GEMS AND JEWELLARY INDUSTRY

Synopsis:Objectives. Introduction . Types of gem stones . GJEPC( Gems and Jewellary Export Promotion Council. Size of market .export trend. Government initiatives . Structure . Policy and oppurtunity. Potential outlook. Birthstones. Image of a Dubai mallDemand of metal. Demand of gold. conclusion

OBJECTIVES:

To know the trade and export policy’s in Indian bullion market

To know about the trend of gold jewelery and jems in India against Global trends

To know why there is a sudden rise in the price of gold

Blue sapphire

Emerald

India is the largest importer and consumer of

gold. Indians have a loads and lots of fascination toward gold where it

stands in 11th position in the world.

Gems are the precious stones which are for

fashion but in India it is a craze and gems are

considered to be spiritually related We have different

types of gem stones like Emerald, Blue sapphire, Pearl, Ruby Diamond.

GEMSTONES TYPESThere are three

types of gemstones:•Natural

•Synthetic•Simulant

Natural gemstones include minerals and organic materials such as amber, sapphires,

coral, fossil, ivory, emeralds, rubies, cultured freshwater pearls and natural salt water pearls.

Synthetic and Simulant are terms used by the USBM for laboratory grown gemstones. Other terms are

sometimes used to refer to laboratory grown

gemstones. Synthetic gemstones

have the same appearance, physical,

and chemical composition,

crystal structure as the natural material that they represent, however they have no effect when used for gem therapy

USBM: UNITED STATES BUREAU OF MINES

Gems and jewellery form an integral part of Indian tradition.

A legacy passed from one generation to another. 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.

Industry structure

Though India is not the largest exporter of gold, there is a huge consumption of gold. In

future the braded jewellary sector

predominantly estimated to have a rise by 2011 by US$ 2.2 billion. There is a council

started in early 1966 in the sector of gems and jewels in exporting gems

and jewelary’s

The Gem and Jewellery Export Promotion Council

Set-up in 1966, the GJEPC has over the years effectively moulded the scattered efforts of

individual exporters to make the gem and jewellery sector a

powerful engine driving India's export-led growth.The gem &

jewellery industry has played a significant

role in the evolution of the Indian gem and

jewellery industry to its present stature

GJEPC is continuously working towards creating a pool of artisans and designers trained to

international standards so as to consolidate the

Indian jewellery industry and establish it as a prominent global player in the jewellery

segment.The Council is primarily involved in introducing

the Indian gem & jewellery products to

the international market and promotes their

exports

To acheive this , the Council provides market

information to its members regarding

foreign trade inquiries, trade and tariff

regulations, rates of import duties, and information about jewellery fairs and

exhibitions.

Gems, jewellery export growth to be sluggish in 2010-11: GJEPC

by mucksy on September 7th 2010 and filled under Gems and Jewellery

 The Gem and Jewellery Export Promotion Council has stated that export growth is likely to be sluggish and may touch

only 15% during 2010-11 The Gem and Jewellery Export Promotion Council (GJEPC) has informed that by

virtue of unpredictability in international markets, there might be a meekly 15% export growth in 2010-11.

This development holds huge significance for export-based SMEs in this sector, many of which have been struggling to do business under such

global pressures.

 GJEPC has recently said that India’s contribution of

jewellery to the world market would double to

40% by 2015. 

Government InitiativesIn the New Annual Supplement to Foreign Trade Policy

(2004-2009) announced on April 19, 2007, the Government has extended the following facilities to this

sector :•Re-import of Diamonds & Jewelery (either in complete or partial lot) exported on consignment basis have

been allowed.•In the light of increase in global prices of precious metal, duty free entitlement for consumables for export of rhodium plated silver

jewelery has been increased to 3 per cent.

•To reduce the transaction cost for the diamond sector, testing facility at International Diamond Laboratory (IDL), Dubai, has been incorporated in the list of laboratory/certifying

agencies.

The committee appointed to study

India's National Design Policy is likely to

recommend the setting up of four additional National Institutes of

Design (NIDs), along the lines of the existing

Ahmadabad-based NID, whose curriculum

includes, among other disciplines, jewelery

design.

In addition, the Government has decided to make gold hallmarking

mandatory from January 1, 2008. It has also made the

import of polished diamonds completely duty free. This will facilitate

the sector towards evolving from being just a manufacturing center to becoming a global trading hub for diamonds, gems and

jewelery.

Size of Indian market

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

•4% of the global Gems and Jewelery market .•Exports of over $15.5 billion; over 18% of

India’s exports.•India is the largest consumer of gold

jewelery in the world.•Accounts for about 20% of world consumption.

•India is the largest diamond cutting and polishing center 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.    

Structure

The Indian Gems & Jewelery industry is highly fragmented with a large

number of domestic private sector companies.

A large portion of the market is in the

unorganized sector .India is gaining prominence as an

international sourcing destination for high quality

designer jewelery .Walmart, JC Penney etc.

procure jewelery from India .

Policy and opportunity

100% FD is permitted in the Gems & Jewelery sector

through the automatic route.SEZs and Gems and Jewelery Parks have been set up to promote investments in the

sector.

India is one of the largest exporters of gems and jewelery  India is the diamond polishing capital of the world.

SEZ: SOCIAL ECONOMIC ZONES

potential

India has several well recognized strengths which have made it a significant

force in the global Gems and Jewelery business.

Highly skilled, yet low-cost labor.

Established manufacturing excellence in jewelery and

diamond polishing.India is the most

technologically advanced diamond cutting center in

the world.

Opportunity to address one of the world’s largest and fastest-growing Gems and Jewelery markets.Opportunity to leverage India’s strengths to address the global market.

Outlook:India is the fastest-growing

jewelery market in the world.

Branded jewelery likely to be the fastest-growing

segment in domestic sales.Expected to grow at 40% p.a.

to $2.2 billion by 2010.Exports expected to grow

from $15.5 billion in 2005 to over $25 billion by 2010.

Potential

Foreigner’s in Dubai mall

Dubai gold souq

Metal has always been considered as a precious metal to be used in times of need.

Now this notion feeling becomes much stronger. This is the only object whose value is going up day by day. It is a true act that the traders can face a severe blow in the

stock market as there is always a risk factor in it. But in case of gold at least there is no risk factor involved in it. As we can see the price of gold is going up every day. So naturally there is a trend among everybody to get hold of a well reserve of gold in their stock instead of investing their money in the

stock market

Investments in buying precious metals

 So many countries like Russia, China and Egypt and others are also buying gold. As the

value of this going up day by day all the

countries tries to get hold of as much gold in

their reserve as country’s wealth which can help them during

recession period. It is considered to be the

safest element.

Demand for gold in India remains strong during the September-November festival season. Dhanteras, considered auspicious day for buying gold, is in November.

International spot gold was steady within striking

distance of record highs on Thursday, underpinned by a soft dollar and a generally improving economic outlook.

Demand of gold( india)

The market will take time to digest this

upsurge in prices and if prices move in a band of Rs19,200-19,400 demand will start coming back, because at the dealers level the restocking has to happen,” said the dealer with a foreign

bank.A Reuters poll has

estimated India’s gold imports in 2010 at 504.5

tonnes, up by 24.5 tonnes from last year.

Gold price may surge to a record Rs.22,000 per 10 grams by the

end of this year as uncertainty in the US and European economies forces investors to bank on the

precious metal.During the forthcoming festival season, gold price is likely to

hover around Rs.21,000 per 10 grams, according to a survey conducted by the Associated Chambers of Commerce and

Industry (Assocham). It says that bullion prices would

continue to head northwards until correction starts in the capital

markets.Major players in the capital

markets, including mutual funds, are holding huge cash balances and investing in precious metals in anticipation of corrections in

the capital markets. 

Top Five major producer of gold

MR. KISHORE JAIN Managing Director,MR.G.M. SHRIKANTH,Head- H.R

MR.MOHANLAL,Managing Director

JACOAB KURIAN,CEO-Tanishq

Khazana Jewellery launched its first retail outlet in the year 1989 at NSC Bose

Road in Chennai.In 1992, the Government of India accorded the company the status of “Export House

 Khazana Jewellery turned its focus on rest of the South Indian markets. In 2004, Khazana opened its

first showroom in Somajiguda, Hyderabad and in

2005 two showrooms were opened in Visakhapatnam and

VijayawadaThe Tanishq saga began in the early 1990’s, primarily fuelled by the fabled Tata entrepreneurial spirit and

partly forced by circumstance.

It was a business with a huge wealth potential and it added a very feminine offering to Tata’s

long line of products that appealed mostly to the opposite gender. It also called for an

organization that inspired trust and had high order design, manufacturing, marketing and retailing skills, and Tata fit

the bill on all accounts.

The Indian market, on the other hand, opened its doors to the world, and was now flooded with foreign currency. By the time

Tanishq established its manufacturing facility and

entered the market, the premises on which the project was based had altered substantially.

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