Ibef Jewellery 06


Published on

1 Comment
1 Like
  • We manufacture all kind of Gold Kundan Meena Dimond Jewellery (desi meena & vilayati meena) Pendants, earrings, necklace and bracelets, Bangles etc, we also make ordered Jewellery by having your desired designs, we also have charmish items in stock.
    If you have any query then you can ask me without hasitation.
    Jaipur (Raj.) India.
    9928809993 E-mail:- motiimpex@gmail.com
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Ibef Jewellery 06

  1. 1. R IB PO E E R F T Gems and Jewellery The India Brand Equity Foundation collates, publishes and disseminates well-researched and comprehensive information on the Indian economy and industry. We present excerpts from a report on the Indian Gems and Jewellery sector prepared by KPMG for IBEF India is a leading player in the The Indian gems and jewellery indus- as well as a large consuming market. global gems and jewellery market try is competitive in the world market due The gems and jewellery industry occu- to its low cost of production and the The sector is largely unorganised pies an important position in the Indian availability of skilled labour. In addition, at present with a small but grow- economy. It is a leading foreign exchange the industry has set up a worldwide dis- ing organised sector earner, as well as one of the fastest tribution network, of more than 3,000 The Indian gems and jewellery sector growing industries in the country. offices for the promotion and marketing is largely unorganised at present. There The two major segments of the sector of Indian diamonds. are over 15,000 players across the coun- in India are gold jewellery and diamonds. The Indian diamond industry has the try in the gold processing industry, of Gold jewellery forms around 80 per cent world's largest cutting and polishing which only about 80 players have a of the Indian jewellery market, with the industry, employing around 800,000 peo- turnover of over $4.15 million (Rs 200 balance comprising fabricated studded ple (constituting 94 per cent of global million). There are about 450,000 gold- jewellery that includes diamond studded workers) with more than 500 hi-tech smiths spread throughout the country. as well as gemstone studded jewellery. A laser machines. The industry is well sup- India was one of the first countries to predominant portion of the gold jewellery ported by government policies and the start making fine jewellery from minerals manufactured in India is consumed in the banking sector with around 50 banks pro- and metals and even today, most of the domestic market. However, a major por- viding nearly $3 billion of credit to the jewellery made in India is hand made. The tion of the rough, uncut diamonds Indian diamond industry. India is expect- industry is dominated by family jewellers, processed in India are exported, either in ed to have its diamond bourse function- who constitute nearly 96 per cent of the the form of polished diamonds or finished ing at Mumbai in 2006. market. Organised players such as Tata diamond jewellery. The largest consumer India is therefore a significant player in with its Tanishq brand, have, however, of gold worldwide, India is also the lead- the world gems and jewellery market been growing steadily to carve a 4 per ing diamond cutting nation. both as a source of processed diamonds cent market share. 51
  2. 2. IBEF REPORT and jewellery industry can be largely attributed to its strength in diamond pro- India’s Exports of Gems and Jewellery cessing. Value enhancement by the Indian 18000 diamond processing industry is the high- 15677 est among other countries, with a value 16000 addition worth $1.48 billion in 2004 com- 12127 14000 pared to $840 million in 2003. 11181 12000 9169 Jewellery manufacturing 8627 10000 $ million 7556 India has well-established capabilities 7110 8000 5972 in making hand-made jewellery in 6000 traditional as well as modern designs. 3813 2680 4000 Indian hand-made jewellery has always 1513 1167 2000 had a large ethnic demand in various 0 countries with sizeable Indian immigrant 2001-2002 2002-2003 2003-2004 2004-2005 populations such as the Middle East, Total Diamond Jewellery South-East Asian countries, the USA and Canada. In recent times, India has also devel- Source: Gems & Jewellery Export Promotion Council, India oped capabilities in machine-made jew- both in the domestic and international ellery. With imported or domestic The Indian gems and jewellery markets for its skills and creativity. processed studding, Indian machine made industry has significant potential In the global diamond market today, jewellery is expected to generate demand India offers attractive opportunities Indian diamonds account for 55 per cent from non-ethnic jewellery markets as across the industry value chain. share in value terms, 80 per cent share in well. The share of gold jewellery in India's India's strengths offer attractive caratage (weight) terms and 90 per cent exports of gems and jewellery increased opportunities across each of the elements share in volume terms. Today there is a from 9 per cent in 1994 to 22 per cent in of the value chain. ready availability of an entire range of dia- 2004, an indication of growing accept- monds in nearly every size, quality and ance in the world market. Mining cut. In the area of diamonds, Indian jew- India has significant reserves of gold, India offers the twin advantages of ellers have been focusing on moving up diamond, ruby and other gem stones. Key skilled labour and low cost in the area of the value chain, from being polishers of states with gem stone reserves and min- gemstone processing. rough diamonds to the manufacturing of ing potential are Maharashtra, Madhya India's significance in the global gems jewellery. Exports of diamond jewellery Pradesh, Orissa, Chattisgarh, Bihar and Andhra Pradesh. Orissa has deposits of ruby and has Share of Gold jewellery has increased in about 20 varieties of various gemstones India’s exports of gems & jewellery such as rhodoline, garnet, aquamarine etc. Andhra Pradesh has gold and dia- mond bearing areas, as well as occur- 1% 1% 100% Others rences of semi-precious and abrasive 9% 4% 90% Export of Rgh Diamonds stones spread over different districts. 2% 22% Recognising the potential of the large 80% Gold Jewellery unexplored gemstone reserves, the 1% Coloured Gem Stones 70% Government of India as well as different state governments have been taking ini- 60% tiatives to open up the sector for explo- 50% ration by global players. 40% 88% 71% Gemstone processing 30% India was the first country to introduce Cut & Polished Diamonds diamonds to the world - the first to mine, 20% cut and polish them as well as trade 10% them. The cutting and polishing of dia- monds and other precious stones is one of 0% the oldest traditions in India and the coun- 1993-94 2003-04 try has earned a considerable reputation Source: Gems & Jewellery Export Promotion Council, KPMG Analysis 52
  3. 3. IBEF REPORT are expected to increase in the future. The central and various state govern- Value addition in the Indian diamond processing industry ments in India have come out with policy Exports of finished incentives to promote jewellery manufac- diamonds 10000 turing. 8627.5 9000 8000 7110.6 Certification 6647.8 Following the World Diamond 7000 5971.9 6186.7 7141.0 Council's statement on adopting credible 6000 6271.0 $ million and effective measures against the trade 5000 in conflict gems, the Indian government 4000 4812.3 4349.8 4205.5 Imports of rough has tightened its certification process for diamonds 3000 international trade. The Gems & Jewellery 2000 Promotion Council is India's certification 1000 authority. The government's Central 0 Board of Excise and Customs has banned 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 the import or export of rough diamond shipments, which are not accompanied by a Kimberley Process certificate Precious Metals Jewellery launched in Switzerland. Certification for Gold The Indian jewellery market is one of quality diamonds and jewellery has given The current consumption of gold in the largest in the world, with a market a fillip to exports and has resulted in India is estimated at over 900 tonnes, size of $13 billion. It is second only to the greater acceptance of Indian products in used mostly in 20 / 22 carat jewellery. US market of $ 40 billion and is followed the world market. Nearly 95 per cent of gold is used to man- by China at $11 billion. ufacture gold jewellery for the domestic The gold jewellery market is growing Technology markets and the remaining 5 per cent is at 15 per cent per annum and the dia- The Indian gems and jewellery industry exported. Gold consumption in India is mond jewellery market at 27 per cent per has made rapid strides in design, powered primarily aimed at investment. annum. by a new generation of young, profession- The emergence of branded jewellery is ally trained, technology driven designers. Silver a new trend that is shaping the Indian Many of India's jewellery manufacturing India annually consumes around 4,000 jewellery market. Branded jewellery is a facilities are equipped with the latest CAD tonnes of silver. Silver jewellery and other relatively new concept in the sector, and / CAM and other advanced design sys- articles for personal use, account for the has positioned itself on the quality, relia- tems. Technology solutions are also avail- bulk of the sales especially in the rural bility and wearability factors. The brand- able for production control, supply chain areas. India is also the third largest indus- ed jewellery market in India is estimated and inventory management in the jewellery trial user of silver in the world, after the at $111.6 million per annum. Trends also industry. The Special Economic Zones and US and Japan. show that traditional handcrafted jew- Gems and Jewellery Parks developed in ellery is slowly giving way to machine- various states offer technology-enabled Platinum made jewellery. environments that are conductive to Platinum or white gold, targeted at the growth and quality production. premium jewellery segment, is gaining Future Outlook The gems and jewellery industry in preference among designers and con- The future of the industry is quite India is a good blend of modern manufac- sumers globally. While India's share in the promising. More and more buyers across turing and design techniques with the tra- global platinum jewellery market is grow- the world are turning to India as their pre- ditional skills of the Indian artisan. The ing by 19 per cent annually, it continues ferred source for quality jewellery. Indian industry is also compliant with to be less than one per cent in the global The Gems and Jewellery Export international norms such as the Kimberly platinum jewellery market. Given the Promotion Council (GJEPC) is looking at Process and the Patriot Act. global growth and the maturing of the exploring new markets, such as Latin With well-established capabilities Indian market to international trends, this American countries. The industry also across the value chain, India is an attrac- represents an area of potential growth in plans to make India a trading centre for tive potential market in the gems and jew- India. cut and polished diamonds, and is closely ellery sector. working with the government of India in Gemstones this regard. The long term prospects The domestic industry has been Due to the popularity of gemstone- looks good with jewellery exports expect- growing at a significant rate studded jewellery across the globe, ed to touch $16 billion in 2010 according The gems and jewellery sector in India India's gemstone industry has been grow- to industry estimates. has been growing across all key seg- ing with an estimated turnover of Full report can be accessed at ments, as detailed below. $0.22 - 0.26 billion. www.ibef.org. 53