Transcript Indian Jewelry Industry

Indian Jewellry
Industry
GEMS & JEWELLERY INDUSTRY
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 segments
 Gold
• 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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GEMS & JEWELLERY INDUSTRY
• 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,2010
was 29081.11 with a 2.36% growth rate & 16.27% share in the
total export.
• The domestic market was guessed to be approximately
USD16.1 billion in financial year 2009.
• Consumes nearly 800 tonnes of gold that accounts for 20
percent of world gold consumption, of which nearly 600
tonnes go into making jewellery
CONTD…
• India's strength lies in the 2 million highly skilled workforces in
the country in the gem & jewellery sector, out of which 1
million are exclusively engaged in export production.
• The Gem & Jewellery Industry has started showing positive
signs of revival and growth.
DIAMONDS INDUSTRY
DIAMONDS INDUSTRY
• Largest diamond cutting and polishing centre in the world—
with 60 per cent value share, 82 per cent carat share and 95
per cent share of the world market in terms of number of
pieces.
• In the period of 9 months from April to December’09 exports
of rough diamond declined by 37% to 157.09 lakh carats
whereas the exports of cut & polished diamonds mounted by
18% to 407.36 lakh carats
• Nearly 9 out of 10 diamonds sold worldwide are cut and
polished in India.
• Exported cut and polished diamonds worth US$ 14.18 billion
in 2007-08.
Contd…
• Manufactures diamonds of all cuts, shapes
and sizes of all varieties like round, princess,
baguettes and all fancy cuts.
• Has democratized Diamonds by mastering the
art of cutting near gem quality diamond.
SWOT Analysis…
Strengths
• Large 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.
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.
Opportunities
• 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.
Threats
• 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.
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 jewellery in 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 diamonds after USA and
Japan
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Cont.The sector may be further categorized into the following sub-sectors based
on characteristics, processing techniques, preciousness in terms of price
range and marketability.
1. Gemstones
❑Diamonds
❑Colored Stones-precious, semi-precious, synthetic
2. Jewellery
❑Plain gold Jewellery
❑Studded Jewellery
❑Silver Jewellery
❑Costume Jewellery
3. Pearls
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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 season Wearability and gifts
Jewellery sold on commodity basis Jewellery being sold on a per piece
with labour charges
basis
Conti…
Major Players:
 Vaibhav Gems Ltd.
 Classic Diamond (India) Ltd.
 Shrenuj & Company Ltd.
 Goldiam international Ltd.
 Su-raj Diamonds & Jewellery Ltd.
 Rajesh Exports Pvt. Ltd
 Gitanjali Gems Ltd
GITANJALI GEMS LTD.
Business Overview
Established presence
The company is one of India’s largest integrated diamond and jewellery
companies Established in 1986. Sight holder status with DTC through a
promoter group company
Sophisticated and scalable diamond and jewellery manufacturing
facilities
Approximately 1,246 retail outlets in India and 143 outlets in the U.S.
Leading brands
MAJOR
PRODUCTION CENTRES IN INDIA
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Source: official website of Gujarat ,as on 17/12/08.
www.vibrantgujarat.com/detailed-sector-profiles/gems-jewellery.pdf
& KPMG ANALYSIS
Trends in exports
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EXPORTS
• Total export of gems & jewellery in the year April-March,2010
was 29081.11 with a 2.36% growth rate & 16.27% share in the
total export.
• Exports posted a modest growth of 1.45 per cent during 200809 at US$ 21.1 billion, primarily driven by gold jewellery
exports, including medallions and ornaments.
• The country exported US$ 20.8 billion of gem and jewellery in
2007-08.
• The United Arab Emirates (UAE) was the largest importer of
gems and jewellery from India in 2008-09, with a share of 31
per cent followed by Hong-Kong(25%) and U.S.A(20%).
CONTD…
• 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
EXPORTS DATA
ITEMS
2005
2006
2007
2008
2009(APR-OCT)
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 CRORES
MAJOR EXPORTERS IN INDIA
TO CHINA
• ROSY BLUE
• TANYA GEMS
• VENUS JEWELS
TO U.S.A
TO ITALY
• DVL JEWELS
PVT. LTD.
• ELEGANT
COLLECTION
• DIATRENDS
JEWELLERY PVT.
LTD.
• DWARKA
• GEMS JEWELS
IN INDIA
• TAKAT GEMS IN
INDIA
• FINE JEWELLERY
Major Exporters in India
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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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IMPORT DATA
ITEMS
2005
2006
2007
ROUGH DIAMONDS
40039.14
38401.09 40170.65 40877.24 21898.13
GOLD BAR
7034.52
7905.74
9734.41
CUT & POLISHED
DIAMONDS
16010.27
8832.61
17396.61 31209.45 27056.46
RS. IN CRORES
2008
2009(APR-OCT)
10820.32 13062.77
Major Importers
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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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Major Competitors in the global
market
What’s New………..
News
• KOLKATA, MARCH 17:
• The All-India Gems and Jewellery Trade Federation (GJF) has gone
on a three-day strike starting Saturday to protest against the Budget
proposals announced on Friday.
• Close to three lakh jewellers under the trade federation have joined
the strike, shutting all jewellery establishments during March 17-19.
• The Union Finance Minister, Mr Pranab Mukherjee, has proposed to
bring unbranded precious jewellery under the excise duty net and
raise customs duty on gold bars and coins.
• There is also a proposal to increase import duty on gold from two
per cent to four per cent.
• This apart, the Government has also proposed to levy one per cent
tax for cash purchase of jewellery worth more than Rs 2 lakh.