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A Project Report

On “A

STUDY OF GEMS AND JEWELLERY EXPORT”
At

Gosil Exports Pvt. Ltd.

Submitted in partial fulfillment of the requirements of Post Graduation Diploma in Management
2008-2010

Ajay Yadav

SUBMITTED TO

SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION (SIMCA), PUNE

DECLARATION
I, the undersigned, hereby declare that the Project Report entitled “A Study of Gems and Jewellery Export” written and submitted by me to the Sinhgad institute of management and computer application (Pune) in partial fulfillment of the requirements for the award of Post Graduation diploma in Management under the guidance of Prof. Kanak Tara is my original work and the conclusions drawn therein are based on the material collected by myself.

Date: Research Student Place: Pune Ajay Yadav

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CERTIFICATE

This is to certify that the Project Report entitled “A Study of Gems and Jewellery Export“ which is being submitted here with for the award of the Post Graduation Diploma in Management, Pune is the result of the original research work completed by Mr. Ajay Yadav. He completed the work under my supervision and guidance, and to the best of my knowledge and belief the work embodied in this Project Report has not formed earlier the basis for the award of any degree or similar title of this or any other University or examining body.

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4 . which proved to be worth full for my project without which the project could have not at all been easy. I extend my warm thanks to Mr. Apoorva Palkar Tara (Director SIMCA) Guide) Date : Place : Prof. Kanak (Project ACKNOWLEDGEMENT Words are indeed inadequate to convey my deep sense of gratitude to all those who have helped me in completing this summer project to the best of my ability. Being a part of this project has certainly been a unique and a very productive experience on my part. I am really thankful to Mr. Prakash Rijhvani (Manager). His systematic way of working and incomparable guidance has inspired the pace of the project to a great extent. Kailash Agarwal (Managing Director) for making all kinds of arrangements to carry the project successfully and for guiding and helping me to solve all kinds of quarries regarding the project work.Dr. who guided me with their expert advice.

who have directly or indirectly helped me with their moral support for the completion of my project. I would also like to thank my course project guide and mentor Prof. TABLE OF CONTENT Executive Summary Chapter ~ 1 Introduction   Gems & Jewellery Sector Classification Chapter ~ 2 Chapter ~ 3 Objectives of the Study Literature Review     Gems & Jewellery Sector in India Diamond processing High-end jewellery Gems and Jewellery/ Background 5 . Kanak Tara for assigning me a project of such a great learning experience and acquainting me with real life project financing and appraisal. Ltd.Last but not least I would like to thank all the employees of Gosil Exports Pvt.

    Structural Characteristics Market Players in Gems & Jewellery Industry Diamond Exports in Gems & Jewellery Industry Chapter ~ 4 Chapter ~ 5 Gosil Exports Pvt. Ltd. Research Methodology    Nature of Data Data Collection Tools of Analysis Chapter ~ 6 Data Presentation     Present state of the industry: Diamonds Future prospective: Questionnaire Analysis Chapter ~ 7 Conclusions Bibliography Annexure 6 .

The gems and jewellery sector. the export turnover of the Gems & Jewellery industry was just Rs 220 m representing a 3 per cent of total merchandise exports. the significance of the gems and Jewellery industry in the Indian economic scenario is a development of the last three or four decades. However. gems and Jewellery have been a part of the Indian civilization since its recorded history.EXECUTIVE SUMMARY Diamonds. making it a significant foreign exchange earner for the country.53 Crore during 2008-09. it has now grown to become one of the leading export oriented industries in India recording an export turnover of around Rs 91617. In 1966-67. 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 7 .

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. CHAPTER~1

INTRODUCTION
Gems & Jewellery Sector

Diamonds, gems and Jewellery have been a part of the Indian civilisation 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 m representing a 3 8

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 875 bn during 2006-07 and contributing 16 per cent of total exports, making it a significant foreign exchange earner for the country.

Classification:
Gems & Jewellery Sector

1. Polished Diamonds: India is one of the best markets in the world in the polished

diamonds for its world-class quality of diamonds as well as exquisite cutting skills. Over 83 per cent of India's Gems & Jewellery cut and polished diamonds account for exports. Jaipur and Surat are famous as world class polishing and designing centers.
2. Gem Stones: This category refers to the stones other than diamonds, these stones

comes under two basic categories that are precious stones and Semi precious stones. There is a huge demand for these gemstones especially of Sapphire, Emerald and Ruby. India's exports of gems have crossed 5000000 carats this year.
3. Gold and Jewellery: This category represents the gold and Jewellery, which is

used in the manufacturing of various ornaments. Indian is the country that is the 9

largest consumer of gold in the world, In the year 2007 gold consumption in India was 850 tons 33% up from the last year.
4. Synthetic Stones: Synthetic diamond is diamond produced through chemical or

physical processes in a laboratory. Like naturally occurring diamond it is composed of a three-dimensional carbon crystal. Synthetic diamonds are also called cultured diamonds. Synthetic diamond is not the same as diamond imitation, which can be made of other material. This is an upcoming market in India.

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Indian Gems and Jewellery Industry have achieved a premier position in the International market. One of the highlights is the production of Studded Jewllery. 11 . India has managed to keep its position healthy and have brighter prospects ahead. but now this no longer remains the competitive edge for India as heavy competition is faced by various countries like China. where they dug and washed the precious stones. Gearing up to achieve further growth. the country has niche for itself in machine made commercial jewellery arena. sources report the employment of more than 60.. 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 a primary source of imports for the developed countries. the industry has already captured a 55% share of world market by the turn of this century. Studded Jewellery trading in India is age old as it is established by the fact that in 1650 A. The export industry has come of age and is now entering a new phase of development.000 workers in the Eluru mines. But at the same time. The gems produced here gave birth to a fabulous industry and global trade. mainly because of abundant availability of skilled and cheap labor.D. India is the original country which discovered gems and initiated gem craft.STATEMENT ABOUT THE PROBLEM India has been one of the most important countries for the production of Gems And Jewellery. Today India has been recognized as a significant manufacturing exporting center apart from its traditional strengths in handmade jewellery. Thailand and Sri Lanka.

with particular focus on Gosil Exports(Jaipur) 12 .CHAPTER~2 OBJECTIVES OF THE STUDY  To review the present status of the Indian Gems and Jewellery Sector & Analyze its contribution to the economy.  To find out who is better potential importers of Indian Gems & Jewellery product.  To examine in detail the Europe as a market for Gems And Jewellery and India’s current performance in the market.  To understand the importance and effectiveness of export in present market situation.  To critically evaluate the export performance of Indian Gems And Jewellery sector over the years and its share in the global trade in Gems And Jewellery  To study about the competitive position of Indian Gems and Jewellery export.  To analysis the vital steps for improving the Gems & Jewellery export.

India’s gems and jewellery industry has been allowed 51 per cent foreign direct investments by the government in single brand retail stores attracting both global and domestic players to this sector. making inroads in this sector and contributing to the nation’s economy. and the demand will skyrocket to US$ 20 billion by 2010 and US$ 30 billion in 2015. according to industry experts. it accounts for nearly 20 per cent of total Indian exports. making this sector integral to the economy and one of the fastest growing industries in the country. Worldwide. It provides employment to 1. Leading Branded jewellery is the new mantra in the market. the gems and jewellery industry has been growing at a good pace and is currently estimated at over US$ 130 billion. According to a report 13 . having rapidly acquired a niche over the past few years. Add to that the insatiable Indian craving for gems and jewellery. The burgeoning retail industry in India is instrumental in innovatively marketing and branding diamonds and traditional jewellery.3 million people directly and indirectly. Apart form being the world’s largest diamond processing (cutting and polishing) country with an 80 per cent share in world market India’s favorable trade policies have made India the hub for gems and jewellery. Increasing purchasing power and disposable incomes of India’s middle class has resulted in consumption growth of this industry by about 11 per cent in the five-year period preceding 2006-07. In India.CHAPTER~3 LITERATURE REVIEW GEMS & JEWELLERY SECTOR IN INDIA Gems and jewellery play a significant role in Indian customs and traditions.

The history of the Indian gem and jewellery. India’s economic boom in the country has translated into a large consumer market for jewellery and other luxury products.000. India will become the biggest consumer of jewellery. Surat in Gujarat is home to a majority of these diamond processors. the jewellery and watches market is pegged at about US$ 13.1 billion in 2006-07 against $16. But in past 1 year we have seen some decline due to recession.892. The journey of a diamond is said to begin with mining of roughs followed by sourcing them by trading firms after which they trade it with the processors who then process the rough diamonds to manufacture cut and polished diamonds which then end with the trade of the polished diamonds.25 per cent from Rs 53.02 crore or 419. It is said that 11 out of 12 stones (diamonds) set in jewellery are cut and polished in India. India’s exports of cut and polished diamonds in calendar year 2008 stood at Rs 48. offering a lucrative opportunity for major brands to make their foray into the Indian market and establish their presence.389 lakh carats down 9.64 billion in 2005-06. Experts believe that by 2013.000 processors. It is expected to register a 12 per cent growth by 2012.905.57 crore or 349. Exports from the industry fetched $17. touching US$ 23. India processes over 57 per cent of the world’s rough diamonds by value.54 billion.52 billion.released by Technopak Advisors on Changing Retail Landscape in India. began and flourished in the two leading States of Maharashtra and Gujarat. 14 . a $30-billion industry.9 lakh carats during same period in 2007. showing a growth of 26 per cent. India houses the worlds’ largest diamond processing (cutting and polishing) industry with an estimated 1. Diamond processing Today.

is an 18 lakh sq. It was set up with the primary objective of establishing necessary infrastructural facilities for promotion of export of diamonds. it accounts for over 15 per cent of the world jewellery fabrication pie. ft. the city is home to various types of jewellery from the traditional to the high-end designer fashion jewellery. The facilities here will include offices of diamond traders.Processing is done on rough diamonds in full range of sizes and qualities. Bharat Diamond Bourse. Instituted to cater to all the needs of the diamond trade. Prominently. The current format of diamond trade has four different types of channels involved in the sourcing and trading of diamonds namely. the bourse is anticipated to deal with over 30. 15 . rough trade and brokerage. Diamond trading hub After making its mark in the world diamond processing industry. including stones larger than 10 carats. strong rooms. customs clearance facilities with all the modern facilities required to carry day-to-day business. It is one of the largest producers and exporters of jewellery. is said to be Indian Antwerp in the making. the financial capital of the country.000 people a day. which is estimated to be over $13 billion. the industry fraternity has taken up the motto to make ‘India the diamond trading hub’. including jewellery from India and to make India an international trading centre. centralised distribution. lockers. direct selling. a service oriented non-profit guarantee company. Thus Mumbai. High-end jewellery As the gem and jewellery companies are based out of Mumbai. complex in Mumbai.

Mining is at the heart of the gem and jewellery industry as the activity is the only natural source of raw material for the industry. the US is number one accounting for 31 per cent of the jewellery sales. Based on this and independent analyses. some of the diamond exploration companies are making efforts 16 . an increase of close to 8 per cent over the previous year. A study by KPMG says that India is set to realise total jewellery sales of $21 billion by 2010 and $37 billion by 2015. As per forecasts. India’s growing importance in the global jewellery market is only expected to increase in the future. The Geological Survey of India has stated that India has a great potential for diamond deposits. out of the eight key world retail markets. The industry can see capital infusion of around $ 10 billion. According to the KPMG study. processing within the confines of either niche or mass players. India is one of the fastest growing markets for jewellery. by the year 2015. Forecast India and China together are predicted to emerge as a market equivalent to that of the US by 2015.20 per cent per annum over the last five years.1 billion. India and China follow with 8. The total demand is expected to reach $18.28 billion in 2015. according to the KPMG report on the global gems and jewellery industry – Vision 2015: Transformation for Growth. Today. sourcing. Currently. according to experts. the industry will witness a good fragmentation in the jewellery retail business while keeping the area of diamond mining. Diamond jewellery consumption in India is estimated to jump by 78 per cent in 2010.Not only this.3 and 8.25 billion in 2010 and to $ 28.9 per cent respectively. growing at the rate of 10. the Indian consumer market for jewellery is said to be $13.

Apart from its historical religious significance. The GJ industry has an important role in the Indian economy. With an estimated consumption of around 800 tonnes during 2007 (including jewellery consumption). India is the largest consumer of gold in the world. trade and tariff regulations. 17 . gold is valued as an important savings and investment vehicle. and information about jewellery fairs and exhibitions. uncut diamonds processed in the form of either polished diamonds or finished diamond jewellery is exported. While a predominant portion of gold jewellery manufactured in India is for domestic consumption. To achieve this. accounting for nearly 9% of the world’s cumulative mine production. Maharashtra features on the list of potential states for diamond exploration.000 tonnes of gold.to make India another target destination for diamond exploration. There are a lot of opportunities from setting up factories to retailing through showrooms for a prospective investor Gems and Jewellery/ Background The two major segments of the gems & jewellery (GJ) business in India are gold and diamond jewellery. The Gem and Jewellery Export Promotion Council (GJEPC) is primarily involved in introducing the Indian gem & jewellery products to the international market and promoting exports. It also takes up relevant issues with government and agencies connected with exports and submit documents for consideration and inclusion in the EXIM Policy. a large portion of rough. the Council provides market information to its members regarding foreign trade inquiries. import duties. India is also estimated to hold nearly 14.

with an upsurge in gold sales after a good agricultural season. marriage.09 Crores (US$3958.    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. and death. According to recent statistics of the Gems & Jewellery Export Promotion Council (GJEPC).e. Buying of gold is also an important part of every stage of an Indian citizen’s life—at birth. 15787.5 billion. SIZE    Large market for Gems & Jewellery with domestic sales of over $10 billion 4% of the global Gems and Jewellery market Exports of over US $15.08. India's exports of gems & jewellery (GJ) aggregated Rs. festivals. Gold jewellery is the preferred jewellery worn by women in India irrespective of their religious beliefs. setting up of new business. over 18% of India’s exports. Gold jewellery is very popular among farmers. religious ceremonies.. i. the wealth she takes with her when she marries and which remains hers. construction of home.64million) during the month April-May.Gold in Indian families remains the Indian bride’s `Streedhan’. 85% volume share and 92% share of the world market by number of pieces 18 .

 India has several well recognised strengths which have made it a significant force in the global Gems and Jewellery business. while China holds the seventh position.  China ranks sixth in the world in terms of diamond jewellery retail value. 76 billion during 2005. The number of gold jewellery manufacturing units is put at 0. followed by Israel and employs an estimated 2 million workers serving over 0.1 million diamond processing units.1 million. and around 0. and ii) established manufacturing excellence in jewellery and diamond polishing. ahead of India which is in seventh place. The bulk of the GJ industry in India is concentrated in the unorganised sector. 19 .  Indian diamond jewellery industry is the third largest consumer of polished diamonds after USA and Japan Structural Characteristics  The Indian Gems & Jewellery industry is highly fragmented with a large number of domestic private sector companies. like i) highly skilled. India ranks third in terms of diamond value.45 million goldsmiths.  India is the largest diamond cutting & polishing centre in the world. The Indian domestic diamond jewellery market was estimated at around Rs. yet lowcost labour.  The majority of India’s diamond workforce is employed by small units that process diamonds on a job-lot basis.

250 per 10 grams. reduction in value addition norms for export of gold & silver jewellery from 7% to 4. this allowance was raised to 10 kg per trip in January 1997. the GOI also permitted non-resident Indians (NRIs) to bring 5 kg of gold into the country twice yearly on the payment of import tax of Rs.5%. steps taken include allowing exporters to re-import the rejected precious metal jewellery subject to refund of duty exemption benefits on the inputs only and not the duty on jewellery as was being done earlier. the GOI has allowed import of precious metal scrap and used jewellery for melting. which had forbidden the holding of gold in bar form.  In the trade policy (2004-09) issued in April 2006. the GOI also permitted import and export of gold under Open General Licence.  Jewellery is permitted to be exported on a consignment basis.  100% FDI is permitted in the Gems & Jewellery sector through the automatic route 20 .  In 1993.POLICY  In 1990. In 1997. refining and jewellerymaking production capacity. refining and reexport of jewellery for higher utilisation of melting. allowing exporters who have had to deal with the problem of unsold jewellery in foreign markets to now re-import the unsold pieces. the Gold (Control) Act was abolished.

 SEZs and Gems and Jewellery Parks have been set up to promote investments in the sector  Cutting and polishing of gems and jewellery treated as manufacturing for the purposes of exemption under Section 10A of the Income Tax Act Outlook     India is the fastest-growing jewellery market in the world Branded jewellery likely to be the fastest-growing segment in domestic sales The sector is expected to grow at 40% p. to $2. JC Penney etc.2 billion by 2010 Exports expected to grow from $15. are increasingly procuring jewellery from India 21 .a.5 billion in 2005 to over $25 billion by 2010  India is the most technologically advanced diamond cutting centre in the world and has the opportunity to address one of the world’s largest and fastestgrowing Gems and Jewellery markets  Indian industry has been gaining prominence as an international sourcing destination for high quality designer jewellery  Wal-Mart.

India's Exports of Gems & Jewellery (2000-03 to 2006-07) (In US$ million) ITEMS 2002-03 2003-04 2004-05 2005-06 2006-07 Cut & Polished 6187 5972 7111 8627 11182 Diamonds Coloured 203 Gemstones Gold Jewellery Pearls Non-Gold 56 Jewellery Synthetic Stones Costume/Fashion 10 Jewellery sales to Foreign 12 Tourist TOTAL Exports to Rough 157 Diamonds Net Exports 7779 7556 9170 12156 15678 142 241 536 358 7622 7414 8929 11620 15320 13 13 18 10 10 10 2 2 1 1 1 64 85 99 129 1150 3 1167 3 1513 4 268 4 3813 3 183 192 178 193 SOURCE: GJEPC. India 22 .

⇒ Swarovski. where a number of international brands have started their retail business. the global crystal goods manufacturer and marketer plans to set up 30 stores by 2009.MARKET PLAYERS IN GEMS & JEWELLERY INDUSTRY In the recent years a large number of players have been attracted to the Indian gems and jewellery retail sector: ⇒ Reliance Retail is planning an aggressive entry into the jewellery retail market through its about 400 to 500 jewellery retail outlets across the country. ⇒ The Gitanjali Group bought 'Nakshatra'. is adding 16 new stores to its present dozen stores in India. ⇒ Damas India. the premium brand of jewellery promoted by Diamond Trading Company (DTC) ⇒ Mumbai-based Vardhaman Developers plans to build four more jewellery malls in the city and is already set to launch Jewel World-Mumbai’s first jewellery mall. part of one of the largest jewellery retail outlets in the world. ⇒ Gold Souk India has plans for bringing 100 Souks in 100 months 23 . from the current 13. ⇒ Gitanjal Gems Ltd opened its first luxury jewellery mall in Gurgaon. ⇒ Viswa and Devji Diamonds a partnership between the Indian group and the top jewellery retailer in UAE opened its first diamond retail outlet. ⇒ Dubai-based Joy Alukkas has recently opened its largest showroom in Chennai.

5 billion in fiscal 2006-07. ⇒ According to The World Gold Council (WGC) total gold supply in the second quarter this year stood (Q2FY08) at 840 tonnes. whereas the demand was 944 tonnes.GOLD The gems and diamonds industry contributes over 15 per cent of India's total exports. ⇒ A study by KPMG reveals the Indian jewellery market to be US$ 13. 24 . India was known to have diamond mines many centuries ago and has continued to maintain its tradition of diamond cutting with an estimated 1 million processors handling over 57 per cent of the world’s rough diamonds by value. its large labor force is integral to catapulting the country as the biggest diamond cutting center for small roughs..of which nearly 600 tonnes goes into making jewellery. The industry is jewellery industry is predominantly divided into two segments: Gold jewellery and fabricated studded jewellery (diamonds as well as gemstone studded jewellery) ⇒ India consumes nearly 800 tonnes of gold accounting for about 20 per cent of the world gold consumption.3 per cent of world jewellery sales... ⇒ 11 out of 12 stones (diamonds) set in jewellery are cut and polished in India (processing is done on rough diamonds in full range of sizes and qualities. accounting for 8. DIAMOND The Indian diamond trade generates over US$ 4 billion per annum in exports. including stones larger than 10 carats)..

to develop their gem and jewellery industry.. Africa alone accounted for nearly 50 per cent of the world's total diamond production. ⇒ India also accounts for 90 per cent of the volume of diamonds processed in the world. which is its biggest consumer. Ghana. 'Diamond jewellery consumption is likely to jump to nearly 80 percent in 2010 and over 95 per cent between 2010 and 2015. Namibia and Angola for rough diamonds. the largest producers of rough diamonds and gold. Botswana. Most of the rough diamonds came from Antwerp in 25 . The aim is to make India a global hub for diamond market. as well as India. including South Africa. India was specifically looking at South Africa. Having futuristic arrangements and agreements with top diamond and gold producing nations will help this crucial sector to thrive. Employment Almost the entire gold and diamond sold or processed in India is imported. India to develop jewellery industry :a global market India has offered technical support and skill-training help to top diamond and gold producing African nations.⇒ India's share in this sector is about 80 per cent of the world market. India believes it would be beneficial for the African nations. ⇒ India employs over 90 per cent of the global diamond industry workforce.' according to Assocham.

Belgium. Interestingly. Then there could be joint venture initiatives between the companies and trade bodies of India and African nations. while that of gold was $11 billion. India is the largest diamond cutting and polishing centre in the world. accounting for about 20 per cent of global demand at 800 tonnes annually. besides providing skill training. but now major suppliers had shown keen interest in supplying uncut stones directly to Indian companies. Joint venture initiatives India has also proposed to develop the gem and jewellery industry of these Africa nations. Diamond imports India's diamond imports in 2006-07 stood at $9 billion. India is also the world's top gold consumer. 26 .

be it a regular calibrate gemstone or one under the exotic gemstone category. 27 . We promise the legacy of trust earned over 9 years of selling fine jewelry. Gosil exports pvt. Gosil commits being the leading color stone jewelry manufacturers through a pledge of exceptional selections. Our current manufacturing strength could produce up to 30.000 to 40. (established in 1998) is a premier fine jewelry manufacturer serving the needs of wholesale customers. ltd. HISTORY OF GOSIL EXPORTS Gosil Exports pvt. value and professionalism. Based in India Gosil is renowned for its commitment to expertise creativity. which will be nurtured in an environment where customer satisfaction is paramount. quality.000 articles per month under different process and with variety of colored gemstone combinations which is a major key strength for us. professional service and excellent value.CHAPTER~4 GOSIL EXPORTS PVT LTD. We promise to be as dependable as the diamonds and color stone Jewelry we sell. brings to you exclusive designs that are an amalgamation of regal antiquity and contemporary trends.ltd.

Gosil exports believe in building long-term business relationships with our customers. rubies and sapphires and most famously with diamonds that work so well on gold.from the nature. quality is the foremost concern and every step is taken diligently to ensure that each product. besides being attractive. 28 . We are a reputed manufacturer. In our unique creations.Our management principles are based on the natural evolution processess where in each member tries to achieve the next level of betterment for the overall benefit of the society. Gemstones Jewellery Gold Jewellery. exporter and trader of a vast collection of jewellery including Diamond Jewellery. Gosil Exports also customize specific designs as per the special needs/requirements of the buyers. Gosil exports have a huge client base from international markets.emeralds. Gosil Exports has drawn inspirations from many sources. Gosil Exports subject our products to multiple rounds of checks. involving the mix of gold with rich stones. To ensure flawless quality. Our jewels are created like art objects. Each single piece is made with the greatest care and attention. combining the finest aesthetic looks with the highest quality are the distinguishing elements that characterize our products. Gosil Exports has a whole gamut of designs and techniques. is also a specimen of the best quality. from the ancient cultures and civilizations. Everything that contributes towards reaching the above objectives is a duty for us. and Precious Stone. Among our top priorities are excellent customer service and the final satisfaction. Refined designs. For us.

Bracelet. The design of our finest pieces of jewelry gives us another edge over others. Earrings and Ring Sets.Our team of quality control professionals monitors each and every level of the manufacturing stage. Gosil Exports specialize in: Diamonds. Gold. Our whole team is dedicated to serve customers and provide them with innovative jewelry designs that are liked by people of all age groups. right from the procurement of raw material to the dispatch of finished products in the market. Gemstone Rings. EPIP. E-70. Gemstone Bracelet. GOSIL EXPORTS (P) LTD.com 29 . Rings. Gemstone Earrings. Gosil Exports use in our products are of superior quality brought from different parts of the world so that Gosil Exports can guarantee customer satisfaction. INDIA. Gemstone Pendant. SITAPURA. JAIPUR-303905. TEL: +91-141-5142065 FAX: +91-141-2771064 Email: marketing@gosilexports. The Diamonds & gems stones. Precious Stones. So Gosil Exports believe in building long-term business relationships with our customers. Pendant.

PRODUCTS OF GOSIL EXPORTS 30 .

GOSIL EXPORTS Product Name : Rhodium Plated Bracelets GOSIL EXPORTS Product Name : Rhodium Plated Bracelets 31 .

GOSIL EXPORTS Product Name : Rhodium Plated Bracelets GOSIL EXPORTS Product Name : Rhodium Plated Pendent Sets CHAPTER~5 RESEARCH METHODOLOGY 32 .

& IN MANUFACTURERS PARTICULAR THE OWNERS. The present study contemplated an exploratory research NATURE OF DATA Primary data: primary data will be collected through a questionnaire raised among the Gems And Jewellery traders and manufacturers in Jaipur SAMPLE SIZE SAMPLE AREA SAMPLE UNIT 100 JAIPUR GEMS AND JEWELLERY OPERATING TRADERS IN JAIPUR. Exploratory research: this kind of research has the primary objective of development of insights into the problem.The appropriate research design formulated is detailed below. Internal source: which originates from the 33 . It studies the main area where the problem lies and also tries to evaluate some appropriate courses of action.it could be internal and external source of data. MANAGERS & OTHER OFFICIALS OF GOSIL EXPORTS (JAIPUR) SAMPLING TECHNIQUE RANDOM SAMPLING TECHNIQUE Secondary data: secondary data that is already available and published . The research methodology for the present study has been adopted to reflect these realties and help reach the logical conclusion in an objective and scientific manner.

newspapers reports prepared by research scholars. newspapers and the Internet. universities and internet SAMPLING TECHNIQUE Random sampling technique has been employed to extract the fruitful results. publish broachers. reports. official reports etc.g. journals. journals. External source: This originates outside the field of study like books. DATA COLLECTION Secondary data has been used which is collected through articles. CHAPTER~6 DATA PRESENTATION 34 . magazines. periodicals.specific field or area where research is carried out e.

⇒ Supportive government industrial/ EXIM policy. ⇒ As the major raw material requirements need to be imported. companies normally stock huge quantities of inventory resulting high inventory carrying costs. ⇒ Industry moving from a phase of consolidation Threats: ⇒ China. ⇒ Rupee value depreciating resulting in a windfall increase in the profitability. Weaknesses: ⇒ Small firms lacking technological/ export information expertise.SWOT ANALYSIS OF INDIAN GEMS & JEWELLERY INDUSTRY: Strengths: ⇒ About one million craftsmen are associated with this industry. ⇒ Low productivity compared to labor in china. Their skills can be utilized for designing and making modern Jewellery ⇒ Availability of abundance of cheap and skilled labor in India. Opportunities: ⇒ New markets in Europe & Latin America ⇒ Growing demand in South Asian & Far East countries. ⇒ Presence of excellent marketing network spread across the world. Thailand and Sri Lanka. Sri Lanka and Thailand's entry in small diamond segment 35 .

absence of latest technology ⇒ Unusual increase in the prices of gold and rough dia PRESENT STATE OF THE INDUSTRY: 36 .⇒ Infrastructure bottlenecks.

the Gulf States. the Jewellery has averaged a growth of over 30%. China and Turkey pulled up the overall figures.67500 crore.The year 2007-08 has witnessed a growth in all the major segments of the Gem and Jewellery industry and the total exports stood at Rs. Global gold Jewellery consumption increased 33% in the year 2005. 2004-05 2005-06 2006-07 2007-08 Diamonds 37 . making India the fastest growing Jewellery exporter in the world and also in the year 2004 the demand for gold Jewellery in India increased by 29% in value to become the fastest growing Jewellery market in the world. Since early 90's.27% as compared to the previous year. Exports of diamond have continued to rise and the Jewellery sector has turned in another record-breaking performance. a growth of 29. the buoyant demand in countries like India. India’s share of the world's polished diamond market is 60 per cent in terms of value. 85 per cent in terms of volume and 92 per cent in terms of pieces.

2008 as compared to US$ 8627.India enjoys domination in the world cut and polished diamond market and smaller diamonds in particular. Major Players: ⇒ Vaibhav Gems Ltd. 38 . which was amply reflected in the export growth of diamond industry with a total export of US$ 11181. political uncertainty could affect this industry most.23% for the year ended 31st March 2008.S. Jewellery The year 2007-08 was a good year for the global Jewellery sales as well as to the Company. ⇒ Shrenuj & Company Ltd. While opportunities are abundant. The Jewellery sector recorded a massive growth of 49.. ⇒ Classic Diamond (India) Ltd. Gold Jewellery sales in United States of America increased by 4% in 2007 to a huge 73000 crore.48 million (48000 crore) for the year ended 31st March. ⇒ Goldiam international Ltd. Demand was fuelled by good economic growth and improved demand particularly from Asia and the Middle East. The demand for the diamond Jewellery will continue to grow stronger due to continued marketing support by the industry especially in the U. The Jewellery has an ever-increasing market abroad and the company with its manufacturing facility comparable to international standards has been able to capture a reasonable portion of the same. India and China.48 million (37000 crore) against the corresponding period in last year.

42 127.01 16.61 104.11 204 1.2 11.8 6.26 2.83 2.54 2. Ltd Ltd.1 -1.42 8.95 15.49 10.43 -1.99 7.41 4.98 3.09 Assets Turnover 8.26 2.39 14. (India) Ltd.33 3.31 121.08 73. Ltd.56 60.52 20. Ltd.51 15.⇒ Su-raj Diamonds & Jewellery Ltd.24 14.44 3.48 4.64 17.42 4.28 6. 125. ⇒ Financial Comparison * Figures up to March 2008 Su-Raj Rajesh Vaibhav Classic Diamonds & Exports Gems Diamond Jewellery Pvt.62 10 29.8 8.5 17.19 20.12 5.04 9.56 1.77 13.56 6.6 10.44 10.2 4.82 2.93 0 0.62 8.17 1.2 Ratio 11.3 0.53 39 .76 4.44 2.56 4.47 2.83 0 0 68.35 6.92 2.27 8.97 Topics Adjusted EPS (Rs) Cash EPS (Rs) Book Value (Rs) Dividend Per Share (Rs) Return On Net Worth (%) Return On Capital employed (%) Operating Profit Margin (%) Gross Profit Margin (%) Net Profit Margin (%) Current Ratio Quick Ratio Long term debt to equity Total Debt to equity Interest Cover (times) Shrenuj & Goldiam Company International Ltd.46 3 9.5 23.2 6.17 2.31 9 7.8 8.82 15.07 7.57 2.28 76. ⇒ Rajesh Exports Pvt. 10.62 24.33 17. Ltd.24 12.39 10.78 102.46 1.18 2.47 0 0.39 2.47 211.36 13.82 3.

2 1.17 94.41 208.28 71.71 2.Average Raw Material Holding 0 (in Days) 34.26 4.78 164.47 0 20.64 0 in 0 70.07 0 FUTURE PROSPECTIVE: With the world economy doing well and increase in the personal disposable income of the general public demand for the gems and Jewellery has increased worldwide.36 65. Exports contribute 70% of the total sales of the 40 .83 33.21 Inventory Turnover Ratio 2.77 97. This year Jewellery sector grew by 49%.35 99.39 263.81 Export as % of 0 Total Sales Bonus component Equity (%) 100.42 0 26.61 99.42 11.44 0 Average Finished Good Holding (in 0 Days) 5.91 capital 183.2 69.66 0 Number of days of net working 230.72 7 4.

With rupee value depreciating against the U.industry. raw material. With United States contributing most (35%) in the export bill. 100% proposed. 41 . ⇒ 100 per cent Export Oriented Units (EOUs) and units in the Export Processing Zones (EPZs)/Special Economic Zones (SEZs).S. and consumables in addition to tax holidays against export. Government Policy: ⇒ Levy of two per cent excise duty on premium branded Jewellery. ⇒ Currently 74% FDI in Mining. Overall with the economic fundamentals looking good. dependence on the other countries will be reduced. favorable government policies and exploration of the newer markets industry looks all set for a good time ahead. which include duty free imports of all types of capital goods. dollar there may be a windfall increase in the profitability in the coming times for the industry. enjoy a package of incentives and facilities. Many companies are on the hunt for acquiring subsidiaries Indian companies will able to strengthen their retail network. One of the areas of concern for the industry is the surge in the prices of rough diamond pieces and India depends upon other countries but with the proposal of increase in the FDI limit on mining from 74% to 100%.

Role of the Gems & Jewellery industry to the Indian economy.QUESTIONNAIRE ANALYSIS 1. ⇒ Very Significant -------------------------------⇒ Significant -------------------------------------⇒ Insignificant -----------------------------------⇒ Very insignificant ----------------------------⇒ Do not know/ can not say -------------------40% 35% 30% 25% 20% 15% 10% 5% 0% Very Significant Significant Insignificant Very insignificant Do not know/ can not say 19% 38% 20% 7% 16% Very Significant Significant Insignificant Very insignificant Do not know/ can not say 19 per cent 38 per cent 20 per cent 07 per cent 16 per cent 42 .

Interpretation: As may be seen from the above response that the Gems & Jewellery sector in India contributes significantly to the Indian economy 43 .

2. ⇒ Employment ------------------------------------------⇒ Export -------------------------------------------------⇒ GDP---------------------------------------------------⇒ Other sectors ----------------------------------------⇒ Do not know/ can not say --------------------------72 per cent 46 per cent 32 per cent 25 per cent 07 per cent 80% 70% 60% 50% 40% 30% 20% 10% 0% Employment Export GDP Other sectors Do not know/ can not say 72% 46% 32% 25% 7% Employment Export GDP Other sectors Do not know/ can not say 44 . Contribution of the Gems & Jewellery sector.

Interpretation: Gems & Jewellery sector occupies an important place in the Indian economy as it contributes significantly to employment generation and export earnings. high value addition and continuously increasing demand both in the domestic and overseas markets. 45 . The economic importance of the sector also lies in its high employment potential. high capital investment.

The Impact of globalization and liberalization to the Gems & Jewellery export.3. ⇒ Accelerated the export -----------------------------------⇒ Adversely affected the export --------------------------⇒ Did not affect the export --------------------------------⇒ Do not know/ can not say ------------------------------76 per cent 10 per cent 07 per cent 07 per cent 80% 70% 60% 50% 40% 30% 20% 10% 0% Do not know/ can not say Accelerated the export Adversely affected the export Did not affect the export Do not know/ can not say 76% 10% Accelerated the export Adversely affected the export Did not affect the export 7% 7% 46 .

Interpretation: Indian Gems & Jewellery are now available in global markets. 47 . so also foreign crafts in our shops. producing goods worth thousands of Crores of Rupees per year. Gems & Jewellery constitute a significant segment of the decentralized sector of our economy and its importance is being felt when it is assessed that it provides employment to lakhs of jewellery –makers scattered especially in the weaker sections of our society such as SCs. STs and the women.

⇒ Agree -----------------------------------------⇒ Disagree -------------------------------------⇒ Do not know/ Can not say -----------------68 per cent 20 per cent 12 per cent 80% 70% 60% 50% 40% 30% 20% 10% 0% Accelerated the export Adversely affected the export Did not affect the export Do not know/ can not say 76% 10% Accelerated the export Adversely affected the export Did not affect the export Do not know/ can not say 7% 7% Interpretation: With the growth of e-commerce strategy. The growth of e-commerce is beneficial to Gems & Jewellery sector. 48 .4. the Indian Gems & Jewellery marketing strategy has been strengthened. leading to increase in the volume of trade in the Gems & Jewellery sector.

E-commerce is beneficial for the urban artisans instead of rural. 49 .5. Its expansion to the rural areas will be expanding its utility in a more effective manner. ⇒ Agree ------------------------------------------⇒ Disagree --------------------------------------⇒ Do not know/ Can not say ------------------68 per cent 20 per cent 12 per cent 70% 60% 50% 40% 30% 20% 10% 0% Agree Disagree Do not know/ Can not say 68% 20% 12% Agree Disagree Do not know/ Can not say Interpretation: The e-commerce strategy in the Gems & Jewellery sector has been of limited utility confining itself more in the urban sector.

6. Gems & Jewellery products exported to various countries form a part of lifestyle products in international market. The impact is due to the changing consumer taste and trends. Better potential importers of Indian Gems & Jewellery product. In the changing world scenario. 50 . ⇒ USA -------------------------------------------⇒ UK --------------------------------------------⇒ Germany -------------------------------------⇒ Other countries -----------------------------52 per cent 22 per cent 15 per cent 11 per cent 70% 60% 50% 40% 30% 20% 10% 0% Agree Disagree Do not know/ Can not say 68% 20% 12% Agree Disagree Do not know/ Can not say Interpretation: The largest export market for Indian Gems & Jewellery is the United States.

Exported product from India to other country.25 per cent 35% 30% 25% 20% 15% 10% 5% 0% Diamond studded jewellery Necklaces Bangles Rings & Other products 15% 32% 28% 25% Diamond studded jewellery Necklaces Bangles Rings & Other products 51 . ⇒ Diamond studded jewellery -----------------------⇒ Necklaces ---------------------------15 per cent 32 per cent 28 per cent ⇒ Bangles --------------------------------------------- ⇒ Rings & Other products -----------------------------------.7.

the respondents felt that it is the Diamond studded jewellery. 8. The challenges of the Gems & Jewellery export. Rings & Other products which dominate the export composition of the Gems & Jewellery products. ⇒ Better quality products from foreign companies -------⇒ Competition in the domestic sector ----------------------⇒ Lack of institutional support ------------------------------⇒ Other factors ------------------------------------------------⇒ Do not know/ can not say ---------------------------------33 per cent 23 per cent 25 per cent 12 per cent 07 per cent 52 . Bangles. Necklaces.Interpretation: As far as the products which are exported out of the country.

competition in the domestic sector and other factors. 53 . These include better competitiveness of the foreign companies followed by lack of institutional support.35% 30% 25% 20% 15% 10% 5% 0% Better quality products from foreign companies Competition in the domestic sector Lack of institutional support Other factors Do not know/ can not say 33% Better quality products from foreign companies Competition in the domestic sector Lack of institutional support Other factors Do not know/ can not say 23% 25% 12% 7% Interpretation: There are various problems and challenges that stand as barriers to the export market of the Indian Gems & Jewellery products.

30 per cent ⇒ Promotion of Gems & Jewellery in the rural areas --------------.9.20 per cent ⇒ Special support to the Gems & Jewellery sector in the trade policy - 27 per cent ⇒ Institutional financing ---------------------------------------⇒ Other measures ------------------------------------------------15 per cent 08 per cent 54 . The vital steps for improving the Gems & Jewellery export. ⇒ Establishing Gems & Jewellery special economic zones -------.

30% 25% 20% Establishing Jems & Jewellery special economic zones Promotion of Jems & Jewellery in the rural areas Special support to the Jems & Jewellery sector in the trade policy Institutional financing 30% 15% 10% 5% 0% Establishing Jems & Jewellery special economic zones Promotion of Jems & Jewellery in the rural areas Special support to the Jems & Jewellery sector in the trade policy Institutional financing Other measures Other measures 20% 27% 15% 8% Interpretation: Setting up Gems & Jewellery special economic zones accompanied with institutional support and other promotional measures can be effective to improve the export potential of the Indian Gems & Jewellery products. 55 .

Philippines and Thailand in regarding Gems and Jewellery export. ⇒ Very competitive --------------------------------⇒ Competitive --------------------------------------⇒ Lacks competitive strength --------------------⇒ Not at all competitive --------------------------⇒ Do not know/ can not say ---------------------35% 30% 25% 20% 15% 10% 5% 0% Very competitive Competitive Lacks competitive strength Not at all competitive Do not know/ can not say 18% 35% 20% Very competitive Competitive Lacks competitive strength Not at all competitive Do not know/ can not say 18 per cent 35 per cent 20 per cent 12 per cent 15 per cent 12% 15% 56 .10. Competition of India with china.

11. Future of the market of the Gems & Jewellery export in India. ⇒ Very good ------------------------------------------⇒ Good ------------------------------------------------⇒ Not good -------------------------------------------⇒ Do not know/ can not say -----------------------24 per cent 35 per cent 20 per cent 31 per cent 35% 30% 25% 20% 15% 10% 5% 0% Very good Good Not good Do not know/ can not say 24% 35% 20% 31% Very good Good Not good Do not know/ can not say 57 .

These trends include: the local beneficiation in the mining countries.7 percent. consolidation across the value chain.CHAPTER~7 CONCLUSION Growth in global demand for jewelry may slow from the 5. Based on the findings.” sales could reach $280 billion in 2015. fragmentation of supply sources and an increase in rough supply. and intense competition from other luxury goods.6 percent by 2010 or 2015. it stresses that if the industry as a whole focuses on “growing demand for jewelry as a category” and “strengthening industry-level and enterprise-level capabilities” in the “next 12-18 months. organization and consolidation in the emerging markets of India and China. the report estimates that worldwide jewelry sales will rise from $146 billion in 2005 to $185 billion in 2010 and $230 billion in 2015. unless appropriate collective action is taken by players in the industry. to 4. rise of new centers for jewelry manufacturing. growth in the use of synthetics and nonprecious metals in jewelry. accounting for about 82 percent of overall market share 58 . a decline in demand for plain gold jewelry. Some of the statistical highlights include: • Gold and diamond jewelry will continue to dominate the market. The projection is based on an assessment of the impact of eight key business trends that the two bodies believe will affect the performance of the industry. However.2 percent Compounded Annual Growth Rate (CAGR) it registered since 2000. registering a CAGR of 6.

and will impact sales of natural diamond jewelry to the extent of $6 billion at the retail level • Palladium is expected to establish itself as an alternative metal for jewelry fabrication • China (13 percent) and India (12 percent) together will emerge as a market equivalent to that of the US share (26% percent) • • • Middle East (9 percent) will be another large market China.3 percent About 9 percent of world’s diamond will be processed locally by mining countries • Centralized distribution of rough will drop from 55 percent in value to 40 percent 59 .• Diamond jewellery will be the slowest growth segment at a Compounded Annual Growth Rate of 3.3 percent • Synthetics will have sales of close to $2 billion at wholesale price by 2015. Turkey and India will emerge as new centers for jewelry fabrication Value addition in diamond processing will increase from 29.3 percent to 34.1 percent • India’s share in diamond processing will drop from about 57 percent by value to 49 percent • • China’s share in diamond processing will rise to 21.

com 60 .• Rough sold through traders will account for 45 percent BIBLIOGRAPHY Daily newspapers ⇒ www.com ⇒ www.indiabulls.moneycontrol.altavista.myiris.com ⇒ www.google.com ⇒ www.com ⇒ www.

⇒ Employment ------------------------------------------⇒ Export -------------------------------------------------⇒ GDP---------------------------------------------------⇒ Other sectors ----------------------------------------⇒ Do not know/ can not say --------------------------72 per cent 46 per cent 32 per cent 25 per cent 07 per cent 61 . You can choose more than one option. How do you perceive the contribution of the Gems & Jewellery industry to the Indian economy? ⇒ Very Significant -------------------------------⇒ Significant -------------------------------------⇒ Insignificant -----------------------------------⇒ Very insignificant ----------------------------⇒ Do not know/ can not say -------------------19 per cent 38 per cent 20 per cent 07 per cent 16 per cent 2.ANNEXURE QUESTIONNAIRE 1. Select the areas in which the Gems & Jewellery sector contribute significantly.

How did the policies of globalization and liberalization affect the export scenario of the Gems & Jewellery in India? ⇒ Accelerated the export -----------------------------------⇒ Adversely affected the export --------------------------⇒ Did not affect the export --------------------------------⇒ Do not know/ can not say ------------------------------76 per cent 10 per cent 07 per cent 07 per cent 4. Indian Gems & Jewellery sector has been positively benefited from this? ⇒ Agree -----------------------------------------⇒ Disagree -------------------------------------⇒ Do not know/ Can not say -----------------68 per cent 20 per cent 12 per cent 5. Is it true that the e-commerce strategy has been more beneficial only in the urban areas leaving the rural artisans out side the ambit of this strategy? ⇒ Agree ------------------------------------------⇒ Disagree --------------------------------------⇒ Do not know/ Can not say ------------------68 per cent 20 per cent 12 per cent 62 .3. Do you agree that with the growth of e-commerce strategy.

What are the products which are exported from India to other countries? ⇒ Diamond studded jewellery -----------------------⇒ Necklaces ---------------------------15 per cent 32 per cent 28 per cent 25 per cent ⇒ Bangles --------------------------------------------⇒ Rings & Other products ------------------------------------ 8.6. What are the problems of the export of the Gems & Jewellery products from India? ⇒ Better quality products from foreign companies -------⇒ Competition in the domestic sector ----------------------⇒ Lack of institutional support ------------------------------⇒ Other factors ------------------------------------------------⇒ Do not know/ can not say ---------------------------------33 per cent 23 per cent 25 per cent 12 per cent 07 per cent 63 . Which countries are the better potential importers of Indian Gems & Jewellery products? ⇒ USA -------------------------------------------⇒ UK --------------------------------------------⇒ Germany -------------------------------------⇒ Other countries -----------------------------52 per cent 22 per cent 15 per cent 11 per cent 7.

What are the measures that can be taken for improving the export potential of the Gems & Jewellery sector in India? ⇒ Establishing Gems & Jewellery special economic zones ---------⇒ Promotion of Gems & Jewellery in the rural areas ----------------⇒ Special support to the Gems & Jewellery sector in the trade policy ⇒ Institutional financing ---------------------------------------⇒ Other measures ------------------------------------------------- 30 per cent 20 per cent 27 per cent 15 per cent 08 per cent 10. How do you compare the export potential of the Indian Gems & Jewellery products when compared with other countries Gems & Jewellery products like that of china. Future of the market of the Gems & Jewellery industry in India. Philippines and Thailand? ⇒ Very competitive --------------------------------⇒ Competitive --------------------------------------⇒ Lacks competitive strength --------------------⇒ Not at all competitive --------------------------⇒ Do not know/ can not say ---------------------18 per cent 35 per cent 20 per cent 12 per cent 15 per cent 11. ⇒ Very good ------------------------------------------⇒ Good ------------------------------------------------⇒ Not good -------------------------------------------⇒ Do not know/ can not say -----------------------64 24 per cent 35 per cent 20 per cent 31 per cent .9.