INDIAN GEM &

JEWELLERY
INDUSTRY

Deepak
1Poonia

OVERVIEW
Large market for Gems & Jewellery with
domestic sales of over $10 billion.
Exports of over $15.5 billion; over 18% of
worlds exports.
India is the largest consumer of gold jewellery
in the world.
India is the largest diamond cutting and
polishing centre in the world.
Third largest consumer of polished diamonds
after USA and Japan.
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Gold and diamond form the two major segments of

Indian gems and jewellery market

Gem & Jewellery

Precious Metals and

Jewellery

Gemstones

Diamonds

Coloured
Stones

Gold and
Gold
Jewellery

Pearls
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Silver and
Silver
Jewellery

Gemstones
studded
Jewellery

Value chain of the Gems and Jewellery sector

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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Size of Retail Market in India

800
700
600
500
400
300

630

200
100

175

32

0
Gold jewellery

Diamond
Jewellery

Size in year 2013(in billion)

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Other fabricated
Jewellery

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.
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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.
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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.

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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 Wearability and gifts
season
Jewellery sold on commodity Jewellery being sold on a per
basis with labour charges

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piece basis

Major Players
Asian Star Co Ltd.

B. Vijaykumar
Gitanjali Gems Ltd.
Hindustan Diamond Co. Pvt. Ltd.
J.B Brothers.
K Girharilal.
Laxmi Diamond.
Mehendra Exports.
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 Rajesh Exports Pvt. Ltd.

Rosy Blue.
Sheetal Manufacturing.
Shrenuj & Company Ltd.
Suasish Diamond Ltd.
Su-raj Diamonds & Jewellery Ltd.
Tanishq.
Tara Ultimo.
Vaibhav Gems Ltd.

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MAJOR
PRODUCTION CENTRES IN
INDIA

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EXPORTS DATA
ITEMS

2009

2010

2011

2012

CUT & POLISHED

DIAMOND

53892.02

48905.57

57117.17

58649.45

GOLD
JEWELLERY

16498.21

22567.44 11637.12 9406.49

5572.37

COLOURED
GEMSTONES

975.07

1062.27

834.80

ROUGH
DIAMONDS

1865.49

2388.26 2280.32 3474.93 1992.95

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1111.05

1197.55

VALUE IN CRORES

2013(APR)
45365.09

MAJOR EXPORTERS IN INDIA

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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

2009

2010 2011

2012 2013(APR)

ROUGH DIAMONDS

40039.14

38401.09 40170.65 40877.24 21898.13

GOLD BAR

7034.52

7905.74

9734.41

CUT & POLISHED

DIAMONDS

16010.27

8832.61

17396.61 31209.45 27056.46

10820.32 6062.77

Rs. In CRORES

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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

GOLD JEWELLERY
ITALY ,CHINA ,THAILAND ,HONG KONG
,FRANCE ,MEXICO, TURKEY ,CANADA ,ISRAEL,
SWITZERLAND ,UNITED KINGDOM
DIAMOND
CHINA , BELGIUM
GEM STONES
SRILANKA,THAILAND
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CONCLUSIONS
This is a favorable industry:
Can take advantage of market trends
History proves that jewelry is long-lasting
Highly volatile market, highly attractive
Will overcome the economic crisis
Fast progress in the global jewellery market.
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REFERENCES
www.indiabulls.com
www.myiris.com
www.moneycontrol.com
http://commerce.nic.in/ftpa/default.asp
http://www.ibef.org/download/GemsandJewellery_
sectoral

http://www.commodityonline.com/learning_sub.ph
p?id=32

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