

    2280.3
    2

    3474.9
    3

    1992.95

    CUT & POLISHED


    DIAMOND

    2005

    VALUE IN CRORES

    2009(APROCT)

    MAJOR EXPORTERS IN INDIA

    Major Exporters in India

    RAGHUNANDAN PRASAD & SONS


    S. ZAVERI & SONS JEWELLERS
    JAGDISH & SONS
    RIBY GEMS AND FASHION JEWELRY
    BN GHOSH & CO.
    MARUTI JEWELLERS
    MILLENIUM STAR
    SILVER STONE
    SHRI RADHEY CHAIN
    DD JEWELLERS
    24

    IMPORT DATA
    ITEMS

    2005

    ROUGH DIAMONDS

    2006

    2007

    2008

    2009(APROCT)

    40039.1 38401.
    4
    09

    40170.
    65

    40877.
    24

    21898.13

    GOLD BAR

    7034.52 7905.7
    4

    9734.4
    1

    10820.
    32

    13062.77

    CUT & POLISHED


    DIAMONDS

    16010.2 8832.6
    7
    1

    17396.
    61

    31209.
    45

    27056.46

    RS. IN CRORES

    Major Importers

    LEVIN HEALTH CARE


    SUNSHINE CONSULTANCY SERVICES
    KRISHNAM
    HI INTERNATIONAL
    SHREEJI GEMS & SILVERS
    FAMMORE ENTERPRISES.PVT.LTD
    SHIBINS
    SARIT AXPORTS CONSORTIUM
    SANJAY EXPORTS
    MONTOSTONE
    26

    Major Competitors in the


    global market

    Whats
    New..

    News
    KOLKATA, MARCH 17:
    The All-India Gems and Jewellery Trade Federation (GJF)
    has gone on a three-day strike starting Saturday to protest
    against the Budget proposals announced on Friday.
    Close to three lakh jewellers under the trade federation
    have joined the strike, shutting all jewellery
    establishments during March 17-19.
    The Union Finance Minister, Mr Pranab Mukherjee, has
    proposed to bring unbranded precious jewellery under the
    excise duty net and raise customs duty on gold bars and
    coins.
    There is also a proposal to increase import duty on gold
    from two per cent to four per cent.
    This apart, the Government has also proposed to levy one
    per cent tax for cash purchase of jewellery worth more
    than Rs 2 lakh.

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