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Gems and Jewellery have been a part of the Indian civilization since its recorded history, the significance of the gems and Jewellery industry in the Indian economic scenario is a development of the last three or four decades. In 1966-67, the export turnover of the Gems & Jewellery industry was just Rs 220 million representing a 3 per cent of total merchandise exports. However, it has now grown to become one of the leading export oriented industries in India recording an export turnover of around Rs 91617.53 Crores during 2008-09, making it a significant foreign exchange earner for the country. The gems and jewellery sector, which has seen a substantial fall in exports since 2007 due to the withdrawal of a 6 per cent duty concession under the Generalized System of Preferences on jewellery exports to the US, has been severely affected by the economic meltdown. As a result, India’s share of gems and jewellery exports to the US has come down from 36 per cent in 2006 to 20 per cent in 2009. The UAE was the largest importer of gems and jewellery from India in 2008-09, with a share of 31 per cent. This was followed by Hong Kong with a 25 per cent and the US with 20 per cent. The gems and jewellery sector accounted for 13 per cent of India’s total merchandise exports. During April 2009, the total gems and jewellery exports of the country was $1,144 million, as against $1,740 million during the same period last fiscal, a fall of about 34 per cent.
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The gems and jewellery sector can be categorized into the following sub-sectors based on characteristics, processing techniques, preciousness in terms of price range and marketability.
Gemstones - Diamonds and coloured stones (precious, semi-precious and synthetic) Jewellery - Plain Gold, Studded, Silver, Costume Pearls
The global market for gems and jewellery today is pegged at US$ 85 billion with key markets having registered an average compounded annual growth rate (CAGR) of 5-10 per cent in the last decade. The global market for Gold is estimated at 3300 tonnes. South Africa is the world’s largest producer of gold, followed by U.S.A and Australia. Together, these countries account for 45 per cent of the world’s total gold production. India is the largest consumer of gold, followed by the U.S.A. In the production of Silver, the Americas have near monopoly - Mexico, Peru and the United States are the top three silver producing countries. Platinum is an extremely rare precious metal. More than 90 per cent of all platinum supplies come from South Africa and Russia. With increased economic development, the demand for the metal has grown at a faster pace than it is being mined. The United States is the world’s leading consumer of platinum overall, while China has emerged as the leading consumer of platinum jewellery. Jewellery manufacturing is traditionally dominated by players from 3-4 countries.
• World’s largest producer of
fine jewellery, with about 8,200 factories annually producing an estimated US$ 6.4 billion worth. • Italy’s strength lies in plain gold jewellery.
Hong Kong/China • Produces a substantial portion of the world jewellery market·
• China and Hong Kong are strong in both gold and studded jewellery United States • While a growing number of American manufacturers export their goods around the world, the sheer size of the domestic market keeps a large portion of the goods at home. Page | 2
Thailand • Major global supplier of quality jewellery over the last two decades. • Thailand’s strength is in gemstone jewellery.
Over the years, global markets have been impacted by several developments like falling trade barriers, increasing competition, changing customer preferences and developments in technology in several areas. The global jewellery industry is being transformed by a few key trends such as: • Increasing competition among top producing countries. • Emergence of different materials – different alloys within gold, as well as non-gold jewellery. • Emergence of new manufacturing techniques. • Requirement of stricter quality norms and hallmarking. In this context, India is fast emerging as a leading destination for jewellery manufacturing in the world. The following sections discuss India’s gems and jewellery sector in detail with a specific focus on the following areas: • Significance of India within the global gems and jewellery sector • The structure and current scenario of the sector in India • India’s competitive advantages in the sector • Future outlook
INDIA AND “GEMS AND JEWELLERY”
India has been one of the most important countries for the production of Gems And Jewellery. One of the highlights is the production of Studded Jewllery. Studded Jewellery trading in India is age old as it is established by the fact that in 1650 A.D., sources report the employment of more than 60,000 workers in the Eluru mines, where they dug and washed the precious stones. Today though India has almost no raw Studded Jewllery left within her own soil still we produce 70% of the World gems in terms of quantity and 45% in terms of value. India is the original country which discovered gems and initiated gem craft. The gems produced here gave birth to a fabulous industry and global trade. Looking at the evolution of the Indian Gold Market, India was never in dearth of Gold Reserves. History had been a witness of the fact that India was always self sufficient in all its natural resources and more so in case of gold. It was this abundance in availability of such precious metals that lured foreign invaders from all parts of the globe as well as from time to time to come to India and plunder as much of it as was possible for them to do. However there were a significant number of such intruders who, after entering the country, fell for the land and its cultural heritage which eventually led them to settle and establish their empire in India. As an inevitable consequence of the lavish livelihood exhibited by the Indian rulers, the Gold reserves in India gradually diminished. The arrival of the British in the hierarchy in the middle of the eighteenth century announced the decline of India's Gold Reserves even further. The colonial status given to India by the British crippled the economy which once boasted of its wealth in gold. Huge quantities of the precious metals were carried to England right after their extraction. As a result a major proportion of India's Gold Reserves was 'vanishing' without even entering into the economy. By the time India gained independence, a huge vacuum had already been created as far as Gold
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Reserves in India was concerned. Slowly, after several decades have gone by India has finally started to fill up the vacuum in a big way. After reaching a new height in the form of 8 % growth in Gross Domestic Product (GDP) for the year 2005-06, India is being recognized as one of the fastest emerging economies of the world. India's growing prospects can also be noticed in the gold market as well. India is viewed as the largest consumer of gold in recent times. According to the figures presented by the estimates of the World Gold Council (WGC), India's total demand for gold in the year 2001 was 243.2 tonnes which comprised 26.2 % of the total world demand. Indian Gems and Jewellery Industry have achieved a premier position in the International market. Today India has been recognized as a significant manufacturing exporting center apart from its traditional strengths in handmade jewellery, the country has niche for itself in machine made commercial jewellery arena. The export industry has come of age and is now entering a new phase of development. Gearing up to achieve further growth, the industry has already captured a 55% share of world market by the turn of this century. India is a primary source of imports for the developed countries, mainly because of abundant availability of skilled and cheap labor, but now this no longer remains the competitive edge for India as heavy competition is faced by various countries like China, Thailand and Sri Lanka. But at the same time, India has managed to keep its position healthy and have brighter prospects ahead.
India is a leading player in the global gems and jewellery market
The gems and jewellery industry occupies an important position in the Indian economy. It is a leading foreign exchange earner and also one of the fastest growing industries in the country. The two major segments of the sector in India are gold jewellery and diamonds. Gold jewellery forms around 80 per cent of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes diamond studded as well as gemstone studded jewellery. A predominant portion of gold jewellery manufactured in India is consumed in the domestic market. In diamonds, however, a major portion of rough, uncut diamonds processed in India is exported, either in the form of polished diamonds or finished diamond jewellery. Besides being the largest consumer of gold, India is also the leading diamond – cutting nation in the world.
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The Indian gems and jewellery industry is competitive in the world market due to its low cost of production and availability of skilled labour. In addition, the industry has a worldwide distribution network, which has been established over a period of time. India has set up more than 3,000 offices worldwide for promotion and marketing of Indian diamonds. The Indian diamond industry has acquired leadership position in cutting and polishing of rough diamonds. India has the world’s largest cutting and polishing industry, employing around 800,000 people (constituting 94 per cent of global workers) with more than 500 hi-tech laser machines. The industry is well supported by government policies and the banking sector - around 50 banks provide nearly US$ 3 billion credit to Indian diamond industry. India is expected to have its diamond bourse functioning at Mumbai in 2006. India is therefore a significant player in the world gems and jewellery market both as a source of processed diamonds as well as a large consuming market.
THE GEMS AND JEWELLERY EXPORT PROMOTION COUNCIL
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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. This apex body of 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. With strength of 6,500 members' spread all over the country, the Council is primarily involved in introducing the Indian gem & jewellery products to the international market and promotes their exports. To achieve 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. The role of GJEPC can be broadly classified under the following categories:
Trade Facilitator The Council undertakes direct promotional activities like organizing joint participation in international jewellery shows, sending and hosting trade delegations, and sustained image building exercises through advertisements abroad, publications and audio-visuals. GJEPC also invites countries to explore areas of co-operation in supply of rough diamonds and rough colored stones as well as offers co-operation in jewellery manufacturing. The Council regularly communicates with Indian Embassies, trade bodies and associations in various countries. And finally, GJEPC also organizes seminars, buyer-seller meets, symposiums.
Advisory Role A crucial area of activity of the Council has also been aiding better interaction and understanding between the trade and the government. The Council takes up relevant issues with government and agencies connected with exports and submit documents for consideration and inclusion in the Exim Policy. The Council also grants membership, registration certificates and performs other roles as per the Exim Policy.
Nodal Agency for Kimberly Process Certification Scheme GJEPC works closely with the Government of India and the trade to implement and oversee the Kimberly Process Certification Scheme. To that effect, the Council has been appointed as the Nodal Agency in India under the Kimberly Process Certification Scheme.
Training and Research
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The Gems & Jewellery Export Promotion Council runs a number of institutes that provide training in all aspects of manufacture and design in Mumbai, Delhi, Surat and Jaipur. These training programs are being conducted to ensure that the Indian industry achieves the highest levels of technical excellence.
Varied Interests The Council also publishes a number of brochures, statistical booklets, trade directories and a bi-monthly magazine - Solitaire International, which is distributed internationally as well as to its members. Finally, the Council has also developed its own promotional audiovisual film - 'India - Your First Choice', which is dubbed in various international languages as well as screened at various trade shows.
GEMS AND JEWELLERY – OVERVIEW
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• • • • • • • •
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 India’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 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.
The Indian Gems & Jewellery 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 jewellery. • Walmart, JC Penney etc. procure jewellery from India.
100% FD is permitted in the Gems & Jewellery sector through the automatic route. SEZs and Gems and Jewellery Parks have been set up to promote investments in the sector.
India is one of the largest exporters of gems and jewellery. India is the diamond polishing capital of the world.
India is the fastest-growing jewellery market in the world. • Branded jewellery 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 $25 billion by 2010.
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India has several well recognized strengths which have made it a significant force in the global Gems and Jewellery business.
• • • • •
Highly skilled, yet low-cost labor. Established manufacturing excellence in jewellery and diamond polishing. India is the most technologically advanced diamond cutting center in the world. Opportunity to address one of the world’s largest and fastest-growing Gems and Jewellery markets. Opportunity to leverage India’s strengths to address the global market.
The sector is largely unorganized at present with a small but growing organized sector
The Indian gems and jewellery sector is largely unorganized at present. There are over 15000 players across the country in the gold processing industry, of which only about 80 players have a turnover of over US$ 4.15 million (Rs 200 million). There are about 450,000 goldsmiths spread throughout the country. India was one of the first countries to start making fine jewellery from minerals and metals and even today, most of the jewellery made in India is hand made.
The industry is dominated by family jewellers, who constitute nearly 96 per cent of the market. Organized players such as Tata with its Tanishq brand, have, however, been growing steadily carving a 4 per cent market share. As India’s jewellery market matures, it is expected to get more organized and the share of family jewellers is expected to decline. There are more than 6000 players in domestic diamond processing industry. The average gestation period for setting up a diamond cutting and polishing unit is 15 months. The low gestation period, coupled with low capital cost allows easy entry into the sector. This has led to
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the industry being largely characterized by a large number of small scale players. However, just as in the case of jewellery, the share of the organized sector has increased significantly in recent years due to an increase in demand for better and finer quality finished goods.
Presence of traditional pockets of jewellery manufacture
Jewellery crafting by traditional goldsmiths is confined to a few regions in India. These pockets are widely separated and involve craftsmen whose skills have been handed down over generations. Surat is an important diamond – processing centre, which exports around 80 per cent of the production and has more than 3,500 diamond processing units.
Jaipur is a key centre for polishing precious and semi-precious gemstones.
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Delhi and its neighbouring states are famous for manufacturing silver jewellery and articles. Calcutta is popular for its lightweight plain gold jewelry. This category of jewellery finds a large market in Tamil Nadu. Hyderabad is the centre for precious and semi-precious studded jewellery. Nellore is a source for hand made jewellery that has been supplying the Chennai market for quite a few decades. Belgaum in Karnataka and Nellore together, specialize in studded jewellery using synthetic or imitation stones. Coimbatore in Tamil Nadu specialises in casting jewellery. Trichur in Kerala is another source for lightweight gold jewellery and diamond cutting. Mumbai is the centre for machine made jewellery. The city is also India’s largest wholesale market in terms of volume.
• • • •
While these clusters have evolved over time based on the availability of raw materials, skilled labour and market potential, these have been developed and made competitive through support from the Government of India through its special economic zones and cluster development programmes. The clusters help in building a globally competitive environment for the Indian gems and jewellery industry.
The Indian gems and jewellery industry has significant potential
India offers attractive opportunities across the industry value chain The value chain of gems and jewellery industry can be represented in the following manner.
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India has strengths and offers attractive opportunities across each of the above elements of the value chain, which are detailed below. Mining India has significant reserves of gold, diamond, ruby and other gem stones. Key states with gems stone reserves and mining potential are Maharashtra, Madhya Pradesh, Orissa, Chattisgarh, Bihar and Andhra Pradesh. Orissa has deposits of Ruby and has about 20 varieties of various gemstones like rhodoline, garnet, aquamarine etc. Andhra Pradesh has gold and diamond bearing areas, as well as occurrences of semi-precious and abrasive stones spread over different districts. Recognizing the potential of the large unexplored gemstone reserves in India, the Government of India as well as different state governments have been taking initiatives to open up the sector for exploration by global players. For example, the Government of Orissa has announced a comprehensive mining policy allowing private and domestic investments in this sector. These initiatives have attracted foreign investors - diamond mining leases and exploration projects have been undertaken by Rio Tinto and Diamond Trading Corporation (DTC). Untapped reserves of gems and favourable government policies provide opportunities for foreign direct investment in mining and avenues for global companies to explore precious metals and stones in India. Gemstone processing India was the first country to introduce diamonds to the world - the country was the first to mine diamonds, cut and polish them and also trade them. Cutting and polishing of diamonds and other precious stones is one of the oldest traditions in India and the country has earned a considerable reputation both in the domestic and international markets for its skills and creativity. In the global diamond market today, diamonds processed in India account for 55 per cent share in value terms, 80 per cent share in caratage (weight) terms and 90 per cent share in volume terms. Today there is a ready availability of an entire range of diamonds in nearly every size, quality and cut. India offers the twin advantages of skilled labour and low cost, in the area of gemstone processing, as compared to other gems processing. Jewellery manufacturing India has well-established capabilities in making hand-made jewellery in traditional as well as modern designs. Indian hand-made jewellery has always had a large ethnic demand in various countries with sizeable Indian immigrant population such as the Middle East, South-East Asian countries, USA and Canada.
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In recent times, India has also developed capabilities in machine-made jewellery. With imported or domestic processed studding, Indian machine made jewellery is expected to generate demand from non-ethnic jewellery markets as well. The share of gold jewellery in India’s exports of gems and jewellery increased from 9 per cent in 1994 to 22 per cent in 2004, an indication of growing acceptance in the world market.
In the area of diamonds, Indian jewellers have been focusing on moving up the value chain, from being a polisher of rough diamonds to a manufacture of jewellery. Exports of diamond jewellery are expected to increase in the future. The central and various state governments in India have come out with policy incentives to promote jewellery manufacturing. For example, Andhra Pradesh’s New Industrial Policy declares gems and jewellery as a thrust area and a package of incentives are being offered for setting up manufacturing park facilities for value addition and export of gems and jewellery. Given India’s strengths and potential for growth in this area, jewellery manufacturing can be an attractive area for investment in India. Jewellery Retailing
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India has a large and growing domestic jewellery market of US$ 8.9 billion. Jewellery retailing in India is undergoing a slow transformation from a largely unorganized sector to a more organized one. While the family owned jewellery store remains the predominant retail format, new formats such as boutiques, supermarkets and gold souks are emerging for jewellery retail. Indian customers are displaying growing preference for quality, designs and branding. The jewellery retailing sector can offer long term benefits to organized players investing in this area. Certification Following the World Diamond Council’s statement on adopting credible and effective measures against the trade in conflict gems, the Indian government has tightened its certification process for international trade. The Gems & Jewellery Promotion Council is India’s certification authority. The government’s Central Board of Excise and Customs has banned the import or export of rough diamond shipments, which are not accompanied by a Kimberley Process certificate launched in Switzerland. Certification for quality diamonds and jewellery has given a fillip to exports and resulted in greater acceptance of Indian products in the world market. Technology The Indian gems and jewellery industry has made rapid strides in design, powered by a new generation of young, professionally trained, technology driven designers. Many of India’s jewellery manufacturing facilities are equipped with the latest CAD / CAM and other advanced design systems. Technology solutions are also available for production control, supply chain and inventory management in the jewellery industry. The Special Economic Zones and Gems and Jewellery Parks developed in different states offer technology-enabled environments that are conductive to growth and quality production. The gems and jewellery industry in India is a good blend of modern manufacturing and design techniques with traditional skills of the Indian artisan. The Indian industry is also compliant with international norms such as the Kimberly Process and the Patriot Act, etc. With well-established capabilities across the value chain, India is an attractive potential market in the gems and jewellery sector.
GEMS AND JEWELLERY – ANALYSIS
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The gems and jewellery sector with an export increasing from Rs.42 crores in 1970 – 71 to Rs.20530 crores in 1997 – 98 continued to be one of the highest foreign exchange earners for the country. Exports from this sector registering manifold increase on an average, shared around 16 per cent of the country’s total exports during the 1990’s compared to 3 per cent in 1970 – 71. Cut and polished diamonds happened to be the single largest item of export in this sector followed by gold jewellery. Diamonds with an export of Rs.16579 crores accounted for 81 per cent of the exports from this sector in 1997 – 98 (compared to 66 per cent in 1970 – 71) and the gold jewellery with an export of Rs.3077 crores shared nearly 15 per cent of the exports from this sector. These two items, together accounting for 96 per cent of the gems and jewellery exports in 1997 – 98 emerged as the star performers indicating their enormous growth potential for exports. The exports of other items in terms of this value of their share in gems and jewellery exports though appeal to be small (compared to diamonds and gold jewellery) registered substantial increase from Rs.5 crores in 1970 – 71 to Rs.654 crores in 1997 – 98. These items appear to be loss perspective in view of their small production base or limited availability of raw materials or both. However, the overall growth in exports of gems and jewellery can be attributed to rising overseas demand, apart from increased world production and supply of rough stones and the liberalized policy on import of raw materials by Government of India from 1970s. The overall size and trend of gems and jewellery exports from India reflecting the rapid rise in the exports of diamonds and gold jewellery are given in the Table below:
Table : Gems and Jewellery Exports from India (Value : Rs. crore) 1970 – 71 1980 – 81 1990 – 91 1997 28 (66) 09 00 (-) 00 01 15 Page | 15 04 (2) 01 08 (92) 28 15 (7) 591 (88)
Product – 98 Cut and Polished Diamonds 4739 16579 (Percentage Share) (81) Coloured Gemstones 208 490 Gold Jewellery 364 3097 (Percentage Share) (15)
Other Precious Metal Jewellery 15 129 Pearls
Synthetic Stones 08 Imitation / Artificial Jewellery 02 12 Total Exports 5460 20530
01 03 42
00 02 642
Source : Gems and Jewellery Export Promotion Council, Mumbai.
The major markets for Indian gems and jewellery include USA, Hong Kong, Belgium, Japan, Israel and UAE, which absorbed about 81 per cent of India’s exports during 1990 – 91 to 1997 – 98. The first four countries accounted for about 75 per cent of India’s exports of gems and jewellery during 1990s. India’s 10 major markets for gems and jewellery are given in the Table below:
Table : India’s Exports of Gems and Jewellery to Ten Major Markets (Value : Rs. crore) Major Markets 1990 – 91 1995 – 96 1996 – 97 1997 – 98 USA 1621 5012 5439 6930 Hong Kong 702 4064 3733 4245 Belgium 941 2450 2523 2874 Japan 978 2418 1747 1218 Israel 92 496 510 767 UAE 40 413 678 766 UK 175 315 418 436 Thailand 212 783 623 364 Singapore 64 349 430 322 Switzerland 138 246 301 307 Total Exports 5360 18145 18521 20530
As mentioned earlier, diamonds and gold jewellery in the gems and jewellery sector are by far the most important and prospective items for exports. Here, in the Table below, we would like to present the trend of exports to the major markets for Indian diamonds and gold jewellery. The major markets as will be seen, accounting for more than 80 per cent of the Indian diamond exports include USA, Hong Kong, Belgium and Japan while USA, UAE, UK, Singapore, Kuwait and Hong Kong, on the other hand, absorbing over 50 per cent of the exports have emerged as
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the important markets for Indian gold jewellery. The Table below indicates India’s exports of diamonds and gold jewellery to major markets.
Table : India’s Exports of Diamonds and Gold Jewellery to Major Markets (Value : Rs. crore) Major Markets Diamonds Cut and Polished Gold Jewellery 1980 – 81 1990 – 91 1997 – 98 1980 – 81 1990 – 91 1997 – 98 Total Exports 591 4739 16579 15.0 364.0 3097.0 USA 151 1497 6051 0.7 76.0 576.0 Hong Kong 120 358 4057 0.3 3.0 78.0 Belgium 98 940 2881 Japan 68 952 1156 1.0 25.0 UAE 193 2.8 61.0 557.0 UK 0.7 122.0 329.0 Singapore 57 232 5.0 85.0 Kuwait 7.7 8.0 81.0 Total Gems and Jewellery 642 5360 20530 642.0 5360.0 20530.0 Exports
Source : Gems and Jewellery Export Promotion Council, Mumbai
The domestic industry has been growing at a significant rate
The gems and jewellery sector in India has been growing across all key segments, as detailed below. Precious Metals Gold The current consumption of gold in India is estimated at over 900 tonnes, used mostly in 20 / 22 carat jewellery. Nearly 95 per cent of gold is used to manufacture gold jewellery in the domestic markets and the remaining 5 per cent is exported. Gold consumption in India is primarily aimed at investment. Silver India annually consumes around 4,000 tonnes of silver. Silver jewellery and other articles for personal use, especially in the rural areas, account for the bulk of the sales. India is also the third largest industrial user of silver in the world, after the US and Japan.
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Platinum Platinum or white gold, targeted at the premium jewellery segment, is gaining preference of designers and consumers globally. While India’s share in the global platinum jewellery market is growing by 19 per cent annually, it continues to be is less than one per cent in the global platinum jewellery market. Given the global growth and the maturing of the Indian market to international trends, this represents an area for potential growth in India.
Gemstones India’s gemstone industry has been growing due to the popularity of gemstone-studded jewellery across the globe, with an estimated turnover at US$ 0.22 – 0.26 billion. Jewellery The Indian jewellery market is one of the largest in the world. The Indian market size at US$ 13 billion, is second only to the US market of US$ 40 billion and is followed by China at US$ 11 billion. The gold jewellery market is growing at 15 per cent per annum and the diamond jewellery market, at 27 per cent per annum. The emergence of branded jewellery is a new trend that is shaping the Indian jewellery market Branded jewellery is a relatively new concept in the sector, and has positioned itself on the quality, reliability and wearability factors. The branded jewellery market in India is estimated at US$ 111.6 million per annum. Trends also show that traditional handcrafted jewellery is slowly giving way to machine-made jewellery.
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Exports of gems and jewellery have also been growing
India recorded US$ 15.6 billion worth of exports in the gems and jewellery sector in 2004-05, up by 26.44 per cent from the previous year. The industry is expected to achieve exports of US$16 billion by 2007. Gold jewellery sector recorded 42.23 per cent growth to US$ 3.81 billion in 2004-05.
India exported cut and polished diamonds worth US$ 11.18 billion in 2004-05, up from US$ 8.62 billion in 2003-04, registering a growth of 29.6 per cent. India has also started exports of rough diamonds, which formed 4 per cent of gems & jewellery exports in 2004. Exports of coloured gemstones witnessed a growth of 8.10 per cent in 2004-05 to US$ 192.94 million. The Indian coloured gemstone industry has expanded enormously from its traditional roots. Most exporters in Jaipur, which is amongst the major gemstone centers in India, have incorporated the latest polishing machines and state–of-the-art technology into their setup. Exports of gems and jewellery from India primarily happen out of units based in the Special Economic Zones (SEZs) and Export Promotion Zones (EPZs). Examples include Santacruz Electronics Export Processing Zone (SEEPZ, Mumbai), Madras Export Processing Zone (MEPZ, Chennai) and Noida Export Processing Zone (NEPZ, Noida). These supply primarily diamondstudded jewellery, while a few units in the domestic tariff area (DTA) cater to the ethnic population overseas, supplying plain gold jewellery. The main markets of USA, Middle East and Europe account for more than 80 per cent of total jewellery exports.
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The industry is dependent on imports for raw materials
The main raw materials for the gems and jewellery industry are rough diamonds, recycled gold and gold bars. The industry is highly dependent on imports for its requirement. Rough diamonds and gold bars are imported, while recycled gold is obtained from the domestic market.
India imports all its requirements of rough diamonds. India imported rough diamonds worth US$ 7.141 billion in 2004 compared to US$ 6.271 billion in 2003. The imports of diamonds in India have grown at a CAGR of around 10 per cent over the last four years. Imports of rough diamonds grew 6.3 per cent to US$ 7.59 billion in 2004- 05. India imported gold bars worth US$ 815 million in 2004 compared to US$ 439 million in 2000, a CAGR of around 16.7 per cent for the past four years. The imports of gems in India have been consistent for the past three years. India imports small quantities of pearls and synthetic stones compared to diamond and gold. India imported pearls worth US$ 4.6 million in 2004 and synthetic stones worth US$ 1.9 million. The imports are in accordance with the demand in the domestic and exports markets.
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India’s capabilities in diamond processing can be leveraged to move up the value chain
India’s significance in the global gems and jewellery industry can be largely attributed to its strength in diamond processing. Value enhancement by the Indian diamond processing industry is the highest among other countries. The value addition in diamonds by Indian industry was worth US$ 1.48 billion in 2004 compared to US$ 840 million in 2003. The diamond industry pipeline depicted in the figure below indicates the value addition across different stages from rough diamonds to diamond jewellery, and demonstrates how US$ 1.46 billion of rough production is transformed into US$ 57 billion of global diamond jewellery sales annually. India’s share in the global market is highest in diamond processing.
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Both value addition and margins increase as the firms move up the value chain, adding to the profits of the companies in the sector. The opportunity for Indian players in the diamond processing segment is to move up the value chain into jewellery manufacturing, where India has a minimal share at present. Equally new players can enter the diamond jewellery manufacturing space, leveraging the diamond processing capabilities that already exist in the country.
INDIA’S COMPETITIVE ADVANTAGES AND DISADVANTAGES
The factors leading to the Indian gems and jewellery industry’s growth are many. A near dominance in diamonds and coloured stones, manufacturing excellence, forward looking entrepreneurs, liberalized government policies and an extensive international marketing network
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has helped India establish itself as one of the leading jewellery centres in the world. Moreover, its high consumption of gold, steady inflow of silver and growing interest in platinum enable India to develop the entire range of jewellery, in plain metal and studded, that caters to the desires of every market. The overseas markets for gems and jewellery in general and that of cut and polished diamonds and gold jewellery in particular are sufficiently large and growing. India took due advantage of the growing world market by procuring more imported rough diamonds and expanding its production base. Moreover Indian diamond industry carved a niche for itself in the world market by developing required skill in cutting, polishing and export of small (even tiny) size diamonds which were and are very much in demand as raw materials for the diamond studded jewellery industry mainly in the developed countries. After relaxation in the Indian Gold Control Rules and Regulations, the Indian Gold Jewellery Industry with its vast production base and large band of skilled and semi – skilled artisans started exploiting the overseas demand potential for Indian type gold jewellery particularly in USA, Middle East and UK from 1990 onwards. India’s competitiveness in gems and jewellery industry can be assessed as follows:
Availability of factor conditions
Availability of skilled manpower is a key strength that has enabled growth in India’s gem and jewellery sector. India has a large pool of skilled artisans with vast traditional knowledge and expertise in jewellery making. It also has the largest resource pool in diamond cutting and
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processing. India also has a good blend of technically trained designers who are well-versed in latest 2D and 3D design software.
India has a comparative advantage in terms of cost as well. It has one of the lowest costs in diamond cutting - the cost per carat for cutting diamond was US$ 10 in India in 2004 as compared to US$ 17 in China and US$ 150 in USA. This makes diamonds sourced from India much more profitable. For example, diamond jewellery, which costs between US$ 60 and US$ 90, can be sold in the overseas market for US$ 180. Low cost skilled labour coupled with advanced technical capabilities provides the right platform for the Indian gems and jewellery sector to grow and become globally competitive.
Fragmented structure and intense competition fosters innovation
The fragmented nature of the industry, and gradual emergence of the organized sector, including global players, has increased the competitive pressures within the gems and jewellery sector in India. In this scenario, companies are experimenting different strategies to maintain and increase market share. Companies are innovating in design, retail format, network and branding, to remain competitive. Examples include: • Design: With exclusive designs and guaranteed product quality, Tanishq has positioned itself as a reputed jewellery brand in the country. Different companies are packaging their designs in the form of exclusive collections to differentiate themselves and build brand equity. • Retail format, network: Inter Gold, a diamond studded gold jewelry brand, is planning to open a chain of 60 stores across the country.
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In order to increase product visibility, Gili struck alliances with several leading lifestyle and department stores to display their trendy range of products. Gili has placed its catalogue on its web site to encourage NRIs to buy gifts online for friends and family in India. Even organised retail chains are promoting gems and jewellery sales through their outlets. Big Bazaar is launching a Gold section. Supermarkets like Lifestyle and Shoppers Stop have jewellery outlets. Increasing competition in the industry has ensured that firms work towards increasing their productivity and innovation, thereby improving overall capability levels within the industry.
Favourable demand conditions
Many socio-economic factors influence the high demand for gems and jewellery in India. The main driver of demand in India is still the investment factor – gold and gold jewellery is regarded as investment, as they can be easily converted to cash either through sale or for guarantying loans. Changing consumer demographics are, however, leading to different demand drivers, which promise future growth potential for the industry.
Large target consumer base and rising income levels
India population is nearly 23 per cent of the global population and is one of the most attractive consumer markets in the world today. Income levels across population segments have been growing in India. While the growth of the consuming class, defined as those with an annual income of US$ 980) or above, is driving overall demand for consumer products, the significant trend for the gems and jewellery sector is the emergence of a significant population of high net worth individuals (HNIs), who have the capability to invest more than US$ 1 million. Though the number of HNIs is small in India, they are growing at the rate of around 14.6 per cent compared to around 4-6 per cent in the case of other countries as exhibited in the graph. NCAER MISH survey, 2002 has predicted that there will 140,000 households with income greater than US$ 0.22 million and 250,000 households with income between US$ 0.11 million to US$ 0.22 million in 2010. This segment of rich and super rich people is also one of the fastest growing segments in India.
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Another positive aspect for the industry is that HNIs are increasingly looking at alternative investment options (other than Banks, Real Estate or Equity). Jewellery, particularly gold, has been traditionally a value storage mechanism in India. Therefore growth in investment options by HNIs can lead them to look at increased jewellery purchases.
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Urban consumers in India have become more exposed to western lifestyles, primarily through overseas travel. This has led to increased preference for products and designs that are popular abroad. For example, there is a shift towards preference for machine made jewellery over the traditional handcrafted jewellery. Demand for branded jewellery has also been increasing, as the quality, reliability and wearability of the jewellery is becoming important. With these emerging trends, the demand for branded jewellery is further expected to increase. There is also an increasing demand for diamonds, coloured gems, synthetic stones and other gems. With the growing awareness and influence of the west, the Indian consumers are becoming highly demanding and sophisticated, requiring better quality of products and services. This puts pressure on the players to consistently improve their product and service quality levels, thereby improving the overall competitiveness of the industry.
Presence of related and supporting industries
India has a large number of institutions to support the designing and development of gems and jewellery in India. Various institutes across the country offer diploma courses in jewellery
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designing. Some of the institutes offering these courses are NIFT (Mumbai), Indian Diamond Institute (Surat), Jewellery Design & Training Institute (Noida), The Gemmological Institute of India (Mumbai) etc. These courses provide inputs and training on the different kinds of stones, colour schemes in jewellery, design themes, presentation and framing, designing individual jewellery pieces, men’s jewellery, costume jewellery, jewellery costing among other information. These institutes provide a regular supply of trained manpower with the required skills and knowledge and thus help the industry to grow and become competitive.
However, the export performance of Indian diamonds lacked lusture till 1980 and the gold jewellery till 1990. This was not so much due to overseas demand constraints but due to certain external and mostly internal constraints and barriers. The major constraints can be discussed as follows : i) Indian diamond industry though capable of exploiting the overseas demand potential of large and medium size diamond has not been able to do so due to lack of required access to large and medium size rough diamonds. Of late Indian diamond industry is facing stiff competition for Indian type (small size low value) diamonds from some of the South East Asian suppliers like China, Thailand, etc. who have modernized their industry very fast with latest technology to gain better and greater access to overseas markets. Indian diamond and gold jewellery sectors are still far behind their competitors in terms of modernization with most sophisticated and latest tools, techniques and technology. The pace of product and market diversification for exploiting the vast demand potential of the overseas market is extremely slow. Lack of design developments and infrastructural facilities like Hall marking and Assaying have been the major disadvantages for exploiting the demand potential of the potential of the overseas market for gold jewellery.
GOVERNMENT REGULATIONS AND SUPPORT
The Government of India (GoI) has been working to develop the gems and jewellery industry in India through several initiatives.
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The Indian gems and jewellery export industry had its modern beginning in the 1960s, when the Government of India introduced the Replenishment (REP) licence, allowing an importer to import rough diamonds worth 80 per cent of the value of his exports. The REP licence thus provides the foreign currency needed to purchase rough to manufacture the relevant type of polished diamonds. At the outset, a 45 per cent customs duty was levied on rough diamond imports, but this duty was reduced to NIL in the Union Budget of 2003-04. The EXIM Policy for 2002-07 contains a special focus on exports of gems and jewellery through market access initiative schemes, duty free imports and appropriate adjustments in value addition norms. The government has set up various special economic zones (SEZ) for gems and jewellery industry with specific incentives provided to units in SEZs. Gems & jewellery units in SEZs and Export Oriented Units (EOUs) can receive precious metal, viz, gold/silver/platinum prior to exports or post exports equivalent to value of jewellery exported. This means that they can bring export proceeds in kind against the present provision of bringing in cash only. In order to give a boost to exports of gems and jewellery, Government took major policy initiatives during 2004-05. Lowering import duty on platinum from US$ 12.2 per 10 gms to US$ 4.64. Exempting rough coloured precious gems stones from customs duty at the first stage itself instead of claiming reimbursements later. Rough semi precious stones are already exempt, aimed to further increase the exports of studded jewellery and platinum jewellery. The policies for this sector announced in the Foreign Trade Policy include: Duty free re-import entitlement for rejected jewellery up to 2 per cent of Freight on Board (FOB) value of exports. Increased duty free import of commercial samples of jewellery to US$ 2232.1. Import of gold of 18 carat and above under the replenishment scheme. While the focus is clearly on export promotion, the liberalized policy regime will help players perform better in the domestic market as well by improving their overall competitiveness.
SURVEY DATA ANALYSIS
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In this part we have analyzed the statistical data provided to us during our survey at Gems and Jewellery Export Promotion Council, Kolkata. We have first highlighted the supplied data and then have studied the reasons behind the changes as mentioned in the data.
Table Number – 1
In the above Table we can observe that the export of Cut and Polished Diamond, which constitute the major part of India’s Gems and Jewellery exports, have increased at the rate of 19.23% during the period April – December, 2008 as compared to the same period of the previous year. The percentage increase in export was in Rupee term, but if we see the impact in US Dollar term then we would observe a significant difference. The increment is only 16.28%. This difference has actually originated from the devaluation on Indian Rupee in contrast to US Dollar. The USD/INR rate has inflated from 41.43 in Jan – Dec ’2007 to 42.48 in Jan – Dec ‘2008. This has pumped in more Indian Rupee into the market in exchange of one US Dollar and ultimately increased the export remittances in Indian Rupee term.
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However, the export of Cut and Polished Diamonds has genuinely witnessed a downfall during the month of December ‘2008. The exports during December ‘2008 have fallen drastically by 21.43% to US$ 658.81 Million when compared to the exports of previous year’s December. Fortunately, if we compare the same in Indian Rupee term, we would observe a mere fall of 1.37% in the export. For, this we should definitely thank our currency regulator who devalued the INR by more than 25%, as compared the exchange rate of the same period in the previous year. Inspite of the fact that the demand for Cut and Polished Diamonds has declined during the month of December ’08 the demand for Gold Jewellery has increased both in USD and INR terms when compared to the same period in the previous year. This is mainly due to the increased demand for Indian goldsmiths. But comparing on the annual basis we observed that there has been a fall in export on USD term and increase in export on INR term. This has occurred greatly because of the devaluation of INR from 41.43 to 42.48 in exchange of 1USD. The imports from India have become cheaper due to its devaluation and thus more can be purchased with the same outflow. Hence there has been a decline in foreign exchange earning irrespective of the fact that the exports have gone up. The foreign demands for Coloured Gemstones, Pearls, Non – Gold Jewellery and Synthetic Stones have increased during the period Jan – Dec ’08 when compared with same period of the previous year. But comparing the exports of Dec ’08 we discovered a large shortfall in USD terms. This is mainly because of the fall in demand from the US market.
ITEM – WISE EXPORTS OF GEMS AND JEWELLERY FROM INDIA DURING 2008 – 09 Table Number – 2 Page | 31
Target for 2008 – 2009
Items Total Cut and Polished Diamonds (Quantity – Lakh Cts) Gold Jewellery Coloured Gemstones Pearls Non – Gold Jewellery Synthetic Stones Costume / Fashion Jewellery Sales to Foreign Tourist TOTAL Exports of Rough Diamond (Quantity in Lakh Crts)
US$ in Million 14,915 5,840 290
Actual Export April, 2008 / March, 2009 Rs. in US$ in Crores Million 67,203.67 (467.23) 40,227.63 1,198.70 16.55 1,081.87 5.47 40.90 14,804.06 8,745.56 261.43 3.56 237.16 1.19 9.08 56.02 24,118.06 776.33
Actual Export April, 2007 / March, 2008 Rs. in US$ in Crores Million 57,158.62 (431.54) 22,379.43 1,111.67 15.93 921.33 4.50 22.17 287.99 81,901.64 2,280.32 14,205.31 5,561.83 276.28 3.96 228.97 1.12 5.51 71.57 20,354.55 566.72 20,921.27
Percent Growth / decline over Rs. 17.57 79.75 7.83 3.89 17.42 21.56 84.48 -12.41 34.34 54.26 34.88 US$ 4.21 57.24 -5.37 -10.10 3.58 6.25 64.79 -21.73 18.49 36.99 18.99
252.26 110,027.0 5 3,517.60
(307.11) (287.01) 113,544.6 GRAND TOTAL 21,967 24,894.39 84,181.96 5 1. Figures in brackets show quantity of diamonds in lakh carats. 2. Exchange rate : As per RBI average exchange rate
Comparing Table – 2 with the Table – 1 above, we would observe that the growth in export of Cut and Polished Diamonds during the period April ‘08 – March ’09 when compared to the previous financial year is only 4.21% in USD terms while the growth percentage for April ’08 – December ’08 period was 16.28%. This shows that there has been a mass decline in export of Cut and Polished Diamonds during the period January ’09 – March ’09 in USD terms. This is contributed to a large extent by the further devaluation of INR as the USD/INR rate moved up to 52.50 during this period. Besides, the recessionary pressures are there to justify the fall in demand from the US market. The change in preference of the foreign buyer also added fuel to this. This ultimately reduced the share of Cut and Polished Diamonds in the total export of Gems and Jewellery from India. The demand of the consumers moved from the diamond towards the Gold Jewellery and also in favour of the Non – Gold Jewellery, Synthetic Stones, and Costume / Fashion Jewellery. This new trend increased the exports of Gold Jewellery by 79.75% in terms of INR during the financial year 2008 – 09 as compared to the previous financial year.
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The table – 3 below represents provisional figures of Export of Gems and Jewellery items during April 2009 – February 2010 as compared to the same period last year. NET EXPORTS OF GEMS AND JEWELLERY
April 09 – February 10 ITEMS Cut and Polished Diamonds* (Quantity in Lakhs Carats) Gold Jewellery – D.T.A. SEZ / EPZ Total Coloured Gemstones Others Net Exports Exports of Rough Diamonds (Quantity in Lakh Carats) Total Exports (Provisional) Rs. in Crores 72183.80 498.41 8906.42 31002.34 39908.75 1309.77 1563.11 114965.43 3163.49 212.70 118128.91 US$ in Million 15190.11 1873.55 6514.81 8388.36 275.68 330.47 24184.62 664.90 April 08 – February 09 (Same ports as current year) Rs. in US$ in Crores Million 59925.98 412.70 10473.17 25654.71 36127.88 1096.09 1027.94 98177.88 3220.09 13370.85 1910.58 6023.98 7934.56 242.23 226.98 21774.62 718.27 22492.89 % Growth / decline over Previous Year Rs. 20.45 20.77 -14.96 20.84 10.47 19.50 52.06 17.10 -1.76 -25.25 16.50 US$ 13.61 -1.94 8.15 5.72 13.81 45.59 11.07 -7.43 10.48
284.55 24849.52 101397.97 Table Number – 3
NOTE : Exchange Rate : (As per RBI average exchange rate) 1. * Data of Cut and Polished Diamonds include export of CPD (Bonded W.H) also. 2. Figures in brackets show quantity in lakh carats. 3. Figures for April 09 / February 2010 are provisional and subject to revision. 4. Data from Chennai MEPZ has not been received for January 2010 and February 2010 5. Figs from Surat SEZ, Hyderabad Air cargo and Mumbai FPO has not been received for February 2010. 6. Above figures does not include data for Costume / Fashion Jewellery, and Sales to foreign tourists.
In the Table – 3 above we observes that the overseas demand for Cut and Polished Diamond, which still contributes the major towards the Indian export of Gems and Jewellery, has increased. The Exports has surged up to Rs.72183.80 crores during the period April ’09 – February ‘10, i.e., by 20.45% when compared to same period in the previous year. This is because worldwide the economies are reviving and the US market specially has travelled a long way recovering itself from the clutches of recession. More jobs have been created and there has been a fall in the unemployment rate recently. This has definitely pushed up the foreign demands for Coloured Gemstones. There has been an overall growth of exports of Gems and Jewellery by 16.50% during the period in INR terms. A large part of this has resulted from the measures taken in the New Foreign Trade Policy which has been discussed later.
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HIGHLIGHTS OF NEW FOREIGN TRADE POLICY FOR THE YEAR 2009 – 14
Shri Anand Sharma, Hon’ble Union Minister of Commerce and Industry have announced the following measures for gems and jewellery sector in the new Foreign Trade Policy (2009 – 14) on 27th August, 2009: a) b) To neutralize duty incidence on gold jewellery exports, it has now been decided to allow Duty Drawback on such exports. Import of Diamonds on consignment basis for Certification / Grading and re – export by the authorized offices / agencies of Gemological Institute of America (GIA) in India or other approved agencies will be permitted. To promote export of Gems and Jewellery products, the value limit of personal carriage have been increased from US$ 2 million to US$ 5 million in case of participation in overseas exhibitions. The limit in case of personal carriage, as samples, for export promotion tours, has also been increased from US$ 0.1 million to US$ 1 million. The number of days for re – import of unsold items in case of participation in an exhibition in USA has been increased to 90 days. In an endeavour to make India a Diamond International Diamond Trading Hub, it is planned to establish “Diamond Bourses” With an objective to meet the Dollar Credit needs of exporters, a Committee has been constituted with Finance Secretary, Commerce Secretary and Chairman IBA.
d) e) f)
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The future of the industry is quite promising. More and more buyers across the world are turning to India as their preferred source for quality jewellery. The Gems and Jewellery Export Promotion Council (GJEPC) is looking at exploring new markets, such as Latin American countries. The industry also plans to make India a trading centre for cut and polished diamonds, and is closely working with the Government of India in this regard. The long term prospects looks good with jewellery exports expected to touch US $16 billion in 2010 according to industry estimates.
MAJOR PLAYERS IN THE JEWELLERY MARKET
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Of late, some of the world's biggest names in the jewellery and luxury items such as watches and cuff-links are making inquiries to set up shop in India. Multi-national jewellery brands such as Tiffany, Cartier, Zales and Harry Winston are all said to be interested in coming here following the Government's decision to allow foreign direct investment of up to 51 per cent in single brand retail stores. Most of these stores have been sourcing cut and polished diamond and gold items from Indian firms. Now they are making inquiries for possible tie-ups in India. Other existing and new foreign players are drawing plans for expansion and launch of their operations in India:
De Beers has got permission to survey for diamonds in Jharkhand, Italian luxury silverware manufacturer, Greggio Argento, will set up two exclusive stores in Mumbai and Delhi within the next three months, through a marketing tie-up with Gitanjali Lifestyle – a subsidiary of Gitanjali Gems. Swarovski, the global crystal goods manufacturer and marketer, is on an expansion spree in India and hopes to achieve 5 to 10 per cent of the global turnovers from the country in the next ten years. The company plans to set up 30 stores by 2009, from the current 13. Damas India, part of one of the largest jewellery retail outlets in the world, is adding 16 new stores to its present dozen stores in India.
Simultaneously, domestic players are also drawing aggressive plans:
• • •
Shrenuj & Company Ltd has acquired 84.6 per cent stake in the US-based jewellery distributor Simon Golub & Sons Inc for US$ 22.7 million. Kerala-based jeweller Malabar Gold will spend US$ 48 million over the next year in order to expand its presence in southern India as well as abroad. Gitanjali Gems Ltd, a Mumbai-based jeweller, has incorporated a wholly-owned subsidiary in Dubai, Gitanjali Ventures DMCC, whose main activity is trading in diamonds, precious stones, diamond jewellery and pearls. Also, the Gitanjali Group has announced its foray into the luxury retail market through a new entity ‘Luxury Connexions'. The company will invest US$ 24.5 million over three years to set up luxury malls in eight leading cities across the country.
Two new special economic zones (SEZs) for gems and jewellery are to come up at Goregaon and Dhulia, both in Maharashtra. Also, the state-run Minerals and Metals Trading Corp. (MMTC), plans to establish a gems and jewellery special economic zone (SEZ) in partnership with a private company
BEST DIAMONDS IN INDIA
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A diamond is forever. Indian society has unanimously agreed with this statement generations ago. The shine of diamond sales are soaring high in the recent days. Explore the best dazzling diamonds that captivates the hearts of millions of Indians.
The world renowned Nakshatra diamonds were launched in 2000, with an equally dazzling, Aishwarya Rai, as its brand ambassador. In the present scenario Nakshatra diamonds occupy a leading position in the fashion diamond jewelry segment. The traditional diamond is the most wanted design among Nakshatra diamonds. Nakshatra diamonds claim to shine your glamor and love life. They have aptly put their slogan as "brightest circles of light." Elegant and graceful Nakshatra diamonds are the epitome of passion, attitude and independence.
Adora Diamonds were launched in India in July 2003 by Mumbai based Concept Jewelry (India) Ltd. On the present day the still expanding retail network centers of Adora expands to 117 outlets in 47 cities of India. Adora means glory in Spanish and claims that its diamond collection is themed on love. Adora diamonds are for adornment of every moment, occasion, and phase of life through its up and downs. The Swaranjali signature collection of living legend Lata Mangeshkar is a unique feature of Adora diamonds. Each piece of Swaranjali collection is conceptualized and approved by Lata Mangeshkar and bears her laser printed signature.
Tanishq diamonds are India's largest, most desirable and fastest growing Jewellery brand in India. Tanishq, launched in 1995, is the Jewellery business group of Titan Industries Ltd. On the present day Tanishq has 84 outlets in 61 cities of India. Tanishq diamonds embark the aspiration of emerging Indian women who uses tradition rather than being used by it. Tanishq diamonds bring together the work of Karigars, who specialize in different ways of making the Jewellery. Tanishq diamonds comprises fashion and style in tradition bound category through its innovation driven 'collections' strategy.
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World's largest volume manufacturer of diamonds-Sheetal manufacturing Company (SMC) launched its exquisite Kiah diamond collection in October, 2004. Kiah diamonds are claims to be for celebrating womanhood. The brand name 'Kiah' means beautiful place. On the latest Kiah diamonds have won the Best Showroom in the DTC Diamond Season for 2005-2006.
Nirvana Diamonds from Fine Jewellery (I) Ltd. was launched in 1987 in India. Nirvana diamonds are targeting at fashion conscious, modern and independent thinking women. Internationally acclaimed Nirvana diamonds are manufactured by using state-of-the-art technology. As a proof of their quality Nirvana was among one of the brands to offer lifetime warranty to its consumers.
D'damas Diamonds are part of Gitanjali Digico Group and one of the earliest diamond houses established in India in 1966. On the present day D'damas Diamonds offer highly modernized diamond cutting and polishing facilities at five locations in India. D'damas Diamonds claim to promote a range of emotions through their collections. The sparkling diamonds have always fascinated women from time immemorial. Diamonds are the best way to express to your someone special that she is very precious to you. Check out the best design that you can find out from these unique brands and make a special place for itself.
There are three types of gemstones:
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• • •
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, crystal structure as the natural material that they represent, however they have no effect when used for gem therapy. The synthetic process attempts to simulate the conditions that occur when natural gemstones are formed within the Earth. Not all synthetics are simulants, and not all simulants are synthetic. A gem simulant is a stone, which appears similar or identical to another stone, so that cubic zirconia and natural colorless sapphire can both be used to simulate a diamond. A synthetically produced diamond is a real diamond. A gemstone must possess a certain number of attributes for it to be desirable. Those attributes are Beauty, Durability, Rarity, Color, Fashion, and Special Properties. However, a gemstone's desirability is ultimately decided by the individual's taste. Majority of gemstones are minerals, however there is a small group of gems that are organic, meaning they are formed as either a product or a part of a living organism, e.g., pearls are formed within a mollusk, such as an oyster, that deposits a substance called nacre around an irritant that entered the organism.
TYPES OF GEMSTONES
Agate Moss Agate
Eye Agate Blue Lace Agate
Tree Agate Snakeskin Agate
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• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Fire Agate Abalone Shell Alexandrite Amazonite Amber Amethyst Ametrine Apatite Aragonite Angel Aura Angelite Apophyllite Aqua Aura Aquamarine Atlantasite Aventurine Azurite Bloodstone Blue Quartz Blue Lace Agate Cacoxenite Cactus Quartz White Calcite Honey Calcite Red Calcite Blue Calcite Green Calcite Optical Clear Calcite Mangano Calcite (Pink) Orange Calcite Carnelian Cat's Eye Celestite Chalcedony Chalcopyrite Charoite Chrysanthemum Chrysocolla Chrysoprase Citrine Copper Red Coral Black Coral Black Coral
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Covellite Crystal Quartz Danburite Datolite Diamond Dioptase Dolomite Dream Crystal Dravite Dumortierite Emerald Eye Agate Fire Agate Fluorite Fuchsite Galena Garnet Goldstone Hematite Herkimer Diamond Howlite Infinite Stone Iolite Jade Jasper Rainbow Jasper Leopard Skin Jasper Red Jasper Ocean Jasper Yellow Jasper Jet Kunzite Kyanite Lapis Lazuli Labradorite Lepidolite Lithium Quartz Lodestone Lodalite Magnetite Malachite Moonstone Moss Agate Obsidian
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Obsidian (Apache Tear) Mahogany Obsidian Rainbow Obsidian Snowflake Obsidian Blue Opal Pink Opal Fire Opal Onyx Peacock Ore Pearl Peridot Pietersite Petrified Wood Prehnite Pyrite Quantum Quattro Silica Quartz Amethyst Aventurine Blue Quartz Citrine Crystal Quartz Red Rutilated Quartz Rose Quartz Smokey Quartz Spirit Quartz Tangerine Quartz Golden Rutilated Quartz Red Rutilated Quartz Rhodochrosite Rhodonite Rhyolite Rose Quartz Ruby Sapphire Sardonyx Scolecite Selenite Septarian
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• • • • • • • • • •
Serpentine Shiva Lingam Smokey Quartz Sodalite Spirit Quartz Sunstone nakeskin Agate Stilbite Sugilite Sulphur
• • • • • • • • •
Tektite Tiger Eye Tiger Iron Tree Agate White Topaz Imperial Topaz Tourmalines Tourmalated Quartz Pink Tourmaline
• • • • • • •
Black Tourmaline Brown Tourmaline Watermelon Tourmaline Green Tourmaline Turquoise Unakite Vesuvianite
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