GEMS AND JEWELLARY INDUSTRY

Objectives. Introduction . Types of gem stones . GJEPC( Gems and Jewellary Export Promotion Council . Size of market .export trend. Government initiatives . Structure . Policy and oppurtunity. Potential outlook. Birthstones. Image of a Dubai mall Demand of metal. Demand of gold.

Synopsis:

OBJECTIVES:
To know the trade and export policys in Indian bullion market
To know about the trend of gold jewelery

and jems in India against Global trends To know why there is a sudden rise in the price of gold

India is the largest importer and consumer of gold. Indians have a loads and lots of fascination toward gold where it stands in 11th position in the world. Gems are the precious stones which are for fashion but in India it is a craze and gems are considered to be spiritually related We have different types of gem stones like Emerald, Blue sapphire, Pearl, Ruby Diamond.

Blue sapphire

Emerald

GEMSTONES TYPES

There are three types of gemstones: Natural Synthetic Simulant Natural gemstones include minerals and organic materials such as amber, sapphires, coral, fossil, ivory, emeralds, rubies, cultured freshwater pearls and natural salt water pearls.

Synthetic and Simulant are terms used by the USBM for laboratory grown gemstones. Other terms are sometimes used to refer to laboratory grown gemstones. Synthetic gemstones have the same appearance, physical, and chemical composition, USBM: UNITED STATES BUREAU OF MINES crystal structure as the natural material that they represent, however they have no effect when used for gem therapy

Gems and jewellery form an integral part of Indian tradition. A legacy passed from one generation to another. The components of jewellery include not only traditional gold but also diamond, platinum accompanied by a variety of precious and semiprecious stones. The Indian gems and jewellery market is set to cross US$ 26 billion by 2012, on the back of improving lifestyle and availability of skilled labour, as per a report Indian Gems and Jewellery Market Future Prospects to 2011, by RNCOS.

Industry structure
Though India is not the largest exporter of gold, there is a huge consumption of gold. In future the braded jewellary sector predominantly estimated to have a rise by 2011 by US$ 2.2 billion. There is a council started in early 1966 in the sector of gems and jewels in exporting gems and jewelarys

The Gem and Jewellery Export Promotion Council Set-up in 1966, the GJEPC has over the years effectively moulded the scattered efforts of individual exporters to make the gem and jewellery sector a powerful engine driving India's export-led growth.The gem & jewellery industry has played a significant role in the evolution of the Indian gem and jewellery industry to its present stature

GJEPC is continuously working towards creating a pool of artisans and designers trained to international standards so as to consolidate the Indian jewellery industry and establish it as a prominent global player in the jewellery segment. The Council is primarily involved in introducing the Indian gem & jewellery products to the international market and promotes their exports

To acheive this , the Council provides market information to its members regarding foreign trade inquiries, trade and tariff regulations, rates of import duties, and information about jewellery fairs and exhibitions.

Gems, jewellery export growth to be sluggish in 2010-11: GJEPC

by mucksy on September 7th 2010 and filled under Gems and Jewellery

The Gem and Jewellery Export Promotion Council has stated that export growth is likely to be sluggish and may touch only 15% during 2010-11

The Gem and Jewellery Export Promotion Council (GJEPC) has informed that by virtue of unpredictability in international markets, there might be a meekly 15% export growth in 2010-11. This development holds huge significance for export-based SMEs in this sector, many of which have been struggling to do business under such global pressures.

GJEPC has recently said that Indias contribution of jewellery to the world market would double to 40% by 2015.

Government Initiatives
In the New Annual Supplement to Foreign Trade Policy (20042009) announced on April 19, 2007, the Government has extended the following facilities to this sector :

Re-import of Diamonds & Jewelery (either in complete or partial lot) exported on consignment basis have been allowed. In the light of increase in global prices of precious metal, duty free entitlement for consumables for export of rhodium plated silver jewelery has been increased to 3 per cent. To reduce the transaction cost for the diamond sector, testing facility at International Diamond Laboratory (IDL), Dubai, has been incorporated in the list of laboratory/certifying agencies.

The committee appointed to study India's National Design Policy is likely to recommend the setting up of four additional National Institutes of Design (NIDs), along the lines of the existing Ahmadabad-based NID, whose curriculum includes, among other disciplines, jewelery design.

In addition, the Government has decided to make gold hallmarking mandatory from January 1, 2008. It has also made the import of polished diamonds completely duty free. This will facilitate the sector towards evolving from being just a manufacturing center to becoming a global trading hub for diamonds, gems and jewelery.

Size of Indian market

Large market for Gems & Jewelery with domestic sales of over $10 billion. 4% of the global Gems and Jewelery market . Exports of over $15.5 billion; over 18% of Indias exports. India is the largest consumer of gold jewelery in the world. Accounts for about 20% of world consumption. India is the largest diamond cutting and polishing center 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.

Structure
The Indian Gems & Jewelery industry is highly fragmented with a large number of domestic private sector companies. A large portion of the market is in the unorganized sector . India is gaining prominence as an international sourcing destination for high quality designer jewelery . Walmart, JC Penney etc. procure jewelery from India .

Policy and opportunity

100% FD is permitted in the Gems & Jewelery sector through the automatic route. SEZs and Gems and Jewelery Parks have been set up to promote investments in the sector.

India is one of the largest exporters of gems and jewelery India is the diamond polishing capital of SEZ: SOCIAL ECONOMIC ZONES the world.

potential
India has several well recognized strengths which have made it a significant force in the global Gems and Jewelery business. Highly skilled, yet low-cost labor. Established manufacturing excellence in jewelery and diamond polishing. India is the most technologically advanced diamond cutting center in the world.

Outlook:
India is the fastest-growing jewelery market in the world. Branded jewelery likely to be the fastest-growing segment in domestic sales. Expected to grow at 40% p.a. to $2.2 billion by 2010. Exports expected to grow from $15.5 billion in 2005 to over $25 billion by 2010. Potential

Opportunity to address one of the worlds largest and fastestgrowing Gems and Jewelery markets. Opportunity to leverage Indias strengths to address the global market.

Dubai gold souq

Foreigners in Dubai mall

Investments in buying precious metals

Metal has always been considered as a precious metal to be used in times of need. Now this notion feeling becomes much stronger. This is the only object whose value is going up day by day. It is a true act that the traders can face a severe blow in the stock market as there is always a risk factor in it. But in case of gold at least there is no risk factor involved in it. As we can see the price of gold is going up every day. So naturally there is a trend among everybody to get hold of a well reserve of gold in their stock instead of investing their money in the stock market

So many countries like Russia, China and Egypt and others are also buying gold. As the value of this going up day by day all the countries tries to get hold of as much gold in their reserve as countrys wealth which can help them during recession period. It is considered to be the safest element.

Demand of gold( india)

Demand for gold in India remains strong during the SeptemberNovember festival season. Dhanteras, considered auspicious day for buying gold, is in November. International spot gold was steady within striking distance of record highs on Thursday, underpinned by a soft dollar and a generally improving economic outlook.

The market will take time to digest this upsurge in prices and if prices move in a band of Rs19,20019,400 demand will start coming back, because at the dealers level the restocking has to happen, said the dealer with a foreign bank. A Reuters poll has estimated Indias gold imports in 2010 at 504.5 tonnes, up by 24.5 tonnes from last year.

Gold price may surge to a record Rs.22,000 per 10 grams by the end of this year as uncertainty in the US and European economies forces investors to bank on the precious metal. During the forthcoming festival season, gold price is likely to hover around Rs.21,000 per 10 grams, according to a survey conducted by the Associated Chambers of Commerce and Industry (Assocham). It says that bullion prices would continue to head northwards until correction starts in the capital markets. Major players in the capital markets, including mutual funds, are holding huge cash balances and investing in precious metals in anticipation of corrections in the capital markets.

Top Five major producer of gold

MR. KISHORE JAIN Managing Director, MR.G.M. SHRIKANTH, Head- H.R

MR.MOHANLAL, Managing Director

JACOAB KURIAN, CEO-Tanishq

Khazana Jewellery launched its first retail outlet in the year 1989 at NSC Bose Road in Chennai. In 1992, the Government of India accorded the company the status of Export House Khazana Jewellery turned its focus on rest of the South Indian markets. In 2004, Khazana opened its first showroom in Somajiguda, Hyderabad and in 2005 two showrooms were opened in Visakhapatnam and Vijayawada The Tanishq saga began in the early 1990s, primarily fuelled by the fabled Tata entrepreneurial spirit and partly forced by circumstance.

It was a business with a huge wealth potential and it added a very feminine offering to Tatas long line of products that appealed mostly to the opposite gender. It also called for an organization that inspired trust and had high order design, manufacturing, marketing and retailing skills, and Tata fit the bill on all accounts.
The Indian market, on the other hand, opened its doors to the world, and was now flooded with foreign currency. By the time Tanishq established its manufacturing facility and entered the market, the premises on which the project was based had altered substantially.

The trust bestowed by millions of customers and a very professional outlook in business has made Malabar Gold a cut above the rest! Mohanlal, the versatile hero of millions, vouches for the purity of Malabar Gold. Hema Malini, the legendary dream girl of Indian cinema, is also an icon of Malabar Gold purity!

Malabar Gold, the flagship division of Malabar Group of Companies, is all set to rise up to the challenges of international gold trade. Discover the most engaging range of jewelry that enchants you in those special moments of your life! 100% purity in gold is ensured as certified by the B.I.S with internationally approved Hallmarking Technologies & Fire Assay Test. Besides, we offer 100% buy back guarantee to the customers. You can self-check the purity of the ornaments using the German made Gold Check Carat Analyzer with self operating system provided in our showroom. As a PGI authorized retail store we offer you buy back on every piece of Platinum jewelry!