INTRODUCTION

History of Indian jewellery is as old as the history of the

country itself. Around 5000 years ago, the desire to adorn
themselves aroused in people, leading to the origin of jewellery.
Since then, Indian women and jewellery have gone hand in hand.
There can not be a woman in India, who does not adore herself
with minimum jewellery. In fact, jewellery is considered as
security and prestige of women in the country. The attraction for
jewellery has been great in India that it is no more a craft than an
art.
Indian jewellery is unique in its design and workmanship.
In all kinds of traditional dance forms, jewellery has been a
significant part. Be it Bharatnatyam, Kuchipudi or Kathak, all
have given importance to jewellery in presenting the artist. The
sheer number of items forming the jewellery of an Indian woman
is numerous, ranging from earrings and necklaces to pieces for
adorning the hair, hip, and feet. Jewellery made with emeralds,
diamonds, pearls, rubies, sapphires and other precious and semi-
precious stones have been in practice for long.

The range of jewellry in India varies from religious to purely

aesthetic types. It is crafted not only for humans, but also for the
Gods, ceremonial elephants and horses. Royal class people have
given patronage to the art of jewellery since ancient times, when rajas
and maharajas vied with each other to possess the most exquisite and
magnificent pieces. Regional differences can be observed in the

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making of jewellery, depending on the differences in geography,
people, culture, and their lifestyle. While the designs in solid gold
jewellery of Tamil Nadu and Kerala are inspired by nature, the
Meenakari and Kundan styles of jewellery making have been
influenced by the Mughal dynasty. Then there is a huge range of
silver beads found all over India, especially in Rajasthan, Gujarat,
Madhya Pradesh and Himachal Pradesh. Their availability leads to
the development of the bead jewellery, popular till date.

While Assamese jewellery is influenced by local flora and

fauna, Manipuri jewellery-makers make use of items like shells,
animal claws, teeth and precious and semi-precious stones. These
huge varieties of ornaments bear testimony to the excellent skill of the
jewellers and craftspeople of the country. Indian jewellery in Gold,
diamonds, silver, sterling silver, precious stones and semi-precious
stones is a rage all over the world.
Traditionally Jewellery-Loving India has taken up Jewellery
in a big way in modern times. Previously only goldsmiths who
operated even in villages were fabricating handcrafted gold and
silver Jewellery but of late modern manufacturing machines have
been installed for mass production of trendy, sophisticated
jewellery. Fashion designing, even its computerized Version is
spreading and so are scientific training facilities at important
centers. Yet another plus point is that for studded Jewellery, locally
cut and polished diamonds as well as coloured gemstones are
readily available in India. Lately introduced Hallmarking has also
been helpful. Thus, India has taken a head start in the international
Jewellery market.

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 HISTORY OF TRADITIONAL JEWELLERY
INDUSTRY IN MEERUT

From time immemorial women have been embellishing

themselves with Jewellery. In the ancient times Jewellery was
deemed as a status symbol. High profile people like the kings
and rulers used to adorn themselves with precious Jewellery. The
status accorded to Jewellery in the ancient times has remained
totally unchanged even in the modern time. Jewellery is
considered as a must-wear for women on special occasions like
festivals and wedding. Jewellery can be ethnic as well as
fashionable. Indian Jewellery is famous all over the world. The
gem and Jewellery industry in India has seen an unprecedented
growth during the last couples of years.
Meerut Jewellery market has an important place in Indian
Jewellery market. It has its own identity in the world having
customer loyalty and purity. More over designer Jewellery
manufactured in Meerut District is known for its creative and
attractive designing. As far as the origin of Jewellery market in
Meerut is concerned, it started here around 1908. Till than it did
not have it’s identity as a Jewellery market. Before that gold
smith themselves went to the customer’s house and took order
for making the Jewellery as per the specification of him/her.
After making the Jewellery they also made the delivery of it
and collected the money. In most of the cases the Jewellery
work was restricted to make the Jewellery from old design to
new design by melting the old Jewellery. Even in some cases

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gold was provided by the customer and Jewellers were given
only making charges. It means no stock of readymade Jewellery
was maintained by the jewellers.

At that time Heera Bullian Bank Limited started

readymade jewellery making besides its traditional business of
money landing. After that this work of Jewellery making got
converted into a kind of business. During this period a jeweller
Jodha Mal Kailash Chand Jain and after that Raghunandan
Prasad also opened small Jewellery shops where readymade
Jewellery was also available for sale. This was the turning point
of Meerut Jewellery market. After them Manohar Lal and
Radhey Lal started their business and they also contributed a lot
for the development of Meerut Jewellery Market. After that a
number of jewellers came and started manufacturing and selling
gold and silver Jewellery. Now Meerut is Asia’a largest
Jewellery market. At present Meerut consists the following four
main Jewellery markets:

1. Abu Lane Jewellery Market

2. Bhagat Plaza Jewellery Market
3. Sadar Bazar Jewellery Market.
4. Valley bazar Jewellery market

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 MAIN JEWELLERS OF MEERUT DISTRICT
These are the names of few very famous jewellers of
Meerut Jewellery Market.

1. Heera Bullian Bank Limited (1913)

2. Jodhamal Kailash Chand Jain (1914)
3. Raghunandan Prasad Sarraf (1918)
4. Manohar Lal Sarraf & Sons (1918)
5. Jaina Jewellers (1928)
6. Allankar Jewellers (1963)
7. Akash Ganga Jewellers (2000)
8. Raghunandan Jewellers Pvt. Ltd. (2002)

THE RENOWNED FIRMS OF JEWELLERY

MARKET IN MEERUT DISTRICT

At present the following jewellery firms are playing their

leading role in the market:

1. RAGHUNANDAN PRASAD SHARRAF PVT. LTD.

The early mover in gold industry was Mr. Raghunandan

Prasad who took initiative to start the business of silver
Jewellery and later started the business of gold and diamond. At
that time the gold produced was of Brownish colour. Now his
business is directed by Mr. Ravi Prakash Agarwal, he said
“Gold Jewellery is the traditional favorite appealing baling
enthusiasts of all ages. The sleek and light weight golden
ornaments varying from pendants, ear rings, rings and bangles

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are popular for daily wear. Gold Jewellery sets comprising of ear
rings, neckpieces and bracelets with heavy inlays are meant for
festive occasions like wedding.The Jewellery range is enthralling
as well as over whelming comprising antique, traditional and
modern designs”.

2. MANOHAR LAL SHARRAF AND SONS PVT. LTD.

In 1918 Mr. Manoharlal Sharraf (nephew of Raghunandan

Prasad Sharraf) joined the colourful venture of the gold business
and took this business to the new heights of this shining industry.
At present Mr. Sudhir Singhal is the director of this group. He
said that with the current craze for designer Jewellery the whole
sale collection is replaced with designer ornaments. Colorful
semi-precious stones are engraved on various kinds of metals to
create elaborate and make simple designs. The eclectic 'kundan
Jewelleries' available in the form bracelets, earrings and sets
embodying traditional 'kundan' work from Rajasthan is also
available in bulk forms. The cornucopia of colors, the intricate
craftsmanship and the ornate inlays appeal even the most
discerning retailer. Enamel Jewelleries like 'Meenakaris' and
'Polkis' are also back from the Mughal and Rajput courts to
modern Jewellery showrooms. Immaculate, luxurious and
versatile the various pearl Jewellery sets are simply irresistible.
There are milky white pearl Jewellery sets crafted into simple
and sophisticated designs. The precious collections include pearl
Jewellery with beads, crystals and semi-precious stones uniquely
crafted into medley of designs.

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3. JAINA JEWELLERS PVT. LTD.

In the year 1928 Mr. Jyanti Prasad Jain started this

business of gold ornaments. After starting it with a single
showroom currently he is having many branches in Meerut.
According to Mr Ankur Jain who is the director of the business,
for us price of success is totally based on customer satisfaction
by providing them top best quality with accuracy.

4. ALANKAR JEWELLERS PVT. LTD.

After post independence in about 1960’s Jewellery industry

reached the new dimensions along with designed gems and
Diamond Jewellery. In 1963-64 Alankar Jewellers Pvt. Ltd. set
up its business of Jewellery. Now it has become the pioneer in
Ancient and Modern designer Jewellery.

At present Mr. Piyush Prakash the Director of the business

said that “Various costume Jewellery sets also find place in the
wholesale collection of Indian Jewellery. Crafted from lacquer,
jute, coconut-wood and ceramics these dainty marvels of panoply
of colors, designs and shapes are ruling the roost. The fashion
conscious men and women of today simply grab the finesses
from the retailers to pair up with their favorite outfits. The tribal
jewellery comprising of exotic hairpins, dangling earrings and
neckpieces impress with their ethnic and rustic flavors. The
'Terracotta Sets' in variety of earthen shades and Mattel finishes
are unique collections in tune with the latest styles and trends.
The Jewellery products from India Handicraft Store, has gained

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accolades from retailers worldwide for their unparalleled grace,
top rated quality, authenticity and reasonable price rates.

5. AKASH GANGA JEWELLERS PVT. LTD.

Akash Ganga Group is a completely home-grown fashion
brand that has been into business for over two decades and has
boutiques in Meerut with a niche and up market clientele. The
business was expended and a new unit of jewellery business Akash
Ganga Gems and Jewellery Pvt. Ltd. was formed. Akash Ganga Gems
and Jewellery Pvt. Ltd. started its business in the year 2000. At
present it offers wide range of diamond and coloured stone studded
jewellery especially designed by a team of in house designers. This is
the shop which deals in hallmarked jewellery only. Except diamond
jewellery other jewellery is of 22 carat gold. It follows the dynamic
business model of sourcing the diamonds directly from diamond
cutting units and converting them into exquisite pieces thereby giving
the jewellery a unique price advantage. It consists of a team of
dedicated professionals striving hard to deliver complete value for
money. The team is composed of Graduate Gemologists and
professionals having a rich industry experience who assure to provide
with utmost satisfaction with exclusive collection at the best prices
and unmatched quality.

SPECIALTY OF JEWELLERY MANUFACTURING

IN MEERUT DISTRICT
Jewellery manufacturing in Meerut has its own identity
for its purity and design, due to this reason it is popular all over
the world. Gold and Diamond Jewellery manufactured in
Meerut is preferred all over the world. One more specialty of

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Jewellery manufactured in Meerut is its light weight with heavy
look. In Meerut a gold set weight starts from 20 gms. Beside it,
die and gold ball manufacturing is popular all over the world.
The specialty of plain gold made Jewellery is the main charm of
Meerut Jewellery Market. Besides it, other types of Jewellery
are also being manufactured and sold here. Now Meerut
Jewellery market is also famous for its Jewellery designs.

TRADITIONAL FORMS OF JEWELLERY

At first, Jewellery forms were limited. Priests wore

breast-plates which had religious or spiritual significance, and it
took some time before the upper classes began wearing
different forms of Jewellery for more decorative purposes.
Gradually, craftsman began making special pieces that were
meant to be worn on various parts of the body. The religious
breastplates remained in trend, but items were manufactured for
the neck and torso as well as other parts of the body.

Earlier neck and torso pieces included necklaces,

brooches stomachers, and belts. There were also special
ornaments made for the head. These included headdresses,
crowns, diadems, and tiaras. Even Hairpins and combs had
jewels embedded in them. Earrings, nose and lip rings along
with earplugs began to make their appearance on the Jewellery
market. Decorated rings were also worn on the hands and toes,
and specially designed armlets were worn on the arm, while
bracelets graced the wearer's wrist. There were also thigh and
ankle bracelets sported by Jewellery connoisseurs in those

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earlier times. Jeweled shoe buckles made a debut a little later in
the historical time line. These earlier traditions still thrive
today.

BRANDED JEWELLERY IN INDIA

The concept of branded Jewellery is not very old. It took
its shape hardly 10 to 15 years back. In the late 1990s, the Indian
Jewellery market witnessed a shift in consumer perceptions of
Jewellery. Instead of being regarded as only an investment
option, Jewellery was being prized for its aesthetic appeal. In
other words, the focus seemed to have shifted from content to
design. Trendy, affordable and lightweight Jewellery soon gained
familiarity. Branded Jewellery also gained acceptance forcing
traditional jewellers to go in for branding. Due to the
opportunities given by the branded jewellery market, the number
of gold retailers in the country increased sharply.
Branded players such as Tanishq, Oyzterbay, Gili and
Carbon opened their outlets in various parts of the country.
Traditional jewellers also began to bring out lightweight
jewellery, and some of them even launched their in-house
brands. However, the share of branded Jewellery in the total
jewellery market is still small though it is growing at a pace of 20
to 30 percent annually.
The branded Jewellery segment occupies only a small
share of the total Jewellery market because of the mindset of the
average Indian buyer who still regard Jewellery as an investment.
Moreover, consumers trusted only their family jewellers while

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buying Jewellery. Consequently, the branded jewellery players
tried to change the mindset of the people and woo customers
with attractive designs at affordable prices.
Titan sold gold Jewellery under the brand name Tanishq,
while Gitanjali Jewels, a Mumbai-based Jewellery exporter, sold
18-carat gold Jewellery under the brand name Gili.
Gitanjali Jewels also started selling 24-carat gold Jewellery
in association with a Thai company, Pranda. Su-Raj (India) Ltd.
launched its collection of diamond and 22 -carat gold Jewellery
in 1997. The Mumbai-based group, Beautiful, which marketed
the Tiffany range of products in India, launched its own range of
studded 18-carat Jewellery.
Following are some famous brands of Branded Jewellery:
 D’DAMAS DIAMONDS

D’damas India Jewellery is a joint venture between Gitanjali

Group and Dubai-based Damas in Mumbai. It was started in
2003. The main area of business is manufacturing and marketing
gold, diamond, silver, platinum branded jewellery in India. On
the present day D’damas Diamond offer highly modernized
diamond cutting and polishing facilities in 159 cities in India. It
claims to promote a range of emotions through their collections.
 NIRVANA DIAMONDS
Fine Jewellery (I) Ltd. launched Nirvana Diamonds in
1987 in India. Nirvana diamonds are targeting at fashion
conscious, modern and independent thinking Women.

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Internationally acclaimed Nirvana diamonds are manufactured
by using state-of-art technology. As a proof of their quality
Nirvana was among one of the brands to offer lifetime warranty
to its consumers.
 GILI
In 1994, Gili Jewellery was established as a distinct brand
by Gitanjali Jewels, soon after the abolition of the Gold Control
Act by the Indian government. Gili offered a wide range of 18-
carat plain gold and diamond-studded Jewellery, designed for the
contemporary Indian women. The designs combined both the
Indian and western styles and motifs.
In 2004 it launched its first standalone store Gili World.
Gili products are now available in over 500 outlets across 30
major cities in India. Gitanjali’s focus is to position Gili as a
jewellery and life style brand across the world. In 2008 Gili
reworked it promotional strategy by bringing Bollywood
Celebrity Bipasha Basu on board as Brand Ambassador. Gili’s
primary Brand value is to bring genuine diamond and gold
jewellery to mass customers at affordable price. It has, over the
years, also earned a reputation for ethics and value. It is now a
name synonymous with youth, love, feelings and emotions.
 NAKSHATRA DIAMONDS
The world renowned Nakshatra Diamonds were launched
in 2000, with an equally dazzling Aishwarya Rai as its brand
ambassador. In the present scenario Nakshatra diamonds occupy
a leading position in the fashion diamond jewellery segment. The

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traditional diamond is the most wanted design among Nakshatra
diamonds. Nakshatra diamonds claim to shine glamour and love
life. They have aptly put their slogan as “Brightest Circles of
Light.” Elegant and graceful Nakshatra diamonds are the epitome
of passion, attitude and independence.
 ASMI
Asmi, one of the leading diamond brands of the country,
was launched in 2002 by the Diamond Trading Company Ltd.
which was subsequently taken over by the Gitanjali Group. Asmi
caters to the women of substance and satisfies their mind for
rewards and recognition, evolving to suite their style and
personality. The brand has been endorsed by various celebrities
such as Kajol, Mandira Bedi & Perizad. All these celebrities
epitomize the different strengths. Asmi has more than 500 retail
outlets in India. Asmi Jewellery is priced very reasonably to
make it affordable for prospective customers who fall in middle
and upper middle class of the society.
 TANISHQ
In 1984, Questar Investments Limited (a Tata Group
Company) and the Tamil Nadu Industrial Development
Corporation Limited jointly promoted Titan Watches Limited
(Titan).
Initially involved in the watches and clocks business, Titan
later ventured into the Jewellery business. In 1995, Titan
changed its name from 'Titan Watches Ltd.' to 'Titan Industries
Ltd.' in order to change its image from that of a watch

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manufacturer to that of a fashion accessories manufacturer. In the
same year, it also started its Jewellery division under the Tanishq
brand.
Among the branded Jewellery players in the Indian market,
Tanishq is considered to be a trendsetter. When it was launched
in 1995, Tanishq began with 18-carat Jewellery. Realizing that
such Jewellery did not sell well in the domestic market, the 18-
carat Jewellery range was expanded to include 22 and 24-carat
ornaments as well. When Tanishq was launched, it sold most of
its products through multi brand stores.
In 1998, Tanishq decided to set up its own chain of retail
showrooms to create a distinctive brand image. At present (May
2011), Tanishq retailed its Jewellery through over 119 exclusive
Showrooms across 78 cities in the country. Now Tanishq offers a
range of 'wearable' products with prices starting at Rs. 2000 to
Rs. 40 lakhs. The jewellery business grew 43% and contributed
76% to the top line.
Tanishq has also roped in star couple Amitabh and Jaya
Bachchan for their new advertisement campaign.
CARBON
In early 1991, the Bangalore based Peakok Jewellery Pvt.
Ltd. was incorporated. Peakok realized that the Indian
consumer's relationship with gold Jewellery would grow beyond
an investment need towards a lifestyle and personality statement.
In 1996, the Peakok launched a new brand of 18-carat gold-based
Jewellery called Carbon. The mission of Carbon is to create and

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elegant and provocative range of jewellery exclusively designed
to achieve a look that expresses one’s individuality.
 OYZTERBAY
Oyzterbay was founded by Vasant Nangia and his team in
July 2000. It began operations in March 2001. By November
2002, the company had 41 outlets across the country. Oyzterbay
seeks to build a national brand in the jewellery industry in India
and aspires to be the largest branded Jewellery Company in the
country with a chain of 100 stores and distribution points by
2004. The Oyzterbay product designs are available in 24, 22 and
18 carat gold.
 TRENDSMITH
Mumbai-based Tribhovandas Bhimji Zaveri (TBZ), which
had been in the jewellery business since 1864, saw tremendous
scope in the branded segment and opened its new concept store
'Trendsmith' in Mumbai in December 2001. Encouraged by the
response towards its first store, the Zaveris planned to take
Trendsmith (India) Pvt. Ltd. all over the nation by opening as
many as 50 stores by 2006. Trendsmith offered eight lines of
exclusive designer Jewellery from well-known export Jewellery
manufacturers and designers from Mumbai and Delhi.
 ADORA DIAMONDS
Adora Diamonds were launched in India in July 2003 by
Mumbai based Concept Jewellery (India) Ltd. On the present day
the still expanding retail network centers of Adora expands to
117 outlets in 47 cities of India. Adora means glory in Spanish

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and claims that its diamond jewellery collection is themed in
love. Adora diamonds are for adornment of every moment,
occasion, and phase of life through its up and downs. The
Swaranjali signature collection of living legend Lata Mangeshkar
is a unique feature of Adora Diamonds. Each piece of Swaranjali
collection is conceptualized and approved by Lata Mangeshkar
and bears her laser printed signature.

 KIAH DIAMONDS
World’s largest volume manufacturer of diamonds Sheetal
Manufacturing Company (SMC) launched its exquisite Kiah
Diamond collection in October, 2004. Kiah diamonds are claims
to be for celebrating womanhood. The brand name ‘Kiah’ means
beautiful place. Kiah diamonds have won Best Showroom in the
DTC Diamond Season for 2005-06. Kiah collections are
designed to be light weight, stylish and striking. Diamond
designs are set in 18 carat gold. Kiah has 8 showrooms across the
country.

GOLD JEWELLERY IN THE PRESENT SCENARIO

Till the early 1990s, the average Indian bought jewellery
for investment rather than for adornment. Jewellery made of 18-
carat gold was not favored as it was considered a poor
investment. Confidence shown by the consumer in the local
jeweller was the only hallmark justifying the purity of the gold

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Jewellery in jewellery trade in India. A jeweller or goldsmith in a
local area had a fixed and loyal clientele.
The buyer had implicit faith in his jeweller. Additionally,
the local jeweller catered to the local taste for traditional
Jewellery. However, since the late1990s, there was a shift in
consumer tastes. Women were increasingly opting for
fashionable and lightweight Jewellery instead of traditional
chunky Jewellery.
There was a rise in demand for light weight Jewellery,
especially from consumers in the 16 to 25 age-group, who
regarded Jewellery as an accessory and not an investment. The
new millennium witnessed a definite change in consumer
preferences. According to Samrat Zaveri, CEO of Trendsmith,
"The Indian Jewellery sector is in the transition phase with
consumers' desire for possession of Jewellery for its aesthetic
appeal and not as a form of investment."
In October 2002, Trendsmith conducted a survey to
understand the shifting needs, motivations and aspirations of
consumers in the Jewellery market and to identify new trends
and opportunities. The Survey Report arrived at the following
conclusions:
 The Indian market was witnessing an accelerated shift
from viewing Jewellery as an investment to regard it as
aesthetically appealing ornaments. The focus had shifted
from content to design.

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  The younger generation was looking at trendy,
contemporary Jewellery and clearly avoiding heavy,
traditional gold Jewellery.
 The consumer wanted a wider selection at a single
convenient location and expected an international
shopping experience.
 The Indian consumer was willing to experiment with new
designs.
In the late 1990s and early 2000s, with the increase in the
number of designers from design schools such as the National
Institute of Fashion Technology (NIFT), a wide range of new
designs became available. In addition, the growing number of
manufacturers needed a retailing platform with global and
national reach. All these led to the proliferation of branded
Jewellery players.

Indian consumers generally make Jewellery purchases

from family jewellers. However, with the entry of branded
players in the market, the consumers, especially the younger lot,
are graduating to buy branded Jewellery. This trend is affecting
the neighborhood jeweller who is not a franchisee for the big
brands such as Tanishq, Gili and others.

Another significant trend in Jewellery retailing is

penetration in the rural areas. Tanishq has started focusing on the
lower end of the market through its brand, Gold Plus. This
targets customers who buy gold as an investment product rather

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than for immediate use. The industry is expecting increased
activity in the rural sector, with jewellers opening shops in the
smaller markets. Mainly the branded Jewellery is becoming
popular in cities while the rural population buys Jewellery for
sentimental values and occasional purposes only.

GOLD JEWELLERY MARKET IN INDIA

India is the home of around 4,50,000 goldsmiths, 1,00,000
gold jewellers along with 6,000 diamond processing players and
8,000 diamond jewellers. The Indian jewellery market has a
market size of $ 25 billion. It is second only to US market of $
40 billion and is followed by China at $ 11 billion. The gold
jewellery market is growing at 15% per annum and diamond
jewellery market at 27% per annum. The value chain of the
industry starts from sourcing and mining of the metals and
extends to jewellery retail. While India is not a major miner of
precious metals and stones, the country’s inexpensive and well
skilled workforce makes it a world leader in processing of
diamonds. The country’s jewellery retail sector is also expected
to evolve with a shift among consumers towards branded
jewellery, driven by greater quality consciousness.
India was one of the countries to start making fine
jewellery from different types of metals and even today, most of
the jewellery made in India is handmade. The country at present
has a small but growing organized sector. Organised players such

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as Tata with its Tanishq brand, have, however, been growing
steadily to carve a large market share. India was the first country
to introduce diamonds to the world, the first to mine, cut and
polish them as well as trade them. The cutting and polishing of
diamonds and other precious stones are one of the oldest
traditions in India and the country has earned a considerable
reputation both in the domestic and international markets for its
skills and creativity. In the global diamond market today, Indian
diamonds account for 55 per cent share in value terms, 80 per
cent share in carat (weight) terms and 90 per cent share of the
world market by number of pieces. Today there is a ready
availability of an entire range of diamonds in every size, quality
and cut. India offers the twin advantages of skilled labour and
low cost in the area of gemstone processing. India's significance
in the global gems and jewellery industry can largely be
attributed to its strength in diamond processing. The export
industry mainly comprises of small-to-large units based in
various special economic zones (SEZs) and export processing
zones (EPZs).
Before the liberalization of the Indian economy in 1991,
only the Minerals and Metals Trading Corporation of India
(MMTC) and the State Bank of India (SBI) were allowed to
import gold. The abolition of the Gold Control Act in 1992,
allowed large export houses to import gold freely. Exporters in
export processing zones were allowed to sell 10 percent of their
produce in the domestic market.

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 In 1993, gold and diamond mining were opened up for
private investors and foreign investors were allowed to own half
the equity in mining ventures. In the same year, overseas banks
and bullion suppliers were also allowed to import gold in India.
These measures led to the entry of foreign players like DeBeers,
Tiffany and Cartiers into the Indian market. During this period
the number of retail Jewellery outlets in India increased greatly
due to the abolition of the Gold Control Act.
In 2001 India had the highest demand for gold in the
world. 855 tons gold was consumed in this year, 95% of which
was used for Jewellery but in 2009 India faced its weakest year.
Record high prices and weak monsoon dropped imports of gold
by 33% to 480 tones in 2009 from 712.6 tones in 2008.The bulk
of the Jewellery purchased in India was designed in the
traditional Indian style. Jewellery was fabricated mainly in 18,
20, 22 and 23-carat gold. To regulate India’s jewellery industry
some organizations have been established. The Gem and
Jewellery Trade Council of India (GJTCI) was established in
2000 to boost up the Gem and Jewellery Trade of India at the
International Market. Gem and Jewellery Export Promotion
Council (GJEPC) was set up in 1966 for promoting precious
stones and jewellery exports. The Bureau of Indian Standards
(BIS) is working as a National Standards Body of India which is
responsible for Hallmarking of Gold jewellery and certification
of its purity.

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 IMPORTANCE OF JEWELLERY INDUSTRY
IN INDIA
India has several advantages to emerge as a gems and
Jewellery hub. It has the largest and the best artisan force for
designing and crafting the Jewellery in the world. There is
considerable scope of value addition in terms of capacity
building at the domestic front, quality management and
professionalisation. Realizing enormous potential of the sector,
the Ministry of Commerce, Government of the India declared
gems and Jewellery a thrust sector for export promotion.
India possesses the world’s most competitive gems and
jewellery market due to its low cost of production and
availability of skilled labour. As per a report “Indian Gems and
Jewellery Market - Future Prospects to 2011”, highly skilled and
low cost manpower, along with strong government support in the
form of incentives and establishment of SEZs, has been the
major driver for the Indian gems and jewellery market. The
market also plays a vital role in the Indian economy as it is a
leading foreign exchange earner and accounts for more than 12%
of India’s total exports. Currently the Indian market remains
highly fragmented, but is rapidly transforming into an organized
sector.
The industry was facing a slowdown due to global
economic turmoil. But due to various government efforts and
incentives coupled with private sector initiatives, the Indian gems
and jewellery sector showed a growth at a CAGR (Compound
Annual Growth Rate) of around 14% from 2009 to 2010. At

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present, the Indian gems and jewellery market is dominated by
the unorganized sector; however, the trend is set to change in
near future with the branded jewellery market growing at an
expected CAGR of more than 41% in the coming four years. As
per the report, with its consumption pegged at nearly 20%, India
remains world’s largest gold consumer and this share is expected
to grow further.

In last few years, the purchasing power of the Indian

middle class – plus surging income levels across the country has
enjoyed massive growth. This has resulted in consumption of
gems and Jewellery rising by about 12% in the last five years.
The growth of India’s gems & Jewellery sector is stated below-

1. The Jewellery industry in India contributes 16.67% of the

country's total merchandise exports and provides
employment to 1.3 million people directly and indirectly.
2. Gold Jewellery forms around 80% of the Indian Jewellery
market, with the balance comprising fabricated studded
Jewellery (including diamonds) as well as gemstone studded
Jewellery.
3. India consumes nearly 800 tones of Gold Bullion,
accounting for about 20% of world gold consumption.
Nearly 600 tones of it go into making jewellery. The Indian
Jewellery market, estimated to be worth $24.5 billion in
fiscal 2009-10, accounts for 8.3% of world Jewellery sales
by value according to a study by Klynveld Peat Marwick
Goerdeler (KPMG).

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4. India is the world’s largest and most technologically
advanced diamond processing center (cutting and polishing)
with an estimated 1 million processors handling over 57% of
the world’s rough diamonds by value. According to industry
estimates, 11 out of 12 stones (diamonds) set in Jewellery
are cut and polished in India. Processing is done on rough
diamonds in the full range of sizes and qualities, including
stones larger than 10 carats.
5. In terms of carat, India's share in the diamond sector is about
80% of the world market. Employing over 90% of the global
diamond industry workforce, India also accounts for 90% of
the volume of diamonds processed in the world.
6. Exports from Gem & Jewellery sector over the past years
have witnessed a considerable growth. Exports from this
sector were $ 20.84 billion in the year 2007-08 which rose to
$ 21.12 billion in the year 2008-09 and $ 29.38 billion in the
year 2009-10 while it remained $ 43.14 billion in the year
2010-11. The figures show that growth rates remained
1.32%, 39.15% and 46.81% during the year 2008-09, 2009-
10 and 2010-11 respectively. Hence it is a leading foreign
exchange earning sector of the country.
7. Gold jewellery exports registered an increase of 33.13% in
the financial year 2010-11. The export grew from $ 9.68
billion in 2009-10 to $ 12.89 billion in 2010-11 accounted
for 29.87% of the total export of Gems & Jewellery. Exports
of Gold Jewellery remained $ 5.56 billion in the year 2007-
08 and $ 6.86 billion in the year 2008-09. Thus the growth

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 rate was registered 23.29% and 41.15% in the year 2008-09
and 2009-10 respectively.
8. The growth in the sector was primarily driven by cut and
polished diamonds which registered an increase of 54.86%
in the financial year 2010-11. The exports increase is
significantly considerable which grew from $ 18.24 billion
in 2009-10 to $ 28.25 billion in 2010-11. It remained
65.49% of the total exports of Gems & Jewellery sector. The
exports of this segment were recorded $ 14.20 billion in the
year 2007-08 and $ 13.02 billion in the year 2008-09. It
witnessed a growth of 40.07% in the year 2009-10. It shows
that the demand of cut and polished diamonds is
continuously increasing.
9. The major destinations for Indian Jewellery exports have
been the United States, UAE, Hong Kong, Belgium and
Israel. During the financial year 2010-11 UAE was the
largest exporting destination with 47% of exports to the
market, followed by Hong Kong with 22% and USA with
11% of the total export. The increasing levels of disposable
household income have resulted in record consumption
levels in the domestic Indian Jewellery and Gold Markets.

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 PURPOSE OF THE STUDY

Jewellery is such an item whose history goes back many

centuries. Jewellery is attracting the society since ancient time. The
time when the concept of Jewellery was not even developed people
used Jewellery in different manners. That time women used the
Jewellery of flowers, shells, animal teeth and stones also. So, on this
basis we can say that Jewellery is as old as human development itself.
If we look into the history we find that there was great attraction in
people for different types of Jewellery as Jewellery was regarded as
the symbol of status and wealth also. As the time is changing, the
concept of Jewellery is also changing and the society is getting
attraction towards the Jewellery of silver, gold, diamond and platinum
in place of stones and animal teeth’s bones.
As it is human nature that the people want to show them
attractive and superior to others, so now a days Jewellery is used not
only in the form of ornaments but also as a collection. The reason
behind this phenomenon is that the value of Jewellery has a tendency
to move upward with the passing of time. As the demand of different
types of Jewellery is increasing, also the Jewellery industry is raising
rapidly. Accordingly, also the processing, costing and marketing
strategies of Jewellery get changes the new prospects by replacing the
traditional patterns. Now the standardized Jewellery is manufactured
and guarantee of purity is given to the buyers for their full satisfaction
instead of keep them in the dark about the quality and purity of the
Jewellery purchased by them.

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 In such conditions it seems necessary to conduct a study in this
field so that one may come to know about the types, processing,
costing and marketing strategies of Jewellers.
Keeping in view the above facts the researcher decided to carry
on her research study on the topic, “Cost and Marketing Behaviour
of Jewellers - A Case Study of Meerut District.” it is believed that
this study will attract the attention of the people relating to this
industry and other eminent personalities involved therein.

OBJECTIVES OF THE STUDY

The main objectives of the study are given below:

1. To enlighten the need, scope and importance of the study.
2. To study the importance of Jewellery industry in society.
3. To make the study about the manufacturing process of
different types of Jewellery.
4. To analyze the production costs of different types of
Jewellery.
5. To study about the different channels used for the
marketing of Jewellery.
6. To analyze the strategies used at local, national and
international levels of marketing of Jewellery.
7. To study about the charges incurred at different levels of
marketing of Jewellery.
8. To study about the margins at different levels of marketing
of Jewellery.

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9. To arrive at the logical conclusion and to propose
constructive suggestions for the betterment of Jewellery
industry in India.

LIMITATIONS OF THE STUDY

The proposed study has been conducted under certain

limitations which have been discussed under the following heads:

 SCANTY LITERATURE

The researcher had to face difficulties in collecting

literature related to her study. She had to visit various libraries
to consult the literature related to Jewellery industries, but
could get a little on this particular topic and had to concentrate
on primary data only. But the libraries and statistics department
of University Grant Commissions proved very helpful in
providing the information regarding the data on jewellery
Industry.

 DIFFICULTY IN COLLECTING THE INFORMATION

Jewellers were found busy all the time and could not
give required time. So the researcher had to prepare a
questionnaire containing related questions. And time to time
other relevant information were collected in between verbally.
Jewellers were not ready to talk about the margins involved at
various levels of marketing.

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 LIMITATIONS REGARDING PERSONAL INTERVIEW

During personal interview it was observed that in most

of the cases interviewees remained suspicious about the queries
made from them. Generally they tried to avoid such an
interview and were trying to escape in giving the answers of
any question or in providing any information related to the
present study. But after making continuous efforts, the
researcher got success in getting required information from
them. It could be possible only after giving them assurance
about the non-leakage of any information provided by them
except the use of these for the present research study.

 PROBLEMS IN COLLECTING STATISTICS

The researcher faced great difficulty in getting correct

statistics required for the present research study. Generally the
seller of Jewellery remained reluctant to provide any data and
information from their records. But after making continuous
efforts and giving them assurance again that these were being
collected for research purpose only and the researcher is
working for the betterment of Jewellery Industry of their area
and this study will facilitate them to manage and control their
particular industry in a better way, they provided the required
statistics and information but half-heartedly.

 TIME LIMITATIONS

As the researcher is a housewife and she scares limited

time for her research study, she had to face the problem of time
limitation. But due to entire cooperation of research team and

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 family members, this work could be performed with entire
satisfaction within the minimum prescribed time-limit.

 FINANCIAL LIMITATIONS

As the research scholar belongs to a middle class family,

she has limited financial resources. It is but natural that a
research study of this dimension requires a large amount of
money for building research-team, survey work etc. however
all such expenses were managed by the researcher by her
limited means.

Thus, the main limitations of the proposed study are scanty

literature, non-cooperative response of interviewees, difficulties in
collecting data and information from official records, shortage of time
and paucity of funds. Inspite of all these limitations and problems, the
present research work could be done at satisfactory level and no
compromise was made at any level due to existence of above
mentioned problems while conducting the present research study.

***

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