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INTRODUCTION

History of Indian jewellery is as old as the history of the

country itself. Around 5000 years ago, the desire to adorn

themselves aroused in people, leading to the origin of jewellery.

Since then, Indian women and jewellery have gone hand in hand.

There can not be a woman in India, who does not adore herself

with minimum jewellery. In fact, jewellery is considered as

security and prestige of women in the country. The attraction for

jewellery has been great in India that it is no more a craft than an

art.

Indian jewellery is unique in its design and workmanship.

In all kinds of traditional dance forms, jewellery has been a

significant part. Be it Bharatnatyam, Kuchipudi or Kathak, all

have given importance to jewellery in presenting the artist. The

sheer number of items forming the jewellery of an Indian woman

is numerous, ranging from earrings and necklaces to pieces for

adorning the hair, hip, and feet. Jewellery made with emeralds,

diamonds, pearls, rubies, sapphires and other precious and semi-

precious stones have been in practice for long.

The range of jewellry in India varies from religious to purely

aesthetic types. It is crafted not only for humans, but also for the

Gods, ceremonial elephants and horses. Royal class people have

given patronage to the art of jewellery since ancient times, when rajas

and maharajas vied with each other to possess the most exquisite and

magnificent pieces. Regional differences can be observed in the

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making of jewellery, depending on the differences in geography,

people, culture, and their lifestyle. While the designs in solid gold

jewellery of Tamil Nadu and Kerala are inspired by nature, the

Meenakari and Kundan styles of jewellery making have been

influenced by the Mughal dynasty. Then there is a huge range of

silver beads found all over India, especially in Rajasthan, Gujarat,

Madhya Pradesh and Himachal Pradesh. Their availability leads to

the development of the bead jewellery, popular till date.

While Assamese jewellery is influenced by local flora and

fauna, Manipuri jewellery-makers make use of items like shells,

animal claws, teeth and precious and semi-precious stones. These

huge varieties of ornaments bear testimony to the excellent skill of the

jewellers and craftspeople of the country. Indian jewellery in Gold,

diamonds, silver, sterling silver, precious stones and semi-precious

stones is a rage all over the world.

Traditionally Jewellery-Loving India has taken up Jewellery

in a big way in modern times. Previously only goldsmiths who

operated even in villages were fabricating handcrafted gold and

silver Jewellery but of late modern manufacturing machines have

been installed for mass production of trendy, sophisticated

jewellery. Fashion designing, even its computerized Version is

spreading and so are scientific training facilities at important

centers. Yet another plus point is that for studded Jewellery, locally

cut and polished diamonds as well as coloured gemstones are

readily available in India. Lately introduced Hallmarking has also

been helpful. Thus, India has taken a head start in the international

Jewellery market.

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HISTORY OF TRADITIONAL JEWELLERY

INDUSTRY IN MEERUT

From time immemorial women have been embellishing

themselves with Jewellery. In the ancient times Jewellery was

deemed as a status symbol. High profile people like the kings

and rulers used to adorn themselves with precious Jewellery. The

status accorded to Jewellery in the ancient times has remained

totally unchanged even in the modern time. Jewellery is

considered as a must-wear for women on special occasions like

festivals and wedding. Jewellery can be ethnic as well as

fashionable. Indian Jewellery is famous all over the world. The

gem and Jewellery industry in India has seen an unprecedented

growth during the last couples of years.

Meerut Jewellery market has an important place in Indian

Jewellery market. It has its own identity in the world having

customer loyalty and purity. More over designer Jewellery

manufactured in Meerut District is known for its creative and

attractive designing. As far as the origin of Jewellery market in

Meerut is concerned, it started here around 1908. Till than it did

not have it’s identity as a Jewellery market. Before that gold

smith themselves went to the customer’s house and took order

for making the Jewellery as per the specification of him/her.

After making the Jewellery they also made the delivery of it

and collected the money. In most of the cases the Jewellery

work was restricted to make the Jewellery from old design to

new design by melting the old Jewellery. Even in some cases

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gold was provided by the customer and Jewellers were given

only making charges. It means no stock of readymade Jewellery

was maintained by the jewellers.

At that time Heera Bullian Bank Limited started

readymade jewellery making besides its traditional business of

money landing. After that this work of Jewellery making got

converted into a kind of business. During this period a jeweller

Jodha Mal Kailash Chand Jain and after that Raghunandan

Prasad also opened small Jewellery shops where readymade

Jewellery was also available for sale. This was the turning point

of Meerut Jewellery market. After them Manohar Lal and

Radhey Lal started their business and they also contributed a lot

for the development of Meerut Jewellery Market. After that a

number of jewellers came and started manufacturing and selling

gold and silver Jewellery. Now Meerut is Asia’a largest

Jewellery market. At present Meerut consists the following four

main Jewellery markets:

1. Abu Lane Jewellery Market

2. Bhagat Plaza Jewellery Market

3. Sadar Bazar Jewellery Market.

4. Valley bazar Jewellery market

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MAIN JEWELLERS OF MEERUT DISTRICT These are the names of few very famous jewellers of

Meerut Jewellery Market.

1. Heera Bullian Bank Limited (1913)

2. Jodhamal Kailash Chand Jain (1914)

3. Raghunandan Prasad Sarraf (1918)

4. Manohar Lal Sarraf & Sons (1918)

5. Jaina Jewellers (1928)

6. Allankar Jewellers (1963)

7. Akash Ganga Jewellers (2000)

8. Raghunandan Jewellers Pvt. Ltd. (2002)

THE RENOWNED FIRMS OF JEWELLERY MARKET IN MEERUT DISTRICT

At present the following jewellery firms are playing their

leading role in the market:

1. RAGHUNANDAN PRASAD SHARRAF PVT. LTD.

The early mover in gold industry was Mr. Raghunandan

Prasad who took initiative to start the business of silver

Jewellery and later started the business of gold and diamond. At

that time the gold produced was of Brownish colour. Now his

business is directed by Mr. Ravi Prakash Agarwal, he said

“Gold Jewellery is the traditional favorite appealing baling

enthusiasts of all ages. The sleek and light weight golden

ornaments varying from pendants, ear rings, rings and bangles

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are popular for daily wear. Gold Jewellery sets comprising of ear

rings, neckpieces and bracelets with heavy inlays are meant for

festive occasions like wedding.The Jewellery range is enthralling

as well as over whelming comprising antique, traditional and

modern designs”.

2. MANOHAR LAL SHARRAF AND SONS PVT. LTD.

In 1918 Mr. Manoharlal Sharraf (nephew of Raghunandan

Prasad Sharraf) joined the colourful venture of the gold business

and took this business to the new heights of this shining industry.

At present Mr. Sudhir Singhal is the director of this group. He

said that with the current craze for designer Jewellery the whole

sale collection is replaced with designer ornaments. Colorful

semi-precious stones are engraved on various kinds of metals to

create elaborate and make simple designs. The eclectic 'kundan

Jewelleries' available in the form bracelets, earrings and sets

embodying traditional 'kundan' work from Rajasthan is also

available in bulk forms. The cornucopia of colors, the intricate

craftsmanship and the ornate inlays appeal even the most

discerning retailer. Enamel Jewelleries like 'Meenakaris' and

'Polkis' are also back from the Mughal and Rajput courts to

modern Jewellery showrooms. Immaculate, luxurious and

versatile the various pearl Jewellery sets are simply irresistible.

There are milky white pearl Jewellery sets crafted into simple

and sophisticated designs. The precious collections include pearl

Jewellery with beads, crystals and semi-precious stones uniquely

crafted into medley of designs.

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3. JAINA JEWELLERS PVT. LTD.

In the year 1928 Mr. Jyanti Prasad Jain started this

business of gold ornaments. After starting it with a single

showroom currently he is having many branches in Meerut.

According to Mr Ankur Jain who is the director of the business,

for us price of success is totally based on customer satisfaction

by providing them top best quality with accuracy.

4. ALANKAR JEWELLERS PVT. LTD.

After post independence in about 1960’s Jewellery industry

reached the new dimensions along with designed gems and

Diamond Jewellery. In 1963-64 Alankar Jewellers Pvt. Ltd. set

up its business of Jewellery. Now it has become the pioneer in

Ancient and Modern designer Jewellery.

At present Mr. Piyush Prakash the Director of the business

said that “Various costume Jewellery sets also find place in the

wholesale collection of Indian Jewellery. Crafted from lacquer,

jute, coconut-wood and ceramics these dainty marvels of panoply

of colors, designs and shapes are ruling the roost. The fashion

conscious men and women of today simply grab the finesses

from the retailers to pair up with their favorite outfits. The tribal

jewellery comprising of exotic hairpins, dangling earrings and

neckpieces impress with their ethnic and rustic flavors. The

'Terracotta Sets' in variety of earthen shades and Mattel finishes

are unique collections in tune with the latest styles and trends.

The Jewellery products from India Handicraft Store, has gained

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accolades from retailers worldwide for their unparalleled grace,

top rated quality, authenticity and reasonable price rates.

5. AKASH GANGA JEWELLERS PVT. LTD.

Akash Ganga Group is a completely home-grown fashion

brand that has been into business for over two decades and has

boutiques in Meerut with a niche and up market clientele. The

business was expended and a new unit of jewellery business Akash

Ganga Gems and Jewellery Pvt. Ltd. was formed. Akash Ganga Gems

and Jewellery Pvt. Ltd. started its business in the year 2000. At

present it offers wide range of diamond and coloured stone studded

jewellery especially designed by a team of in house designers. This is

the shop which deals in hallmarked jewellery only. Except diamond

jewellery other jewellery is of 22 carat gold. It follows the dynamic

business model of sourcing the diamonds directly from diamond

cutting units and converting them into exquisite pieces thereby giving

the jewellery a unique price advantage. It consists of a team of

dedicated professionals striving hard to deliver complete value for

money. The team is composed of Graduate Gemologists and

professionals having a rich industry experience who assure to provide

with utmost satisfaction with exclusive collection at the best prices

and unmatched quality.

SPECIALTY OF JEWELLERY MANUFACTURING IN MEERUT DISTRICT

Jewellery manufacturing in Meerut has its own identity

for its purity and design, due to this reason it is popular all over

the world. Gold and Diamond Jewellery manufactured in

Meerut is preferred all over the world. One more specialty of

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Jewellery manufactured in Meerut is its light weight with heavy

look. In Meerut a gold set weight starts from 20 gms. Beside it,

die and gold ball manufacturing is popular all over the world.

The specialty of plain gold made Jewellery is the main charm of

Meerut Jewellery Market. Besides it, other types of Jewellery

are also being manufactured and sold here. Now Meerut

Jewellery market is also famous for its Jewellery designs.

TRADITIONAL FORMS OF JEWELLERY

At first, Jewellery forms were limited. Priests wore

breast-plates which had religious or spiritual significance, and it

took some time before the upper classes began wearing

different forms of Jewellery for more decorative purposes.

Gradually, craftsman began making special pieces that were

meant to be worn on various parts of the body. The religious

breastplates remained in trend, but items were manufactured for

the neck and torso as well as other parts of the body.

Earlier neck and torso pieces included necklaces,

brooches stomachers, and belts. There were also special

ornaments made for the head. These included headdresses,

crowns, diadems, and tiaras. Even Hairpins and combs had

jewels embedded in them. Earrings, nose and lip rings along

with earplugs began to make their appearance on the Jewellery

market. Decorated rings were also worn on the hands and toes,

and specially designed armlets were worn on the arm, while

bracelets graced the wearer's wrist. There were also thigh and

ankle bracelets sported by Jewellery connoisseurs in those

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earlier times. Jeweled shoe buckles made a debut a little later in

the historical time line. These earlier traditions still thrive

today.

BRANDED JEWELLERY IN INDIA

The concept of branded Jewellery is not very old. It took

its shape hardly 10 to 15 years back. In the late 1990s, the Indian

Jewellery market witnessed a shift in consumer perceptions of

Jewellery. Instead of being regarded as only an investment

option, Jewellery was being prized for its aesthetic appeal. In

other words, the focus seemed to have shifted from content to

design. Trendy, affordable and lightweight Jewellery soon gained

familiarity. Branded Jewellery also gained acceptance forcing

traditional jewellers to go in for branding. Due to the

opportunities given by the branded jewellery market, the number

of gold retailers in the country increased sharply.

Branded players such as Tanishq, Oyzterbay, Gili and

Carbon opened their outlets in various parts of the country.

Traditional jewellers also began to bring out lightweight

jewellery, and some of them even launched their in-house

brands. However, the share of branded Jewellery in the total

jewellery market is still small though it is growing at a pace of 20

to 30 percent annually.

The branded Jewellery segment occupies only a small

share of the total Jewellery market because of the mindset of the

average Indian buyer who still regard Jewellery as an investment.

Moreover, consumers trusted only their family jewellers while

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buying Jewellery. Consequently, the branded jewellery players

tried to change the mindset of the people and woo customers

with attractive designs at affordable prices.

Titan sold gold Jewellery under the brand name Tanishq,

while Gitanjali Jewels, a Mumbai-based Jewellery exporter, sold

18-carat gold Jewellery under the brand name Gili.

Gitanjali Jewels also started selling 24-carat gold Jewellery

in association with a Thai company, Pranda. Su-Raj (India) Ltd.

launched its collection of diamond and 22 -carat gold Jewellery

in 1997. The Mumbai-based group, Beautiful, which marketed

the Tiffany range of products in India, launched its own range of

studded 18-carat Jewellery.

Following are some famous brands of Branded Jewellery:

D’DAMAS DIAMONDS

D’damas India Jewellery is a joint venture between Gitanjali

Group and Dubai-based Damas in Mumbai. It was started in

2003. The main area of business is manufacturing and marketing

gold, diamond, silver, platinum branded jewellery in India. On

the present day D’damas Diamond offer highly modernized

diamond cutting and polishing facilities in 159 cities in India. It

claims to promote a range of emotions through their collections.

NIRVANA DIAMONDS

Fine Jewellery (I) Ltd. launched Nirvana Diamonds in

1987 in India. Nirvana diamonds are targeting at fashion

conscious, modern and independent thinking Women.

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Internationally acclaimed Nirvana diamonds are manufactured

by using state-of-art technology. As a proof of their quality

Nirvana was among one of the brands to offer lifetime warranty

to its consumers.

GILI

In 1994, Gili Jewellery was established as a distinct brand

by Gitanjali Jewels, soon after the abolition of the Gold Control

Act by the Indian government. Gili offered a wide range of 18-

carat plain gold and diamond-studded Jewellery, designed for the

contemporary Indian women. The designs combined both the

Indian and western styles and motifs.

In 2004 it launched its first standalone store Gili World.

Gili products are now available in over 500 outlets across 30

major cities in India. Gitanjali’s focus is to position Gili as a

jewellery and life style brand across the world. In 2008 Gili

reworked it promotional strategy by bringing Bollywood

Celebrity Bipasha Basu on board as Brand Ambassador. Gili’s

primary Brand value is to bring genuine diamond and gold

jewellery to mass customers at affordable price. It has, over the

years, also earned a reputation for ethics and value. It is now a

name synonymous with youth, love, feelings and emotions.

NAKSHATRA DIAMONDS

The world renowned Nakshatra Diamonds were launched

in 2000, with an equally dazzling Aishwarya Rai as its brand

ambassador. In the present scenario Nakshatra diamonds occupy

a leading position in the fashion diamond jewellery segment. The

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traditional diamond is the most wanted design among Nakshatra

diamonds. Nakshatra diamonds claim to shine glamour and love

life. They have aptly put their slogan as “Brightest Circles of

Light.” Elegant and graceful Nakshatra diamonds are the epitome

of passion, attitude and independence.

ASMI

Asmi, one of the leading diamond brands of the country,

was launched in 2002 by the Diamond Trading Company Ltd.

which was subsequently taken over by the Gitanjali Group. Asmi

caters to the women of substance and satisfies their mind for

rewards and recognition, evolving to suite their style and

personality. The brand has been endorsed by various celebrities

such as Kajol, Mandira Bedi & Perizad. All these celebrities

epitomize the different strengths. Asmi has more than 500 retail

outlets in India. Asmi Jewellery is priced very reasonably to

make it affordable for prospective customers who fall in middle

and upper middle class of the society.

TANISHQ

In 1984, Questar Investments Limited (a Tata Group

Company) and the Tamil Nadu Industrial Development

Corporation Limited jointly promoted Titan Watches Limited

(Titan).

Initially involved in the watches and clocks business, Titan

later ventured into the Jewellery business. In 1995, Titan

changed its name from 'Titan Watches Ltd.' to 'Titan Industries

Ltd.' in order to change its image from that of a watch

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manufacturer to that of a fashion accessories manufacturer. In the

same year, it also started its Jewellery division under the Tanishq

brand.

Among the branded Jewellery players in the Indian market,

Tanishq is considered to be a trendsetter. When it was launched

in 1995, Tanishq began with 18-carat Jewellery. Realizing that

such Jewellery did not sell well in the domestic market, the 18-

carat Jewellery range was expanded to include 22 and 24-carat

ornaments as well. When Tanishq was launched, it sold most of

its products through multi brand stores.

In 1998, Tanishq decided to set up its own chain of retail

showrooms to create a distinctive brand image. At present (May

2011), Tanishq retailed its Jewellery through over 119 exclusive

Showrooms across 78 cities in the country. Now Tanishq offers a

range of 'wearable' products with prices starting at Rs. 2000 to

Rs. 40 lakhs. The jewellery business grew 43% and contributed

76% to the top line.

Tanishq has also roped in star couple Amitabh and Jaya

Bachchan for their new advertisement campaign.

CARBON

In early 1991, the Bangalore based Peakok Jewellery Pvt.

Ltd. was incorporated. Peakok realized that the Indian

consumer's relationship with gold Jewellery would grow beyond

an investment need towards a lifestyle and personality statement.

In 1996, the Peakok launched a new brand of 18-carat gold-based

Jewellery called Carbon. The mission of Carbon is to create and

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elegant and provocative range of jewellery exclusively designed

to achieve a look that expresses one’s individuality.

OYZTERBAY

Oyzterbay was founded by Vasant Nangia and his team in

July 2000. It began operations in March 2001. By November

2002, the company had 41 outlets across the country. Oyzterbay

seeks to build a national brand in the jewellery industry in India

and aspires to be the largest branded Jewellery Company in the

country with a chain of 100 stores and distribution points by

2004. The Oyzterbay product designs are available in 24, 22 and

18 carat gold.

TRENDSMITH

Mumbai-based Tribhovandas Bhimji Zaveri (TBZ), which

had been in the jewellery business since 1864, saw tremendous

scope in the branded segment and opened its new concept store

'Trendsmith' in Mumbai in December 2001. Encouraged by the

response towards its first store, the Zaveris planned to take

Trendsmith (India) Pvt. Ltd. all over the nation by opening as

many as 50 stores by 2006. Trendsmith offered eight lines of

exclusive designer Jewellery from well-known export Jewellery

manufacturers and designers from Mumbai and Delhi.

ADORA DIAMONDS

Adora Diamonds were launched in India in July 2003 by

Mumbai based Concept Jewellery (India) Ltd. On the present day

the still expanding retail network centers of Adora expands to

117 outlets in 47 cities of India. Adora means glory in Spanish

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and claims that its diamond jewellery collection is themed in

love. Adora diamonds are for adornment of every moment,

occasion, and phase of life through its up and downs. The

Swaranjali signature collection of living legend Lata Mangeshkar

is a unique feature of Adora Diamonds. Each piece of Swaranjali

collection is conceptualized and approved by Lata Mangeshkar

and bears her laser printed signature.

KIAH DIAMONDS

World’s largest volume manufacturer of diamonds Sheetal

Manufacturing Company (SMC) launched its exquisite Kiah

Diamond collection in October, 2004. Kiah diamonds are claims

to be for celebrating womanhood. The brand name ‘Kiah’ means

beautiful place. Kiah diamonds have won Best Showroom in the

DTC Diamond Season for 2005-06. Kiah collections are

designed to be light weight, stylish and striking. Diamond

designs are set in 18 carat gold. Kiah has 8 showrooms across the

country.

GOLD JEWELLERY IN THE PRESENT SCENARIO

Till the early 1990s, the average Indian bought jewellery

for investment rather than for adornment. Jewellery made of 18-

carat gold was not favored as it was considered a poor

investment. Confidence shown by the consumer in the local

jeweller was the only hallmark justifying the purity of the gold

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Jewellery in jewellery trade in India. A jeweller or goldsmith in a

local area had a fixed and loyal clientele.

The buyer had implicit faith in his jeweller. Additionally,

the local jeweller catered to the local taste for traditional

Jewellery. However, since the late1990s, there was a shift in

consumer tastes. Women were increasingly opting for

fashionable and lightweight Jewellery instead of traditional

chunky Jewellery.

There was a rise in demand for light weight Jewellery,

especially from consumers in the 16 to 25 age-group, who

regarded Jewellery as an accessory and not an investment. The

new millennium witnessed a definite change in consumer

preferences. According to Samrat Zaveri, CEO of Trendsmith,

"The Indian Jewellery sector is in the transition phase with

consumers' desire for possession of Jewellery for its aesthetic

appeal and not as a form of investment."

In October 2002, Trendsmith conducted a survey to

understand the shifting needs, motivations and aspirations of

consumers in the Jewellery market and to identify new trends

and opportunities. The Survey Report arrived at the following

conclusions:

The Indian market was witnessing an accelerated shift

from viewing Jewellery as an investment to regard it as

aesthetically appealing ornaments. The focus had shifted

from content to design.

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The younger generation was looking at trendy,

contemporary Jewellery and clearly avoiding heavy,

traditional gold Jewellery.

The consumer wanted a wider selection at a single

convenient location and expected an international

shopping experience.

The Indian consumer was willing to experiment with new

designs.

In the late 1990s and early 2000s, with the increase in the

number of designers from design schools such as the National

Institute of Fashion Technology (NIFT), a wide range of new

designs became available. In addition, the growing number of

manufacturers needed a retailing platform with global and

national reach. All these led to the proliferation of branded

Jewellery players.

Indian consumers generally make Jewellery purchases

from family jewellers. However, with the entry of branded

players in the market, the consumers, especially the younger lot,

are graduating to buy branded Jewellery. This trend is affecting

the neighborhood jeweller who is not a franchisee for the big

brands such as Tanishq, Gili and others.

Another significant trend in Jewellery retailing is

penetration in the rural areas. Tanishq has started focusing on the

lower end of the market through its brand, Gold Plus. This

targets customers who buy gold as an investment product rather

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than for immediate use. The industry is expecting increased

activity in the rural sector, with jewellers opening shops in the

smaller markets. Mainly the branded Jewellery is becoming

popular in cities while the rural population buys Jewellery for

sentimental values and occasional purposes only.

GOLD JEWELLERY MARKET IN INDIA

India is the home of around 4,50,000 goldsmiths, 1,00,000

gold jewellers along with 6,000 diamond processing players and

8,000 diamond jewellers. The Indian jewellery market has a

market size of $ 25 billion. It is second only to US market of $

40 billion and is followed by China at $ 11 billion. The gold

jewellery market is growing at 15% per annum and diamond

jewellery market at 27% per annum. The value chain of the

industry starts from sourcing and mining of the metals and

extends to jewellery retail. While India is not a major miner of

precious metals and stones, the country’s inexpensive and well

skilled workforce makes it a world leader in processing of

diamonds. The country’s jewellery retail sector is also expected

to evolve with a shift among consumers towards branded

jewellery, driven by greater quality consciousness.

India was one of the countries to start making fine

jewellery from different types of metals and even today, most of

the jewellery made in India is handmade. The country at present

has a small but growing organized sector. Organised players such

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as Tata with its Tanishq brand, have, however, been growing

steadily to carve a large market share. India was the first country

to introduce diamonds to the world, the first to mine, cut and

polish them as well as trade them. The cutting and polishing of

diamonds and other precious stones are one of the oldest

traditions in India and the country has earned a considerable

reputation both in the domestic and international markets for its

skills and creativity. In the global diamond market today, Indian

diamonds account for 55 per cent share in value terms, 80 per

cent share in carat (weight) terms and 90 per cent share of the

world market by number of pieces. Today there is a ready

availability of an entire range of diamonds in every size, quality

and cut. India offers the twin advantages of skilled labour and

low cost in the area of gemstone processing. India's significance

in the global gems and jewellery industry can largely be

attributed to its strength in diamond processing. The export

industry mainly comprises of small-to-large units based in

various special economic zones (SEZs) and export processing

zones (EPZs).

Before the liberalization of the Indian economy in 1991,

only the Minerals and Metals Trading Corporation of India

(MMTC) and the State Bank of India (SBI) were allowed to

import gold. The abolition of the Gold Control Act in 1992,

allowed large export houses to import gold freely. Exporters in

export processing zones were allowed to sell 10 percent of their

produce in the domestic market.

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In 1993, gold and diamond mining were opened up for

private investors and foreign investors were allowed to own half

the equity in mining ventures. In the same year, overseas banks

and bullion suppliers were also allowed to import gold in India.

These measures led to the entry of foreign players like DeBeers,

Tiffany and Cartiers into the Indian market. During this period

the number of retail Jewellery outlets in India increased greatly

due to the abolition of the Gold Control Act.

In 2001 India had the highest demand for gold in the

world. 855 tons gold was consumed in this year, 95% of which

was used for Jewellery but in 2009 India faced its weakest year.

Record high prices and weak monsoon dropped imports of gold

by 33% to 480 tones in 2009 from 712.6 tones in 2008.The bulk

of the Jewellery purchased in India was designed in the

traditional Indian style. Jewellery was fabricated mainly in 18,

20, 22 and 23-carat gold. To regulate India’s jewellery industry

some organizations have been established. The Gem and

Jewellery Trade Council of India (GJTCI) was established in

2000 to boost up the Gem and Jewellery Trade of India at the

International Market. Gem and Jewellery Export Promotion

Council (GJEPC) was set up in 1966 for promoting precious

stones and jewellery exports. The Bureau of Indian Standards

(BIS) is working as a National Standards Body of India which is

responsible for Hallmarking of Gold jewellery and certification

of its purity.

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IMPORTANCE OF JEWELLERY INDUSTRY IN INDIA

India has several advantages to emerge as a gems and

Jewellery hub. It has the largest and the best artisan force for

designing and crafting the Jewellery in the world. There is

considerable scope of value addition in terms of capacity

building at the domestic front, quality management and

professionalisation. Realizing enormous potential of the sector,

the Ministry of Commerce, Government of the India declared

gems and Jewellery a thrust sector for export promotion.

India possesses the world’s most competitive gems and

jewellery market due to its low cost of production and

availability of skilled labour. As per a report “Indian Gems and

Jewellery Market - Future Prospects to 2011”, highly skilled and

low cost manpower, along with strong government support in the

form of incentives and establishment of SEZs, has been the

major driver for the Indian gems and jewellery market. The

market also plays a vital role in the Indian economy as it is a

leading foreign exchange earner and accounts for more than 12%

of India’s total exports. Currently the Indian market remains

highly fragmented, but is rapidly transforming into an organized

sector.

The industry was facing a slowdown due to global

economic turmoil. But due to various government efforts and

incentives coupled with private sector initiatives, the Indian gems

and jewellery sector showed a growth at a CAGR (Compound

Annual Growth Rate) of around 14% from 2009 to 2010. At

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present, the Indian gems and jewellery market is dominated by

the unorganized sector; however, the trend is set to change in

near future with the branded jewellery market growing at an

expected CAGR of more than 41% in the coming four years. As

per the report, with its consumption pegged at nearly 20%, India

remains world’s largest gold consumer and this share is expected

to grow further.

In last few years, the purchasing power of the Indian

middle class – plus surging income levels across the country has

enjoyed massive growth. This has resulted in consumption of

gems and Jewellery rising by about 12% in the last five years.

The growth of India’s gems & Jewellery sector is stated below-

1. The Jewellery industry in India contributes 16.67% of the

country's total merchandise exports and provides

employment to 1.3 million people directly and indirectly.

2. Gold Jewellery forms around 80% of the Indian Jewellery

market, with the balance comprising fabricated studded

Jewellery (including diamonds) as well as gemstone studded

Jewellery.

3. India consumes nearly 800 tones of Gold Bullion,

accounting for about 20% of world gold consumption.

Nearly 600 tones of it go into making jewellery. The Indian

Jewellery market, estimated to be worth $24.5 billion in

fiscal 2009-10, accounts for 8.3% of world Jewellery sales

by value according to a study by Klynveld Peat Marwick

Goerdeler (KPMG).

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4. India is the world’s largest and most technologically

advanced diamond processing center (cutting and polishing)

with an estimated 1 million processors handling over 57% of

the world’s rough diamonds by value. According to industry

estimates, 11 out of 12 stones (diamonds) set in Jewellery

are cut and polished in India. Processing is done on rough

diamonds in the full range of sizes and qualities, including

stones larger than 10 carats.

5. In terms of carat, India's share in the diamond sector is about

80% of the world market. Employing over 90% of the global

diamond industry workforce, India also accounts for 90% of

the volume of diamonds processed in the world.

6. Exports from Gem & Jewellery sector over the past years

have witnessed a considerable growth. Exports from this

sector were $ 20.84 billion in the year 2007-08 which rose to

$ 21.12 billion in the year 2008-09 and $ 29.38 billion in the

year 2009-10 while it remained $ 43.14 billion in the year

2010-11. The figures show that growth rates remained

1.32%, 39.15% and 46.81% during the year 2008-09, 2009-

10 and 2010-11 respectively. Hence it is a leading foreign

exchange earning sector of the country.

7. Gold jewellery exports registered an increase of 33.13% in

the financial year 2010-11. The export grew from $ 9.68

billion in 2009-10 to $ 12.89 billion in 2010-11 accounted

for 29.87% of the total export of Gems & Jewellery. Exports

of Gold Jewellery remained $ 5.56 billion in the year 2007-

08 and $ 6.86 billion in the year 2008-09. Thus the growth

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rate was registered 23.29% and 41.15% in the year 2008-09

and 2009-10 respectively.

8. The growth in the sector was primarily driven by cut and

polished diamonds which registered an increase of 54.86%

in the financial year 2010-11. The exports increase is

significantly considerable which grew from $ 18.24 billion

in 2009-10 to $ 28.25 billion in 2010-11. It remained

65.49% of the total exports of Gems & Jewellery sector. The

exports of this segment were recorded $ 14.20 billion in the

year 2007-08 and $ 13.02 billion in the year 2008-09. It

witnessed a growth of 40.07% in the year 2009-10. It shows

that the demand of cut and polished diamonds is

continuously increasing.

9. The major destinations for Indian Jewellery exports have

been the United States, UAE, Hong Kong, Belgium and

Israel. During the financial year 2010-11 UAE was the

largest exporting destination with 47% of exports to the

market, followed by Hong Kong with 22% and USA with

11% of the total export. The increasing levels of disposable

household income have resulted in record consumption

levels in the domestic Indian Jewellery and Gold Markets.

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PURPOSE OF THE STUDY

Jewellery is such an item whose history goes back many

centuries. Jewellery is attracting the society since ancient time. The

time when the concept of Jewellery was not even developed people

used Jewellery in different manners. That time women used the

Jewellery of flowers, shells, animal teeth and stones also. So, on this

basis we can say that Jewellery is as old as human development itself.

If we look into the history we find that there was great attraction in

people for different types of Jewellery as Jewellery was regarded as

the symbol of status and wealth also. As the time is changing, the

concept of Jewellery is also changing and the society is getting

attraction towards the Jewellery of silver, gold, diamond and platinum

in place of stones and animal teeth’s bones.

As it is human nature that the people want to show them

attractive and superior to others, so now a days Jewellery is used not

only in the form of ornaments but also as a collection. The reason

behind this phenomenon is that the value of Jewellery has a tendency

to move upward with the passing of time. As the demand of different

types of Jewellery is increasing, also the Jewellery industry is raising

rapidly. Accordingly, also the processing, costing and marketing

strategies of Jewellery get changes the new prospects by replacing the

traditional patterns. Now the standardized Jewellery is manufactured

and guarantee of purity is given to the buyers for their full satisfaction

instead of keep them in the dark about the quality and purity of the

Jewellery purchased by them.

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In such conditions it seems necessary to conduct a study in this

field so that one may come to know about the types, processing,

costing and marketing strategies of Jewellers.

Keeping in view the above facts the researcher decided to carry

on her research study on the topic, “Cost and Marketing Behaviour

of Jewellers - A Case Study of Meerut District.” it is believed that

this study will attract the attention of the people relating to this

industry and other eminent personalities involved therein.

OBJECTIVES OF THE STUDY

The main objectives of the study are given below:

1. To enlighten the need, scope and importance of the study.

2. To study the importance of Jewellery industry in society.

3. To make the study about the manufacturing process of

different types of Jewellery.

4. To analyze the production costs of different types of

Jewellery.

5. To study about the different channels used for the

marketing of Jewellery.

6. To analyze the strategies used at local, national and

international levels of marketing of Jewellery.

7. To study about the charges incurred at different levels of

marketing of Jewellery.

8. To study about the margins at different levels of marketing

of Jewellery.

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9. To arrive at the logical conclusion and to propose

constructive suggestions for the betterment of Jewellery

industry in India.

LIMITATIONS OF THE STUDY

The proposed study has been conducted under certain

limitations which have been discussed under the following heads:

SCANTY LITERATURE

The researcher had to face difficulties in collecting

literature related to her study. She had to visit various libraries

to consult the literature related to Jewellery industries, but

could get a little on this particular topic and had to concentrate

on primary data only. But the libraries and statistics department

of University Grant Commissions proved very helpful in

providing the information regarding the data on jewellery

Industry.

DIFFICULTY IN COLLECTING THE INFORMATION

Jewellers were found busy all the time and could not

give required time. So the researcher had to prepare a

questionnaire containing related questions. And time to time

other relevant information were collected in between verbally.

Jewellers were not ready to talk about the margins involved at

various levels of marketing.

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LIMITATIONS REGARDING PERSONAL INTERVIEW

During personal interview it was observed that in most

of the cases interviewees remained suspicious about the queries

made from them. Generally they tried to avoid such an

interview and were trying to escape in giving the answers of

any question or in providing any information related to the

present study. But after making continuous efforts, the

researcher got success in getting required information from

them. It could be possible only after giving them assurance

about the non-leakage of any information provided by them

except the use of these for the present research study.

PROBLEMS IN COLLECTING STATISTICS

The researcher faced great difficulty in getting correct

statistics required for the present research study. Generally the

seller of Jewellery remained reluctant to provide any data and

information from their records. But after making continuous

efforts and giving them assurance again that these were being

collected for research purpose only and the researcher is

working for the betterment of Jewellery Industry of their area

and this study will facilitate them to manage and control their

particular industry in a better way, they provided the required

statistics and information but half-heartedly.

TIME LIMITATIONS

As the researcher is a housewife and she scares limited

time for her research study, she had to face the problem of time

limitation. But due to entire cooperation of research team and

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family members, this work could be performed with entire

satisfaction within the minimum prescribed time-limit.

FINANCIAL LIMITATIONS

As the research scholar belongs to a middle class family,

she has limited financial resources. It is but natural that a

research study of this dimension requires a large amount of

money for building research-team, survey work etc. however

all such expenses were managed by the researcher by her

limited means.

Thus, the main limitations of the proposed study are scanty

literature, non-cooperative response of interviewees, difficulties in

collecting data and information from official records, shortage of time

and paucity of funds. Inspite of all these limitations and problems, the

present research work could be done at satisfactory level and no

compromise was made at any level due to existence of above

mentioned problems while conducting the present research study.

* * *