2. GEMS AND JEWELLERYGems 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 SegmentsThe 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• Worlds largest cutting and polishing Industry for diamonds.• Well supported by the banking sector and government policies.• Export potential for polished diamonds / finished diamond jewellery.Sources:-ibef 2
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 April-March,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 SOURCE- GJEPC
4. CONTD…• Indias 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. SOURCE- GJEPC
5. DIAMONDS INDUSTRY• Largest diamond cutting and polishing centre in the world— with 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 December’09 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. SOURCE- GJEPC
6. 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.
8. 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.
9. 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 Thailand’s 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 Thailands 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.
10. 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 world’s 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 SOURCE- GJEPC 10
11. Cont.-The sector may be further categorized into the following sub-sectors based on characteristics, processing techniques, preciousness in terms of price range and marketability.1. Gemstones ❑ Diamonds ❑ Colored Stones-precious, semi-precious, synthetic2. Jewellery ❑ Plain gold Jewellery ❑ Studded Jewellery ❑ Silver Jewellery ❑ Costume Jewellery3. Pearls 11
12. Indian retail jewellery overviewYesterday TodayUnbranded BrandedSilver & Gold jewellery Gold & Diamond jewelleryInvestment Investment + FashionTraditional design Fashionable & innovative designMarriage & festival is peak season Wearability and giftsJewellery sold on commodity basis Jewellery being sold on a per piecewith labour charges basis
13. 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
14. GITANJALI GEMS LTD. Business OverviewEstablished presenceThe company is one of India’s largest integrated diamond and jewellerycompanies Established in 1986. Sight holder status with DTC through apromoter group companySophisticated and scalable diamond and jewellery manufacturingfacilitiesApproximately 1,246 retail outlets in India and 143 outlets in the U.S.Leading brands
15. MAJORPRODUCTION CENTRES IN INDIA 15
16. Source: official website of Gujarat ,as on 17/12/08.www.vibrantgujarat.com/detailed-sector-profiles/gems-jewellery.pdf & KPMG ANALYSIS
17. Trends in exports 17
18. EXPORTS• Total export of gems & jewellery in the year April-March,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 2008-09, with a share of 31 per cent followed by Hong-Kong(25%) and U.S.A(20%). SOURCE- GJEPC
19. CONTD…• The sector accounted for 13 per cent of India’s 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
20. EXPORTS DATA ITEMS 2005 2006 2007 2008 2009(APR-OCT)CUT & POLISHED 53892.02 48905.57 57117.17 58649.45 45365.09DIAMONDGOLD JEWELLERY 16498.21 22567.44 11637.12 9406.49 5572.37COLOURED 975.07 1062.27 1111.05 1197.55 834.80GEMSTONESROUGH DIAMONDS 1865.49 2388.26 2280.32 3474.93 1992.95 VALUE IN CRORES SOURCE- GPEC
21. MAJOR EXPORTERS IN INDIA TO CHINA TO U.S.A TO ITALY • DVL JEWELS • DWARKA• ROSY BLUE PVT. LTD. • GEMS JEWELS• TANYA GEMS • ELEGANT IN INDIA• VENUS JEWELS COLLECTION • TAKAT GEMS IN • DIATRENDS INDIA JEWELLERY PVT. • FINE JEWELLERY LTD.
22. 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 22
24. 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 24
25. Major Competitors in the global market
26. What’s New………..
27. 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.