INDIAN GEM & JEWELLERY INDUSTRY

Deepak Poonia

14101031

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OVERVIEW

Large market for Gems & Jewellery with domestic sales of over $10 billion.

Exports of over $15.5 billion; over 18% of world’s exports.

India is the largest consumer of gold jewellery in the world.

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

Third largest consumer of polished diamonds after USA and Japan.   

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Gemstones

Diamonds

Gem & Jewellery

Silver and Silver

Jewellery

Gold and Gold

JewelleryPearls

Gemstones studded

Jewellery

Coloured Stones

Precious Metals and Jewellery

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

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Value chain of the Gems and Jewellery sector

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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 segmentsGold 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.

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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

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SWOT Analysis…

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STRENGTHSLarge 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.8

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 Thailand’s company.

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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.  

OPPORTUNITIES

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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.

THREATS

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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

seasonWearability and gifts

Jewellery sold on commodity

basis with labour charges

Jewellery being sold on a per

piece basis12

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.13

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. 14

MAJORPRODUCTION CENTRES IN

INDIA

1515

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EXPORTS DATAITEMS 2009 2010 2011 2012 2013(APR)

CUT & POLISHED DIAMOND

53892.02 48905.57 57117.17 58649.45 45365.09

GOLD JEWELLERY

16498.21 22567.44 11637.12 9406.49 5572.37

COLOURED GEMSTONES

975.07 1062.27 1111.05 1197.55 834.80

ROUGH DIAMONDS

1865.49 2388.26 2280.32 3474.93 1992.95

VALUE IN CRORES17

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

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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

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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 DIAMONDS

16010.27 8832.61 17396.61 31209.45 27056.46

IMPORT DATA

Rs. In CRORES

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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

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GOLD JEWELLERY ITALY ,CHINA ,THAILAND ,HONG

KONG ,FRANCE ,MEXICO, TURKEY ,CANADA ,ISRAEL, SWITZERLAND ,UNITED KINGDOM

DIAMONDCHINA , BELGIUM

GEM STONESSRILANKA,THAILAND

Major Competitors in the global market

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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.23

REFERENCES www.indiabulls.com www.myiris.com www.moneycontrol.comhttp://commerce.nic.in/ftpa/default.asphttp://www.ibef.org/download/

GemsandJewellery_sectoral

http://www.commodityonline.com/learning_sub.php?id=32

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Thank

You!!!

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