GEMS & JEWELLERY INDUSTRY IN INDIA

WORLD MARKET SHARE IN 2010

US - 30.8%JAPAN - 8%INDIA AND CHINA - 8%MIDDLE EAST - 8%ITALY - 5%REST OF THE WORLD - 40.2%

Source: KPMG

WORLD’S PROJECTED MARKET SHARE IN 2015

US - 25%INDIA & CHINA - 13%MIDDLE EAST - 9%JAPAN - 4%ITALY & UK - 3%REST OF THE WORLD - 46%

Source: KPMG

INDIAProducts are varied being typical of the regions due to diverse ethnicity.

Old communities: making jewelry items for centuries.

In contemporary India: growing numbers of fashion jewelry designers who inculcate modern design technology.

Works of traditional artisans is more in demand and the product designs cannot be replicated even by the use of modern technology.

In modern times Indian jewelry reaches far and wide to different countries of the World.

Indian jewelry can now is bought online thanks to the Internet.

Source: KPMG

INDUSTRY INSIGHTS

CURRENT:

•CAGR of around 13 per cent during 2011 – 2013.•Exports to grow by 30-35 per cent in 2011-12 due to the revival in demand in the international markets.

ECONOMY

•Contributes to 15% of total exports.•Provides employment to 1.3 million people directly & indirectly.

Source: RNCOS, CRICIL, GJEPC

Highly unorganized & fragmented• Mainly Family owned business about 95%• Organized players 4%

History:• 1st to start making jewellery from minerals

and metals.• 1st to introduce diamond to the world.

Advantages:• Skilled labour• Low cost in processing

INDUSTRY STRUCTURE

Sourcing

Processing

Manufacturing

Selling

G & J Industry comprises of:

GOLD

DIAMOND

PLATINUM

COSTUME JEWELLERY

Main Products

SEZ ( Special Economic Zones)

EPZ ( Export Processi

ng Zones)

SEEPZ ( Electronic Exports Processing Zone)

EXPORT comprises of:

LOCALISATION OF JEWELLERY INDUSTRY

Hub of the industry is Mumbai as it receives majority of country’s gold & rough diamond imports.

Diamond processing undertaken in Gujarat and Rajasthan.

Diamonds are mined at Panna (MP).

Significant reserves of Gold, Diamond, Ruby & other gems in Maharashtra, MP, Orissa, Chhattisgarh, Bihar & Andhra Pradesh.

GOLD

Undisputed single-largest Gold bullion consumer.

India owns over 18,000 tonnes of above-ground gold stocks worth around US$ 800 billion.

Jewellery demand in India grew by 36 per cent to 184.5 tonnes in the third quarter ending September 2010.

Gold import to rise by 15 per cent in 2011 to around 805 tonnes.

Gold imports stood at US$ 21.2 billion during the period April-November 2010.

In the world official gold holdings ratings, India stood at 11th position with 557.7 tonnes of gold reserve as of October 2010 (WGC)

Source: WCG

DIAMOND

World’s largest diamond cutting and polishing centre in the world.

It accounts for 60 per cent value share, 82 per cent by carats and 95 per cent share of the world market by number of pieces.

Surat is India's diamond processing hub, contributing over 80 per cent of the country's diamond processing industry with annual revenue of around US$ 13.03 billion.

It is the third largest consumer of polished diamonds after the US and Japan.

PLATINUM

Platinum jewellery has gained momentum in the past few years not only worldwide but also in India.

As per the Platinum Guild International (India), the number of outlets selling platinum jewellery increased from 12 in 2000-01 to over 300 currently.

It is predicted that the number of outlets selling platinum jewellery would increase to around 1,000 outlets in the next 2-3 years. Most platinum jewellery manufacturers are targeting 20-40 years age group consumers with high disposable income.

COSTUME JEWELLERY

The current global costume jewellery and accessories market is estimated at US$ 16.3 billion, of which India only exports around US$ 53 million.

Huge opportunity area for the Indian costume manufacturers.

The Indian costume jewellery market is also witnessing growth in the international market, as per the Export Promotion Council for Handicrafts.

The industry body further stated that the Government is also working towards formulating an international compliance code for manufacturing costume jewellery.

EXPORTSTOTAL •Rose to US$ 23.5 billion during April-November 2010 from US$ 17.0 billion.

•38.25 per cent growth in the total gem and jewellery exports.

GOLD •November 2010 it stood at US$ 464.66 million.

DIAMOND •Rough diamond exports stood at US$ 620.95 million. •Cut and polished diamond exports posted a growth of 52.76 per cent with US$ 16.4 billion. (April-November 2010).

COLOURED GEMSTONES •US$ 19.16 million reflecting a growth of 23.85 per cent in November 2010 Source: GJEPC

TIE UPS & INITIATIVE

TIE UP •The recent strategic tie-up between Bombay Bullion Association (BBA) and Indian Commodity Exchange Ltd (ICEX) has opened an avenue to harness the huge investment potential lying with the small and the unorganized players.

GOVERNMENT•In a move to boost the industry, the government has formulated new rules for faster clearance of import and export consignments of specific goods including jewellery and gems. •The government has incorporated some other measures like providing interest subvention of two per cent to labour intensive export sectors and duty drawback facilities, in order to promote gems and jewellery export.

TOP INDIAN BRANDSGILI• Established by Gitanjali in 1984 after Gold Control Act by Govt.

TANISHQ• Established in 1984• A tata group Company

CARBON• Established in 1996 within the Peakok Fold.• In 1991. Bangalore based Peakok Jewellery was incorporated.

OYZTERBAY• Began in March 2001.• Seeks to build a National Brand and aspires to be the largest branded

company in the country.

TRENDSMITH• By Tribhovandas Bhimji Zaveri.• Concept store.

JEWELLERY RETAIL SECTORReliance Retail is planning an aggressive entry. It will open about 400 – 500 retail outlets in the country.Damas Jewelry entered India in 2003 with a 50-50 Joint venture with Gitanjali Gems Ltd. Its one of the largest G & J retailers in the world and has 12 stores in India.Swarovski is planning to expand from 26 to 50 across the country in next 2 years.

Gitanjali Group has bought ‘Nakshatra’ promoted by DTC

Vardhaman Developers plans to open 4 more jewellery malls.

Dubai based Joy Alukks opened largest showroom in Chennai.

Viswa & Devji Diamonds, partnership between Indian group & top retailer in UAE, opened 1st diamond retail outlet.

Gitanjali Gems Ltd opened 1st bLuxury mall in Gurgaon.

Gold Souk Inda plans to open 100 Souks in 100 months

THE ROAD AHEADSales in the Global Market expected to grow up to US$37 billion by 2015.

Diamond industry to grow over 95% between 2010 – 2015.

GJEPC initiated IIJS Signature to promote India as the preferred source for jewellery and eventually build brand ‘India'.

All India Gems & Jewellery Trade Federation (GJF) recently held the first of its kind leadership summit for the jewellery industry in an effort to corporatize the ways of working and streamlining policies.

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