Gems & Jewellery Industry

Competition in Jewellery segment of India

500,000 players, in India with the majority being small players.

Changes in consumer preferences due to adoption of western lifestyle. Consumers are demanding new designs and varieties in jewellery

Increase in per capita income has led to an increase in sales of jewellery, as jewellery is a status symbol in India.

Net Gems and Jewellery exports for 2015-16 was to the tune of US$ 32B as compared to US$ 36.2B in 2014-15

Major Players

Rajesh Mehta,Chairman

TURNOVER: Rs 30,000 crore in 2013

Key Business Fact: Integrated player

USP: No making charges

5% of gold produced in the world.

database of 29000 designs

40 % market share in India Gold industries

Lowest cost gold jewellery producer in the world.

The only company in the world with value chain of Gold from refining to retailing.

Extensive marketing network. Several innovative

technologies and processes in the manufacture of Jewellery

Titan Company Limited (Tanishq)

Division of Titan Industries a company promoted by the Tata GroupStarted in 1995, Tanishq is the jewellery business based in Bangalore launched by TITAN.

150th showroom in Indiascheme called Golden Harvest for sales promotion and to help buyers plan for large purchases like during weddingsTanishq introduced innovations like Karat meter

Market Strategy –Transmigration Of DesignsContinous Change In DesignsOwn Chain Of Retail Stores Positioning -Tanishq diamonds embark the aspiration of emerging Indian women who uses tradition rather than being used by it

Established in 1986.

Sophisticated and scalable diamond and jewellery manufacturing facilities

Approximately 1,246 retail outlets in India and 143 outlets in the U.S.Shraddha Kapoor is the brand ambassador of Parineeta brand

Net Revenue of 9.67bn and a growth of 60%in 2013

Leading brands

GITANJALI

Strategy In India • Promotion through TV ads and print ads• Diversity of productcredibility

Kalyan Jewellers

Kalyan branched out into the field of jewellery retailing in the year 1993 by opening its first store in Thrissur.

Their target segment are women of middle and upper class .It has position itself as royal Brand

Mohanlal Jewellers• Mohanlal Jewellers was founded

in the year of 1990 by its proprietor Mr. M.Mohanlal Khatri

• Supplying order items on time is the core strength of Mohanlal Jewellers with committed purity in the whole sale market, with the support of its loyal customers

PC Jewellers• Established in 1980 (HQ : Sadar Bazar,

Delhi ) Jewellery designers -35 Total no of stores – 11 Gross sales 4018 Cr in 2013

Rajesh Exports Ltd

Mar 16 Mar 15 Mar 14 Mar 13 Mar 12

Revenues 38,622.70 37,923.56 23,538.22 31,228.64 25,850.33

+21%-24%+61% +2%

GDP Growth poor- 4.7%Volatile RupeeImport duty on gold - 2 to 6

Mar 16 Mar 15 Mar 14 Mar 13 Mar 12

Revenues 8,097.49 8,218.94 6,868.87 10,534.01 8,049.81

Gitanjali Gems Ltd.

-35% +30%+20%-1.4%

Financial Analysis of Major Players

Challenges High dependence on Imports Volatile raw material prices Changing fashion Limited financing options for the industry Limited Research and Technology Adoption Lack of training facilities for labourers Low level of quality and productivity

Strategies• Manufacturers should emphasize on their ‘competitive

advantage’ • Diversify the export product portfolio, and concentrate more

on other products of gem and jewellery• Product Innovation and Channel Innovation• Publicity measures should be initiated through media network• Expanding international presence• Provision to organize trade fairs and exhibitions• Additionally, government should establish more designing

institutes of jewellery

More Even Demand

Pure gold 22 carat to light weight, lesser carat gold

Neighborhood store to brand store and e-retailing

Gold to platinum and Diamond studded jewellery

Emerging Trends

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