6/19/12

Click to edit Master subtitle style

Jewellery Industry
By Akanksha Chaudhary Barkha tulsyan Deepa Patra Digvijay Singh Parmar

6/19/12

People wants to showcasing a fine elegance and sheen, the range of fashion jewellery which reflect an amalgamation of many cultures, traditions and customs.

6/19/12

Global Jewellery Industry

Jewellery have been a part of most of the cultures of the world at some point of time or other. From its basic use as currency, it is now used as an instrument to store and display wealth. In the recent past(last 3-4 decades), this industry has shown an impressive growth world wide. The current global market for the sector is estimated at around $85bn USD (4 lac crore approx) Global jewellery sales are expected to grow at 4.6% year-on-year to touch $230 billion in 2015. On the other hand, Indias pie in the diamond processing market is set to drop from the current 57%

6/19/12

Diamond jewellery will be the slowest growing segment at a CAGR of 3.3%. India and China are the emerging centers of jewellery consumption and have steadily increased their share of the pie to 8.3% and 8.9%, respectively There are nearly 50,000 stores engaged in jewellery retail. The industry employs approximately 200,000 individuals.

Indian Jewellery Industry

6/19/12

The gems and jewellery industry in India occupies a significant position in the Indian economy. The market encompasses various kinds of jewels including gold, coloured gemstones, costume jewelleries, platinum and diamonds. The sector is expected to register a compound annual growth rate (CAGR) of 13 per cent during 2011- 2013, according to a RNCOS report titled, 'Indian Gems and Jewellery Market Forecast to 2013'. India has overtaken the US to become the third-largest

6/19/12

Industry structure

The jewellery industry in India is estimated at Rs 150,000 crore (US$ 30.49 billion) industry of which only 5 per cent is organized. The global demand for gold in 2011 rose to 4,067.1 tonnes worth an estimated US$ 205.5 billion- World Gold Council (WGC) One piece of jewellery is sold every three minutes online on eBay India said by Deepa Thomas, Head (Pop Culture), eBay India Branded jewellery, which accounts for less than 6 per

Gold Industry

leader in the table South Africa has of most gold emerged as a consuming major diamond nations with the trading hub. consumption amounting to Surat's diamantaires about 16,000 are aiming to tonnes. dominate globally. The other key markets include Surat, the world's largest cutting Industry composition Japan, China,

Diamond Industry India appeared a Botswana in

6/19/12

6/19/12

Government Initiatives

India is emerging as a very big consumer market for jewellery and other luxury products and thereby appears as a very attractive opportunity for major brands to establish their presence in the Indian market. Government's decision to allow foreign direct investment (FDI) of up to 51 per cent in single brand retail stores has attracted a large number of players to the sector. Gold bars currently attract customs duty at the specific rate of Rs 100 (US$ 2.03) per 10 grams. Other forms of gold (excluding jewellery) are chargeable to a duty of Rs 250 (US$ 5.08) per 10

6/19/12

India's Position in Gems and Jewellery Sector

Gems and Jewellery is one of India 's leading foreign exchange earning sectors. It accounted for 16.7 per cent of India 's total Merchandise Exports. USAs import of Gem & Jewellery from India increased by 50.5% in 2010 as compared to 2009. India Gems & Jewellery exports are expected to grow at a whopping 15 to 20 per cent in FY 2011-2012. At present India exports 95% of the worlds diamonds.

Advantage India

Gems and Jewellery hub Rich tradition / heritage of craftsmanship with high level of skills Low production costs

6/19/12

The retail jewellery industry is comprised of five main segments:

% Industry

Bridal jewellery (30%) jewellery (22%) (18%)

Fashion

Watches

6/19/12

Yesterday Unbranded Silver & Gold jewellery Investment

Today Branded Gold & Diamond jewellery Investment + Fashion

Traditional design

Marriage & festival is peak season Wearability and gifts

Jewellery sold on commodity basisJewellery being sold on a per piece with labour charges basis

Indian

Fashionable & innovative design

Ten Largest jewellery Retailers

6/19/12

Wal-Mart Zale Corporation Sterling Jeweller Sears Roebuck and Company Finlay's Fine jewellery J.C. Penney QVC Tiffany and Company Service Merchandise

6/19/12

Major Indian Players

Major Players:

Vaibhav Gems Ltd. Gitanjali Gems Ltd Tata (tanishq) Malabar Gold and Diamonds Rajesh Export Limited Goldiam international Ltd.

Top 10 Buyers of Indian Gems and Jewellery

6/19/12

United Arab Emirates (U.A.E.) Hong Kong United States of America Belgium Israel Singapore Thailand United Kingdom Japan Australia

6/19/12

SWOT ANALYSIS

strenghts
of raw materials specially gems and semi precious stones.

6/19/12 weakness

Availability

Illiteracy Cut

throat competition. Methods.

Rudimentary No

Skilled

labour

Comparative

use of new technology. is costly. rate of utility charges and tax regulations

advantage in the studded Jewellery.

Availability

Labour High

of Technical Skill

 opportunities
Globalization

threat

6/19/12

and

Globalization

and

free trade.
Competition Access

free Trade.
Competition

at international level to new marketing information and skill. and unexplored

with

international manufacturing expertise.

Quality

standards.

Unmatched

New

customer Demand/

GITANJALI GEMS LTD. Business Overview

Established presence

6/19/12

The company is one of Indias largest integrated companies

diamond and jewellery through a promoter group company

Established in 1986. Sight holder status with DTC Sophisticated and scalable diamond and

jewellery manufacturing facilities

Approximately 1,246 retail outlets in India and Founded as a single company cutting and

143 outlets in the U.S.

polishing diamonds for the jewellery trade at

6/19/12

Intro (cont)

Gitanjali Gems has reported 28% rise in net profit in last year. Sales grew 33% to 3,526 crore. Jewellery sales grew by 35% to 2,029 crore. It had entered into an exclusive tie-up with Rotary watches to market and distribute the Switzerland based company. Has the distinction of producing the worlds smallest heart shaped diamond (0.03 carat), and developing some 25 patented facet patterns. Offers jewellery in diverse styles: traditional, international classic, and casual. For consumers of all age groups, tastes and budgets.

6/19/12

Gitanjali Brands
Nakshatra Ezee diamonds Lucera Me Jewels Calgaro Gili Sangini Asmi Rivaaz Aakansha Stefan Diya Kashvi

Hafner

6/19/12
Expansions

Diversification

Ramping up the retail chain Expanding stores in India Acquisitions including Samuels, Rogers and Tri-Star

Gitanjali Lifestyles to focus on Manufacture and distribution Of luxury and lifestyle products Developing 200 acres gems & Jewellery SEZ in Hyderabad Plans to develop more SEZs focused on gems & jewellery across India To partner for developing real estate infrastructure

Plans to make further inorganic growth in the U.S. & Far-east

Expanding manufacturing capabilities to address increasing demand

Further integration within the jewellery value chain Higher margins in retail business Higher value addition

Leverage its key strengths Large opportunity for incremental revenue Diversify business model

6/19/12

Tanishq

Tanishq saga began in the early 1995s, a business group of Titan Industries Limited, and is currently the most respected and widely spread business conglomerate. The name Tanishq has been formed by combining "Ta" (the first two letters of Tata) and "Nishk or Nishkh" (meaning gold coin or necklace in Sankrit). The first precision engineered watch, Tanishq created with 103 diamonds and pure 18 carat gold Some earrings are embedded with precious stones or

6/19/12

tanishq
Ear Rings Bangles Pendants Bracelets

Neckl aces

Finger ring

Cha ins

Sets

6/19/12

Sales promotion strategy

Print Advertisement

6/19/12

It is not just any wedding, it is yours. The special time in your life when all eyes will be on you. Look

6/19/12

Rajesh export

Rajesh Exports, India's largestgold jewellerymanufacturer and exporter by turnover. The company has 75 retail outlets and plans to add another 25 stores in the current year. The company is engaged in all the processes from refining gold to selling the gold jewellery, through its retail outlets called Shubh Jewellers. Margins are close to 5-7% in retail business, compared with 1.5% in gold jewellery exports; this was a major reason for the company to enter retail business. In the last fiscal year the company's sales were

6/19/12

distribution

REL manufactures seventy tones of Gold jewellery and other gold products per annum. Theglobal distribution networkof REL spreads across the four continents of North America, Europe, Asia and Australia. Across these continents REL has setup a wholesale distribution network in the cities ofNew York, Chicago, Dallas, Toronto, London, Paris, Zurich, Dubai, Sharjah, Muscat, Kuwait, Singapore, Kuala Lumpur and Sydney.

6/19/12

Malabar gold & diamonds

The third largest jewellery retail chain in the world with an expected $6 billion turnover by 2015. Planning to get into retailing of premium watches like Rado and Tissot. They have a vast array of modern and designer collections from India, Singapore, Middle East etc. It has over 60 retail outlets and 10 wholesale divisions. Malabar Gold and Diamonds outlets display a wide variety of Gold, Diamond, Pearl and Platinum ornaments, catering to the requirements of its multicultural and multi-national customers. To ensure utmost levels of quality, Malabar Gold and Diamonds sells ornaments which are certified by

6/19/12

Trend in export
Items Cut & Pol Diamonds Gold Jewellery-D.T.A SEZ/EPZ (included Gold Jewellery & Gold Medallions and coins) Total Coloured Gemstones Silver Jewellery Others * Net Exports Exports of Rough Diamonds Others Total Exports April-October April-October 2010 % 2011 (Same ports as Growth/declin current year) e over previous Year US$ in Million US$ in Million US$ 15195.08 1357.28 7968.97 14807.71 1209.24 5535.29 2.62 12.24 43.97

9326.25 187.17 386.92 17.52 25112.94 995.65 51.45 26160.04

6744.53 158.45 284.18 9.08 22003.95 580.44 31.96 22616.35

38.28 18.13 36.15 92.95 14.13 71.53 --15.67

Gems and Jewellery Export

6/19/12

Fiscal Year 2010-11- US$ 43139.24 million Fiscal year 2009-10 - US$ 29368.72 million % Growth - 46.89 per cent over the In US $ previous year.
10 8 6 4 2 0

Major competitors in the global market

Italy:1. Worlds largest producer of fine jewellery, with about 8,200 factories annually producing an estimated US$ 6.4 billion worth. 2. Italys strength lies in plain gold jewellery. o Hong Kong/China:1.Produces a substantial portion of the world jewellery market 2. China and Hong Kong are plain gold jewellery. strong in both gold and studded jeweller
o

6/19/12

6/19/12

Contd
o

Thailand:-

1.Major global supplier of quality jewellery over the last two decades. 2.Thailands strength is the domestic market keeps in gemstone jewellery.
o

United States:-

While a growing number of American manufacturers export their goods around the world, the sheer size of the domestic market keeps a large portion of the goods at home.

Delhi and NCr based jewellary producers

6/19/12

1. DAM Jewellery IncPreet Vihar Delhi, Delhi, India (Contact: Mrs Mamta / Mr Ankur} Products/Services :Imitation / artificial / fashion jeweller Jewellery Silverware & silver jewellery 2. A R Gems333177, Beadon Pura, Karol Bagh New Delhi, Delhi, India (Contact: Tanuj Khandelwal} Products/Services :Precious stones Pearls Imitation / artificial / fashion jeweller 3. Teleone Consumers Product Pvt LtdPost Box NO 10555 Pitampura, Delhi, India (Contact: Teleone Team} Products/Services :Jewellery Pearls Precious stones 4. Nirmala Jewellers3811/21-22, Vishnu Mandir Marg, Reghar Pura, Karol Bagh, New Delhi, Delhi, India (Contact: Narayan Chandra Giri} Products/Services :Jewellery Pearls Precious stones Diamonds, Diamond Jewellery 5. Dhruv InternationalPreet Vihar, Delhi, Delhi, India (Contact: Ankoor Mitroo} Products/Services :Imitation / artificial / fashion jeweller Jewellery Silverware & silver jewellery 6. Taran Taaran International ExportsT-581/2, First Floor, Baljeet Nagar, Behind Shadipur Depot New Delhi, Delhi, India (Contact: Gurmeet Singh} Products/Services :Imitation / artificial / fashion jeweller Jewellery Pearls Precious stones Rolling machine for goldsmiths Silverware & silver jewellery 7. Vaishnavi Enterprises2nd Floor, 54, Old Roshan Pura New Delhi, Delhi, India (Contact: Naveen Kumar}

6/19/12