INDIAN GEM & JEWELLERY

INDUSTRY

SETHU P.M
MBA 1st Year
SJCET SCHOOL OF MANAGEMENT
Indian Gem and Jewellery
Industry
 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

3
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.
 Gold and diamond form the two major segments of
Indian gems and jewellery market

Gem & Jewellery

Precious Metals and

Gemstones
Jewellery

Gold and Silver and Gemstones

Coloured
Diamonds Pearls Gold Silver studded
Stones Jewellery
Jewellery 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.
 Size of Retail Market in India

800

700

600

500

400

300 630
200

100 175
0 32

Gold jewellery Diamond Other fabricated

Jewellery Jewellery

Size in year 2013(in billion)

 GEMS & JEWELLERY INDUSTRY
One of the fastest growing segments in the Indian
economy with an annual growth rate of approximately 15
percent.
The current market size of the Indian Gem & Jewellery
Industry is US$ 25 Billion.
Total export of gems & jewellery in the year April-
March,2013 was 302081.11 with a 3.36% growth rate &
21.27% share in the total export.
Consumes nearly 800 tonnes of gold that accounts for 20
percent of world gold consumption, of which nearly 600
tonnes go into making jewellery.
 The consumption of gold in India has doubled over
the past two decades. 402 (tn) in 1989 810 (tn) in
2009.
In 2012, gold imports in India increased 68% year
on year to 970 tonnes from 579 tonnes in 2011.
whereas the demand for gold increased by 10% year
on year globally to 3,971 tonnes in 2012 .
Gold prices continued to be volatile in the month of
July 2012 and touched a high of Rs. 29,983/- per 10
gm.
 continue
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 domestic market was guessed to be

approximately US$ 18.1 billion in financial year
2013.

The Gem & Jewellery Industry has started

showing positive signs of revival and growth.
DIAMONDS INDUSTRY
 DIAMONDS INDUSTRY
Largest diamond cutting and polishing centre in the
worldwith 60 per cent value share, 82 per cent carat
share and 95 per cent share of the world market in terms
of number of pieces.
In the period of 9 months from April to December09
exports of rough diamond declined by 37% to 157.09
lakh carats whereas the exports of cut & polished
diamonds mounted by 18% to 407.36 lakh carats
Nearly 9 out of 10 diamonds sold worldwide are cut and
polished in India.
 continue
Exported cut and polished diamonds worth US$
17.18 billion in 2012-13
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.
India accounts for approximately 60% of global
polished diamonds market in terms of value and more
than 90% in terms of pieces.
With the rise in gold prices, consumers are turning to diamond
studded jewellery which gives them a higher perception of
luxury and value.

Due to the global slowdown, diamonds are now relatively

cheaper when compared to their prices in 2013.

Diamond jewellery sales have increased four-fold from U.S $

1 billion to U.S $ 4.2 billion in the last four years.

About 25% of the gold jewellery purchasers have switched to

diamond ( diamond jewellery is typically casted in less-pure
18-carat gold compared to gold jewellery which is made from
22-carat gold).
comparative costs of processing diamond in
different countries
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.

DRIVERS and CHALLENGES
 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 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.
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.
 Asian Star Co Ltd.
MD: Mr. VIPUL SHAH

Established in 1992 (HQ: Nariman Point ,Mumabi)

Product of portfolio includes Polished Diamonds &

Jewellery 30 Marketing arms spread across Asia, Europe and
America.
More than 2000 professionals and skilled workers.
Two manufacturing units: MUMBAI and in SURAT.
Global presence in CANADA, US, BELGIUM, CHINA, UAE, HONGKONG,
MALAYSIA, THAILAND and SINGAPORE.
An annual growth rate of approximately 15%.
 GITANJALI GEMS Ltd
MD : Mr. MEHUL C. CHOKSI

Established in 1986 as Gitanjali Gems Pvt Ltd(HQ:Maharashtra)

The company is one of Indias largest integrated diamond and jewellery .
Sight holder status with DTC through a promoter group company.
Sophisticated and scalable diamond and jewellery manufacturing facilities.
Approximately 1,246 retail outlets in India and 143 outlets in the U.S.
Gitanjali Gems posted net revenues of Rs 9.76 bn, a growth of 60% in 2013.
Leading brands
 Hindustan Diamond Co. Pvt. Ltd.
MD:Ms. ALKA TYAGI

Incorporated in the year 1978.

50:50 joint venture between the Indian government and
De Beers.
26% in De Beers India by investing US$ 7.75 million in
India.
Member of Diamdel network.
HDCL has office in Mumbai and Surat.
 P.P. Jewellers
MD: Mr. KAMAL GUPTA
P.P. Jewellers was established in 1980 (HQ : Sadar
Bazar, Delhi ).
Exports diamonds and gold jewellery to countries such
as UAE (50%), UK (30%) and USA (20%).
Operational Details
Total employees - 1700.
Jewellery designers -35.
Total no of stores - 11 out of which two are franchisee in
Karnal and Chandigarh.
Manufacturing Units located in - Delhi, Mumbai, Kolkata
and Rajkot.
P.P. Jewellers Group has following divisions:

P.P. Jewellers Pvt. Ltd.

P.P. Jewellers (Exports) - A 100% Export
Oriented Unit.
P.P. Jewels Pvt. Ltd. - SEZ Unit in Noida.
P.P. Design Estate - A retail store of
readymade garments.
P.P. Charitable Trust - A trust for the
opening of School
 Rajesh Exports Pvt. Ltd (REL)
MD: Mr. RS GOENKA

1990 - Rajesh Exports established (HQ :Bangalore, India)

World's largest manufacturer of Gold Jewellery
Manufactures gold and diamond jewellery
:Retail jewellery showroom
Shubah Jewellers & Laabh Jewellers.
Leading Indian branded jewellery retailer Oyzterbay in 2006
2011 - REL has launched 73 Shubh Showrooms in the state
of Karnataka.
 Rosy Blue
MD: Mr. Russell Mehta

Established in 1982 (HQ :Bharat Diamond Bourse, Bandra

Kurla Complex, Mumbai, India)
One of the largest diamond and jewelry companies in the
world.
An annual turnover of about US$ 2 billion.
The company has diamond factories in India, Thailand, Sri
Lanka, China, Armenia, and South Africa.
As an industry leader and DTC Sightholder.
Operations cover
- Diamond trading
- Certificated diamond trading
- Diamond manufacturing
- Jewellery manufacturing
- Jewellery retailing
 Shrenuj & Company Ltd.
MD :Mr. SHREYAS K .JOSHI
Company was founded in 1987 in Mumbai.

Two segments : Diamonds & Jewellery.

Diamonds
cutting and polishing of diamonds.
Jewellery
diamond studded gold/platinum jewellery.

3500 employees.
 Suasish Diamond Ltd.

Suashish is a Sightholder of DTC International.

Incorporated in October 1988.
Brand Ishis .
Partnership in all major markets.
Manufactures a complete range of Round White
diamonds.
 Su-Raj Diamonds Ltd
MD: Mr. JATIN R.MEHATHA

Incorporated in Sep 1985, is a Public Limited Company

(HQ: Surat ,Gujarat)
Two segments Diamond and Gold jewellery.
The companys business is directed towards manufacturing
and export of gold, silver & platinum jewellery studded with
diamonds, colour stones and semi precious stones
The company also has its international presence in Belgium,
UAE, Thailand and Europe.
The company registered revenue of Rs 3.42 bn in FY12.
 Tanishq
MD: Mr. CK Venkataraman

Started in 1995.
Titan Industries Ltd - promoted by TATA
group.
110 stores in 78 cities
 TARA JEWELS LIMITED
MD: Mr. Rajeev Seth

Incorporated in Sep 1987, is a Public Limited Company

(HQ: Mumbai)
The company has four manufacturing facilities, one of
which is in China.
Aggregate production of 10,616.40 kgs in Fiscal 2012.
Exports to Australia,Austria, Canada , China, Europe
Germany,Switzerland, South Africa, UAE,USA,UK
The largest studded jewellery exporter from India since
2012.
 VAIBHAV GLOBAL LIMITED

1980Launching of Vaibhav Enterprises( HQ:Jaipur - Rajasthan).

The Jewellery Channel UK is broadcasting in approx
30Million Households in UK and Liquidation Channel in
approx 55 Million HH's in US.
Leading brands
 MAJOR
PRODUCTION CENTRES IN INDIA

42
 EXPORTS
Total export of gems & jewellery in the year April-
March,2013 was 310081.11 with a 2.76% growth rate &
23.27% share in the total export.
Exports posted a modest growth of 1.45 per cent during
2012-13 at US$ 24.1 billion, primarily driven by gold
jewellery exports, including medallions and ornaments.
The country exported US$ 24.8 billion of gem and jewellery
in 2012-13.
 continue

The United Arab Emirates (UAE) was the largest importer

of gems and jewellery from India in 2012-13, with a share
of 33% followed by Hong-Kong(25%) and U.S.A(19%).
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 2009 2010 2011 2012 2013(APR)

CUT & POLISHED 53892.02 48905.57 57117.17 58649.45 45365.09

DIAMOND

GOLD 16498.21 22567.44 11637.12 9406.49 5572.37

JEWELLERY

COLOURED 975.07 1062.27 1111.05 1197.55 834.80

GEMSTONES

ROUGH 1865.49 2388.26 2280.32 3474.93 1992.95

DIAMONDS

VALUE IN CRORES
 MAJOR EXPORTERS IN INDIA

TO CHINA TO U.S.A TO ITALY

DVL JEWELS DWARKA

ROSY BLUE PVT. LTD. GEMS JEWELS
TANYA GEMS ELEGANT IN INDIA
VENUS JEWELS COLLECTION TAKAT GEMS IN
DIATRENDS INDIA
JEWELLERY FINE
PVT. LTD. JEWELLERY
 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
48
 IMPORTS
Total imports by India declined by 13.46% y-o-y to U.S
$35.37 bn during June 2012 compared to total imports of U.S
$40.87 bn in June 2011.

Indias import of gems and jewellery increased by 45.39% in

Fiscal 2012 to U.S $ 41.93 bn from U.S $ 28.84 bn in Fiscal
2011.

The total imports of gems and jewellery sector grew at a

CAGR of 27.74% for the period Fiscal 2003 to Fiscal 2012.

The imports of rough diamonds has increased by 31.82%,

gold bars registered a 10.78% increase and cut and polished
diamonds increased by 78.94%.
 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 10820.32 6062.77

CUT & POLISHED 16010.27 8832.61 17396.61 31209.45 27056.46

DIAMONDS

Rs. In CRORES
 Major Importers

LEVIN HEALTH CARE

SUNSHINE CONSULTANCY SERVICES
KRISHNAM
HI INTERNATIONAL
SHREEJI GEMS & SILVERS
FAMMORE ENTERPRISES.PVT.LTD
SHIBINS
SARIT AXPORTS CONSORTIUM
SANJAY EXPORTS
MONTOSTONE
51
Major Competitors in the global
market
 The Current Economic Condition
Gems & Jewellery

Gems & Jewellery Exports

(USD billion)
The exports are expected
80
to grow at CAGR of 15%,
58
60 amounting to USD 58
billion by 2015 from
40
25 current size of USD 25
20 billion
2009 2015
0

Indias Current Advantage

Ability to deliver good quality at low costs
Cost of cutting diamonds in India is 7% of that in Belgium and
60% of that in China
 Gems & Jewellery

Opportunities

Indias Current Dominant Position

Branded
Jewellery
Designer
Mass Jewellery
Jewellery
Processed
Raw Material
High Value
Processed
Raw Material-
Low Value
Raw
Materials

Gems & Jewellery Value Addition Ladder

 The Current Economic Condition
1. G & J Industry forms an integral part of the Indian economy
with an annual growth rate of approximately 15%. It
accounts for 14% of the country's total exports and provides
employment to 1.5 mn people directly and indirectly.
2. Besides being the largest consumer of gold 23% of global
consumption producer of polished diamonds 57% by value
of the global market .
3. The export revenue for 2011-12 was US$ 42.84 bn, with
cut & polished diamonds contributing US$ 23.33 bn and
jewellery US$ 9.50 bn.
4. In 2015 India and China will capture about a quarter of the
global luxury market given economic growth in these two
countries.
 continue

5. In terms of geographical markets, the UAE continues to be

the largest exporting destination with 44% of exports to the
market, followed by Hong Kong with 25% and the US
with 12% India with 12% and China with 11% share
respectively.
6. The domestic jewellery market is set to cross US$ 40 bn by
2015.
7. Diamond jewellery segment looks very promising and is
expected to touch US$ 6.41 bn in 2012.
8. The last few years with growth rates in the range of
20 30% .
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.
 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.
 REFERENCES
Care Research-Indian Gems and Jewellery Industry,2011
Daily newspapers
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.php?id=32
1. Compounded Annual Growth Rate (CAGR)

2. The International Monetary Funds (IMF)

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