BY- ANSHUL JOLANIYA

FATMA LAIBA

3

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 world’s exports.

India is the largest consumer of gold jewelleryin the world.

Accounts for about 20% of world consumption

• India is the largest diamond cutting and polishing centre in the world.

• 60% value share, 85% volume share and 92% share of the world market by number of pieces.

• Third largest consumer of polished diamondsafter USA and Japan.

Gemstones

Diamonds

Gem & Jewellery

Silver and

Silver

Jewellery

Gold and

Gold

Jewellery

Pearls

Gemstones

studded

Jewellery

Coloured

Stones

Precious Metals and

Jewellery

Gold and diamond form the two major segments of

Indian gems and jewellery market

Value chain of the Gems and Jewellery sector

Size of Retail Market in India

800

700

600

500

400

300

200

100

0

Gold jewellery Diamond Other fabricated

Jewellery Jewellery

Size in year 2013(in billion)

630

32175

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.

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

season

Wearability and gifts

Jewellery sold on commodity

basis with labour charges

Jewellery being sold on a per

piece basis

Established in 1992 (HQ: Nariman Point ,Mumabi)

Product of portfolio includes Polished Diamonds &

Jewellery 30 Marketing arms spread across Asia, Europe

and America.

Global presence in CANADA, US, BELGIUM, CHINA, UAE,

HONGKONG, MALAYSIA, THAILAND and SINGAPORE.

An annual growth rate of approximately 15%.

GITANJALI GEMS LTDMD : MR. MEHUL C. CHOKSI

Established in 1986 as Gitanjali Gems Pvt

Ltd(HQ:Maharashtra)

The company is one of India’s largest integrated diamond and

jewellery . Sight holder status with DTC through a promoter group

company.

Sophisticated and scalable diamond and jewellery manufacturing

facilities.

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.

Rajesh Exports Pvt. Ltd (REL)

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.

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.

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.

19

• Total export of gems & jewellery in the yearApril-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 centduring 2012-13 at US$ 24.1 billion, primarilydriven by gold jewellery exports, includingmedallions and ornaments.

EXPORTS

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 India’s 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.

CONTINUE

EXPORTS DATA

ITEMS 2009 2010 2011 2012 2013(APR

)

CUT &

POLISHED

DIAMOND

53892.02 48905.5

7

57117.1

7

58649.4

5

45365.09

GOLD

JEWELLERY

16498.2

1

22567.4

4

11637.1

2

9406.49 5572.37

COLOURED

GEMSTONES

975.07 1062.2

7

1111.05 1197.5

5

834.80

ROUGH

DIAMONDS

1865.49 2388.2

6

2280.3

2

3474.9

3

1992.95

TO CHINA

• ROSY BLUE

• TANYA GEMS

• VENUS JEWELS

TO U.S.A

• DVL JEWELS PVT. LTD.

• ELEGANT COLLECTION

• DIATRENDS JEWELLERY PVT. LTD.

TO ITALY

• DWARKA

• GEMS JEWELS IN INDIA

• TAKAT GEMS IN INDIA

• FINE JEWELLERY

MAJOR EXPORTERS IN INDIA

25

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

ITEMS 2009 2010 2011 2012 2013(APR

)

ROUGH

DIAMONDS

40039.14 38401.0

9

40170.6

5

40877.2

4

21898.13

GOLD BAR 7034.52 7905.74 9734.41 10820.3

2

6062.77

CUT & POLISHED

DIAMONDS

16010.27 8832.61 17396.6

1

31209.4

5

27056.46

IMPORT DATA

Rs. In CRORES

The Current Economic ConditionGems & Jewellery

India’s 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

The exports are expected

to grow at CAGR of 15%,

amounting to USD 58

billion by 2015 from

current size of USD 25

billion

25

58

0

20

40

60

80

Gems & Jewellery Exports (USD billion)

2009 2015

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