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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.
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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
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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
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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

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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
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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
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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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