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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