1. Indian Jewellry Industry

2. GEMS & JEWELLERY INDUSTRY

3. 3 GEMS AND JEWELLERY Gems and Jewellery is an important emerging sector in the Economy. Ranked among the fastest growing sectors, it is also a leading sector for foreign exchange generation. Major Segments The sector comprises of two major segments  Gold Comprises around 80% of the Indian jewellery market, balance comprising fabricated studded jewellery (Diamonds and Gemstones). High levels of manufacturing and domestic consumption.  Diamonds World's largest cutting and polishing Industry for diamonds. Well supported by the banking sector and government policies. Export potential for polished diamonds / finished diamond jewellery.

4. GEMS & JEWELLERY INDUSTRY One of the fastest growing segments in the Indian economy with an annual growth rate of approximately 15 percent. The current market size of the Indian Gem & Jewellery Industry is US$ 25 Billion. Total export of gems & jewellery in the year April-March,2010 was 29081.11 with a 2.36% growth rate & 16.27% share in the total export. The domestic market was guessed to be approximately USD16.1 billion in financial year 2009. Consumes nearly 800 tonnes of gold that accounts for 20 percent of world gold consumption, of which nearly 600 tonnes go into making jewellery

5. CONTD… India's strength lies in the 2 million highly skilled workforces in the country in the gem & jewellery sector, out of which 1 million are exclusively engaged in export production. The Gem & Jewellery Industry has started showing positive signs of revival and growth.

6. DIAMONDS INDUSTRY

7. Largest diamond cutting and polishing centre in the world— with 60 per cent value share, 82 per cent carat share and 95 per cent share of the world market in terms of number of pieces. In the period of 9 months from April to December’09 exports of rough diamond declined by 37% to 157.09 lakh carats whereas the exports of cut & polished diamonds mounted by 18% to 407.36 lakh carats Nearly 9 out of 10 diamonds sold worldwide are cut and polished in India. Exported cut and polished diamonds worth US$ 14.18 billion in 2007-08.

8. Contd… Manufactures diamonds of all cuts, shapes and sizes of all varieties like round, princess, baguettes and all fancy cuts. Has democratized Diamonds by mastering the art of cutting near gem quality diamond.

9. SWOT Analysis…

10. Strengths Large integrated diamond & jewellery players and having an international presence. Strong marketing & distribution network. Strong retail presence in India and in U.S. Strong brand equity and broad product range like Gitanjali, Tanishq. Net Worth of the total size of the gems and jewellery sector (both domestic and exports) is about Rs 4,15,000 crore. So we can say that it is financially very strong sector. Highly skilled, qualified and motivated employee.

11. Weaknesses There may be conflicts of interest between organized & unorganized players. As the major raw material requirements need to be imported, companies normally stock huge quantities of inventory resulting high inventory carrying costs. Technology is less improved compared to China and Thailand’s company. Opportunities New markets in Europe & Latin America. Growing demand in South Asian & Far East countries. Industry moving from a phase of consolidation. Expansion possibilities in lifestyle and luxury products in India like watches, leather goods, Platinum jewellery because increasing disposable income of people. Threats International Competition:-China, Sri Lanka and Thailand's entry in small diamond jewellery. Increase in the price of Gold & Diamonds. Other local competitors. According to the data 97% jewellery sales are by family jewelers. Threat from producing nation like S.A. & Russia.

12. 12 OVERVIEW Large market for Gems & Jewellery with domestic sales of over $10 billion 4% of the global Gems and Jewellery market Exports of over $15.5 billion; over 18% of world’s exports India is the largest consumer of gold jewellery in the world Accounts for about 20% of world consumption India is the largest diamond cutting and polishing centre in the world 60% value share, 85% volume share and 92% share of the world market by number of pieces Third largest consumer of polished diamonds after USA and Japan

13. 13 Cont.- The sector may be further categorized into the following sub-sectors based on characteristics, processing techniques, preciousness in terms of price range and marketability. 1.Gemstones ❑ Diamonds ❑ Colored Stones-precious, semi-precious, synthetic 2.Jewellery ❑ Plain gold Jewellery ❑ Studded Jewellery ❑ Silver Jewellery ❑ Costume Jewellery 3.Pearls

14. Indian retail jewellery overview YesterdayToday UnbrandedBranded Silver & Gold jewelleryGold & Diamond jewellery InvestmentInvestment + Fashion Traditional designFashionable & innovative design Marriage & festival is peak seasonWearability and gifts Jewellery sold on commodity basis with labour charges Jewellery being sold on a per piece basis

15. Conti… Major Players:  Vaibhav Gems Ltd.  Classic Diamond (India) Ltd.  Shrenuj & Company Ltd.  Goldiam international Ltd.  Su-raj Diamonds & Jewellery Ltd.  Rajesh Exports Pvt. Ltd  Gitanjali Gems Ltd

16. GITANJALI GEMS LTD. Business Overview Established presence  The company is one of India’s largest integrated diamond and jewellery companies Established in 1986. Sight holder status with DTC through a promoter group company  Sophisticated and scalable diamond and jewellery manufacturing facilities  Approximately 1,246 retail outlets in India and 143 outlets in the U.S. Leading brands

17. MAJOR PRODUCTION CENTRES IN INDIA 17

18. Source: official website of Gujarat,as on 17/12/08. www.vibrantgujarat.com/detailed-sector-profiles/gems-jewellery.pdf & KPMG ANALYSIS ss

19. 19 Trends in exports

20. EXPORTS Total export of gems & jewellery in the year April-March,2010 was 29081.11 with a 2.36% growth rate & 16.27% share in the total export. Exports posted a modest growth of 1.45 per cent during 2008- 09 at US$ 21.1 billion, primarily driven by gold jewellery exports, including medallions and ornaments. The country exported US$ 20.8 billion of gem and jewellery in 2007-08. The United Arab Emirates (UAE) was the largest importer of gems and jewellery from India in 2008-09, with a share of 31 per cent followed by Hong-Kong(25%) and U.S.A(20%).

21. CONTD… The sector accounted for 13 per cent of India’s total merchandise exports. The export industry mainly comprises of small-to-large units based in various special economic zones (SEZs) supplying primarily diamond-studded jewellery

22. EXPORTS DATA ITEMS20052006200720082009(APR-OCT) CUT & POLISHED DIAMOND 53892.0248905.5757117.1758649.4545365.09 GOLD JEWELLERY16498.2122567.4411637.129406.495572.37 COLOURED GEMSTONES 975.071062.271111.051197.55834.80 ROUGH DIAMONDS1865.492388.262280.323474.931992.95 VALUE IN CRORES

23. MAJOR EXPORTERS IN INDIA TO CHINA ROSY BLUE TANYA GEMS VENUS JEWELS TO U.S.A DVL JEWELS PVT. LTD. ELEGANT COLLECTION DIATRENDS JEWELLERY PVT. LTD. TO ITALY DWARKA GEMS JEWELS IN INDIA TAKAT GEMS IN INDIA FINE JEWELLERY

24. 24 Major Exporters in India RAGHUNANDAN PRASAD & SONS S. ZAVERI & SONS JEWELLERS JAGDISH & SONS RIBY GEMS AND FASHION JEWELRY BN GHOSH & CO. MARUTI JEWELLERS MILLENIUM STAR SILVER STONE SHRI RADHEY CHAIN DD JEWELLERS

25. IMPORT DATA ITEMS20052006200720082009(APR-OCT) ROUGH DIAMONDS40039.1438401.0940170.6540877.2421898.13 GOLD BAR7034.527905.749734.4110820.3213062.77 CUT & POLISHED DIAMONDS 16010.278832.6117396.6131209.4527056.46 RS. IN CRORES

26. 26 Major Importers LEVIN HEALTH CARE SUNSHINE CONSULTANCY SERVICES KRISHNAM HI INTERNATIONAL SHREEJI GEMS & SILVERS FAMMORE ENTERPRISES.PVT.LTD SHIBINS SARIT AXPORTS CONSORTIUM SANJAY EXPORTS MONTOSTONE

27. Major Competitors in the global market

28. What’s New………..

29. News KOLKATA, MARCH 17: The All-India Gems and Jewellery Trade Federation (GJF) has gone on a three-day strike starting Saturday to protest against the Budget proposals announced on Friday. Close to three lakh jewellers under the trade federation have joined the strike, shutting all jewellery establishments during March 17-19. The Union Finance Minister, Mr Pranab Mukherjee, has proposed to bring unbranded precious jewellery under the excise duty net and raise customs duty on gold bars and coins. There is also a proposal to increase import duty on gold from two per cent to four per cent. This apart, the Government has also proposed to levy one per cent tax for cash purchase of jewellery worth more than Rs 2 lakh.

30. Thank You!!!