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Indian Jewellry Industry
Indian Jewellry Industry
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.
SOURCE- GJEPC
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 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.
SOURCE- GJEPC
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 $15.5 billion; over 18% of worlds exports India is the largest consumer of gold jewellery in the world Accounts for about 20% of world consumption India is the largest diamond cutting and polishing centre in the world 60% value share, 85% volume share and 92% share of the world market by number of pieces Third largest consumer of polished diamonds after USA and Japan
SOURCE- GJEPC
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Cont.The sector may be further categorized into the following sub-sectors based on characteristics, processing techniques, preciousness in terms of price range and marketability. 1. Gemstones Diamonds Colored Stones-precious, semi-precious, synthetic 2. Jewellery Plain gold Jewellery Studded Jewellery Silver Jewellery Costume Jewellery 3. Pearls
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Conti
Major Players:
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Source: official website of Gujarat ,as on 17/12/08. www.vibrantgujarat.com/detailed-sector-profiles/gems-jewellery.pdf & KPMG ANALYSIS
Trends in exports
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EXPORTS
Total export of gems & jewellery in the year April-March,2010 was 29081.11 with a 2.36% growth rate & 16.27% share in the total export. Exports posted a modest growth of 1.45 per cent during 200809 at US$ 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
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 CUT & POLISHED DIAMOND GOLD JEWELLERY COLOURED GEMSTONES ROUGH DIAMONDS 2005 53892.02 2006 2007 2008 2009(APR-OCT) 48905.57 57117.17 58649.45 45365.09
16498.21 975.07
5572.37 834.80
1865.49
2388.26
2280.32
3474.93
1992.95
VALUE IN CRORES
SOURCE- GPEC
TO U.S.A DVL JEWELS PVT. LTD. ELEGANT COLLECTION DIATRENDS JEWELLERY PVT. LTD.
TO ITALY DWARKA GEMS JEWELS IN INDIA TAKAT GEMS IN INDIA FINE JEWELLERY
IMPORT DATA
ITEMS 2005 2006 2007 2008 2009(APR-OCT)
ROUGH DIAMONDS
40039.14
GOLD BAR
7034.52
7905.74
9734.41
10820.32 13062.77
16010.27
8832.61
RS. IN CRORES
SOURCE- GPEC
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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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.