CHAPTER-2

History and Development of Gem and

Jewellery Industry

History of Gem and Jewellery Industry in India

Historical Background
Jewels of the Indian Subcontinent
History of Diamonds Mining in India
Prominent Centers of Gemstones in India
Present Position of Prominent Centers
India- World’s Largest Consumer of Gold
Industry Forecast
Indian Retail Jewellery Overview
· Exports
· Demand Drivers
SWOT Analysis of the Indian Gems and Jewellery Sector
Gem and Jewellery Companies under Study
· Surana Jewellers Corporation Ltd. (Surana Jewellers)
· Classic Diamonds (India) Ltd. (Classic Diamonds)
· Gitanjali Gems Ltd. (Gitanjali Gems)
· Vaibhav Gems Ltd. (Vaibhav Gems)
· Rajesh Exports Ltd. (Rajesh Exports)
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HISTORY OF GEM AND JEWELLERY INDUSTRY IN

INDIA

Historical Background

India has been, over the ages, the home of gems and jewellery. The
country was the only source of diamonds for over 2000 years, until
deposits were discovered in brazil in 1760. The science of gemology was
well developed in India as early as the beginning of the first century. The
book “Ratnapariksha” by Buddha Bhatt written at that time describes the
teaching syllabi for testing and valuation of precious stones and
diamonds. The Ramayana and Mahabharata abound in descriptions of
ornaments and the duties of the goldsmiths were defined in the code of
Manu. The rajas and maharajas liked to possess the most exquisite and
the most magnificent pieces of jewellery. Temples and complexes
supported many different styles of jewellery scented sandalwood bead
necklaces, the prayer bead of the rudraksh (Berry of the elaocarpus
canitrus) necklaces, multi-coloured silk and gold thread necklaces, and
other. Historical records show that Indian jewellers mastered quite early
in the various skills required to make fine jewellery-mixing alloys,
moulding, drawing fine wires, setting stones, inlay work, relief, drawing
gold and silver into thin wires, plating and gilding.1 The skill and
expertise of Indian craftsmen and artisans in cutting and polishing of
diamonds and precious/semi-precious stones as well as in turning out
intricate designs in jewellery and their workmanship were always rated
very high and continue to enjoy an enviable reputation even today. As
1. Agnihotri S. and Shukla R., “Indian History”, Allied Publications, 26 Editiion, 2010, p. A476.
 42

astounding testimony on India’s place in history of diamonds, many of

the world famous diamonds like the Kohinoor, Great Mogul, Great
Table, Darya-I-Noor, Taje-Mah, Saney, orlof, Regent, Florentine, Hope
and many others from the mines near Golconda in South India.

In Hindus Jewellery plays a very significant role in religious

ceremonies, especially the Samaskaras (stage of life) such as the
namkarna (naming ceremony) or the vivaha (marriage). It is very much a
part of traditional Indian life and custom. In hindus, Jains and Sikhs
communities, jewellery was a major component of the streedhana (gift
given to woman at the time of her marriage). The two famous epics the
Ramayana and Mahabharata contain numerous references to ornaments.
The Ramayana gives a graphic description of Sita’s adornment at the
time of her marriage her ears and nose were resplendent with jewels, her
wrist and arms were adorned with bracelets, her slender anklets were
circled round with golden ring, while little golden bells twinkled upon
her toes as she walked with naked feet over the carpeted floor.2
Jewellery, because of its easy convertibility into cash was thus regarded
as security and investment. Traditionally, Indian goldsmiths are usually
men and are referred to by a variety of names depending on the
region-sonar, swarnakara, panchallar, or that an. In the Vedic period,
goldsmiths had a much higher standing than other artisans did, as they
worked with a precious metal, from prehistoric ages to the present day,

2. Bhatt S.C. and Bhargava G.K., “Land and People of Indian States and Union Territories”,
Kalpaz Publications, 2006, p.236.
 43

the craft of precious Indian jewellery is one of its kinds in beauty and
quality.

The first jewellery was made from readily available natural

materials including animals teeth, bones, various types of shells, carved
stone and wood. It is believed that jewellery started out as a function
items to fasten articles of clothing together, and was later adapted for use
as an object for purely aesthetic ornamentation, or for use as a spiritual
and religious symbol. The first gemstones were probably “gathered” in
much the same manner, as was food. It is likely that gems were found
inadvertently at first, may be while searching for food by picking
through gem-bearing alluvial gravels in a dry river-bead. Jewellery in
different mediums like country-seeds, feathers, leaves, barriers, fruits,
flowers, animal bones claws and teeth have been fashioned since ancient
times in India. The ruins of Mohenjo-Dara and other sites of the Indus
Valley civilization bears testimony to this craft.3

The story of jewellery in India goes back to a hoary past. It has

been of special importance in social and cultural life of the people of
India. Since the dawn of civilization, man tried to enhance his figure by
the use of various objects. Firstly, he sought the use of green leaves,
flowers and then the beads of various shapes and hues. Later, the glitter
of gold attracted him and ornaments of this metal, different in size
suiting the body were manufactured. In the late 1800s, British
archaeologist Archibald Campbell Carlyle said primitive man “the first

3. Tyagi A., “Handicrafts of India”, IBS Books (U.K.), 2008, p.30.

 44

spiritual want of a barbarous man is decoration”. Mollusk or nassarious

kraussianus shells that had been perforated to be strung into beads are
now thought to be some of the oldest known fabricated jewellery. This
mollusk jewellery was discovered in a café in Blombos, south Africa and
dates back to the Middle Stone age, Some 75,000 to 1,00,000 years ago.

Jewellery making in the Indus Valley dates back to the

Neolithic-age Mehrgarh culture (7000-5500 BC) and Late Harappan age,
which predates the iron-age development of metal-casting and metal
working. The Indus Vally region, which encompasses Persia and the
Indian sub-continent, was the home to the Indus-Sarasvati civilizations
(Aryan, Harappa, and Vedic People) which were the largest (both
population and geography) of the jajor ancient civilizations form Egypt,
Mesopotamia, South Asia and China. The Sarasvati was a river praised
in the Reg-Veda (a collection of Vedic Sanskrit hymns) running the
length of the Indus Valley, from Punjab to the Arabian Sea.

Early Indus Valley jewellery consisted to stands of simple beads

that were carved form soft stone or fashioned form shells. The
Harappans were expert craftsmen, making beads from agate, amethyst,
carnelian, lapis lazuli and turquoise. Some stones were heated to produce
a reddish colour, which was prized by the early Indus civilization. The
findings at Mohenjo-Daro in Sindh and Harappa in the Punjab and other
excavated site belonging to Indus civilization have brought to light
various ornaments. The ornaments of rich were made of gold, silver,
 45

ivory and shell and terracotta. Another category of ornaments was of

beads.4

During the late Harappan period craftsmen began to work with

bronze, copper, silver and gold, fashioning simple necklaces, head-
bands, bangles and other ornamentation form cast metalwork, glazed
faience (a non-clay ceramic), terracotta, shells and carved ivory. The
Harappans, in Baluchistan and Rajasthan mined copper locally.
Examples of the early jewellery can be seen on the cast-bronze statuette
of the “Dancing Girl of Mohenjo Darp (Mohenjo Daro, Pakistan),
believed to be made in 2,500 BC. The Harappans were also
accomplished sailors and navigators, helping them to expand the
boundaries of trade to Bahrain and Sumer for navigation. The Harappans
carved compasses from conch shell, which they used to measure the
angle between stars. Jewellery was also made in the form of
anthropomorphic symbols such as animals, trees and sexual organs,
primarily due to their pagan and matriarchal spiritual beliefs, jewellery
was worn predominantly by the female and was not buried with the
deceased, but passed on to their heirs. Another popular Harappan
spiritual motif was the Shiva pashupati and Yogic ”Lord of Beasts".5

JEWELS OF THE INDIAN SUBCONTINENT

Beginning in the time of India’s Maha Janapadas or “Great

Kingdoms” (700-300 BCE), the region’s wealth and power steadily

4. http://www.gemologyonline.com/birthstones.html
5. Dhawan J., “Changing Face of Indian Economy”, Atlantic Publication, New Delhi, 2007, p.360.
 46

increased, reaching its zenith during the Mughal Empire which spanned
from the 16th century to the mid-19th century, and whose empire
extended form Indian sub-continent to Afghanistan.

Gemstone use in India was well documented in the 6th century BCE
Sanskrit encyclopedia known as the Brihat-Samhita (Utpalaparimal),
written by Daivajna Varahmihira (505-587), varahamihira, who was as
astronomer, mathematician and astrologer form Ujjain, categorized
twenty-two gems or “ratnas, which included: Marakata (emerald), Mukta
(Pearls), Padmaraga or Manikya (ruby) and Vajra (Diamond) as well as
Brahmamani (bicoloured tourmaline), Gomeda (Jacinth or zircon),
Indranila sapphire), Jyotirasta, Karketana (chrysoberyl), Pravals (coral).
Pulaka (garnet), Pushparaga (topaz), Rajamani (royal gem), Rudhirakhya
(carnelian), Sasikanta (moonstone), Saugandhika (sapphire variety),
Sphatika (rock crystal), Sasyaka (copper sulphate), Vaidurya (Lapiz
Lazuli) and Vimlka (pyrite). The classifications of gemstones were
further dived into distinct categories by the discipline of Kyotish, which
is an ancient Indian system of astronomy and astrological signs:
Diamond (Venus), Ruby (sun), Emerald (Mercury), Topaz or Yellow
Sapphire (Jupiter), Garnet (rahu), Blue Sapphire (Saturn), Pearl (Moon),
Read Coral (Mars), Cat’s Eye Chrysoberyl (Ketu) as nine stones. These
nine stones were typically set in Navaratna (nine gems) setting system,
with ruby (the Sun) at its center.

The first oceanic trading routes between the ancient Greece and
India began in around 130 BC, established by a Greek navigator named
 47

Eudoxos of Cyzicus, under Ptolemy VIII, who was the king of the
Hellenistic/Ptolemaic dynasty in Egypt. With the assistance of an Indian
navigator, Cyzicus made the first recorded journey in 118 BC. They
sailed from the Arabian port of Aden (Eudaemon in Greek) to the west
cost of India using the Indian Ocean’s seasonal monsoon winds to carry
them along. Perhaps the first commodity that attracted the ancient
Greeks was spice and one to the first spices that was heavily traded was
Piper nigrum or black pepper (Sanskrit Pippali, Latin: Pipper) from
Tamil Nadu in southeaster India. Other exotic commodities such as
cinnamon, cassia, cardamom, ginger, turmeric, rice and gemstones
followed this. The Romans expanded trade with the Tamil Chola,
Pandyan and Chera dynasties establishing trading settlements, which
would remain long after the fall of the Western Roman Empire, Spices
were not the only commodity that interested the Greeks and Romans-
live peacock were highly prized as garden decor in ancient Greece. In
exchange, the Indian got what they wanted from the Greco-Roman
world- Gold and lots of it. Along with gold, there were other
Medutrranean commodities suck as copper, silver, olive oil and wine but
it was gold that the Indians were after. Rather that use the bartered gold
for currency, as did the Greeks, the Indians were simply in search of new
ways to decorate themselves. By the latter half of the first century AD,
Pliny the Elder said of this trade imbalance: “We must be made
bankrupting our self in India.6

6. http://www.indianetzone.com/2/types_jewellery.html
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HISTORY OF DIAMONDS MINING IN INDIA

Historians estimate that diamond (vajra, Sanskrit for “adamantine”)

were discovered in India during the 4th century B.C., and India was one
of the first countries to mine the gem. India’s diamonds were prized for
their size and beauty for hundreds of years, but the term “Indian
Diamonds” was used generically to describe any stone that was mined in
numerous South/ Southeast Asian locations that included Borneo
(Landak), Golconda, Hindostan, and Raolconda. The majority of Asia’s
diamond deposits were alluvial as opposed to kimberlite. India’s most
prized diamonds were known as the “diamonds of Golconda”, and some
of the most famous Golconda stones include the Hope Diamond,
Kohi-I-Nur, Orlov diamond, Sancy Diamond. The Darya-I-Nur (sea of
Light) was a rare blue-diamond that weighted 186 caats, which was
owned by the last great Mughal Emperor, Aurangzeb, until it was
plundered form his heirs during the ‘sack of Delhi’ in 1979.

India’s Geology: Golconda was a region located between the lower

reaches of the Godavari, Wainganga, Wardha, Krishna-Venva River, in
the present-day states of Maharastra and Andhra Pradesh, Central India.
Today, the exact source of the so called “ lost mines of Golcounda” are
unknown, and India’s only remaining diamond source is the Majhgwan
pipe (Kimberlite Pipe) near Panna. The Golconda diamonds originating
on the Indian subcontinent were created form the enormous forces
generated by plate tectonics, when they Tethys Oceanic Crust collided
with , and was sub ducted under the Asian Continental Plate. Although
 49

these massive continental plate collided at the incredibly slow rate of 10

centimeters per years: over 100s of millions of years, this was enough
force to create the Himalayan Mountain range, and to cause the
necessary volcanic activity to create diamondiferous intrusive, and
extrusive igneous rock known as kimberlite. Millions of years of erosion
caused by rainfall and snow-melt unearthed the diamonds from their
kimberlite tomb, washing them downstream to their final resting place
within the shallow alluvial river gravels of India’s Golconda region. In
the ancient treatise on gemology known as Utpalaparimala, the
characteristics of an ideal diamond as described as having purity
(without stain), lightness, six-pointedness and being a well formed
octahedron with 8 facets and pronounced sharp edges. According to
ancient Indian texts, there were eight principle “find-spots” for
diamonds, each being identified with a distinct diamond colour. The
diamonds found along the bank of the Vena (Wainganga) were
considered “pure” (colourless), from the Himalayan region
(copper-cloured): form Kalinga (Brilliant gold); form Kosala (tinged
with Sirisa-blossom-plantain); from Matanga (the colour of
wheat-blossom); form Pundra (grey to dark-blue); form Saurastra (tinged
with copper-red), and those found in Supara (Sable coloured). Diamonds
are inextricably woven into the cultural fabric and mysticism of
Buddhism, Hinduism and Tibetan Lamaism. The “Dorjes” is an ancient
Buddhist talisman shaped like a pyramidal, four-faceted diamond.
 50

According to ancient Buddhist legend the Dorjes represents Mount

Meru, a sacred mountain that is situated at eh ‘center of the universe.

Valley of Diamonds: During the 14th through 18th centuries many

young researcher and adventurers were drawn to India and the Far East
by tales of riches beyond one’s wildest dreams, and the legend of
Sinbad’s “Valley of Diamonds”. The tales of Sinbad the Sailor and the
“Arabian Nights” were derived form an 8th century Persian (Sassanid)
book called the Hazar Afsaneh, or the “Thousand Myths.” In the
“Second voyage of Sinbad”, the sailor from Basrah (Baghdad) was
transported by a giant bird (the ‘roc’), to a land where the floor of the
valley was throwing chunks of meat onto the valley floor where the giant
birds would carry them back to their nests, ladened with diamonds.
Sinbad strapped one of the pieces of meat to his back, and returned to
Baghdad with a fortune in diamonds.7

Goa’s Diamond Trade Route: During the latter half of the 14th
century, most of the diamonds entering Europe originated in India. The
Golconda diamond trade route extended from India to Bruges, Pares and
eventually to the diamond Bourses of Antwerp, Belgium. Up until the
tale 1400s, the only route from India to Europe was over land through
Persia, transiting the ancient “Silk Road” caravan routes. This lengthy
and dangerous journey made diamond expeditions a costly affair, and
many of the diamonds would fall into Persian hand as a “Tariff” for
crossing their territory. Desprerate to find an alternative route to India
7. Rangrajan K., Kennedy H. and Murti M., “Management Megatrends”, Allied Publishers Private
Ltd., 2010, p.264.
 51

and the Far East; Portuguese explorer Bartolomeu Dias discovered the
‘Cape of Good Hope’ on Africa’s southernmost tip in 1488. This led to
fellow Portuguese navigator Vasco da Gama’s discovery of a sea route to
India in 1498, by sailing around the cape. This new and easier sea-route
soon led to European dominance of the Indian Diamond trade. Along
India’s Malabar Coast, the state of “Goa” grew into Portuguese trading
center, and a diamond-trading route was established form Goa to Lisbon,
Portugal and on to Antwerp. In 1510, the Portuguese established a
permanent settlement in Velha Goa (Old Goa), after Portuguse admiral
Afonso De Albuquerque defeated the ruling Bijapur kings. The city of
“Vasco’, named after Vasco-da-Gama, remains Goa’s largest city. The
fascination and charm of gems is rotted not only in its power to please
the eye but also to express the whole range of human emotions, love,
desire, superstition, religious devotion or ambition. The exquisite objects
of adornment have enthralled great nobles and princely families. The
prestige of the king and queens depended heavily on tangible
manifestation of royalty and the personal jewellery played an integral
part in shaping their public image. Thus, jewellery has played an
important role as adornlment, as a sign of wealth and as a glow of the
royal image throughout the ages.

Hubs
· Jaipur is key center for polishing precious and semi-precious
gemstones.
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· Delhi and its neighboring states are famous for manufacturing

silver jewellery and articles.
· Kolkata is famous for its lightweight plain gold jewellery. This
category of jewellery finds a large market in Tamil Nadu.
· Hyderabad is the center for precious and semi- precious studded
jewellery.
· Nellore is a source for hand made jewellery that has been
supplying the Chennai market for quite a few decades. Belgaum
in Karnataka and Nellore together, specialize in studded
jewellery using synthetic or imitation stones.
· Coimbatoare in Tamil Nadu specializes in casting jewellery.

· Truchur in Kerala is another source for lightweight gold

jewellery and diamond cutting.
· Mumbai is the centre for machine made jewellery. The city is
also India’s largest wholesale market in terms of volume.

PROMINENT CENTERS OF GEMSTONES IN INDIA

The study of different important centers of gemstones industry and

trade may also assist in knowing the history of gems and jewellery
industry in India. For this purpose, a study of two centers (Surat and
Jaipur) has been made in particular. Surat and Japur have been
deliberately chosen for the purpose, as in the present time these two are
the prime centers representing the whole industry.

JAIPUR - The Pink City of India : Jaipur, the vibrant capital of

Rajasthan, is popularly known as the “Pink City” because of the
 53

pink-coloured building in the walled city. It is one of the main

constituent destinations of the “The Golden Triangle of India”. The city
owes its name after the great warrior and astronomer Maharaja Jai Singh
II. A Bengali architect Vidhyadhar Bhattarchrya designed the city, using
the principles of town planning, as laid down in the Shilpa Shastra, an
ancient Hindu treatise on architecture. He builds the “City Place”, and
the largest stone observatory in the world, employing the same principle,
Jaipur has a unique place in the field of manufacture and trade of
jewellery not only in India but also in the whole world. An ordinary
tourist knows this city as the “Pink City” but traders in jewellery in the
world know this city by the name of the ‘Gem City of India" and
“Emerald City”. This is the quality, which is just and appropriate in
every respect.

The history of jewellery industry in Jaipur is older than the city

itself. It is historical fact that at first Amber (which is very near to
Jaipur) was the capital of the princely state of Jaipur. When, in the year
1784, Mirja Raja Sawai Jai Singh Founded the city of Jaipur and made it
the capital of the state, and the workers and the business persons dealing
in the jewellery also shifted from Amber to Jaipur. Mirja Raja Sawai Jai
Singh provided almost every type of facility to the persons engaged in
this business. Mirja Raja Sawai Jai Singh wanted to see jaipur city as the
city of Gems. That is why is his time so many places in the city were
given names related with the gems, e.g. Johari Bazaar, Moti Katla,
Manak Chowk, etc.
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The Maharaja of Jaipur granted their generous protection and

partronage to a number of arts in gem and jewellery art in particular.
This is the only factor, which helped Jaipur in becoming the great centre
of works of arts, and in particular, the greatest centre of gems. From
(1669-1689 AD) Delhi also remained the home of artisans and artists
and enjoyed unsurpassed fame for manufacture and sale of
semi-precious stones. Soon after, the jewellers from Delhi automatically
started migrating to Amber, because they themselves had not been
feeling safe and secure at the time of downfall of Mugal Empire. Under
those conditions, all the families of the skilled worker migrated and
settled in Amber, where they found a ready market for their skill. Among
these workers the celebrated royal gem-cutter Mustakim Sheikha was the
first to start the work. In the year 1723 AD, the capital of Jaipur was
shifted from Amber to Jaipur city. Due to this change, all the jewellers
and the artisans also shifted themselves to the new capital.

Sawai Jai Singh gave every possible incentive and encouragement

to the jewellers. For the regulation of the trade, it was made compulsory
for all the traders to get themselves registered with the Kapardwara,
which used to grant them financial help and purchase their finished
goods apart from guiding and regulating the industry.

From 1816-1822 AD all these jewellers promised to get their goods

certified from the Kapardwara before sale and pay the tases on it. This
was the first time when any taxes was imposed on the goods of the
industry. At this state, this trade assumed a new form. All the jewellers
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of jaipur formed themselves into a sort of community association

(Panchayat). In the year 1829 AD, they signed an agreement, according
to which a new entrant to the trade was required to pay 125.00 to the
Maharaja as Nazar and entertain the community panchyat feast. All
shows that the state took an active interest in regulating the conditions of
the trade and industry.

Export trade in jewellery begins in the year 1914 A.D. and

simultaneously begins the era of prosperity for the industry. In this year,
demand for the gems from foreign countries increased. The period
between 1914 and 1974 A.D., can generally be called as the “Period of
Prosperity” for this industry. In 1937, Maharaja Man Singh imposed a
duty of Rs 1-9-0 Per Rs. 100 on jewels. Naturally, the jewellery trade
was the badly affected by this duty. So, all the jewellers individually
went to the authorities and requested them to reconsider their decision.
However, nothing fruitful could come out. So, ultimately, they formed
the “Jeweller Association” in the year 1928 A.D. and Seth Banji Lal
Tholia was made the first president of this association. According to the
new agreement to which, the association, was made responsible for
collecting RS 16,000 per year form jewellers and depositing it in the
treasury. All the traders were satisfied with this agreement. This annual
amount was changed year after year according to changing conditions of
the trade.8

8. Report of Indian Law Office on Gems and Jewellery Industry, Higher Standard making
Difference for you in India, New Delhi, 2011, pp.2-3.
 56

SURAT, the Diamond Cluster : How important Surat has been in

gemstone industry can be proved with the help of remarks made by a
prominent historian. According to him, “the magnificence of the king of
Delhi rests as wheat and barley. Whilst that of the king of Gujrat who
has 84 parts under him, has its foundation on Coral and Pearls”. By the
end of the sixteenth century, Surat was one of the largest cities in Gujrat
and one of the chief parts of the Mughal Empire. In the seventeenth
century, the trade and importance of Surat increased further. The
merchandise, which passed through the city, was considerable and
varied. It included pearls, coral, rubies, diamonds, white sapphires and
the precious stone; cups and other ornaments of agates and cornoliam
(from the mines near Ratanpura and Nimodra or Limodra): copper,
ivory, jewellery, grains, sugar, opium, indigo perfumes, oil, soaps
furniture, chintz, and semi-precious stones. Surat was the termination
point of the caravans used to come from distant ispahan in Iran and
Chaka in Bangladesh, ship form the Konkani, Malabar, Sri-Lanka,
Bengal and Burma: from east Africa, Arabia and the Persian Gulf as well
as from Europe, South East Asia and Far East enchared at Sunwali.
There were some extremely rich merchants in Surat. There were men
like Virji Vora as a merchant prince whom the East India company
considered. “The richest merchant in the world he purchased the entire
cargoes valued between five and ten lakhs of rupees and his personal
fortune was very conservatively estimated at Rs. 80 lakhs, Pudamsi
another merchant price, negotiated a consignment of orient pearls from
 57

Iran said to be worth Rs. 10 crores. The history of processing industry in

Surat can be best looked at in conjunction with its neighbouring town of
Navsari. The first known diamond-cutting factory was started in
Navsari. The first known diamond cutting, factory was started in Navsari
during the year 1938 with 65 workers. Thirty-five years age in early
1970s, Surat had about 100 units employing 500 persons.

These examples show how developed was the trade of jewellery at

Surat even in the ancient time. The historical city of Surat resumed he
path of progress in the post independence period. There was gradual and
continued progress in the trade relating to jewelry as well as other
industries.

PRESENT POSITION OF PROMINENT CENTERS

Jaipur, in Rajasthan, not only known for the coloured gem’s

processing centre of India, but also as a global centre because of the
supply of cut and polished Emerald to the most parts of the world, Jaipur
has been processing the whole rainbow of coloured gems, besides pearl.
The traditional processing work undertaken here with outstanding skills
includes cutting and polishing of hundred species of coloured gemstones
both, natural and synthetic, carving, beads-making, straining
manufacturing of objects d’art and fine jewellery. Even Admits
modernization, Jaipur gems industry essentially retains its cottage
character. It is labour intensive, based in indigenous craftsmanship with
up to three generations working together. The workforce includes
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members of both sexes. Today, a population of around 2,80,000 of Jaipur

depends on gems and jewellery industry. Jaipur is India’s second
important gems and jewellery exporting center and the first in sale to
foreign tourists. In Jaipur, this industry is more that 30 years old. A
whole list of semi-precious stones such as Garnet, Amethyst, Citrine,
Aquamarine, Peridot, Moonstone, Tourmaline etc. go into making the
contemporary designs of modern world blending with ethnicity. Jaipur
also happens to be the world’s largest centre for gemstone cutting and
polishing. For example, diamond and emerald cutting are synonymous in
India, Around 90% of the emeralds world-wide are cut in Jaipur and
around 95% of small diamonds are processed in Jaipur for global
consumption of precious and semi-precious gems. (Ex. Ruby, Emerald,
Pearl, Blue sapphire). Jaipur Market holds the monopoly in the jewellery
houses all over India and in the global arena too. This colourful market
is popular as the name of JOHARI BAZAR, which ranks among the
most exclusive jewellery markets in the world.

Volume of Business : Total Value of exports from Jaipur, is

estimated around 1500 crores, Jaipur contributes more that 60% of the
total gems and jewellery exports from India. Jaipur is also catering to the
domestic market. Most of the reputed domestic Jewellery outlets in and
around Jaipur are catered by Jaipur viz, Delhi, Agra, etc.

Products: The 80% manufacturers produce gems and balance 20%

Jewellery.
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Size of Cluster: There are more than 100 active exporters and 1500
sub contractors at Jaipur. The cluster works through agents as connection
between small firms ad artisans. The cluster provides employment to
nearly 50,000 persons directly and indirectly.

Availability of Raw Material: The most part of the raw material for
the cluster is imported from African countries. Domestically raw comes
from states like Orissa.

Infrastructure Facilities: The cluster has all necessary infrastructure

facilities, which are required for exports including skilled work force.
Most of the industries are housed in Sitapura Industrial Area.

Supporting Institutions: Jaipur also has the technical supporting

institution, which are necessary for the development of the industry
like-Gems and Jewellery Export Promotion Council. More that 10
private educational institutions are now providing education and training
exclusively to cater the requirement of the gems and jewellery at Jaipur
for different categories and levels of work like designing, cutting,
polishing etc.

Banks and Financial Institutions: Almost all nationalized and

private sector banks and two prime financial institutions in country,
which were promoted mainly for the development of small and medium
scale enterprises viz. small industries Development Bank of India
(SIDBI), National Small and industries Corporation (NSIC) have their
presence At Jaipur. Almost all banks have their fore operations in the
branch.
 60

Important industrial associations in the cluster: The industry

association base is very poor in the cluster. There is jeweller’s inactive
association. Rajasthan Chamber of Commerce has very limited linkage
with the gems and jewellery sector.

Preparedness of the cluster to meet the challenges: Most of the

units in the cluster are of artisan nature and working in a much -closed
environment. The response to the changing market needs is very limited
except in case of a few large firms like-Jewellers Association.

Vibrancy of the cluster: Industry to Institutional interaction and

inter-institution interaction is very limited. In fact, Institutions are very
shy to interact with industry. One of the technical and educational
institutions is working in total isolation. Pearl Academy has recently
stated selected value added course to cater the industry requirement
without nay proactive participation form industry side.

Surat
India leads the glove in diamond manufacturing with 60% share in
value, 85% in volume and 92% share in the number of pieces produced.
In India rough diamonds have been mined since historic times, However,
it was only after the year 1962 that processing, cutting and polishing of
diamonds processing is done in Gujarat, of which Surat and Navsar,
account for most of it. In recent years, diamond-cutting centers have also
come up outside the state of Gujarat especially in Mumbai
(Maharashtra), Trichur (Kerala) and Coimbatore (Tamil Nadu), But
mainly in the artificial diamond industry.
 61

Product Market Scope: The cut and polished diamonds are exported
to United States of America, Japan, Belgium, Hong Kong, Switzerland
and Thailand. Of these USA, Japan and Switzerland are consumer
markets and the rest of them are trading countries. It is mostly the same
commission agents who supply roughs to the firms on behalf of the
sight-holders. Who also take the finished product for export. The
commission agents bargain on the commercial terms with the units.
There are about 2,000 exporting concerns in India, which are registered
with the Gem and Jewellery Export Promotion Council (GJEPC),
Mumbai. About 95% of the exports are routed through Mumbai based
exporters. The other development has been the move by some companies
to manufacture large size and fancy cut diamonds. A country that entered
the international diamond industry as a manufacturer of small diamonds
only, today, is producing virtually stones of every shape, size and colour.
Most companies are now innovation and developing new cuts, some of
them being patented internationally.

Performance: In the early seventies, the industry was estimated to

have around 1200 units producing employment to about 20,000 workers,
currently, there are more than 6,000 diamond-cutting units in Surat,
some of them employing more that 1000 persons each. With a work
force of close to 1m and an estimated 25,000 units in diamond industry
and a work force totaling 3m, the industry is now churning out new
employment opportunities for many. India is home to the largest
collection of laser machines in the world, with over 50 lasers deployed
 62

in the diamond industry alone. In addition, to this modern equipment

such as computerized diamond planners, auto brutes, semi-automatic and
automatic polishing machines are used in most manufacturing units. It is
estimated that 80% of the high tech polishing machines worldwide are
sold to India.

Organization: Indian Diamond Institute, Surat is organizing

exhibitions per annum and arranges to get displayed relatively
inexpensive semi-automatic holders of the diamonds (Called dops) with
the help of which artisans could be seated more comfortably on the table
to work. With this dop, even an average worker could get a good quality
cut. It was in the year 1986 that the change started, but revolution in the
widespread machinery usage came only form 1988-89 onwards when
internal competition forced artisans to change their methods of working.
Each dop then used to cost about Rs 1,00 but is meant a major leap
forward in productivity and yield subsequently, the factors that became
important were the check, controls and examination in these firms,
improved technology and high capital intensity in the industry became
important to survive and grow. This led to a restructuring of the industry
where smaller firms gave way to the bigger ones. The small
entrepreneurs either became micro-share holders in the large firms or
became managers or supervisors in the new factories.

Governance: Diamond processing activity has not been reserved for

small scale industry, despite the fact that it has traditionally been a
cottage scale artisan type of activity. The state government of Gujarat
 63

had since the days of the starting of industry offered incentives to

promote trading activities in diamonds in the state. The transactions in
diamonds have been exempted form sales tax. With the worldwide
economic recession, particularly affecting the developed countries of the
west, Surat was also plunged into decline. The espousal of new
technology led to increase in yield and overall productivity. Exposure,
training and technology espousal became the three reasons for the
success story of Surat. India is now the world leader in cutting,
re-cutting and polishing of small diamonds with Surat at its forefront.
The leadership is however largely based on the quantity of production.

Leading diamond cutting nation of the world: The diamond

manufacturing and gemstones industry occupies an important position in
the Indian economy. It is a leading foreign exchange earner and one of
the fastest growing industries in the country. India occupies a prominent
place in the global diamond industry and is the largest exporter of cut
and polished diamonds in the world.
· India imports rough diamonds and exports cut and polished
diamonds.
· Diamonds processed in India account for 60% share in value
terms, 85% in cartage terms and 92% in volume terms of the
total world market.
· 94% of global workers of diamond industry are in India.

· 80% of cutting and polishing of diamonds (Processing) takes

place in Gujarat state.
 64

Diamonds form the largest portion of US imports from India. In

2008, the Us imported $3.882 billion of diamonds out of total imports of
$5.6 billion gems and jewellery form India i.e. 69% diamonds imports
from India in the period January to December, 2009 was $3.085 billion.
Exports to US of articles of jewellery and parts thereof, of precious
metal or of metal clad with precious metal (HS Code) 7113) during the
period Jan-Dec, 2009 were $1.296 billion. The amount was $1.503
billion in 2008. Platinum, synthetic and restructured precious of
semi-precious stones waste and scrap of precious metal and pearls
increased in the period from January to October 2009 compared to the
corresponding period of 2008.

Indian foreign direct investments (FDI) in us in gems and jewellery

sector has been increasing. Renaissance Jewellery Ltd. acquired JBR
Inc. on February 14, 2008 for $40 million. Dynamix Jewellery Group
acquired Jewel America Inc on September 19, 2008. Gitanjali Gems
expanded into the US market with the acquisition of Rogers in 2007 for
19 million. It also has a presence in the Us in stand alone stores namely
Samuels which was bought in 2008 for 40 million. Shrenuj and Co. has
acquired 85% stake in US Jewellery distributor, Simon Golub and Sons
Inc. for $22.7 million. Simon Golub and Sons is the fifth largest Us
Jewellery distributor, which gives Shrenuj an access to 2400 retail
outlets and chain stores such as Wal-mart and JC Penney. Dinurje
supplies about 40% of the merchandise of MandS Jewellers in Belmont,
a Bosten Suburb. In Addition, Indian Jewellers are partnering with US
 65

Jewellers to develop customized solutions for varied customers needs.

The Indian gems and jewellery has become an important segment of US
gems and jewellery industry’s supply chain. Economic benefits to the
US economy form the Indian Gems and jewellery include:
· The US economy has made direct gains of approx $1.8 billion,
13% of net economic gain.
· Indirect gains to the US economy were worth $11.8 billion, 87%
net gain.
· Number of direct incremental jobs supported in the US is
estimated to be 3,700 and indirect jobs supported by the Indian
gems and jewellery are 1600.

India- World’s Largest consumer of Gold

India is also one of the largest consuming markets for jewellery and
is the largest consumer of gold in the world. A predominant portion of
gold jewellery manufactured in India is consumed in the domestic
market. However, major portion of rough and uncut diamond processed
in India has traditionally been exported either in the form of polished
diamonds or finished diamond jewellery.
· India’s exports in gems and jewellery were US$ 17.1 billion in
2006-07.
· India’s domestic market size is US 3.6 million.

· India share in the global market in 18.5 percent.

· India is the largest consumer of gold in the world to be followed

by China and Japan. India is emerging as world’s largest trading
centre of this commodity with a target of US$ 16 billion set for
2010. According to world Gold Council (WGC) press statement,
 66

in terms of tonnage, overall consumer demand in India in 2005

witnessed 17 present growth over 2004. In rupee terms, this was
equivalent to a 25 percent increase bringing the value of gold
demand in India to a second successive annual record. Jewellery
demand also experienced a second successive annual record of
over 20 percent in rupee terms over 2004. In terms of tonnage,
the increase was 14 percent accounting 589 tonne.

Industry Forecast
· The domestic market for gems and jewellery is likely to increase
to US$20 billion by 2010 and US$ 30 billion by 2015.
· India is also emerging as the world’s largest trading center for
gold targeting US $16 billion by 2010
· Branded jewellery is likely to be the fastest-growing segment in
domestic sales. The sector is expected to grow at 40 percent
annually to touch US$2.2 billion by 2010.
· Diamond jewellery consumption is likely to jump to nearly 80
percent in 2010 and over 95 percent between 2010 and 2015.
· State Run National Mining Development Corporation NMDC)
planned to produce close to 100000 carats of diamonds form the
Panna diamond mines in Madhya Pradesh. (2010-2011).
· Retail Sector: The Indian gems and jewellery market continues
to be dominated by the unorganized sector. There are over 2.5
million jewellery shops in India and most of them are family
run. However, with the Indian consumer becoming more aware
and quality conscious branded jewellery is becoming very
 67

popular and the market for branded jewellery is likely to be

worth us million by 2010 according to McKinsey report worth
an increasing number of jewellery houses entering the branded
jewellery sector, retail of jewellery is becoming organized
moreover, the government allows 51 percent foreign direct
investment in dingle brand retail outlets attracting both global
and domestic jewellers to this sector.

The retail jewellery industry is comprised if five main segments :

· Bridal jewellery

· Fashion jewellery

· Watches

· Precious stones

· Precious metals

The retail jewellery industry is highly fragmented.

· No retailer claims more than 6 percent market share.

· The industry employs approximate 200000 individuals.

· Annuls jewellery store sales run about 27 billion; wholesalers

and manufacturers account for an additional 27 billion in sales.
· Wal-Mart is the largest retailer.

According to an assocham report, the increasing purchasing power

parity of the middle class and surging income levels nave resulted in an
increase in the consumption of gems and jewellery by around 11 percent
in the five year period preceding 2006-07 according to a report released
by techpak advisors in changing retail landscape in India the jewellery
 68

and watches market is pegged at about 13.52 billion. It is expected to

register a 12 percent growth by 2012 touching 23.54 billion.

Ten largest jewellery retailers :

· Wal-mart

· Zale corporation

· Sterling jewelers

· Sears, roebuck and company

· Finlay fine jewellery

· J.C. Penney

· QVC

· Tiffany and company

· Service merchandise

· Kmart

Indian Retail Jewellery Overview

Yesterday Today
Branded Unbranded
Silver and gold jewellery Gold and diamond jewellery
Investment Investment + fashion
Traditional design Fashionable and innovative design
Marriage & festival were peak Wear ability and gift
seasons
Jewellery sold on commodity basis Jewellery being sold on a per piece
with labour charges basis
 69

A booming market has in recent years attracted a large number of

players to the Indian gems and jewellery retail sectors.9
· Reliance retail is planning an aggressive entry into the jewellery
retail market.
· It will open between 400 to 500 jewellery retail outlets across
the country.
· Damas India, part of one of the largest jewellery retail outlets in
the world, is adding 16 new stores to the 12 stores it currently
has in India.
· Swarovski, the global crystal goods crystals goods manufacturer
and marketer, plans to set up 30 stores by 2009, up from the
current 13.
· The Gitanjali group has bought ‘Nakshatra’ the premium brand
of jewellery promoted by diamond trading company (DTC)
· Mumbai-based Vardhaman Developers plans to build four more
jewellery malls in the city.
· Dubai-based Jay Alukkass has recently opened its largest
showroom in Chennai.
· Viswa and Devji diamonds, a partnership between the Indian
group and the top jewellery retailer in use opened its first
diamond retail outlet.
· Gitanjali gems Ltd. Opened its first luxury jewellery mall in
Gurgaon, where a number of international brands have started
have started their retail business.

9. Agarwal, M.A., “Small and Medium Enterprises in Transitional Economics: Challenges and
Opportunities”, Mayur Enterprises, 2009, p.526.
 70

· Gold Souk India has plans for opening 100 souks in 100
months.

Exports

According to the figures released by the GJEPC (gems and

jewellery export promotion council) exports recorded a 22.27 percent
growth touching US$20.88 billion in 2007-08 as against US$17.08
billion last fiscal. Diamonds have made a significant contribution to this.
· Diamonds accounted for 70.59 percent of the total exports.

· Gold jewellery accounted for 26.91%

· Colored gemstones and others accounted for 1.32 percent and

1.16 percent respectively.
· According to provisional estimates of gems and jewellery expert
promotions council (GJEPC) gems and jewellery exports during
2005-06 stood at US$ 16.66 billion against US$ 15.67 billion in
fiscal 2004-05. in rupee terms, the growth was 34.15 percent -
from Rs. 70245 crore in 2004-05 to Rs. 94236.86 crore in
2005-06.
· The Indian gems and jewellery industry has witnessed 6.32
growth in exports in fiscal 2005.06 totaling at US$ million
(Rs.73304.29 crore) against US$ 15678.14 million (Rs.
70245.95 crore) achieved in the previous fiscal.
· The growth in the sector was primarily driven by the cut and
polished diamonds (CPD) segment, which witnessed a
remarkable increase of 6.07% the export sales of cut and
polished diamonds (CPD) grew to $11860.49 million during
 71

fiscal 2005-06 from $ million in the previous financial year.

While total volume of cut and polished diamonds (CPD) were at
432.72 lakh carats during 2005-06 as compared to 479.47 lakh
carats in the corresponding period in 2004-05.
· Gold jewellery export registered a growth of 1.28 percent with
exports at $3861.57 million in fiscal 2005-06 as compared to
$3812.88 million in financial 2007-05 coloured gemstones grew
by 21.05% to $233.32 million in financial year(FY) 2004-06.
“Industry through its consistent efforts has shown immense
fortitude and has managed to maintain its year in year growth of
the total gems and jewellery exports. The gems and jewellery
sector continues to be the front-runner and highest contributor to
the total value addition to the country contributing US$ 3.5
billion in financial Year (FY) 2006" Bakul R. Mehta Ex.
Chairman, gems and Jewellery export promotion council
(GJEPC), says ”industry for last few years has gown
consistently at 15%-20%. The last two quarters of financial year
(FY) 2005-06 have witnessed diminishing exports. This is
primarily because of because of market slow down in USA, the
largest export destination for Indian gems and jewellery sector.
Industry has achieved remarkably growth in its previous years
and now it has reached at a stage where it needs to consolidate
and focus in value addition and increasing the value china.
Industry marks the year 2005-06 as ‘Year of consolidation’ and
looks forward to transform and establish itself as a trading hub
for Jewellery globally".
 72

· The 2008-09 fiscal also started on a positive note, with the gems
and jewellery exports rising by nearly percent to US$ 9.05
billion during April- august 2008, compared to US$ 7.74 billion
in the corresponding period last year significantly, rough
diamonds export stood at US$ 386 million while cut and
polished diamond exports increased by 22 percent to US$ 6.5
million.

Some of the main highlights for the financial year 2009-10 are as
follows:
· From exports figures of US$24,495.58 million in the financial
year (FY) 2008-09 the exports in financial year (FY) 2009-10
have shown considerable increase and have registered an export
of US$ 28414.64 million. This indicates an increase of 16
percent in the total gems and jewellery exports. The
performance of this industry is critical as it contributes 13
percent to India’s total merchandise exports.
· Colored gemstones export increased by 10.55 percent to US$
286.65 million in 2009-10 compared to US$ 259.29 million in
the previous fiscal.
· Gold Jewellery Exports have also been on a rise accounting for
9.38 percent increase in financial year (FY) 2009-10, with
exports increasing from US$ 8616.43 million in 2008-09 to US$
944.33 million in 2009-10.
 73

Table 2.1 : The Challenges of the Gems and Jewellery Export

Problems No. of % of
respondent respondent
Better quality products from foreign 136 30%
companies
Competition in the domestic sector 106 24%
Lack of institutional support 123 27%
Other factor 85 19%
Total 450

Foreign country having better quality of jewellery product, lack of

institutional support to the exports, high level of domestic competition in
India are the major problems of gems and jewellery sector.

Demand Drivers

1. Demand Drivers of the Jewellery Segment :

· Continuous Traditional Demand: Jewellery is an important
constituent of the Indian culture. Traditionally in India the
demand for gold and diamond jewellery is driven by festivals
and weddings and there is remarkable historical and religious
significance too. India is also the largest consumer of gold in the
world. In marriage, gold jewellery is the most preferred gift by
the near relatives of the bride and the groom. Gold jewellery is
very popular among farmers, with an upsurge in gold sales after
a good agricultural season. Buying of gold is an important part
of every stage of an Indian citizen’s life. Given the Indian
culture, this stream of demand is thus continuous and is only
expected to rise going ahead.
 74

· Important Savings and Investment Vehicle: Apart from its

religious and social significance, gold is valued as an important
saving and investment vehicle in India and is the second
preferred investment after band deposits. This can also be easily
converted to cash either through sale or for statement as well as
for daily use and gifting has fuelled demand growth is the gems
and jewellery sector.

2. Demand Drivers of Diamond Jewellery :

· Increasing acceptability of Diamond Jewellery in the Domestic
Market: Traditionally, jewellery in India has mainly been gold
jewellery. Diamond jewellery is lesser accepted in India due to
factors such as myths associated with diamonds being unlucky
in certain instances and the higher cost of diamonds. This is now
changing with an increased acceptance of diamond jewellery in
the domestic market.
· Diamond as a fashion statement for the affluent: Diamond
jewellery is increasingly serving as a fashion statement for the
affluent to differentiate themselves from others wearing
traditional jewellery /gold jewellery.
· Increase affordability: employment of women in the workforce
has been increasing due to the changing mindsets and increasing
education levels among women. This has resulted in women
having more impact in purchase decisions; and women having
also started purchasing jewellery for themselves as against
earlier trends of jewellery purchase being primarily a family
 75

decision. Increased disposable income for working couples and

lifestyle changes have aided this.
· Exported as a driver: As seen earlier, exports have been growing
year on year and the 5 year compounded annual growth rate
(CAGR 2002-03 to 2007-08) is about 13%. India currently
produces around 95% of the world’s cut and polished diamond
pieces. By carat weight, India is estimated to process 80%.
· Demand for branded jewellery in India growing at the rate of
20% annually.
· Acceptance of branded diamond jewellery by younger
generation. 54% of the population in the age group of the 16
to 35.

3. Government Initiatives :

In order to revive the Indian economy from the global economic

downturn. The government has provided an Impetus to the booming
gems and jewellery industry with favourable measures including:
· 100 percent foreign direct investment (FDI) in gems and
jewellery through the automatic route is allowed.
· The government has lowered import duty on platinum and has
exempted rough colored precious gemstones from customs duty.
· Rough, semi-precious stones are also exempt from import duty.

· Duty-free import entitlement for rejected jewellery up to 2

percent of f.o.b. (freight on board) value of exports.
· Oporto of gold of 18 carat and above under the replenishment
scheme.
 76

· Setting up of special economic zone (SEZs) and gems and

jewellery parks to promote investment in the sector.
· The government has raised the limit value of jewellery parcels
for export through foreign post office (including via speed post)
from US$ 50,000 to US$ 75,000 and the time period for
re-import of branded jewellery remaining unsold has been
extended from 180 days to 365 days.
· The export of colored gemstones in a consignment basis has
been allowed.

The government has announced a serried of measures to help gems

and jewellery exports in the foreign trade policy 2009-2014:
· It has been decided to neutralize duty incidence on gold
jewellery exports, to allow duty drawback on such exports.
· To promote exports of gems and jewellery products, the value
limits of personal carriage have been increased from US$ 2
million to US$ 5 million in case of participation in overseas
exhibition. The limit in case of personal carriage, as samples, for
export promotion tours, has been increased from US$ 0.1
million to US$ 1 million.

To fuel this high growth industry in India, the government has

undertaken positive policies such as 100% foreign direct investment
(FDI) through the automatic route. 51% foreign direct investment (FDI)
in single brand retail outlets, lowering the import duty, exemptions of
custom duties, setting up special economic zone (SEZs) and gems and
jewellery parks to promote investment in the sector. Country’s first
 77

diamond bourse, the Bharat diamond bourse in Mumbai is soon going to

be fully operational.10

SWOT ANALYSIS OF THE INDIAN GEMS AND

JEWELLERY SECTOR
Strengths:
· About one million craftsmen are engaged in design and
manufacture of modern jewellery.
· Abundant availability of cheap and skilled labour in India.

· Presence of wide marketing network across the world.

· Supportive government industrial export-import (EXIM) policy.

Weaknesses:
· Small firms lacking technological / export information expertise.

· Low productivity compared to labour in china, Thailand and Sri

Lanka.
· Import of raw material necessitates a large inventory.

Opportunities:
· New Markets in Europe and Latin America.

· Growing demand in South Asian and eastern countries.

· Industry moving towards consolidation.

Threats:
· China, Shri Lanka and Thailand entry in the small diamond
segment.

10. Sarker, A.N., “Enhancing Global Competitiveness: Advantage India”, L.K. Publications, New
Delhi, 2009, p.336.
 78

· Infrastructure bottlenecks absence of latest technology.

· Volatility in the price of gold.

GEM AND JEWELLERY COMPANIES UNDER STUDY

Total five major Gem and Jewellery companies in India have been
selected for the present study. A brief history and development of each
company is given here.

1. Surana Jewellers Corporation Ltd.

The royal patronage of Maharaja Sawai Jai Singh II, founder of

Jaipur, was instrumental in inviting the family of Surana jewellers in
1735 from Delhi to promote the intricate art of hand crafted gold,
enamel, kundan, diamond and precious stone jewellery.

Surana jewellers, an intrinsic part of the city’s heritage, have since

then perfected the art form and handed this craft down the generations
creating masterpieces reminiscent of the royal bygone era.

Two and a half centuries of experience, fine craftsmanship and

customer satisfaction have been the key factors in making them pioneers
in the art of Jadau. This legacy is being carried forward by Kamal
Surana and Mrs. Prem Surana. Their constant endeavor to design and
create exceptional pieces of art in jewellery has led to an exclusive
collection, which is an aesthetic fusion of the traditional and the
contemporary. His wealth of experience in the international market has
proved to be his biggest asset and has ensured a global clientele Kamal
Surana’s mentor and inspiration was his father, the late Shri Rajmal
 79

Surana. He was the undisputed King of Kundan and Minakari art of

Indian jewellery. His vision, innovative designs and the zeal to promote
Jadau jewellery at a global level, gave a fresh lease of life to the
perishing art of Minakari. His efforts to get the Gold Control Act
abolished are an unforgettable contribution to the industry. Under his
able guidance the family started participating in international jewellery
fairs which gave this art global recognition. He was also invited to be an
integral member of the expert committee set up by the Govt. of India for
evaluation of the Nizam’s Jewels in 1973, when the collection was
offered for sale by the jewellery trust. This stands as a testimonial for his
expertise, skills and credibility.

Like him Kamal Surana is also propagating this incredible craft

with an exquisite collection which has a global appeal and is keeping
this artistic heritage alive. The resplendent collection of jewellery
displayed at Suranas upholds the tradition of meticulous workmanship,
uncompromising style and implicit trust envisioned by its founders.

2. Classic Diamonds (India) Ltd.

The Classic Diamonds (India) Ltd. was incorporated on 10th

November, 1986 as a Public Limited Company and obtained the
Certificate of Commencement of Business on 6th February, 1987. It was
promoted by Chandrakant M. Bhansali, Batuk P. Shah, Mrs. Rita K.
Bhansali and Others.
 80

The Company imports rough diamonds for processing and export

of cut and polished diamonds. The Company, originally was
incorporated in the name of VXL Diamonds (India) Ltd. The main
activity of the company is to import rough diamonds and to process and
export cut and polished diamonds. The Company is a Sight Holder of the
Diamond Trading Co. (Pvt.) Ltd., London (popularly known as DTC).
The Company is thus assured of a regular supply of rough diamonds.

Besides marketable diamonds, the Company also proposed to

produce Sawn diamonds which are of a substantially higher value. In the
year 1988, 70 number of equity shares subscribed for by signatories to
Memorandum of Association. 34,99,930 number of equity shares then
issued at par of which 13,99,930 shares were reserved and allotted to
promoters, directors etc. Of the remaining 21,00,000 number of equity
shares, the following shares were reserved for allotment on a preferential
basis:-

(i) 12,25,000 shares to NRIs (all were taken up), and

(ii) 1,75,000 shares to employees (including Indian working

directors)/workers of the Company (only 63,300 shares taken
up).

The balance 7,00,000 shares along with 1,11,700 shares not taken
up by the employees were offered for public subscription during
May-June.

In 1990, the Company has received the Export Award from Gem &
Jewellery Export Promotion Council. In the year 1992, the company
 81

received permission from the Government to set up a jewellery

manufacturing unit at SEEPZ, Mumbai, exclusively for export of
studded gold jewellery. Steps were taken to implement the studded
jewellery project.

The Company has established its first Jewellery factory, Seepz

Zone in 1993. In 1995, it was accorded Sight Holder status by diamond
Trading Company (DTC). The Company has established a diamond
cutting factory in Ahmedabad in 1998. In the year 2001, the Company
has signed an agreement with CDSL and NSDL for dematerialisation.
Classic Diamonds India Ltd has informed that the Board of Directors of
the Company at its meeting held on October 31, 2006, inter alia, has
appointed Mr. Hiren Shah as Whole Time Director in place of Mr. Ashok
Ashar. In 2008, the Company has splits its equity share face value from
Rs 10/- to Rs 2/-.

3. Gitanjali Gems Ltd.

Gitanjali Group is the world’s largest branded jewellery retailer
with an annual turnover of over US$ 2.1 billion. The India based group
was established in 1966 and today its activities are spread across the
entire value chain from sourcing and processing rough diamonds to
manufacturing, branding and retailing gold and diamond jewellery.
Gitanjali Gems Ltd., which was listed on the Indian stock exchanges in
2007, is the flagship company of the Gitanjali Group.

Enjoying Sightholder status with DTC through a promoter group

company, Digico, the Group has strategically positioned itself to
 82

manufacture and promote diamonds as well as studded jewellery, at the

branded retail level.

Gitanjali has combined a world class manufacturing discipline with

a reach-enhancing retail strategy to emerge as one of the most valuable
jewellery conglomerates in the country today.

Gitanjali has over four and a half decades of experience, being one
of the pioneering diamond houses in India. The company was accorded a
Sight by the Diamond Trading Company Ltd., London as early as 1968,
making it amongst the first Sightholders in this part of the world. Having
received over 60 National and Council awards from the Ministry of
Commerce for outstanding exports, it is today one of the largest diamond
exporting companies in India.

Over the last two decades, the group has expanded and diversified,
while continuing to lead the core diamond business. Presently the
Gitanjali Group has highly modernized diamond cutting and polishing
facilities at multiple locations in India and overseas. It also has a well
developed marketing network spread across USA, Europe, Japan, China
and Middle East.

In India the Group has been the pioneers of the jewellery retail
revolution, having pioneered the launch of Gili, the first branded
jewellery line in India way back in 1994, and having introduced a
number of other brands for different consumer segments and needs.
Several of their brands enjoy strong equity amongst consumers,
including Gili, Nakshatra, Asmi, D’Damas, Sangini and Diya. Gitanjali’s
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brands are thus, the most visible jewellery brands in the Indian market
today. Four of the top five jewellery brands in the country are from
Gitanjali.

Gitanjali is also a recognized name in the global branded jewellery

business, and its presence in this sector has been further enhanced
through recent acquisitions of leading Italian brands like Stefan Hafner,
Valente, IOSI, Poratti and others.

It has a retail presence in all the important jewellery markets around

the world, such as USA (where it owns and operates two retail chains –
Rogers and Samuels, with nearly 111 outlets), China, Japan, Middle East
etc.

A further pioneering step is the group’s foray into setting up a

sector specific Special Economic Zone (SEZ) , a 171-acre Hyderabad
SEZ, the first units of which have already begun functioning.

Recently, it has also ventured into the luxury lifestyle sector in

India under the banner of Gitanjali Lifestyle. It runs the Giantti Luxury
Ensemble for high end Indian and international jewellery brands, and a
chain of department stores, retailing jewellery, watches, apparel and
other fashion accessories.

Gitanjali Jewels : Gitanjali Jewels is the pioneer concept of the

Esteemed Gitanjali Group. Its showcase is a spectrum of shimmering
gold and sparkling diamond brands, treasured jewellery that
compliments all reasons, seasons and occasions. Gitanjali Jewels offers a
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dazzling bouquet of world’s leading Jewellery brands that include

Nakshatra, Gili, D’damas, Asmi, Diya, Maya Gold, Parineeta, Collection
G, Gold expressions. Gitanjali Jewels blends and compliments customers
various attires and moods. Company’s price range of jewellery
introduces the concept of Affordable Precious Luxury that suits the
budget of most of the consumers.

The Company’s stunning “One Shop Stop” Jewellery outlets spans

across all over India. The State of Art ambience and retail design add
that jewel to the crown of the company’s retail outlets. Gitanjali Jewels
products are a personification of elegance and grandeur designed to
celebrate the enigma of a woman. The company focuses on quality,
purity, and variety and exceptional customer service, serves to enhance
the jewellery buying experience its consumers.

4. Vaibhav Gems Ltd.

Vaibhav Gems Limited (VGL) incorporated in Jaipur, India in

1989, is today a professionally managed, end-to-end vertically integrated
business organization.

VGL started as a Gemstone manufacturer and then in 1996-97, as a

forward integration, the company came out with IPO to establishing a
world-class jewellery-manufacturing unit for export of gem-studded
gold jewellery. First unit was set up at Adarsh Nagar, Jaipur in 1997. In
the year 1999, company set up a new 100% Export Oriented Unit at
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Export Promotion Industrial Area, Sitapura, Jaipur. In 2002, it installed

an Italian micro-weight gold chain manufacturing plant.

The VGL group of companies is a professionally managed, end to

end vertically integrated fine Jewellery multinational of Indian origin
with operations in five countries. Vaibhav Gems is a public limited
company and is listed on BSE and NSE. VGL has its head office at
Jaipur, India. Its own Jewellery TV shopping channels in UK and USA
and additional sourcing offices in Hongkong, China and Thailand. The
group turnover was US$ 110 million in 2010-11 and is expected to grow
at 15-20% per annum in coming years. Company’s manufacturing unit in
Sitapura Industrial Area is ISO 9001:2008 certified.

In order to further forward integrate, in April 2006, VGL ventured

into Electronic retail in UK starting a live TV Shopping Channel and
E-commerce operation- The Jewellery Channel Ltd., in London. Seeing
the success of the model, VGL opened another TV Shopping Channel
and E-commerce operation - Liquidation Channel, in Austin, Texas to
address US market. Such vertical model allowed VGL to offer unparallel
values to customers, thus rapidly capturing market share in both UK and
USA. Currently, the Jewellery Channel UK is broadcasting in approx 30
million households in UK and Liquidation Channel in approx 55 million
households in US.

VGL has received highest Export Award (Colored Gemstone

Category) for the 15th time, 12th time in succession. VGL today is one of
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the largest exporters of colored gemstones from India, and also the one
of the largest exporter of studded jewellery.

On 12th October 2007, Nalanda India Fund Limited, one of the

reputed private equity funds, invested Approx US$ 25 million in the
Company. CNBC, Country’s most reputed business news channel, has
awarded ‘Emerging India Award 2006’ to the company in Gem and
Jewellery category.

VGL has been short listed for the 3rd time in Succession for
adopting good corporate governance practices, for the ICSI National
Corporate Governance Award. Today, VGL group has strength of 1146
dedicated and proud employees across our operations in China,
Thailand, India, UK and USA.

5. Rajesh Exports Ltd.

Incorporated in 1990, Rajesh Exports Ltd (REL) began operations
as a gold jewellery manufacturing and export company. It is
headquartered in Bangalore, India. Since inception, REL has emphasized
on Research and Development. REL has introduced several new designs
and concepts of jewellery to the international market and evolved as a
powerhouse in design, development and distribution of gold jewellery.

Rajesh Exports has one of the world’s largest jewellery design

database of 29000 designs and is currently the largest manufacturer of
gold jewellery in the world. It is also the lowest cost gold jewellery
producer in the world.
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REL has developed several innovative technologies and processes

in the manufacturing of Jewellery. The company has its presence in the
entire jewellery cycle beginning from refining of Gold to retailing of
jewellery. REL securities are widely held, with some of the world’s top
institutions being the shareholders. The securities of REL are listed and
traded in India on the NSE and BSE.

REL retails its jewellery through its SHUBH Jewellers outlets. The
Company has launched a Gold Revolution in the state of Karnataka.
Yearwise development of Rajesh Exports Ltd is as follows:
· In 1988, brothers Rajesh Mehta and Prashant Mehta joined
family retail jewellery business.
· 1990 : Rajesh Exports established the first organized gold
jewellery manufacturing facility in India.
· 1991 : Rajesh Exports established India’s first R&D facility in
the jewellery sector.
· 1994 : Rajesh Exports emerged as the largest exporter of
jewellery from India.
· 1995 : Initial Public Offer (IPO) of securities came from the
Company to fund expansion of manufacturing facility which
overwhelmingly subscribed and REL securities listed and traded
on the BSE and NSE.
· 1996 : REL successfully implemented the expansion plan.

· 1999 : REL plans to set up world’s largest manufacturing

facility.
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· 2002 : REL completes the construction of the World’s Largest

manufacturing facility.
· 2003 : REL begins commercial production in the new
manufacturing facility.
· 2006 : REL achieves a sales of US$ 1.5 billion.

· 2008 : REL establishes branded retail chain stores under the

name of “Shubh Jewellers”.
· 2009 : REL launches the Gold Revolution in the state of
Karnataka through Shubh Jewellers.
· 2013 : REL has launched 80 Shubh showrooms in the State of
Karnataka.

Management

Management of REL is managed by a Board of Directors

comprising of experienced people in the jewellery trade and also
professionals from other relevant areas. The Board of Directors is
responsible for all major decisions. The Board of Directors is assisted by
a well defined hierarchy comprising of some of the most experienced
Professionals in the jewellery field. The Directors have ultimate
responsibility for the management and administration of the affairs of
the company.

The Articles of Association of the Company provide that, the

number of Directors shall not be less than three and not more than
twelve. The company may, subject to the provisions of the Articles of
Association and the Companies Act, alter the minimum or maximum
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number of Directors by approval of its Shareholders. Not less than two

thirds of the total number of Directors shall be, elected Directors who
retire by rotation. At each annual general meeting of the Company,
one-third or such of the directors for the time being who are liable to
retire by rotation, shall retire from office. A retiring Director is eligible
for re-election.

Infrastructure : Over the period of years, REL has built the finest
infrastructure for manufacturing, marketing and distribution of world
class jewellery.

Refining : REL has set up a gold refining unit at Rudrapur,

Uttarakhand. The refining unit was operational in the year 2009. The
peak-out capacity of the refining unit is to refine Four hundred tonnes of
gold per annum.

Manufacturing : REL has set up a state-of-the-art jewellery

manufacturing unit at Whitefield, Bangalore. The construction of the
manufacturing unit was started in the year 2001 and completed in the
year 2003. The factory has been specifically designed to suit the most
demanding needs of jewellery manufacturing; special emphasis has been
laid on security, minimizing Gold wastage and worker welfare. The peak
out-put capacity of the factory is to produce Two hundred and fifty tones
of world class jewellery per annum. The manufacturing facility is the
largest jewellery manufacturing facility in the world.
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Marketing
REL has established reliable international marketing network which
has a reach in North America, Europe, Asia and Australia. Company
also has set-up a domestic marketing network across most of the Indian
states. In the international markets REL supplies to large scale whole
sellers and has established relationships spanning over a long period of
time with some of the largest jewellery names across the world. In the
domestic market REL supplies to jewellery showrooms across the
country. REL has a clientele of more than Five thousand jewellery
showrooms in India. For domestic marketing REL has developed its
specialized marketing team which caters to the needs of the clients.

Retail
The Company has launched a Gold Revolution in the state of
Karnataka and proposes to carry on the same all across India under the
brand name of Shubh Jewellers. REL has setup 82 retail jewellery stores
across Karnataka at prominent locations. REL has created an exclusive
set of designs to be sold at these showrooms. REL is also in the process
of setting up five hundred retail jewellery stores across the five southern
states of India under the brand name Shubh Jewellers. REL has
introduced a unique Associate model to set up its remaining stores.

Technology
At its Manufacturing Facility REL utilizes some of the best
technology available in the world. REL has procured technology from
across the world and also from the Indian markets. Whenever required
REL has developed its own in-house technology to meet specific
production challenges.

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