Gems & Jewellery Market – India

May 2010
Executive 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

Drivers and
PLE

Drivers: 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, 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
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.PPT 2

•Introduction
•Value chain
•Market Overview
•Drivers & Challenges
•Trends
•Government Bodies, Policies and Initiatives
•Competition
•Key Developments

GEMS & JEWELLERY MARKET IN INDIA 2010.PPT 3

 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 Jewellery Jewellery

Source:

GEMS & JEWELLERY MARKET IN INDIA 2010.PPT 4

 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
jewellery at relatively low costs

is shaping the Indian jewellery market

PLE
• Emergence of branded jewellery is a new trend that
25
20
15 p
q
r

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 3

Source:

GEMS & JEWELLERY MARKET IN INDIA 2010.PPT 5

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 MARKET IN INDIA 2010.PPT 6

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.PPT 7

Government Bodies, Policies and Initiatives – Summary

Major Government Bodies

Government
Support

Government Initiatives Government Policies

GEMS & JEWELLERY MARKET IN INDIA 2010.PPT 8

 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

family oriented business

PLE
companies which are operating from a long time as

• ~A players in gold processing industry, with only B

having revenues over USD P mn

goldsmiths and processors

~X goldsmiths and Y gold jewellers
SAM
• India is a home to a large number of jewellers,

B%

~Z diamond processing players and S diamond jewellers
• However with constant improvement in product Segment 1
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.PPT 9

 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.PPT 10

 Thank you for the attention
The Gems & Jewellery Market report is part of Research on India’s Consumer Goods industry.
For more detailed information or customized research requirements please contact:
Gagan Uppal Gaurav Kumar
Phone: +91 96191 00122 Phone: +91 98303 09715
E-Mail: gagan.uppal@netscribes.com E-Mail: gaurav.kumar@netscribes.com

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