PROJECT REPORT“Dynamics of Jewellery Market”

IN PARTAIL FULFILLMENT OF THE REQUIREMNETS FOR DEGREE OF MASTER’S IN MARKETING MANAGEMENT (MMM)

SUBMITTED TOPROF. Narendran

SUBMITTED BYAshwin G Bhanushali

ROLL NO.04

LALA LAJPATRAI INSTITUTE OF MANAGEMENT UNIVERSITY OF MUMBAI

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I hereby declare that this project report submitted in partial fulfillment of the requirement for the award of Master of

Marketing Management (MMM) of the University of Mumbai is my original work and not submitted for award of any other

degree or diploma fellowship or other similar title or prizes.

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journals or magazines and newspaper etc. without my permission.

Name: Ashwin G Bhanushali

Class: MMM III

Batch: 2008-2011

Roll No: 04

Date: Oct 2010

Place: Mumbai

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I, Svamil Nisar, the undersigned Roll No. 04 studying in the Third Year of MMM is doing my project work under the

guidance of Prof. Narendran, wish to state that I have met my internal guide on the following dates mentioned below for

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01 15th September; 201002 26th September; 201003 7th October; 201004 17th October; 201005 26th October, 2010

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Project on

“Dynamics of Jewellery Market”

This is to certify that the dissertation submitted in partial fulfillment of the requirement for the award of Masters of

Marketing Management of the University of Mumbai is a result of the bonafide work carried out by Mr. Ashwin G

Bhanushali under my supervision and guidance. No part of this report has been submitted for award of any other

degree, diploma fellowship or other similar titles or prizes. The work has also not been published in any scientific

journals/ magazines.

Date: Oct 2010 Name: Ashwin G Bhanushali

Place: Mumbai Roll No: 04

------------------------------ ----------------------

(Director, LLIM) (Project Guide)

]

ACKNOWLEDGEMENTS

The project undertaken by me was one of the best and the most learning experiences of my life. This would not have

been so without the help and guidance of some people, whom I would like to heartily thank.

I owe a deep sense of gratitude to Prof. Narendran for guiding me throughout the project and giving me invaluable

advice regarding every aspect of the project. His knowledge and experience has provided much learning in the process.

I also express my profound gratitude to Lala Lajpat Rai Institute of Management for giving me the opportunity to work

on the project and broaden my knowledge and experience.

Above all, last but not the least I thank my parents, my family members and my friends who guided me in times of

difficulty and helped me complete this project.

Ashwin G Bhanushali MMM - 04

Place: Mumbai Date:

Synopsis:

Executive SummaryIntroduction Segmentation of Gems and Jewellery (G&J) market Gemstones–Overview Precious metals and jewellery–Overview Value Cities in India well known for gems and jewellery Market Overview Distribution Market size and growth, segmentation of jewellery market Export–Overview,Sizeandgrowth,SegmentationImport–Overview, Size and growth SegmentationDrivers & ChallengesSummary DriversChallengesTrendsKey TrendsCompetitive scenario and market structure & Major PlayersKey Developments

EXECUTIVE SUMMARY

Diamonds, gems and Jewellery have been a part of the Indian civilization since it’s

recorded history, the significance of the gems and Jewellery industry in the Indian

economic scenario is a development of the last three or four decades. In 1966-67, the

export turnover of the Gems & Jewellery industry was just Rs 220 m representing a 3

percent of total merchandise exports. However, it has now grown to become one of the

leading export oriented industries in India recording an export turnover of around

Rs 91617.53 Crore during 2008-09, making it a significant foreign exchange earner for the country.

The gems and jewellery sector, which has seen a substantial fall in exports since 2007

due to the withdrawal of a 6 per cent duty concession under the Generalized System of

Preferences on jewellery exports to the US, has been severely affected by the economic

meltdown. As a result, India’s share of gems and jewellery exports to the US has come

down from 36 per cent in 2006 to 20 per cent in 2009.

The UAE was the largest importer of gems and jewellery from India in 2008-09, with a

share of 31 per cent. This was followed by Hong Kong with a 25 per cent and the US

with 20 per cent. The gems and jewellery sector accounted for 13 per cent of India’s total

merchandise exports. During April 2009, the total gems and jewellery exports of the

country was $1,144 million, as against $1,740 million during the same period last fiscal, fall of about 34 per cent.

INTRODUCTION

Gems and jewellery form an integral part of Indian tradition. A legacy passed from one generation toanother. The components of jewellery include not only traditional gold but also diamond, platinum accompanied by a variety of precious and semi-precious stones.

The Indian gems and jewellery market is set to cross US$ 26 billion by 2012, on the back of improving lifestyle and availability of skilled labour, as per a report ‘Indian Gems and Jewellery Market – Future Prospects to 2011’, by RNCOS.

India, the largest consumer and importer of gold in the world, is projected to import around 500-550 tonnes of gold in 2010, as per AnjaniSinha, head of the Indian Bullion Market Association (IBMA).

As per the credit rating agency Crisil, the diamond industry in India is predicted to remain stable during 2010-11 due to improved prices and steady demand.

The Gem and Jewellery Export Promotion Council (GJEPC) predicts that the gems and jewellery exports would witness a rise of around 5 per cent year-on-year during FY11.

Gems & Jewellery Sector Diamonds, gems and Jewellery have been a part of the Indian civilization since its recorded history, the significance of the gems and Jewellery industry in the Indian economic scenario is a development of the last three or four decades. In 1966-67, the export turnover of the Gems & Jewellery industry was just Rs 220 m representing a 3 per cent of total merchandise exports. However, it has now grown to become one of the leading export oriented industries in India recording an export turnover of around Rs 875 bn during 2006-07 and contributing 16 per cent of total exports, making it a significant foreign exchange earner for the country.

Classification:

Gems & Jewellery

Polished Diamonds

Precious & Semi-Precious Gem Stones

Pearls

Synthetic Stones/Fashion Jewellery

Gems & Jewellery Sector:

1. Polished Diamonds: India is one of the best markets in the world in the polished diamonds for its world-class quality of diamonds as well as exquisite cutting skills. Over 83 per cent of India's Gems & Jewellery cut and polished diamonds account for exports.

Jaipur and Surat are famous as world class polishing and designing centers.

Polished Diamonds

2. Precious & Semi Precious Gem Stones: This category refers to the stones other than diamonds, these stones comes under two basic categories that are precious stones and Semi precious stones.

There is a huge demand for these gemstones especially of Sapphire, Emerald and Ruby.

India's exports of gems have crossed 5000000 carats this year.

Gems & Jewellery

Gold Jewellery

Platinum Jewellery

Non – Gold Jewellery

Gold & Diamond Studded Jewellery

Gem Stones

3. Pearls.Pearls have been a source of fascination for centuries. They have been considered the most magical and feminine of all gems and are the only one created by a living organism. Pearls emanate a certain warmth and glow not found in other gems, due to their unique beginnings.Due to the rarity and high price of natural pearls, cultured pearls feature predominantly in jewellery stores. Side by side, it is very difficult to tell the difference between a natural pearl and a high quality cultured pearl with the naked eye

4. Synthetic Stones / Fashion Jewellery.Synthetic gemstones have the same properties as natural gems, but they are created in a laboratory. Lab gems are becoming more common and more popular throughout the jewelry industry. It's important to educate yourself about synthetic gemstones so that you understand what you are buying when you purchase jewelry.

1. Gold Jewellery: This category represents the gold Jewellery, which is used in the manufacturing of various ornaments. Indian is the country that is the base of several types of pure gold jewellery.

2. Gold & Diamond Studded Jewellery: This category represents the Diamond Jewellery which has taken a big leap in the Indian Market. Emerging of various Diamond Jewellery Brands in the market proves that Indian market adapts to this segment very well.

Diamond Jewellery

3. Platinum Jewellery.Platinum is grayish white, exhibiting a metallic color somewhat between nickel and silver.   Platinum has an atomic weight of 195.23, which gives it a density almost as great as gold.  This means that it is very heavy for the amount of space it takes up. Its scientific atomic symbol is PT and atomic number is 78.  In its pure form it is harder than gold and

silver.  In jewelry, typically 5% other metals are added to the platinum to make an alloy soft enough to set precious stones securely in the jewelry settings.

  

 

4. Non – Gold Jewellery (Gold Foil Products)

Made From Pure Gold: The gold used in products has a purity of 999.9 in a thousand. The products have been certified by the Assay offices in Taiwan, Hong Kong, London and New York.

Silicon Strength: A pure 24KT gold bar is compressed into a thin foil. Then a special plastic silicon base is permanently fused to the delicate gold foil to give it strength & support. The product of this fusion is referred to as 24KT Gold foil and is used to create our unique collection. Our flower and jewellery collection has also been given a lacer coating for protection & durability.

Blend of Technology and Tradition: A complete 24KT product is made of several individual pieces that are laser cut for precision and consistency. These are then fused by the dexterous hands of a traditional artisan.

Non Tarnishing: The products are created to last. They do not tarnish

  

Cities In India Well Known For Gems & Jewellery.

Gujarat (Surat) – The Hub of Diamond Cutting & Polishing. Maharashtra (Mumbai) – The Centre of Jewellery Market.Rajasthan (Jaipur) – Biggest Market for Colored Stones & Jadau Jewellery.Delhi, Kanpur & Jammu – Large market for Diamond as well as fashion jewellery.Bangalore & Chennai – Major consumers of Plain Gold Jewellery.Kolkata – Famous Minakari Jewellery.

Gems and Jewellery Market in India 2010  

Mankind has been captivated by gems and jewellery from time immemorial. India has given the world the Kohinoor and the Hope diamond, with their associated legends and fables. Today, gems and jewellery are a global industry with mining of gold, diamonds and platinum in Africa, Russia, Canada and Australia, polishing and jewellery manufacturing in Belgium, Netherlands, Israel, India, China and Turkey and retailing all over the world.

The industry contributes over 15 per cent of our total exports and employs 1.3 million people. It is second only to Information Technology (IT) related exports and contributes 3.75 per cent to our Gross Domestic Product (GDP). Gold jewellery represents about 80 per cent of the market and the balance comprises studded diamond and gemstone jewellery. While most of the gold jewellery manufactured in India is consumed in the domestic market, a major portion of rough, uncut diamonds produced in India is processed and exported as polished diamonds and finished diamond jewellery. India is the world’s largest diamond processing (cutting and polishing) centre handling over 57 per cent of the world’s rough diamonds by value.

The key players

The industry is dominated by family jewellers, who constitute nearly 96 per cent of the market. Organized players such as Tata, with its Tanishq brand and Gitanjali have entered the market with branded jewellery which has a four per cent market share. The Department of Revenue under the Ministry of Finance is responsible for the tax administration of this sector. The Central Board of Excise and Customs, through its field formations spread across the country, is the main executive authority for collection of revenue. The Director General of Foreign Trade under the Ministry of Commerce implements various Export promotion schemes.

The Gems and Jewellery Export Promotion Council (GJEPC) is the apex body of the industry set-up in 1966. It is primarily involved in promoting the Indian gems and jewellery products in the international market. It also acts as trade facilitator, a nodal agency for diamond certification and organizes training and research for the industry. Indian Market (Major Players)-Asian Star Co Ltd -Tanishq -Rajesh Exports Limited -Suashish Diamonds Ltd. (SDL) -Su-Raj Diamonds & Jewellery Ltd. -Hindustan Diamond Company -Vaibhav Gems Ltd (VGL) -Shrenuj and Company Ltd. -Oyzterbay -Gili -Intergold -Gitanjali

Major initiatives by the Government to promote the industry

This industry has been identified as a thrust sector in our Foreign Trade Policy (FTP). It falls under chapter 71 of the Customs Tariff Act, 1975 (CTA). The Government set up an Expert Committee on Gems and Jewellery in 2006 to suggest measures for making India a global hub. The committee recommended various measures for providing a

competitive edge to the Indian industry which included removal of import duty on cut and polished diamonds and reduction in the import duty on gold, gold items, machinery used in cutting and polishing industry etc.

In international trade under chapter 71, India’s import for the period 2005-07 was US$ 70.74 billion (equivalent to Rs. 3, 18,348 Crore), which was ten per cent of the world import and the export share of US$ 50.53 billion (Rs. 2, 27,389 Crore) was seven per cent of the world export for the same period. Bulk of exports and imports are affected through a specialized customs clearance centre called the Diamond Plaza Customs Clearance Centre (DPCC), Mumbai. With a view to doubling our percentage share of global exports within five years, the Government, in the Foreign Trade Policy (2004-09), announced (April 2004) special initiatives for the gems and jewellery sector. Import of gold of eight carats and above were allowed under replenishment scheme; duty free import of consumables for semi precious metals other than gold and platinum, commercial samples and re-import of rejected jewellery was allowed; and cutting and polishing of gems and jewellery was treated as manufacturing for the purpose of exemption under section 10A of the Income Tax Act. In the New Annual Supplement to FTP (2004-2009), duty free import of machinery, precious metals and gems was allowed. In the Union Budget for the year 2007-08, import duty on cut and polished diamonds was abolished, import duty on un-worked corals and rough synthetic stones was reduced and all industrial undertakings in the gems and jewellery sector were exempted from obtaining industrial license for manufacture. As a result of these exemptions which were given to bolster exports, the estimated duty foregone by the Government on goods of chapter 71 during 2005-06 to 2007-08 amounted to Rs. 68,192 Crore.

We found that the eleven commissionerates audited by us earned revenue of Rs. 2,023 Crore from gems and jewellery during 2005-06 to 2007-08, while the duty foregone was Rs. 20,864 Crore. The revenue foregone increased by 191 per cent in the year 2007-08 over the year 2005-06, whereas the revenue earnings increased by only eight per cent during the same period. Despite foregoing Revenue collection vis-a-vis revenue foregone0200040006000800010000'2005-06' '2006-07' '2007-08'YearRs. In crore Revenue realized Revenue foregone 4 Report No. 15 of 2009-10 (Indirect Taxes – Customs)

Substantial revenue on imports and extending various benefits to this sector, the exports have not yet been able to catch up with the imports. While the imports grew by 16 per cent, the growth in exports was only 13 per cent during 2005-07. The details are shown in the table below: - Table no 1.1 Growth of exports and imports (Rupees in Crore)

Year Export Growth% (Base year 2005-06)

Import Growth% (Base year 2005-06)

2005-06 70209 -- 91604 -- 2006-07 72784 3.67 102250 11.62 2007-08 79763 13.61 106451 16.21 Total 222756 300305

.

In India, jewellery is revered and valued as a treasure from ages, be it any festival or a marriage, the celebrations are incomplete without gold and silver ornaments. Being the biggest consumers of gold, the industry is set to thrive for a very long time. However, the market is highly dominated by the unorganized players, but with the prospering economy and surging income levels, the organized segment and retailing of branded jewellery is fast catching up in the currently fragmented market which is worth USD 16 bn and shows huge potential for growth in the future.  The report begins with an introduction to the gems and jewellery (G&J) sector existent in India with a brief description of all the sub segments within both the categories The following section explains the value chain in the sector and India’s involvement from raw material procurement to sales. It provides information regarding the prime destinations for G&J in India and their involvement in the value chain. The overview section indicates the total market size and growth, the segmentation of the jewellery market, the export and the import structure of the total industry in India.  An analysis of the drivers explain the factors for growth of the industry including mass appeal and growing income among households, low cost and abundance of skilled labour, growing use of high-end technology, advantages of SEZs, changing consumer perceptions and preferences and growing training institutes. The key challenges identified encompass rising gold prices, competition from unorganized players, dependence on raw material import and emerging threat from other countries. Key trends identified include the growth in organized retail space, aggressive marketing and advertising, large scale shows and exhibitions, domestic players acquiring foreign companies, investments from PE firms and corporate houses entering the market. The major government bodies regulating this sector have been

described and the policies adopted by the government have also been analyzed including industrial policy, FDI policy, Kimberley certification process and hallmarking. The key initiatives of the government identified include tax benefits, import duty relaxations, provisions for exports and other initiatives.  The competition section provides an overview of the competitive landscape in the industry illustrating the share of organized and unorganized players. It also includes a detailed profile of the major players in the market including their financials plans.

Industry Structure:

Although, the market is highly dominated by the unorganized players, with increase in Consumer income and economic prosperity, the future of organized retail in India is very bright. The branded jewellery sector is estimated to reach US$ 2.2 billion by 2010 on the back of quality consciousness among target consumers, as per a McKinsey report.The Gem and Jewellery Export Promotion Council's (GJEPC) performance figures for the financial year 2009-10 showcased the true resilience of the Indian industry over the last year whence it continued with its consistent plans of building trading relations and penetrating newer markets.

In its bid to enhance the market strategy, a gems and jewellery special economic zone (SEZ) sprawling over 40 acres with an investment of US$ 441.1 million is being planned to be set up by Gold Souk, the jewellery mall developer. The company plans to have residential apartments named Gold Souk City, apart from having gems and jewellery manufacturers from Thailand and Dubai who will open their units in India.Total net imports of gems and jewellery in April 2009- June 2010, touched US$ 81.08 billion (provisional figures) as compared to US$ 56.43 billion posed in the corresponding period in the previous year, according to GJEPC.

GoldIndia is one of the largest bullion markets in the world. It has been until now, the undisputed single-largest Gold bullion consumer.Gold imports stood at 739 tonnes during April 2009-March 2010. According to SanjivBatra, Chairman and Managing Director, MMTC Ltd - the country's top gold importer, stated that the company is likely to import 200 tonnes of the precious metal in the current fiscal year.

The net imports of gold bars during April-June 2010 was estimated at US$ 11.36 billion (provisional), as compared to US$ 16.66 billion the first quarter of last fiscal.In the world official gold holdings ratings, India stood at 11th position with 557.7 tonnes of gold reserve as of June 2010, as per the World Gold Council.India is the largest consumer of gold jewellery in the world, accounting for about 20 per cent of global gold consumption.According to a release by the World Gold Council, during the first quarter of 2010 (Jan-Mar) India was ranked as the strongest performing market on the back of increase in consumer demand. The country registered an increase of 698 per cent to 193.5 tonnes.

DiamondIndia is the world's largest diamond cutting and polishing centre in the world.Surat is India's diamond processing hub, contributing over 80 per cent of the country's diamond processing industry with annual revenue of around US$ 13.03 billion.

India is the world's largest diamond cutting and polishing centre in the world. It accounts for 60 per cent value share, 82 per cent by carats and 95 per cent share of the world market by number of pieces. It is the third largest consumer of polished diamonds after the US and Japan.

Trends -Sector Branded Jewellery.

Branded Jewellery:

The concept of branded jewellery is catching on and keeping in view the vast potential of the huge inland jewellery market many manufacturers of gem-set jewellery are releasing their fine products in the domestic market too. De Beers have been assisting through their 'Suppliers of Choice' to put their best foot forward in this fast track undertaking. Besides booming exports, branded jewellery has gained patronage inland also.

Ensuring Quality:

There was a time when buyers were not sure about the gold content of Indian jewellery. Even the World Gold Council advised that steps should be taken to ensure the quality of gold in jewellery, which it felt was essential to boost the sales of Indian jewellery both in the domestic and overseas markets. But times have changed since then.

Use of Karat Meter:

Firstly the introduction of branded modern jewellery made an impact on the huge Rs. 40 thousand Crore Indian jewellery market. Then an ultra-modern jewellery manufacturer brought in an electronic Karat Meter, which uses computerized X-Ray Spectrography to indicate the exact Karat age of gold in jewellery, of course without altering the tested piece physically in any way. And finally comes long-awaited Hall-Marking which guarantees the purity of the gold content in jewellery.

Hall Marking:The Bureau of Indian Standards (B.I.S.) has introduced a scheme of Hall Marking of gold Jewellery with the following objectives:

• To protect consumer against victimization of irregular gold quality. • To develop export competitiveness of gold jewellery industry and thus provide strong impetus for gold jewellery exports. Hall Marking of gold jewellery has been taken up on voluntary basis under BIS Act, 1986. Certification of purity of gold jewellery will be done in accordance with Indian Standard Specification IS:1417-1999 'Grades of gold and gold alloys, jewellery/artefacts - Fineness and marking. BIS will be operating this scheme with its network of Regional/Branch Offices all over the country. Assaying of gold and gold jewellery will be done as per'IS: 1418-1999 'Method for assaying of gold in gold. jewellery' by BIS recognized Assaying and Hall Marking Centres.'

Jewellers desirous of Hall Marking their gold jewellery are required first to become a 'BIS Certified Jeweller'. To get BIS certification, jewellers will need to apply to BIS and ensure homogeneity of batches of jewellery offered for Hall Marking by following a systematic quality management system. The jeweller's quality management system and conforming test reports will form the basis for Certification of jewellers. Only BIS Certified Jewellers' can get their jewellery assayed and Hall Marked by any of the BIS recognized Assaying & Hall Marking Centres.

Gems and Jewellery Market in 2010 - CHALLENGESExecutive Summary Gems and Jewellery (G&J) market in India was valued at USD X bn in 20-- and is expected to grow at P% CAGR Market G&J market includes – Gemstones like diamonds, colored stones and pearls; Precious metals and Jewellery like gold & gold jewellery, silver jewellery and gemstones studded jewellery LE Drivers: Mass appeal and growing income among households, low cost and abundance of skilled P labour, growing use of high-end technology, advantages of SEZs, changing consumer perceptions Drivers and and preferences, growing training institutes M Challenges Challenges: Rising gold prices, competition from unorganized players, dependence on raw Trends SA material import, emerging threat from other countries Growing organized retail space Aggressive marketing and advertising Domestic players acquiring foreign companies Investments from PE firms Large scale shows and exhibitions Corporate houses enter the market ,Government has adopted various policies for the manufacturers in terms of Industrial Policy, FDI Policy, Kimberley Certification Process and Hallmarking Policies and Initiatives of the Government include tax benefits, import duty relaxations, provisions for exports Initiatives and other initiatives The market is largely dominated by the unorganized players making it very fragmented Competition Branded and designer jewellery is showing tremendous growth potential Players are utilizing the high skilled labour available in India and are making considerable improvements in their collections and services GEMS & JEWELLERY MARKET IN INDIA 2010.

•Introduction •Value chain •Market Overview •Drivers & Challenges •Trends •Government Bodies, Policies and Initiatives •Competition •Key Developments GEMS & JEWELLERY MARKET IN INDIA 2010.

Gold and diamond form the two major segments of Indian gems and jewellery (G&J) market • The industry can be classified into various sub segments like diamonds, coloured stones, gold and silver jewellery, pearls, etc. However, the two major segments in India are gold and diamonds • The industry is characterized by highly unorganized trade, labour intensive operations, working capital and raw material intensiveness, price volatility of gold and export orientation Gems & Jewellery PLE Gemstones SAM Precious Metals and Jewellery Gold and Silver and Gemstones Colored Diamonds Pearls Gold Silver Studded Stones Jewellery . Source: GEMS & JEWELLERY MARKET IN INDIA 2010.

G&J market shows great potential for higher penetration and increased revenues for players Overview Total G&J Market – Size and Growth • Globally, India’s jewellery market stands at X position USD bn • Presence of highly skilled, low-cost labor enables s 30 b% India to design and make high volumes of exquisite LE 25 jewellery at relatively low costs r 20 P • Emergence of branded jewellery is a new trend that q 15 p is shaping the Indian jewellery market M 10 • Traditional handcrafted jewellery is slowly giving way A 5 to machine-made jewellery S 0 • Indian diamond jewellery market stands at USD A bn 2006 2008 2010e 2015e in 20-- and is expected to grow to USD B bn by 20-- owing to the rising prices of gold Segmentation of Jewellery Market • Low penetration of diamond jewellery provides Segment 2 opportunities to the players Segment 1 C% • Prices of gemstones like diamonds are generally fixed B% and as such high-end consumers are showing greater interest in this category • City X has emerged as the biggest diamond processing hub with country B consuming most of A% the Indian gems Segment.

Drivers & Challenges Drivers Mass appeal and growing income Challenges among households Rising gold prices Low cost and abundance of skilled labour Competition from unorganized players Growing use of high-end technology Dependence on raw material import Advantages of SEZs Emerging threat from other countries Changing consumer perceptions & preferences Growing training institutes GEMS & JEWELLERY

Key Trends Growing organized retail space Aggressive marketing and advertising large scale shows and exhibitions Trends ` Domestic players acquiring foreign companies Investments from PE firms corporate houses enter the market GEMS & JEWELLERY MARKET IN INDIA 2010.

Government Bodies, Policies and Initiatives – Summary Major Government Bodies Government Support Government Initiatives Government Policies GEMS & JEWELLERY MARKET IN INDIA 2010.

Strong competition exists among players in the branded gems and jewellery market Overview Market Structure • The Indian G&J sector is dominated by unorganized Segment 2 players and is fragmented in nature A% • It has a large number of domestic private sector LE companies which are operating from a long time as family oriented business having revenues over USD P mn MP • ~A players in gold processing industry, with only B goldsmiths and processors ~X goldsmiths and Y gold jewellers SA • India is a home to a large number of jewellers, ~Z diamond processing players and S diamond jewellers B% Segment 1 • However with constant improvement in product varieties and service rationale, the organized players are expected to grow potentially to occupy ~Z% of the total G&J market by end of 20-- • The branded jewellery players are constantly opening exclusive retail outlets in malls and in high footfall locations Source: GEMS & JEWELLERY MARKET IN INDIA 2010.

Major Players (1/16) SAMPLE Company Snapshot: Company 1 Corporate Information Financial Performance Revenue Headquarters City 1 Revenue Profit INR mn Profit / Loss INR mn Founded 19-- 15,000 r s 500 p q 400 Type Listed 10,000 300 Area of Expertise Diamond & jewellery manufacturing 5,000 200 100 Mr. X – Chairman 0 0 Key People Mr. Y – MD & CEO 2005-06 2006-07 2007-08 2008-09 Business Highlights • It is one of the world’s leading diamond manufacturers and a Company X sight holder • Has its marketing offices spread across X continents – Country A, Country B and Country C • Exports its diamonds to Country 1, Country 2 and Country 3 • Operates retail brand “X” Expansion Plans: • Plans to expand its jewellery retail business, with the launch of about X-Y stores during the next B-C years at an investment of up to INR P mn and the stores are expected to be opened in the South and western regions of the country Source: GEMS & JEWELLERY MARKET IN INDIA 2010.

Gems & Jewellery Industry Showbiz

IIJW 2010 - Indian designers show off jewels on catwalk  MUMBAI, India, August 18, 2010 – Leading Indian designers showed off their latest precious jewels in dazzling catwalks at India International Jewellery Week (IIJW), fusing fashion with jewellery – and showbiz glamour.Award-winning Mumbai-based designer and goldsmith Laksh Pahuja presented his show-stopping “Amazon Beauty” piece, depicting dolphins, which a model wore on her shoulder. It took six months to make.

Laksh Pahuja draws his inspiration from nature.

“There is a message in all the pieces I do. This one is about the dolphins that

 

 

are slaughtered in the Amazon in Brazil,” he told a news conference after models staged a catwalk show of his latest creations in the Grand Hyatt hotel in Mumbai.

IIJW, which runs from August 15-19 at the Grand Hyatt, is India’s first Jewellery Week. It is an initiative to showcase top of the line jewellery of India in terms of design, innovation, craftsmanship and technology.

The five-day event features 34 shows which bring together top jewellery designers from India on one platform.

IIJW overlaps with the India International Jewellery Show (IIJS), India’s flagship jewellery trade show, expected to attract around 30,000 trade visitors, which takes place from August 19-23.

Other prominent designers at the show included Kolkata-based Kripalani & Sons and Surana, both of which brought a touch of showbiz glamour to their catwalk events.

Bollywood beauty Vaishali was one of the models presenting the precious jewels of Nirmal and Naresh Kripalani.

“The jewellery is beautiful and enhances my beauty even more,” said Vaishali, who has taken a break from films.

Nirmal and Naresh said, “We, the two brothers Nirmal and Naresh, inherited this family business and have kept the core belief of not compromising the quality and creating contemporary designs for today’s women.”

Celebrity singer Sonu Nigam was mobbed by the media when he arrived late after battling through a Mumbai traffic jam to support his sister Nikita, who modelled a show-stopping piece for Surana.

Surana jewellery dates back more than 100 years. The company is well known for its expertise in shaping diamonds.

A number of notable figures in the international jewellery trade attended the IIJW catwalk shows, including Vasant Mehta, Chairman of India’s Gem and Jewellery Export Promotion Council (GJEPC); Domenico Girardi, formerly General Manager of Vicenza Fair; Cristina Salvi, a senior international marketing executive of Vicenza Fair; and Davide Zybert, who heads up market Italian jeweller Zydo.

The strong presence of Italian representatives underscored their interest in India as a potential key market for high-end Italian fine jewellery brands, taking into account the growth in Indians’ incomes and their cultural affinity for jewellery and gold.

Gems & Jewellery Industry Analysis

Creating the “New Normal” in diamond marketsANTWERP, November 22, 2009 – The “new normal” diamond market will be demand-driven rather than supply-led, but a sustained recovery from the financial crisis will depend on effective marketing and economic revival. Industry leaders at last week’s Antwerp Diamond Symposium agreed that the world’s top suppliers did a good job of curtailing

 

output.

Rise Of The Golden Dragon

Move over India. There is another huge pool of consumers who have taken a shine to gold. Not only do Chinese consumers now buy gold with as much, if not more gusto than Indians, China is also set to become the world’s largest producer of the yellow metal. Shanoo Bijlani and Regan Luis of Solitaire International

Top prices for exceptional jewels despite credit crunch

LONDON, December 17, 2008 -- Extraordinarily rare and magnificent diamonds are commanding exceptionally high prices despite the global credit crunch, and this trend is expected to continue even if the economic downturn accelerates in 2009. International jeweller Laurence Graff paid 16.39 million pounds ($24.3 million) for the Wittelsbach diamond at a Christie’s auction in London on December 10. It was the highest price ever paid for any diamond or piece.