Free Essay

Gems & Jewellery Industry in India

In: Business and Management

Submitted By himanshurg2017
Words 3803
Pages 16
Jewellery & Gems Industry * Group 10 * K Ashwin * Himanshu Raj Gupta * Lalit Mittal * Kaustav Ghosh * Meghna Singh * Kishan Khedia * Gunjankumar Solanki

Table of Contents

Executive Summary
Situation Analysis Climate (PEST) Company Gitanjali Gems Tribhovandas Bhimji Zaveri Titan Industries Ltd (Tanishq) E-commerce in Jewellery Customer Analysis Collaborators Porter’s 5-forces analysis
Problem Brand : TANISHQ

Executive Summary

According to a report by Research and Markets, the Jewellery Market in India is expected to grow at a CAGR of 15.95 per cent over the period 2014-2019.The Gems and jewellery sector in India plays a significant role in the Indian economy, contributing around 6-7 per cent of the country’s GDP. One of the fastest growing sectors, it is extremely export oriented and labour intensive. India is deemed to be the hub of the global jewellery market because of its low costs and availability of high-skilled labour.

The gold jewelry exports from India were US$ 554.45 million in December 2014, while silver jewellery exports were US$ 148.49 million, according to the latest data released by the Gems and Jewellry Export Promotion Council (GJEPC). The cumulative foreign direct investment (FDI) inflows in diamond and gold ornaments in the period April 2000-December 2014 were US$ 476 million, according to Department of Industrial Policy and Promotion (DIPP).

The sector is witnessing changes in consumer preferences, as the westernisation of lifestyle is responsible for changes in the buying habits of the consumer. Consumers are demanding new designs and varieties in jewellery, and branded jewellers are able to fulfill their changing demands better than the local unorganised players. Increase in per capita income has led to an increase in sales of jewellery, as jewellery is a status symbol in India. The sector is highly-fragmented and unorganised, and is characterised by family-owned operations. Around 96% of the gems and jewellery players have family-owned businesses, but, over the last few years, more organised players have been entering the sector. The products in the sector can be categorised as gemstones, jewellery and pearls, which can be further segmented into diamonds, coloured stones (precious, semi-precious and synthetic), studded jewellery, costume jewellery, gold and silver.

Market Characteristics
The key characteristics of the market are:

* Unorganized sector * Labor Intensive * Working Capital Intensive * Raw material intensive * Import dependence on Raw materials

Key Trends in the market * Rise in e-commerce * Low cost of labour * Rising disposable income * Rise in number of working women * Favorable government policies (Abolition of Gold Control Act 1992) * Adoption of Kimberly Process Certification System (KPCS) * Development of SEZs

Climate (PEST Analysis)
Political Climate

The Gems and jewelry sector in India plays a significant role in the Indian economy, contributing around 6-7 per cent of the country’s GDP. One of the fastest growing sectors, it is extremely export oriented and labor intensive. The government of India has declared the sector as a focus area for export promotion based on its potential for growth and value addition. Recent Developments/Initiatives:

Gold, which is 2nd only to crude in terms of imports, and having been placed under rigid import measures in the past to restrict the rising CAD, have now been deregulated by the RBI with more liberal gold import norms. With this, Star and Premier export houses can import the commodity while banks and nominated agencies can offer gold for domestic use as loans to bullion traders and jewelers.

India, which is the top global processor of diamonds has signed an MoU with Russia(which is the largest rough diamond producer) to source data on diamond trade between the two countries.

The government plans to establish diamond bourses in an endeavor to make India an international diamond trading hub. Some important measures, regarding the same in the New Foreign Trade Policy are * 100% FDI is permitted in the gems and jewellery sector through the automatic route * Gems and jewellery SEZs have been set up to promote investments in the sector

The Gems and Jewellery Skill Council of India is planning to train over four million persons till 2022 as the sector is facing shortage of skilled manpower. The council aims to train, skill and enhance 4.07 million people by 2022. The council will tie-up with the existing training institutes including Gemological Institute of America (GIA) and Indian Gemological Institute (IGI), along with setting up of new institutes in major diamond cutting and processing centers.

Economic Climate
The Economic importance and behavior of the Industry can be highlighted using the following key points:

Significant Employment Generation: There are about 2.5 million people(2.5 times the number of jobs in basic iron and steel manufacturing) directly employed by the industry. Diamond processing, gold jewellery , fabrication, and jewellery retail account for 92 percent of the total employees. It is expected that the industry can generate 0.7–1.5 million additional direct jobs over the next five to seven years.

High Exports: The industry makes a significant contribution in terms of exports. Overall, the industry export contribution was INR 227,000 Cr in 2012–2013, or 14 percent of total Indian exports. Cut, polished diamonds and jewellery are the two most important subsets, with 81 percent share of gems and jewellery exports.

Significant Value Addition and Returns: There is a total value addition of ~INR 100,000 Cr for the industry, which corresponds to about 21 percent of the industry’s total output. Value addition occurs through trading, cutting and polishing of diamonds, jewellery manufacture, and retail. Also, Gold has outperformed several other asset classes, including Nifty, term deposits, and savings deposits, with significantly higher returns over the past 12 years

Social Climate

Jewellery and Gems are a symbol of prosperity and appeals to all generations across the social system within the country. The demand for Gold is unique in the country in the sense that it has both Consumption and Investment Demand.

Investment Demand : It has a unique position in the minds of Indians and is considered to be a source of social security for a large section of the society. With only 747 bank accounts per 1000 adults, Gold is a primary instrument for investment for the Rural and the Semi-Urban India.

Consumption Demand : Indians also attach a high emotional value to gold. It is often considered a social requirement for ceremonies and weddings and bestows a sense of pride and social status to its owners.

The unique nature of Indian demand highlights the insatiable demand for gold jewellery in India that has been largely immune to rising prices. Even with gold prices rising about 3.8 times between 2005 and 2012, demand for gold jewellery in terms of volume has remained steady and in terms of value has grown by 4.2 times in nominal terms, despite higher import duties. In contrast, gold jewellery is typically viewed as a consumption product in most other countries. For example, in the U.S. and Turkey, the volume of gold jewellery purchased is negatively correlated to the price of gold. In these countries, gold competes with other consumption items and hence its consumption goes down when gold price rises.

Technical Climate

Technology and research-led innovation are key factors in the long-term future of an industry, where they are needed in both design and manufacturing. While use of better designs can enable jewellers to differentiate in the market and attract higher premiums, technology can enhance productivity and the quality (finish) of jewellery produced.

There is also limited use of technology in manufacturing, specifically in the fragmented part of the industry due to the presence of sub-scale facilities. This leads to a lack of standardization and challenges in quality control, which results in gaps in productivity and quality of jewellery produced in India

While the diamond processing industry has a higher adoption of modern machines, jewellery manufacture is largely done manually. It is estimated that the ratio of manual- to machine-oriented work in the industry is around 70:30 for jewellery manufacture and 40:60 for diamond processing. Even in diamond cutting and polishing, Indian companies use less technology than their global counterparts

Gitanjali Gems Ltd

Company Background

Gitanjali Gems Ltd is part of the Gitanjali group of companies, founded and incorporated as a private limited company by the Choksi family in 1986. It has become one of the largest integrated branded jewellery players, with over 4,000 points of sale across India. The company has also grown through mergers and acquisitions, some of which – including Gitanjali Exports, Gemplus, Giantti Jewels, Hyderabad Gems SEZ Ltd and Fantasy Diamond Cuts – are key companies from the group and which have been merged into the parent company. Last financial year, the company clocked over 12,436 crores in revenue, a 24% decrease YoY.

Product

The company has a range of products in all price segments. The Sangini and Diya brands target low-income demographics, the Gili and D’damas brands target middle-income consumers, while Asmi and Nakshatra target high-income earners. However, the company is focusing on high-end, luxury and designer jewellery, launching Giantti on a limited basis in Mumbai and Delhi in order to gain the attention of premium jewellery consumers.

Gitanjali Gems manufacturing facilities are located at Mumbai, Hyderabad, Coimbatore, Kolkata, Surat and Jaipur, and produce 235,000 pieces of finished jewellery each month, while the company’s international manufacturing set-up is in China. The company’s international design hub is located in Italy.

Jewellery Type | Production Capacity | Diamond | 1,020,000 pieces | Gold | 882,000 pieces | Colored Stone | 180,000 pieces |
Table: Product wise split of production capacities

Place

The company is positioned in the fastest emerging channels – direct selling and online retail. It has over 4,000 point of sale outlets. Its primary distribution channels are – stores via franchise and shop-in-shop routes. It has 319 franchise stores, and over 570 shop-in-shops. (shop-in-shops are smaller shops in a bigger shop such as Lifestyle etc).

Promotion

Gitanjali primarily uses mass-media such as TV, print media for promoting their brand. They have also roped in Bollywood celebrities as celebrity endorses and brand ambassadors for their brand. Shah Rukh Khan and Anushka Sharma are currently endorsing Gitanjali Brand in both events and TV advertisements.

Tribhovandas Bhimji Zaveri Delhi Pvt Ltd (TBZ)

Company Background

TBZ is over 150 years old and is currently run by Shrikanth Zaveri, a third generation businessman from the Zaveri Businessman. Last year, TBZ clocked over 3717 crores in revenue, a staggering 57% increase in revenues from 2013. Tribhovandas is currently located only in 8 states in India- Chatisgarh, West Bengal, Seemandhra, Telengana, Gujarat, Rajasthan, Maharashtra, Madhya Pradesh. But it also has plans to expand to another 9 states and 33 cities in India in 2015. The Company manufactures diamond studded jewellery only at Kandivali, Mumbai.

Product

TBZ does not have sub-brands like Gitanjali. It functions like an umbrella brand. However it produces a wide range of products ranging from gold, silver, platinum, men’s range. Unlike Gitanjali, TBZ launches collections, which are set of jewellery based on a theme. Their current collection includes Ria, Dohra, Showstopper and Azva.

Their Kandivali facility has a production capacity of over 1,000,000 pieces per annum (based on 8 hour shift per day), 4,000 kg of gold refining and 4,500 kg of gold component manufacturing.

Place

Tribhovandas sells all their products through stores owned by them. They do not use the franchise model or the shop-in-shop. Currently they have 29 outlets across 9 states, with over 8 of them in Mumbai itself. In addition, they have a website where they showcase the collection but unlike Gitanjali, they do not sell any of their products online. All their stores are owned in the up-areas and posh localities where they target the above-average and higher income segment.

Promotion

Tribhovondas primarily targets its customers through TV advertisements and print media. Vaani Kapoor is the brand ambassador for TBZ and their advertisements are primarily collection based. Wedding Collection advertisement had gone viral recently and acclaimed much fame.

The company runs various installment schemes for its customers, such as the Kalpavruksha Plan, where consumers can deposit a monthly minimum of INR 1,000 and which has maturity time of 10 months with added discount of one month installment to purchase jewellery from its outlets across India.

Tanishq (Titan Industries Ltd.)

Company Background

Titan Industries originated in 1984 and is a joint venture between Tamil Nadu Industries Development Corporation (TIDCO) and Tata Group. TIDCO is a state-owned corporation, while Tata is one of India’s leading industrial houses, with a diverse range of interests. The company’s initial business was the manufacture and marketing of watches, and its entry into this category led to major industry-wide changes. It has since successfully moved into other businesses, such as jewellery via Tanishq and GoldPlus, and eyewear.

Product

Titan Industries acts as a house of brands with a brand developed for every personal accessory category such as FastTrack for watches, Eye+ for eye gear, Tanishq etc. However, under Tanishq, there are no sub-brands.

The company targets key consumer groups with a wide range of brands and brand extensions. The Zoya and Xylys brands cater to high-end luxury and premium customers, while Tanishq and Titan are premium and mid-segment offerings.

Place

Tanishq has a pan-india presence and their primary mode of retail is Exclusive Branded Outlets (EBO). Tanishq has 163 EBOs throughout India and in addition they also have an online presence from where one can view their collections with a purchase option.

Exclusive Brand Outlets are also a type of franchise model that Titan (parent company) employs for Tanishq retailing. In an EBO, no brand other than Tanishq would be sold.

Promotion

Tanishq promotes their brand through TV advertisments, print media and Bollywood endorsements. Currently they have multiple celebrities endorsing Tanishq including Amitabh Bachchan, Jaya Bachchan and Sridevi.

However, Tanishq is famous for its unconventional advertisements that touch upon soft and inconvenient topics such as remarriage, using dusky complexion women, mature couple gifting each other.

E-commerce in Jewellery

“Gitanjali Gems Ltd, India’s biggest diamond and gold jewellery retailer, expects online sales to account for much as 20% of its sales in two to three years from about 1% now. The growth potential convinced Ratan Tata, former chairman of the Tata Group, to invest in Bangalore-based online jewellery store BlueStone last year.”- Live Mint, March 2015

As brick and mortar retail chains like Gitanjali, Tanishq increase their online presence, there are plenty of pure e-commerce focused startups that sell jewellery online. Some have raised sufficient venture capital as well. It would be incomplete to analyze the industry without touching upon the current trends – e-commerce. Currently few players dominating this space are:

* Caratlane * Bluestone * Voylla * JewelsKart * Juvalia & you * Gerald Online

These online firms cater to both real and imitation jewellery. Gurgaon based Juvalia & You has grown by 50% with an average transaction size of Rs 900- Rs 1200 for imitation jewellery and the ticket shoots up to Rs 12,000- Rs 14,000 for real jewellery. Bluestone, Bangalore based startup has been growing at a staggering 100-110% in revenue on a quarter-to-quarter basis. Their average transaction size is around Rs 10,000 to Rs 12,000.

The venture capitalists have also been very receptive to the idea with many of the e-commerce startups receiving sizeable funding to expand their operations, update the technology. Some of the recent funding in this space are: * Caratlane raised a total of $27 million from Tiger Global in three rounds. * Bluestone $3 million from Accel Partners and Meena Ganesh * Voylla raised $ 0.5 million from Snow Leopard Technology Ventures. * Youshine raised $1.5 million in two rounds of angel funding in February and November 2012 from two angel investors based out of Switzerland.
But what are the key expectations from customers, key challenges that these online retail sites would face while selling jewellery? It is not the same as selling books, mobile phones. We conducted a survey and got opinions from over 80 people. Following are our analysis and findings from the survey. * 94% of them have never purchased jewellery from an e-commerce website. * Over 75% of the respondents said they would not buy jewellery from an e-commerce website either. * The primary reasons why respondents are not ready to buy are: * Need to touch and feel the jewellery before buying – 53% * Do not trust a website for purchasing jewellery = 25%

Table: Reasons for not purchasing jewellery online.

Customer Analysis

While some brands of jewellery appeal to the younger generation, others to the older, there are two key trends that drive gold and gold jewellery sales:

* Gold is not just a product. But an investment * Heavy seasonal demand (Diwali, Akshaya trithi etc.)

Till the early part of 1990s the average Indian bought gold jewellery for investment rather than adornment. Confidence in the local jeweller was the hallmark of the gold jewellery trade. The local jeweller had a fixed and loyal clientele and the clients had complete trust on the jeweller. However in the recent times there was a shift in the consumer tastes. Women nowadays are opting for fashionable and light weight jewellery instead of huge chunky jewelleries. The new age has definitely witnessed a change in consumer buying preference.

In our survey, we also wanted to investigate the key demand levers. There are 2 major and 2 minor levers. * Major – Design and Quality * Minor – Brand and Price

Figure: To showcase the seasonal change in demand across the years. There exists a spike during Diwali and Christmas.

Collaborators

The collaborators can be better analyzed through the value chain in the jewellery and gem industry. As given below, the value chain involves 6 steps.

Sourcing The precious metal or stones required for jewellery is either mined domestically or imported. For in-house mining, there are two mines currently present – Hira-Buddini mines, Karnataka, Kundkocha mine in Jharkand. Due to India’s limited resources, much of the gold is imported.

Refining
Refineries in India are a small market primarily consisting of two players – Private and Government refiners

Trading
Trading of physical gold is done by dealers and gold jewellery manufacturers and retailers. Physical gold is usually purchased in bulk from importing agencies and then resold to smaller jewellers across the country. This trading caters to both consumption and investment demand in the market. In addition, Gold is also traded on Exchange Traded Funds, MCX etc.

Manufacturing
Large organized manufacturers cater to consumption demand, however they are only few. Most of the manufacturing is highly fragmented and non-automated. This increases the demand for skilled labour in this sector. Close to 70% of the demand is met by the fragemented part. Main manufacturing hubs in India are, Amritsar (Jadau), Delhi, Kolkata, Andhra (Hyderabad, Nellore), Coimbatore, Thrissur, Gujarata (Junagadh, Rajkot, Surat) and Jaipur.

Retailing
Similar to manufacturing, retailing is also a highly fragmented part of the value chain. Most of the jewellery retailers are single shops, regional chains.

Porter’s 5 forces analysis

When e-commerce waves hit the jewellery industry, it is imperative to analyze the competition that an entrant would face. We performed a 5-forces analysis to understand the business competition existing in the jewellery and gem industry.
Comments
* Since over 70% of the demand is met by the organized sector, the industry is a highly fragmented one. Also, due to high capital-intensive nature, it is difficult for a new entrant to enter and achieve economies of scale. * Jewellery industry is highly non-automated one, relying highly on skilled labor. This increases their bargaining power, more so because of their shortage. * India imports most of gold demand from SA, Australia, Russia, UAE and USA. This leaves heavy exposure to global vicissitudes and currency fluctuations. * India being the biggest supplier and consumer of gold, the seller has considerable bargaining power over its buyers both domestic and international ones. * Gold being a precious metal is purchased for both consumption and investment needs. This would mean that there are threats from substitutes such as equities, fixed deposits, mutual funds. They might give higher returns which would shift the demand scales to those securities.

PROBLEM BRAND : TANISHQ

Major challenges and problems surrounding Tanishq: No Golden Harvest for Tanishq :
Golden Harvest, a jewellery purchase scheme run by the company, had to be discontinued in July 2014 due to the new Companies Act which terms such schemes as public-deposit schemes. As a result, the company recorded an outflow of sales of about Rs 1,000 crore in Q2FY15
The scheme was the most sought after, as through this, a customer had to pay equated sums for 11 months, after which the company contributed a month’s worth of deposit; the customer could buy gold worth 12 months of deposits
The scheme was re-launched under stricter rules in November 2014, which reduced its contribution to the company’s turnover to 10% from the earlier 30%
Revenues were down 11% during Q1FY16 with volumes declining by 10% due to no Golden Harvest sales and a 39% decline in income due to lower Golden Harvest advances as compared to previous quarters
Measures taken by Tanishq to overcome this situation:
The company has taken steps to accelerate revenue growth in the form of higher level of promotions and lower making charges which have borne fruit in the form of improved customer acquisition by 22%
To push sales, Tanishq has started focusing on advertisements with Deepika Padukone as its brand ambassador. Moreover, 30 standalone stores and 15 for Mia, a light jewellery brand for working women, were launched, in order to compensate for the lost sales
Tanishq launched a new brand campaign “Tanishq Promise” to spread awareness about various parameters of buying jewellery. Through this campaign, it has pledged to keep 10 precious promises that it has made to its consumers (Exhibit 1)
Tanishq recently launched a new ad commercial with its latest value proposition “only price has decreased, not the value” (Exhibit 2) * * Future prospects for Tanishq:
Presently, Tanishq has a wide range of collection catering to a large spectrum of consumers (Exhibit 3).
Its recent launch of the high-end Taj collection çan turn out to be profit maximize for Tanishq as it is targeted at the crème de la crème
Its Mia collection which is aimed at the young women of the country has great potential as the market is still untapped and would give Tanishq an edge over its competitors * Exhibit 1 : “Tanishq Promise”
Exhibit 1 : “Tanishq Promise”

Exhibit 2 : “only price has decreased, not the value”
Exhibit 2 : “only price has decreased, not the value”

Exhibit 3 : Brand Classification of Tanishq
Exhibit 3 : Brand Classification of Tanishq

Similar Documents

Premium Essay

 Introduction : Gems and Jewellery Are a Part of Many Cultures and Customs Around the World. for Ages, People Have Been Using Gems and Jewellery as Ornaments, Gifts, and for Investment Purposes. the Major Segments of

... INTRODUCTION : Gems and jewellery are a part of many cultures and customs around the world. For ages, people have been using gems and jewellery as ornaments, gifts, and for investment purposes. The major segments of the Gems and Jewellery industry are Gold Jewellery, Silver Jewellery, Platinum Jewellery, Diamond Jewellery, Costume Jewellery, and Other Gemstone Jewellery. Jewellery is mainly associated with women in many regions across the globe. In many customs, it is used to depict wealth in society. The global gem and jewelry industry over the past decade has witnessed significant changes and exhibited growth, on account of increasing income as well as demand from the emerging economies across the world. Among the various types of jewellery, plain diamond jewelry accounted for the largest share of the global jewelry market, followed by plain gold jewellery. Gems and jewellery industry- India Evolution India has been one of the most important countries for the production of Gems and Jewellery.One of the highlights is the production of Studded Jewllery. Studded Jewellery trading in India is age old as it is established by the fact that in 1650 A.D., sources report the employment of more than 60,000 workers in the Eluru mines, where they dug and washed the precious stones. Today though India has almost no raw Studded Jewllery left within her own soil still we produce 70%of the World gems in terms of quantity and 45% in terms of value. India is the original......

Words: 2668 - Pages: 11

Premium Essay

Jewellery and India

........making a difference for you INDIAN JEWELLERY INDUSTRY The gems and jewellery industry occupies an important position in the Indian economy. It is a leading foreign exchange earner, as well as one of the fastest growing industries in the country. The two major segments of the sector in India are gold jewellery and diamonds. Gold jewellery forms around 80 per cent of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes diamond and gemstone studded jewellery. Besides, India is world's largest cutting and polishing Industry for diamonds, well supported by government policies and the banking sector with around 50 banks providing nearly $3 billion of credit to the Indian diamond industry. A predominant portion of the gold jewellery manufactured in India is consumed in the domestic market. However, a major portion of the rough, uncut diamonds processed in India is exported, either in the form of polished diamonds or finished diamond jewellery. The largest consumer of gold worldwide, India is also the leading diamond cutting nation. Gold and precious gems have played a pivotal role in the Indian social fabric and economy. Precious gems and jewellery are a part and parcel of Indian traditions and customs. Gold has traditionally been valued in India as a savings-andinvestment vehicle and even today, continues to be the second most popular instrument after bank deposits. Gems and jewellery is one of the fastest growing sectors in......

Words: 4209 - Pages: 17

Premium Essay

Gems and Jewellery's

...not to be construed in any manner whatsoever as a substitute for professional advice. IMaCS and NSDC neither recommend nor endorse any specific products or services that may have been mentioned in this report and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed in this report. Neither IMaCS nor NSDC shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this report. Human Resource and Skill Requirements in the Gems and Jewellery Industry Study on mapping of human resource skill gaps in   India till 2022  Human Resource and Skill Requirements in the Gems and Jewellery Industry Table of Contents 1.  Environment Scanning and Competitiveness of the Gems and Jewellery sector...

Words: 16187 - Pages: 65

Premium Essay

Gem and Jewelry

...Gems and Jewellery Last Updated: December 2010 Gems and jewellery form an integral part of Indian tradition. A legacy passed from one generation to another. The components of jewellery include not only traditional gold but also diamond, platinum accompanied by a variety of precious and semi-precious stones. The Indian gems and jewellery sector is expected to grow at a CAGR of around 13 per cent during 2011 – 2013, on the back of increasing government efforts and incentives coupled with private sector initiatives, according to a report ‘Indian Gems and Jewellery Market Forecast to 2013’, by RNCOS. As per the credit rating agency Crisil, the diamond industry in India is predicted to remain stable during 2010-11 due to improved prices and steady demand. Gems and jewellery exports from India is expected to grow by 30-35 per cent in 2010-11, according to the Gem and Jewellery Export Promotion Council (GJEPC), on the back of revival in demand in the international markets. Industry Structure Although, the market is highly dominated by the unorganised players, with increase in consumer income and economic prosperity, the future of organised retail in India is very bright. In its bid to enhance the market strategy, a gems and jewellery special economic zone (SEZ) sprawling over 40 acres with an investment of US$ 441.1 million is being planned to be set up by Gold Souk, the jewellery mall developer. The company plans to have residential apartments named Gold......

Words: 1232 - Pages: 5

Premium Essay

Study on Jewel Sector in India

...EXPORT-IMPORT BANK OF INDIA OCCASIONAL PAPER NO. 138 INDIAN GEMS AND JEWELLERY: A SECTOR STUDY EXIM Bank’s Occasional Paper Series is an attempt to disseminate the findings of research studies carried out in the Bank. The results of research studies can interest exporters, policy makers, industrialists, export promotion agencies as well as researchers. However, views expressed do not necessarily reflect those of the Bank. While reasonable care has been taken to ensure authenticity of information and data, EXIM Bank accepts no responsibility for authenticity, accuracy or completeness of such items. © Export-Import Bank of India Published by Quest Publications February 2010 CONTENTS Page No. List of Tables List of Exhibits List of Boxes Executive Summary 1. 2. 3. 4. 5. 6. 7. 1. 2. 3. 4. 5. Introduction Raw Material Base: Global scenario International Trade in Precious Metals, Gems and Jewellery Profile of Select Countries Status of Precious Metals, Gems and Jewellery Industry in India Market Analysis Challenges and Strategies World Gold Demand Production of Diamond in the World and in India World Exports and Imports (2007) of Select Precious Metals, Gems and Jewellery India’s Major Export Destinations and Import Source Countries of Precious Metals, Gems and Jewellery (2008-09) Members of Kimberley Process 5 7 9 11 30 32 41 47 61 84 93 108 109 110 113 116 Annexure Project Team: Mr. S. Prahalathan, General Manager, Research & Planning Group Ms. Renuka Vijay...

Words: 35353 - Pages: 142

Premium Essay

Gjepc Exim

...Council) The Export Promotion Councils are non-profit organisations registered under the Indian Companies Act or the Societies Registration Act, as the case may be. They are supported by financial assistance from the Government of India. Role The main role of the EPCs is to project India's image abroad as a reliable supplier of high quality goods and services. In particular, the EPCs encourage and monitor the observance of international standards and specifications by exporters. The EPCs keep abreast of the trends and opportunities in international markets for goods and services and assist their members in taking advantage of such opportunities in order to expand and diversify exports.  Functions The major functions of the EPCs are as follows: 1. To provide commercially useful information and assistance to their members in developing and increasing their exports 2. To offer professional advice to their members in areas such as technology upgradation, quality and design improvement, standards and specifications, product development and innovation etc. 3. To organise visits of delegations of its members abroad to explore overseas market opportunities. 4. To organise participation in trade fairs, exhibitions and buyer-seller meets in India and abroad. 5. To promote interaction between the exporting community and the Government both at the Central and State levels 6. To build a statistical base and provide data on the exports and imports of...

Words: 3932 - Pages: 16

Free Essay

Tanishq: Positioning to Capture Indian Women’s Heart

...| Industry Overview: i. 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 bn. set for 2010. ii. Placed against targets to achieve 65 percent of the international market by 2010, India’s gem and jewellery industry has registered an impressive 21.33 percent growth in exports iii. India dominates the world’s cut and polished diamonds (CPD) market. In value terms, the country accounts for approximately 55 percent of global polished diamond market and nearly 9 percent of the jewellery market. According to GJEPC's provisional estimate, cut and polished diamonds registered 19.06 percent growth in exports at US$ 7.11 mn. iv. India accounts for 80-85 per cent of the world’s CPD market in volume terms, 55-60 per cent in value terms and about 90 per cent in unit terms. Other major players in the global CPD market are Belgium and Israel.  v. Surat contributes 90 percent of India's total diamonds exports. vi. India's domestic branded jewellery market is estimated at US $150 bn. vii. There are 13 bullion importing banks in India. viii. India's Gem and Jewellery Exports Promotion Council (GJEPC) is aiming at turning India into an International Diamond Trading Centre. ix. Since India already enjoys 80-85 per cent of the world CPD market, scope for further growth in diamond exports is limited. Hence, if India's gems and jewellery......

Words: 1766 - Pages: 8

Premium Essay

“a Comparative Study on the Consumer’s Preference Towards Branded Jewellery over Non Branded Jewellery in Mumbai.”

...A PROJECT REPORT ON “A COMPARATIVE STUDY ON THE CONSUMER’S PREFERENCE TOWARDS BRANDED JEWELLERY OVER NON BRANDED JEWELLERY IN MUMBAI.” SUBMITTED BY CHETAN N NAKTE (MARKETING) ROLL NO – B-07 Batch 2011 - 2013 UNDER THE GUIDANCE OF DR. AMIT AGGRAWAL CORE FACULTY - MARKETING UNIVERSITY OF MUMBAI KOHINOOR BUSINESS SCHOOL, KURLA, MUMBAI. DECLARATION I hereby declare that the project report entitled “A COMPARATIVE STUDY ON THE CONSUMER’S PREFERENCE TOWARDS BRANDED JEWELLERY OVER NON BRANDED JEWELLERY IN MUMBAI” carried out at S.P.JEWELLERS is my work submitted in partial fulfillment of the requirement for Degree of MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY OF MUMBAI from KOHINOOR BUSINESS SCHOOL, KURLA, MUMBAI and not submitted for the award of any degree, diploma, fellowship or any similar titles or prizes. Date: Signature: _______________ Place: Mumbai Student Name: ___________ CERTIFICATE This is to certify that the project entitled “A COMPARATIVE STUDY ON THE CONSUMER’S PREFERENCE TOWARDS BRANDED JEWELLERY OVER NON BRANDED JEWELLERY IN MUMBAI” is successfully completed by “Chetan N Nakte” during the second year of her course, in partial fulfillment of the Masters Degree in Management Studies, under the University of Mumbai, through KOHINOOR BUSINESS SCHOOL, Kurla, Mumbai-400070. Date: Place: Mumbai “Dr.Amit Aggrawal” ACKNOWLEDGEMENT It is my......

Words: 8607 - Pages: 35

Premium Essay

Branded Jewellery

...A PROJECT REPORT ON “A COMPARATIVE STUDY ON THE CONSUMER’S PREFERENCE TOWARDS BRANDED JEWELLERY OVER NON BRANDED JEWELLERY IN MUMBAI.” SUBMITTED BY CHETAN N NAKTE (MARKETING) ROLL NO – B-07 Batch 2011 - 2013 UNDER THE GUIDANCE OF DR. AMIT AGGRAWAL CORE FACULTY - MARKETING UNIVERSITY OF MUMBAI KOHINOOR BUSINESS SCHOOL, KURLA, MUMBAI. DECLARATION I hereby declare that the project report entitled “A COMPARATIVE STUDY ON THE CONSUMER’S PREFERENCE TOWARDS BRANDED JEWELLERY OVER NON BRANDED JEWELLERY IN MUMBAI” carried out at S.P.JEWELLERS is my work submitted in partial fulfillment of the requirement for Degree of MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY OF MUMBAI from KOHINOOR BUSINESS SCHOOL, KURLA, MUMBAI and not submitted for the award of any degree, diploma, fellowship or any similar titles or prizes. Date: Signature: _______________ Place: Mumbai Student Name: ___________ CERTIFICATE This is to certify that the project entitled “A COMPARATIVE STUDY ON THE CONSUMER’S PREFERENCE TOWARDS BRANDED JEWELLERY OVER NON BRANDED JEWELLERY IN MUMBAI” is successfully completed by “Chetan N Nakte” during the second year of her course, in partial fulfillment of the Masters Degree in Management Studies, under the University of Mumbai, through KOHINOOR BUSINESS SCHOOL, Kurla, Mumbai-400070. Date: Place: Mumbai “Dr.Amit Aggrawal” ACKNOWLEDGEMENT It is my......

Words: 8607 - Pages: 35

Premium Essay

Diamond Industry

...diamonds. India is one of the earliest known source of diamonds. Today Indian Diamond Industry is pioneer in the gem industry and a world leader in the manufacturing of cut and refined diamonds. Diamonds today nine out of every ten come from India which is used in jewellery worldwide. The gems and jewellery industry occupies an important position in the Indian economy. It is a leading foreign exchange earner, as well as one of the fastest growing industries in the country in the past few years. The sector has gained global popularity because of its talented craftsmen, its superior practices in cutting and polishing fine diamonds and precious stones, and its cost-efficiencies. The sector has been vital to the Indian economy as well; during 2008-09, the sector accounted for around 13% of the country’s total exports. The gems and jewellery sector in India is engaged in sourcing, manufacturing, and processing, which involves cutting, polishing and selling precious gemstones and metals such as diamonds, other precious stones, gold, silver and platinum. Gold jewellery is the most preferred form of jewellery in demand in India as it is considered auspicious to purchase gold on major occasions like festivals, marriage, birth etc. Also, gold occupies the second position among all investment instruments and is considered as the safest investment option. According to the data released by the World Gold Council (WGC), India is the largest consumer of gold. In 2008, India......

Words: 562 - Pages: 3

Premium Essay

Jewellery Industry In India

...The jewellery industry has a worldwide criticalness and appreciates a noteworthy industry status since the frontier period. India has accomplished striking advancement in the realm of gems throughout the most recent couple of decades, yet it has not been smooth cruising from the beginning. Whatever achievement India asserted in this way, has been accomplished by the hard and gave work of its artisans, skill of its planners and the business sharpness of its business visionaries. Amid the past, the nation needed to confront a considerable measure of challenges and unfavorable circumstances in monetary area however it went to the credit of India's jewellery sector that it never thought back. India exports jewellery to nearly 160 nations. Among...

Words: 2019 - Pages: 9

Free Essay

Research Paper

... * Related * More * Jewellery buying habits in Indian Women 2070 views * “A COMPARATIVE STUDY ON THE CONSUMER’S PREFERENCE TOWARDS BRANDED JEWELLERY … 2770 views * A project on consumer preference over branded jewellery and non branded jwellery… 12276 views * A project on consumer preference over branded jewellery and non branded jwellery… 4494 views * Final print out 1958 views * Gems and jewellery 1917 views * Tanishq the turnaround story 934 views * Consumer Buying Behaviour & Perception About Tanishq - The Jeweller 15609 views * Final ppt of marketing research on jwellery industry 2419 views * 542170 634210229644275000 241 views * tanishq 7413 views * Market review for tanishq presentation 7967 views * Trends In Jewellery 4955 views * Strategic Management 847 views * Glistening upturn in branded luxury jewellery 944 views * Copy of tanishq presentation 381 views * Diamond retailers 1467 views * Jems and jwellery.. 128 views * Ibef Jewellery 06 1902 views * consumer buying behaviour of branded and non branded jewellery 1399 views * GITANJALI BRAND BOOKLET 2012 170 views * Indian Jewelry Market: Trends & Opportunities (2012- 2017) 86 views * Jp tanishq imc 749 views * Titan Industries Limited 2463 views * Titan Industries Limited 3133 views * Titan Industries Limited 1275 views * Titan Industries Limited 2569 views *......

Words: 48971 - Pages: 196

Premium Essay

Tanishq

...The Industry Evolution Of Jewellery Industry Introduction To Indian Jewellery Industry SWOT Analysis Of The Industry Current Scenario Of The Industry Future Outlook Of The Industry Chapter 2- Company Profile Tanishq Orra Chapter 3- Research Methodology Objective Scope Data Collection Limitations Chapter 4- Comparative Analysis SWOT Analysis -Ta nis hq SWOT Analysis - Kiah Chapter 5- Conclusion Bibliography [pic][pic][pic][pic][pic][pic] [pic] Avi Batra BBA – Semester II Roll No. 4501/09 Comparison of two companies as per Principles of Marketing Jewellery Industry [pic][pic][pic][pic] Table of Contents Chapter 1- Introduction To The Industry Evolution Of Jewellery Industry Introduction To Indian Jewellery Industry SWOT Analysis Of The Industry Current Scenario Of The Industry Future Outlook Of The Industry Chapter 2- Company Profile Tanishq Orra Chapter 3- Research Methodology Objective Scope Data Collection Limitations Chapter 4- Comparative Analysis SWOT Analysis -Ta nis hq SWOT Analysis - Kiah Chapter 5- Conclusion Bibliography [pic]Chapter 1- Introduction to the Industry Evolution Of Jewellery Industry In India The Indian subcontinent has the longest continuous legacy of jewellery making anywhere since Ramayana and Mahabharata times. While Western traditions were heavily influenced by waxing and waning empires, India enjoyed a continuous development of art forms for some 5000 years. One of the first to start jewellery......

Words: 6229 - Pages: 25

Free Essay

Vice President

...Demand for imitation jewellery has suddenly gone up by over 85% due to drastic hike in gold and silver price and increased interest in gems & stones during wedding and current festive season as per the quick survey undertaken by ASSOCHAM-Social Development Foundation (ASDF). The local imitation jewellery market has seen almost 85 percent rise in the last one year and the exports have seen a rise of 35%, reveals the Associated Chamber of Commerce and Industry of India (ASSOCHAM) survey. In a recent survey undertaken by ASSOCHAM reveals that the main reasons that attribute to the increase in the demand for imitation jewellery include volatile gold prices in the span of an year, disposable incomes, fashion conscious, international exposure, easy to carry, adds the survey. While releasing the ASSOCHAM survey its Secretary General, D S Rawat said, this ruling high price is changing the customer preference from fine jewellery to relatively inexpensive but equally flashy costume jewellery. The imitation jewellery market is about Rs 8,000 crore (growing at the CAGR of 20% y-o-y) in India and expected to touch Rs 15,000 crore by 2015. The best thing about these jewelleries is that they are available in different designs and colours and they are so affordable that one can customize according to the dress worn, said 75% of shopkeepers. According to ASSOCHAM estimates, the price of gold plated jewellery have increased by over 80% in the last one year, similarly, the rates......

Words: 699 - Pages: 3

Premium Essay

Service Sector to the Contribution of Gdp

...------------------------------------------------- Sectors[edit] Percent labor employment in India by its economic sectors (2010).[110] The GDP contribution of various sectors of Indian economy have evolved between 1951 to 2013, as its economy has diversified and developed. Historically, India has classified and tracked its economy and GDP as three sectors — agriculture, industry and services. Agriculture includes crops, horticulture, milk and animal husbandry, aquaculture, fishing, sericulture, aviculture, forestry and related activities. Industry includes various manufacturing sub-sectors. India's definition of services sector includes its construction, retail, software, IT, communications, hospitality, infrastructure operations, education, health care, banking and insurance, and many other economic activities.[111][112] Agriculture[edit] Rice fields near Puri, Odisha on East Coast Main articles: Agriculture in India, Forestry in India, Animal husbandry in India, Fishing in India and Natural resources in India India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging and fishing accounted for 17% of the GDP and employed 49% of the total workforce in 2014.[113] As the Indian economy has diversified and grown, agriculture's contribution to GDP has steadily declined from 1951 to 2011, yet it is still the largest employment source and a significant piece of the overall socio-economic development of India.[114] Crop yield per......

Words: 5818 - Pages: 24