Professional Documents
Culture Documents
Which couple are the Brand Ambassadors of Tanishq diamonds? Sonakshi Sinha is the Brand Ambassador of which diamond brand? Which Jewellery player has its tagline as 5/3/12 The original since 1864? 22
Introduction
India- one of 8 key markets in the world for Gems and Jewellery. Indias domestic jewellery market expected to soar to US$ 25.2 bn by 2012-2013. The industry has grown at an average CAGR of 5.2% since 2000. India is 2nd largest consumer of gold in the world. 5/3/12 33 China recently piped India to become
Introduction (contd)
India is estimated to hold nearly 16,000 tonnes of gold and consume 4000 tonnes of silver! India is the largest diamond cutting and polishing centre in the world. Surat- world's largest cutting and polishing centre. 11 out of 12 diamonds in the world pass through India.
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Introduction (contd)
Consumption of silver in India grew 80% in FY11. Rising silver and gold prices has increased the investment demand in these metals. Investment in Platinum jewellery is also increasing. Platinum jewellery consumption rose 40-50% in 2011. India's platinum market is still small 5/3/12 55
Introduction (contd)
One piece of jewellery is sold every three minutes online on eBay India. Retail Jewellers on the rise and are worth over Rs. 50k crore! The total jewellery industry in India is estimated at Rs 150k crore! Indias men's jewellery market is estimated at approximately Rs 954 crore!
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History
Indiahas the longest continuous legacy of jewellery making anywhere sinceRamayanaandMahabharata times. One of the first to start jewellery making were the peoples of theIndus Valley Civilization. By 1500 BC, the people of the Indus Valley were creating gold earrings 5/3/12 77
History (contd)
Mughal reign was the most significant period of time in relation to jewellery. Before the liberalization in 1991, only the MMTC and the SBI were allowed to import gold. Abolition of the Gold Control Act in 1992, allowed large export houses to import gold freely and retail outlets started sprouting. 5/3/12 88
Even today, most of the jewellery in India is hand made. Some of the large International retailers like WalMart and JC Penney import exclusive jewellery items from India.
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The Gems & Jewellery Promotion Council is India's certification authority. Certification has boosted exports and has resulted in greater acceptance of Indian products in the world market.
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Regulating Bodies
The Gem and Jewellery Export Promotion Council (GJEPC). The Gem and Jewellery Trade Council of India (GJTCI). The Bureau of Indian Standards.
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Government Initiatives
Surat, Gujarat has been given the recognition of a town of export excellence. 51 per cent FDI in multi-brand and 100 per cent in single brand retail market. To promote the exports of gems and 5/3/12 1515 jewellery, the government has set up
FTP 2009-14 has identified the G&J sector as a thrust area with prospects for export expansion and employment generation. Value addition norms were reduced in the FTP 2009-14.
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Historical high demand for gold in India. Increasing gold investment in India. The value of the US dollar is one of the major factors affecting goldprice inIndia. Any favorable or unfavorable Government gold policy. 5/3/12 1717 Worlds overall economic situation.
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Latest rates
Gold rate (as on 24th April 2012)- Rs. 2917.5/ 10 gms (24 K)- Mumbai.
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com/pages/diamondpricing .aspx
Demand and supply levels. Macro-economic factors. Fundamental characteristics of diamond. (4 Cs- Cut, Carat, Color and
Clarity)
The sector currently provides employment to around 1.8 million. Additional employment for around 1.1 million people in the next 5 years! Second largest foreign exchange earner in the country.
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Jewellers fear illegal imports because of this increase! Nation-wide protest by Jewellers from 17th March 2012 for 3-days to oppose the hike which only increased to 21 days. The FM has promised a roll-back on the duties.
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Key Issues
Un-organised sector- 90% players operate in un-organised sector. Threat from China- China already piped India. Dominance of US. Exchange rate risk. High level of inventories. Decreasing Diamond reserves. Global economic slowdown. 5/3/12 2929 Synthetic diamonds.
Modern retail players have only 4%6% share, which is perhaps one of the lowest. Apparel (20%), Footwear (35%), Books and Music (11%) and CDIT (7%).
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Southern India Accumulates 40 Percent of Overall Gold Demand in 2011.Source: Karvy Private Wealth.
Tamil Nadu is the leading state with the highest gold consumption. The low VAT of 1-2 percent on gold in three states except Kerala has also helped in promoting sales. Out of the total Indian gold demand, 5/3/12 3131 gold jewelry contributes to around 75
Gold investment has gone up by 23 percent. Gold consumption in India in 2011region wise was as follows:
A. 10-15% in Eastern region. B. 25-30% in Western region. C. 25-30% in Northern region. D. Approx. 40% in Southern 5/3/12 3232 region.
Major Players
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P.P Jewellers Asian Star Co. India Ltd. Gitanjali Gems Ltd. Rajesh Exports Ltd. Suashish Diamonds Ltd. Su-Raj Diamonds and Jewellery Ltd. Tanishq- (Titan Industries Ltd.) Hindustan Diamond Company Vaibhav Gems Ltd.
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Today
Investment.
Investment + Fashion.
Traditional design.
Webliography
http://www.rncos.com/Blog/report_list .php? year=http://www.rncos.com/Blog/blo g_report.php&month=06&blog_page name=Indian-Gems-JewelleryIndustry-Sales-to-Grow-50-by-2013 http://www.ibef.org/artdispview.aspx? in=25&art_id=31108&cat_id=439&p age=2 http://www.nsdcindia.org/pdf/Gems5/3/12 4040
Webliography (contd.)
http://www.prlog.org/10093218indian-gems-jewellery-market.html http://www.eximbankindia.com/op/op 138.pdf http://jewellery.indiabizclub.com/info/ gem_and_jewellery_industry_overvie w http://new.emmeplus.eu/wpcontent/uploads/2010/01/indianjewellery-industry_emc.pdf 4141 5/3/12
Webliography (contd.)
http://progressivemaharashtra.com/O ther/gems-and-jewellery.html http://www.dnb.co.in/IndianGemsandJ ewellerySector/issues.asp http://msmestartupkit.com/sites/defa ult/files/knowledge_base/reports/Rep ortonGemsandJewellery.pdf http://www.indiainbusiness.nic.in/ind ustry-infrastructure/industrialsectors/gems-jewellery1.htm 5/3/12 4242
Webliography (contd.)
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