after covid-19...business to resume limited jewellery operations). colin shah, vice chairman, gjepc,...

INTERNATIONALBI-MONTHLY

GJEPC MAGAZINE

APRIL–MAY2020

AFTER COVID-19 F E A T U R I N G

VIEW POINT I POLICY MATTERS I INDUSTRY INSIGHT I SPECTRUM I ON GROUND IDEMAND MAPPING I DESIGN INSPIRATIONS I INTELLIGENCE I EVENTS I THE REAL GEMS

FUTURE OF BUSINESS

Cornered by Covid-19GJEPC Fights Back

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Bimonthly magazine of the Gem & Jewellery ExportPromotion Council

Gem & Jewellery Export Promotion Council,Tower AW 1010, Bharat Diamond Bourse, BKC, BandraEast, Mumbai – 51

Phone: +91 22-26544600 Toll-free number: 1800-103-4353 Missed call number: +91 7208048100

Website: www.gjepc.orgFacebook: GJEPC Twitter: GJEPCIndia Instagram: gjepcindia

April–May 2020

Disclaimer:This disclaimer informs readers that the views, thoughts, andopinions expressed in the magazine belong solely to the authorsand are independent in nature, and not necessarily to the authors’employer, organization, committee or other group or individual.

A division of Bennett, Coleman & Co. Ltd.

The Times of India, First Floor, Gulab Bhawan,6, Bahadurshah Zafar Marg, New Delhi-110002Phone: 011-40738253, Email: [email protected]; www.timesgroupbooks.com

TimesGroupBooks

INTERNATIONAL

GJEPC Board

ChairmanPramod Agrawal

Vice ChairmanColin Shah

Promotion Marketing & Business Development –Sub-CCommittee

Convener – Milan ChokshiCo-CConvener – Russell MehtaMember – Ankit Mehta Member – Rajiv MehtaMember – Nirupa BhattMember – Shailesh SanganiMember – Prakash Pincha

Executive DirectorSabyasachi Ray

PMBD, DirectorDolly Choudhary

Consultant – EditorShanoo Bijlani

Consultant – Associate EditorRegan Luis

Consultant – Editor, TGBVinita Bhatia

Designer, TGBSubhasish Munshi

Cover Jewellery: Van Gelder Indian Jewellery

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gjepc-Apr 20-final-F-V2-Digital-NEWORDER.qxd 5/18/2020 8:54 PM Page 1

CONTENTS

View Point: To mitigate Covid-19’s economic effects – GJEPCreleases `50 crore corpus,liaises with government forrelief measures

Cover Story:

Future of businessafter Covid-19

18

Policy Matters: Customs dutywoes – Creating awarenessabout rules, procedures anddocumentation

27Industry Insight: WGC’s

India MD, SomasundaramPR discusses the new

gold policy amidcontemporary challenges

29

Spectrum: Change of Guard at GIA33

Export Data38

Demand Mapping: Middle Eastbuyers increasingly prefermodern designs that can beworn repeatedly

3937 News from GJEPC

04


Design Inspirations: Sisters Fleur Damman-vanGelder and Noëlle Viguurs are fascinated withtraditional Indian jewellery

43

47 Intelligence: Global retail’s slowdowncould worsen following worldwidelockdowns

MSME Diary: GJEPC’s series of seminarsfor MSME jewellers and karigars

50

On Ground: GJEPC GTL Jaipur’s MoUwith eBay for certifying its sellers andother activities

53

Events: IIJS Signature 2020– Exuding positive vibes

55

Artisan Awards 2020: Toastingtalented jewellery designers

Trends66

68

Business Knowledge Forum: AI’spotential to help companies grow72

76

80

The Real Gems: Kantilal Chhotalaland Mahendra Brothers

Global updates


APRIL–MAY 2020 / SOLITAIRE INTERNATIONAL/ 4 /

CO

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TOR

Y

Covid-19 is an unforeseen andunprecedented situation that has turnedthe world upside down. And like every

major disruption, it is pushing the industry’sboundaries of resilience. The industry - be itminers, manufacturers, retailers or wholesalers -will have to gear up for a world where the oldnorms will have to be reframed.

Instead, new rules and different social moreswill have to be put into place. Resumingoperations in the midst of a pandemic requires alot of thinking through and courage - because thisvirus, so far, has no cure.

Already, the world over, the gem and jewelleryindustry has started resuming operations graduallyand with caution. The wheels of the globaleconomy are slowly starting to turn again.

Lucapa Diamond Company announcedrecommencement of scaled mining operations atAngola’s Lulo alluvial diamond mine. Similarly,in South Africa, Petra Diamonds said it waspermitted to ramp up to 50% of labour capacityduring the nationwide lockdown. Though storesin China are not open fully, the country is

expected to return to normalcy within fourmonths. Luk Fook Jewellery in region reportedimproved sales for the first two weeks of April.

Closer home, Jaipur’s EPIP and SEZ Zone 1and 2 have started production. Surat Hira Bourse,too, has exported 10 shipments while Surat SEZhas started operations in eight units.

Pramod Agrawal, chairman, the Gems andJewellery Export Promotion Council (GJEPC),said, “The Indian gem and jewellery industry hasa backlog of over $1 billion-worth of orders. Thisneeds to be delivered soon, or else there is fear oflosing business to neighbouring countries likeChina or Thailand, as both the countries areoperational. We are in talks with the Maharashtragovernment to allow minimal operations atSEEPZ, Bharat Diamond Bourse (BDB), etc.,which are the most prominent export zones inIndia. GJEPC along with the Bharat DiamondBourse is working with Maharashtra IndustrialDevelopment Corporation (MIDC) to formulatean SOP to commence minimal operations atBDB, while complying with Covid-19 safetyguidelines set by the state government. At the

FUTURE OF BUSINESSAFTER COVID-19

Post the lockdown, returning to work will bedefined by strict hygiene compliances andtaking cautious and calculated risks. SolitaireInternational spoke to a handful ofgovernment and industry stalwarts for theirviews on prerequisites for getting back tobusiness post Covid-19


COVER STORY

SOLITAIRE INTERNATIONAL / APRIL–MAY 2020 / 5 /

same time, GJEPC, along with the SEEPZauthorities, is pursuing the state government tocommence minimal operations with the objectiveto clear backlogs by adhering to the guidelines.”(See page 16 for the latest updates about the stategovernment permitting gems and diamondbusiness to resume limited jewellery operations).

Colin Shah, vice chairman, GJEPC, stated,“This industry has emerged from every crisismore resilient. This time, it will take longer tofind the new normal, which could be about 20%below the pre-Coronavirus level in value terms.The industry collectively took a decision to haltrough diamond imports for a month starting fromMay 15th, 2020 to stabilise diamond prices andclear the existing inventory.”

While there’s a definite buzz in the industry torestart, a conscious effort will have to beundertaken to realign old ways with new ones.To shed light on the situation, Solitaire has

endeavoured to put together a holistic view of theway forward through interviews with officialsfrom the government, mining segment,marketing and jewellery retail.

As the business world slowly awakens from thenever-ending nightmare that is the Covid-19pandemic, there is a universal understanding andacceptance that things will never be the same again.

It is essential to remember that Covid-19 is –first and foremost – a humanitarian crisis, notpurely an economic one. It should beacknowledged that the GJEPC had made healthcare its top priority years earlier when itlaunched the Swasthya Ratna health insurancescheme for employees of member companies.This was followed a few years later by theintroduction of the Swasthya Kosh healthinsurance fund for the large number ofindependent jewellery artisans who hold theParichay Card.


COVER STORY

APRIL– MAY 2020 / SOLITAIRE INTERNATIONAL/ 6 /

RRUUPPAA DDUUTTTTAA,, EEccoonnoommiiccAAddvviissoorr,, MMiinniissttrryy ooff CCoommmmeerrccee aannddIInndduussttrryy,, GGoovveerrnnmmeenntt ooff IInnddiiaa

TThhee ffuuttuurree ooff tthhee ddiiaammoonndd,, ggoollddaanndd ggeemmssttoonnee iinndduussttrryy rreemmaaiinnssuunncceerrttaaiinn,, aanndd iitt wwiillll ttaakkee ssoommee ttiimmeebbeeffoorree wwee sseeee eexxppoorrttss rreevviivvee.. WWhhaattsstteeppss ccaann tthhee iinndduussttrryy ttaakkee ttoo rreessuummeeooppeerraattiioonnss aanndd rreevviivvee tthhee iinndduussttrryy’’ssmmoorriibbuunndd ssttaattee??

Covid-19’s unprecedentedimpact on business across the globehas completely derailed established

supply chains of various sectors andindustries. Restrictions on travel bymany countries have resulted incancellation of business events,deferment of committed orders,reduced demand, elongation ofreceivables, etc.

Further, rising uncertainties andfear of severe value loss along withthe prospect of instability in businesshas aggravated trade sentimentsglobally. It is severely impacting allsectors, especially the export-oriented sectors like gems and

jewellery where the products are alsohigh value items.

The future of all businessesincluding the diamond, gold andgemstone industry remainsuncertain till some certainty isreflected on controlling andcontainment of the Covid-19pandemic. It will take some timebefore we see some revival inexports.

However, once the lockdown islifted, the gem and jewelleryindustry needs to ensure that its

UNITE TO SURVIVEOnce the lockdown is lifted, the gem and jewellery industry needs to ensurethat its massive workforce starts to slowly return to work and get theeconomic engine back on track.

Along with government initiatives, the industry should also unite to help and protect the precious human resource.


COVER STORY


massive workforce starts to slowlyreturn to work and get theeconomic engine back on track. Forthis, the industry will have to ensureavailability of work and job security.Sustaining manufacturing over thenext two to three months will becrucial and conserving cash on handwill be the key to survival for mostbusinesses. As such along withgovernment initiatives, the industryalso should unite to help and protectthe precious human resource.

WWhhaatt aarree tthhee ccoommmmeerrcceemmiinniissttrryy’’ss eexxppeeccttaattiioonnss ffrroomm ggeemmssaanndd jjeewweelllleerryy iinndduussttrryy lleeaaddeerrss??

The coronavirus’ outbreak hascreated an unprecedented situationglobally. Humans have encounteredoutbreaks of diseases earlier too, butthis is the first viraloutbreak/pandemic of this natureand scale.

The gem and jewellerycommunity has initiated severalreforms to fight and overcome theCovid-19 pandemic at individualindustry levels. The Gem &Jewellery Export PromotionCouncil (GJEPC) has provisioned afund of `50 crore for the sector outof which `21 crore has beencontributed to the ‘PM CARES’fund. The balance is being spent forthe well-being of the industry,workers/artisans and employees tohelp them cope up with the presentstrain of the pandemic.

Now, we expect the industry tounite and survive this crisis by takingcare of its workforce. We hope fromthat daily wagers are paid minimumwages required for survival till workis resumed. Additionally, the industryis expected to protect its employees’pay and job by availing reservescreated for such purposes or by anyother means. The utmost priority at

this time is just to save the job/workof the human resources so that theycan survive in this crucial period.

WWhhaatt iiss tthhee ccoommmmeerrccee mmiinniissttrryy’’ssppllaann ttoo ssuuppppoorrtt tthhee iinndduussttrryy dduurriinnggtthheessee ttoouugghh ttiimmeess??

Both the government andindustry must jointly do everythingin their power to ensure that jobs aresaved and families are unhurt byCovid-19’s economic impact. Thegovernment has already announcedseveral fiscal measures to assisttraders in this period of uncertainty.Various policy measures/relaxationsand changes in regulatorycompliance have been initiated tominimise the hurdles faced by theexporters/industry players andfacilitate ease of doing business insuch a critical time.

In a continuous process, thegovernment is coming up withdifferent relief measures for varioussectors from time to time based onthe changing economic situation inthe country. While the Governmentof India has undertaken numerousmeasures and ensure availability offacilitating measures to help theindustry in these tough times, it isalso expected that this industry takessteps and devise measures wherecommunity members support,sustain and nurture each other.

AArree tthheerree aannyy nneeww mmaarrkkeettiinnggssttrraatteeggyy tthhaatt tthhee iinndduussttrryy sshhoouullddffooccuuss oonn,, ssiinnccee aallll tthhee sshhoowwss aannddeevveennttss aarree ppoossttppoonneedd oorr ccaanncceelllleedd??

During the lockdown, the entireworld conducted business via videoconferencing calls. The integrationof technology in daily business willcontinue to grow in coming years.Now more than ever, the use of dataand analytics will be crucial forstudying sales information, analysingcustomer behaviour, maintaining

efficient stock-keeping, reducingwastage, building a strong clientdatabase and connecting withpotential customers through digitalmediums.

Besides, the possibility of holdingVirtual Fairs needs to be explored.Events can be held using the existingvideoconference/teleconferenceplatforms where the exporters,GJEPC and Indian missions abroad,along with prospective buyers can bebrought on the same platform.

WWhhaatt aabboouutt rreevviivviinngg tthhee ddoommeessttiiccmmaarrkkeett iinn ssoommee mmoonntthhss?? CCoouulldd yyoouussuuggggeesstt ssoommee ppllaannss ooff aaccttiioonn ttoo ddeeaallwwiitthh tthhee ppaannddeemmiicc’’ss rraammiiffiiccaattiioonnss??

This will depend on how thecoronavirus pandemic is containedin the coming months, followed byrelaxations in lockdowns andresumption of necessary businessactivities in a phased manner. Evenafter the lockdown is over, millionswill avoid going to work because offear, bad health or lack of transport.

This shortage of workers will hitthe supply of goods and services.Further, there will be a slowdown indemand in the gems and jewellerysector and people fearing a recession,may put off their purchases. As such,revival in the gem and jewellerysector will definitely take more timeas compared to other sectors.

However, the coming festival andmarriage seasons will surely help insome revival of domestic sales ofgems and jewellery. Besides, usage ofdigital gold and other financialinstruments, including the existingGold Monetisation Scheme, shouldbe explored. Focus on promoting saleof low cost and high value additionjewellery such as imitation and silverjewellery through e-commerce willhelp in creating demand as well asincreasing margin of profit.


COVER STORY


The now inevitable economic slowdownwill impact the entire diamond pipeline,but each phase will be impacted in a

different way - with the diamond cutting centrestaking the more severe beating, only second tothe producers. The economic phenomenon thatexplains with considerable certainty the waysdiamond and players are going to be affected isthe “ripple effect” - a theory that has proven itselfover time within our industry.

If diamond jewellery retail consumptiondeclines by only 15% by the end of 2020, I thinkwe should consider ourselves extremely lucky. Itis likely to be higher. We better prepare ourselvesfor more. The “destruction” of trillions of dollarsglobally as a result of stock market crashes and

bankruptcies, the enormous unemploymentwhich we will face in the post-corona era, therecession (if not outright depression) in theUnited States, the uncertainties about renewal ofcoronavirus attacks (new peaks in winter), the10% or maybe higher decline in global GDP, willreduce the level of income and the savings ofvirtually all consumers.

EXCESS DISPOSABLE INCOME WILL FALL

OR DISAPPEAR

The liquidity crunch and economic uncertaintiesare greater (and globally wider) now than theywere in previous crises. The de-stocking by theretail trade and in the jewellery manufacturingsector, the resultant decrease in demand for

EMBRACE THE DIAMONDINDUSTRY’S RIPPLE EFFECTGlobal diamond demand from the cutting centres maydecline by 50-60% in 2020!

By CHAIM EVEN-ZOHAR AND PRANAY NARVEKAR


COVER STORY


polished diamonds and destocking in the cuttingcentres, will have a most severe negative impacton the rough diamond market. We are facingalready a significant fall in rough demand,downward pressures on rough prices, shortage ofliquidity and reduced pipeline profitability(especially on the level of the producers).

Consumers may not have any money left topurchase luxury items. Diamond jewellery will beimpacted. Before explaining how the “rippleeffect” (economists also refer to this as “bullwhipeffect”) works, allow me a graphic illustration:

Another way to look at the ripple is shown inthe following illustration. It shows how a smallchange (volatility) at the retail level can createenormous wave as the cutting centres and roughdiamond production levels:

HOW THE RIPPLE WORKS

The ripple works both ways - both in a growingand in a falling market. It is premised on the factsthat under certain circumstances, increases ofdiamond retail sales of a few percentage points,

let’s say 5%, could well trigger a correspondentrise of industry rough diamond off-take of some15-20%.

The reverse may also be true, as we have seenin 2001: a small decline in retail sales, inconjunction with negative trade sentiments, maycause a substantial fall in demand for rough andcutting centre polished diamond sales. Thisoccurrence is known as the ‘ripple effect’ and the‘reverse ripple effect’.

How does this phenomenon manifest itself? Ifit takes an average of 22-26 months for a diamondto move from ex-DTC level to the consumer,this means that the total normal pipeline stocklevel is $36-$43 billion (rough and polished,expressed in wholesale polished prices). Thisfigure is of vital importance and means that at the

retail level it takes almost one year for theinventory to be turned over (in some places it isslightly shorter).

If consumer purchases of diamond jewellerydecline, as we expect will happen in 2020, the


COVER STORY


need for the retailer to replenish stocks fallsaccordingly. Depending upon trade sentiment, hewill also be satisfied with a lower level of stock.Thus, a small reduction in retail sales will trigger afar greater decline in the level of replenishment.These dynamics will be repeated at everyintermediate level of the diamond pipeline. TThhiisseexxppllaaiinnss wwhhyy eevveenn aa 22-33%% ddeecclliinnee iinn tthhee ddiiaammoonnddjjeewweelllleerryy rreettaaiill mmaarrkkeett,, ccoouupplleedd wwiitthh aa nneeggaattiivveettrraaddee sseennttiimmeenntt,, ccaann ccaauussee aa 2200-3300%% rreedduuccttiioonn iinnccuuttttiinngg cceennttrree ssaalleess..

This is the ripple effect. Take a hypotheticalexample (see following table): A retailer whosestock turns around once a year has an openingstock of diamonds of $100,000. His sales alsototalled $100,000. In the next year, he sells$120,000, ie a 20% increase on the precedingyear. Being optimistic about the future, he wantsto have a stock of $120,000 at the year-end.Consequently, his diamond purchases went upthat year by 40%, from $100,000 to $140,000.

Now let’s look at a different scenario in whichthe market falls. In the third year, the retailer’ssales declined by 10% to $108,000. Because of hisnow pessimistic view of the economy, he feelsthat his stock level should be adjusted in line withhis sales volume. In such a year, the retailer’sdiamond purchases from his wholesale supplierwould plummet by a figure much greater than

10% (in this hypothetical view by 31%). Whathappens in the retail sector also occurs in dilutedform at each stage of the pipeline, and this causessteep rough diamond sales fluctuations in thecutting centres.

One of the problems the industry is facing thistime around is the suddenness and severity of theeconomic crisis caused by the corona pandemic,introducing exacerbating factors. The totalstandstill of the supply chain. Diamonds cannotmove from mine to sorting centres and to salesoffices. Half the world is in lock-down. Businesshas come to a halt at each level of the pipeline.

We are mostly concerned with the industry’s“front line”: the retailers. In Europe and the USthere are already reports about credit lines beingslashed - when a retailer doesn’t make sales healso will not have the funds to replenish, thus hesimply won’t. He will have less goods to offer -and will sell even less. A bad year will dampen theretailer’s confidence. Whatever happens, giventhe negative sentiments, he will replenish atsignificantly lower levels in the year or yearsahead.

That’s the Ripple Effect at work. As this stillearly stage we can only quote the stewardess(when we still were allowed to fly) whodemanded that we fasten our seat belts and sittight. We are in for a very bumpy ride.

CHAIM: INDIA WILL EMERGESTRONGER FROM THIS CRISIS

The Gem & Jewellery Export Promotion Council(GJEPC) organised a Webinar on “IndianDiamond Industry: The Recovery Options” onApril 27, 2020.

The session included Chaim Even-Zohar,eminent industry journalist and analyst. He wasaccompanied by industry stalwarts from leadingcompanies, including Dinesh Lakhani (Kiran

Group); Hitesh Patel (DharmanandanDiamonds); Vipul Shah (Asian Star andincumbent vice chairman of the GJEPC) andRussell Mehta (Rosy Blue). The session wasmoderated by GJEPC’s diamond panel convener,Sanjay Shah.

3,082 participants joined the session fromacross the world. Covid-19 has snowballed intoan unprecedented calamity and India, the world’slargest manufacturing cutting and polishing hub,

HYPOTHETICAL DIAMOND RETAILER’S SALES AND INVENTORY MOVEMENTSYear Opening stock & Purchase Sales Sales Closing Sales Sales/Stock

& Purchases (US$) Change (%) (US$) Change (US$) Stock (US$) Change (%) Ratio

1 100 100 100 100 1.0

2 100 140 +40 120 +20 120 +20 1.0

3 120 96 31 108 -10 108 -10 1.0

4 108 122 +27 115 +6 115 +6 1.0


COVER STORY


has been reviewing and taking stock of thesituation, contemplating, and implementingmeasures to adapt and adopt new ways of doingbusiness.

The collective initiative in the form ofsuggestion by Indian diamond industry to imposea month-long self-disciplined moratorium fromMay 15, 2020 on rough diamond imports is thefirst step to ensure that the supply chain pipelineis not overburdened.

HERE ARE SOME OF CHAIM’S KEY POINTS

AND TAKEAWAYS FOR INDIAN

MANUFACTURERS:

Over 30 years, rough sales have gone up, butthe diamond content in jewellery at retail hasremained the same. Though money is beingmade from high turnover and greaterproduction, the midstream value addition hasremained constant at only $5 billion.

India has a monopoly in cutting and polishingdiamonds, so it should have more leverage andpower over pricing.

Producers have long considered diamantaires tobe merely their distributors and dealers. And so,in a crisis, it is always the manufacturer whowill go bankrupt.

A recent Bain & Co. report shows mines areearning about 19-21% operating margin;retailers about 20%, and midstream is anywherebetween -3% and +2%, despite taking themaximum pipeline risk. So, what’s the returnon capital?

The midstream should not go back to the statusquo post corona because it was not makingmoney.

Use coronavirus pandemic as a turning pointand become more united. If the industryleverages its collective strength, it will be themost powerful segment of the pipeline. Themidstream is taking a huge risk, it doesn’t knowwhat the polished demand will be in the

market. The midstream needs to make moreprofit because it’s them who is taking most ofthe risk.

Post Covid-19, there may be a short-termpent-up diamond jewellery demand frompostponed weddings. The industry will see aflare of activity, but this will not translate into arenewed replenishment from cutting andtrading centres, certainly not immediately.

This industry has come out of every crisis moreresilient, this time it will take much longer tofind the new normal, which could be about 20-30% below the pre-corona level in value terms.

India realistically requires a three-monthmoratorium on rough diamond imports.Voluntary curtailment will bear good results.

No one knows what polished prices will bepost Covid-19, so don’t overproduce. Beresilient and add value to the midstream.

Don’t compete with each other and don’tundersell polished goods. Restore pricestability, and stop being too fixated onmanufacturing for volume. Nobody should sellat a loss.

Change the mind set and go for profit. Make itcommercially viable since the industry hasenough rough in India to last until end of 2020- there is approximately $2.5 billion-worth ofpolished in the pipeline. Stop over-producingand competing with each other to the point ofbankruptcy.

India will emerge stronger from this crisis - butfocus on marketing, along with bodies like theGJEPC. Educate people, hold town halls andtake marketing very seriously.

The time has come that producers should sharethe financial burden by offering credit tomanufacturers.

Think about new, innovative marketing ideas,people are spending time productively – in ninemonths there will a baby boom.


COVER STORY


MINING PERSPECTIVEAt the March trading session Alrosa reduced the mandatory buyout limit forlong-term contracts to 50% even before the session began. Clients wereallowed to purchase not less than 40% immediately and postpone buying ofthe rest (up to 10%) until the end of May 2020

The Covid-19 pandemic hitthe mining industry as well– production was scaled

down, operations froze, and partowner of Canada’s Diavik and Ekati,Dominion Diamond Mines wasforced to seek creditor protectionunder the insolvency law. Aninternational travel ban added to theminers’ woes as rough diamondstocks couldn’t reach the market.

In an email interview withSolitaire International in April, Alrosastated, “Our business is closelyconnected with travel, and travellingrestrictions imposed betweencountries put on hold traditionaldiamond trade that implies experts’visit to diamond miners’ offices toanalyse offered goods.”

The lockdowns enforced in Indiaand other countries impactedAlrosa’s business. “Main diamondtrading centres and hubs around theworld had to close under quarantineand social distancing rules. Indianauthorities, who account for morethan 90% of the world’s diamond

cutting and polishing operations,had to put facilities in the state ofGujarat on hold to limit theinfection’s spread. This has a directimpact on the demand for roughdiamonds. At the same time, we areseeing a slump in consumer demandfor diamond jewellery in developedeconomies, with stores temporarilyclosed and overall sentiment fading.”

What are some challenges thatAlrosa is facing on a day-to-daybasis? “Every day, Alrosa makesevery effort to be prepared and toprovide safety and, if necessary,treatment for its workers and all thepeople in the regions where itoperates. Recently, it invested over200 million rubles (approx. $2.7million) to counteract the spread ofCovid-19. We purchased lungventilators with monitors andconcentrators for them, bactericideunits, thermal cameras, recirculators,non-contact thermometers, masksand protective suits, medicines. Allthis goes to equip our doctors andhospitals. We also launched sewing

of protective suits for drivers of ourjoint ventures and subsidiaries. Thecompany provides maximumprotection for employees.Administrative staff switched to‘working from home’ regime wherepossible.”

In times of crisis such as this, themining companies have tried tominimise the burden on its clients.For instance, at the March tradingsession Alrosa reduced themandatory buyout limit for long-term contracts to 50% even beforethe session began. Clients wereallowed to purchase not less than40% immediately and postponebuying of the rest (up to 10%) untilthe end of May 2020.

“It’s worth noting that we werethe only large diamond miner with atrading session in March onschedule. Moreover, we supportedour clients with full flexibility forthe April 2020 trading session,lifting mandatory buyoutrequirements. Clients were free todefer up to 100% of (roughdiamonds) allocated for Aprilvolumes to forthcoming salesperiods of 2020 if they didn’t havean opportunity to purchase goods atthe time of session. Those who wereinterested in buying rough, couldapply for the required volumes.”

Due to the global situation, thecompany decided to cancel theupcoming auctions for special-sized(over 10.8 carats) rough diamonds,simultaneously offering customers totake part in a digital tender if theyneed such rough.

An international travel ban added to the miners’ woes as rough diamond stocks couldn’t reach the market.


COVER STORY


DPA PERSPECTIVEThe Diamond Producers Association hasintroduced an e-learning platform whereinretailers educate staff during the current period

While it may be difficult at this time to haveconsumers thinking of jewellery, DavidKellie, CEO, Diamond Producers

Association (DPA) believes that diamond jewellery iswell positioned to connect with consumers as the worldstarts to open up.

“Consumer respect and appreciation for all thingsnatural will be enhanced by the crisis. Also the desire fora connection between friends and loved ones as wecome out of isolation will grow. Both trends will favournatural diamond jewellery.”

In order to show support to the trade community,DPA has introduced campaigns in various marketsworldwide. These initiatives will be focused on skillbuilding, keeping the trade engaged and encouragingconsumers to support local jewellers.

One such initiative is the Jeweller Support Networkthat was launched recently. It is a coalition of bodies,resources and skills, bringing together the DiamondProducers Association, the National Association ofJewellers (NAJ), the Company of Master Jewellers(CMJ), Houlden Jewellers, the London DiamondBourse, the Goldsmiths’ Company, the Goldsmiths’Centre, the Society of British Jewellers, the Women’sJewellery Network (WJN) and the ResponsibleJewellery Council (RJC).

Its goal is to minimise the damage and disruptioncaused by Covid-19 by directing small and large businessowners to relevant resources, including governmentfinancial advice, e-learning resources and trade-specificopportunities. Kellie stated, “For easy access, we havetaken the digital approach through a dedicated web pageand Instagram account. We’re also working to provideeducational materials, webinars and other assets toindependent jewellers to help them make the most ofthis challenging time.”

The DPA has introduced an e-learning platformwherein retailers educate staff during the current period.“The e-learning initiative has received an extremelypositive response from trade partners. As physicalpresence in stores is minimal, this is the ideal time forsales staff to upskill and train in new ways of reaching

consumers, building positive conversations aroundnatural diamonds. The current situation has given ustime to re-think our strategies and introduce new waysto leverage technology to engage with consumers andtrade alike,” he said.

Kellie further added, “The digital medium is themost powerful tool we have at our disposal today. Whenpeople are stuck within the confines of their homes,they are turning more and more to technology to keepthemselves abreast of the happenings around the world,connect with their loved ones and keep their mindsengaged. We are leveraging not only our social mediaplatforms to keep alive the interest and desire for naturaldiamonds, but also placing relevant advertising messageson over-the-top (OTT) platforms.”

DPA’s initiatives will be focused on skill building, keeping the trade engaged andencouraging consumers to support local jewellers.


COVER STORY


RETAIL PERSPECTIVEThe jewellery retail trade has already started witnessing a huge drop in the cash-flow due to theongoing lockdown. Banks have already cut exposure to the jewellery industry. There is liquiditycrunch in the industry and the prevailing crisis will compound the scenario further.

In the present scenario, private equity investors may not be bullish about investing in the jewellerytrade. So, unless the jewellers show value to the investors and banking institutions with sustainablebusiness models and regulatory compliance, and the government offers relaxation in loan repaymentnorms, the industry will continue feeling the liquidity pinch.

VVIINNOODD HHAAYYAAGGRRIIVV,, mmaannaaggiinnggddiirreeccttoorr,, CC KKrriisshhnniiaahh CChheettttyy && SSoonnss((CCKKCC)),, BBeennggaalluurruu

Hygiene and sanitisation willbe the new watchwordsafter the lockdown is

lifted, especially in the retailsegment.

Hayagriv is of the opinion that itis imperative to follow the stipulatedguidelines set up by the governmentand World Health Organisation(WHO). The company hasdemarcated social distancing markedareas for its customers who will visitthe showroom for shopping. “Oursales staff will wear masks, gloves andtransparent visors to protect ourclients at all times.”

In the retail segment, nearly 70%of costs constitute rents, staff salary,etc. Given the fact that overallconsumption will continue toremain impacted for at least four tosix months, sustenance will be anissue for most retailers. “We willhave to observe on a week-by-weekbasis. In order to see the revenuesbuild, we are looking to defer orwaive rents wherever possible,”noted Hayagriv, adding that fixedsalaries will be paid in full withoutdelays even during the lockdown.

“While variables will be temperedin keeping with sales, and if andwhen the sales return to ‘normal’ wehope to share the gains back with

our teams. It’s a sacrifice for all of us.We as directors are reducing ourremuneration to 50% for the nextthree months. Our goal is to ensureall other services, manufacturing,vendor payments are not delayedbeyond unavoidable limits due tolockdown, and we will makepayments from our contingencyfunds and reserves. We are aconservative company otherwise. Sowe will continue to be cautious inour expenditure till normalcyreturns. We may not reduce allmarketing expenses but will betempered to sales,” Hayagriv stated.

CKC is gearing up to strengthen

its online activities. “We will bemaking a better sticky app as well,and increase our batches from thecurrent 5,000 or so to around 7,500to allow for more essential purchasesbeing available online. We also haveCKC LIVE video-based shopping,and are hoping to get more tractionthere. We will pay home visitswhere requested and as vehiclemovement allows.”

The pandemic is expected tocreate a deep liquidity crisis post thelockdown. Hayagriv hopes that thebanks, RBI, and the governmentwill take more steps that will helpbusinesses better. “We hope our

CKC & Sons hopes to gain more business traction on its CKC Live video-based shopping. It will pay homevisits where requested once vehicular movement is permitted.


COVER STORY


representations will be heeded bythe government quickly,” he stated.

His wish list for extendedworking capital credit lines include,extending gold loan repayment to365 days from current 180 days;waiving interest on working andterm loans and gold loans for threemonths; allowing EMI payment forjewellery purchases to consumers;allowing all tax disputes, if any,including search cases, to be paidwithout interest if assessed tax ispaid within three or four months (ifthe assesse does not intend to appealthe case); extending PF paymentschemes to all employees up to

`50,000/- per month without limitof number of employees; noimposing of penalties for delayedstatutory payments and statutorycompliances; extending time to holdboard and general meetings andother secretarial compliancerequirements by three months;refunding all income tax, Customsduty and GST refunds within onemonth; extending additionalfunding facilities to businesses to theextent of 20%, if businesses warrant.

“In fact,” Hayagriv noted, “allbanks, private and nationalised, couldextend similar facilities. Otherbenefits already given by our

honourable Finance Minister shouldbe reviewed and extended, ifrequired, based on the situation goingforward; and reducing Customs dutyor alternately crack down heavily onsmuggling of gold which is a menaceto organised business.”

Post Covid-19, CKC’s objectiveis to offer a lot more value to theclient - not by way of discounts, butby getting more active on socialmedia and digital platforms. “Butgoing forward, we hope to reach80% of normal sales in about threemonths, depending on how theeasing of the lockdown isstrategized,” Hayagriv predicted.

SS AAHHAAMMMMEEDD,, cchhaaiirrmmaann,, MMaallaabbaarr GGoolldd aanndd DDiiaammoonnddss,,KKoozzhhiikkooddee,, KKeerraallaa

Every crisis - even the ongoingCovid-19 pandemic - presents anopportunity to reflect on thejourney so far and reorganise thestrategy. Ahammed commented,“While battling with the crisis, wehave realised how important it is forthe business entities to develop asustainable business model towithstand such sudden shock. Goingforward, we’ll intensify our focus onenvironmental, social andgovernance aspects while taking keybusiness decisions.”

In general, the margins havealways been under pressure injewellery retail due to risingoverheads and input costs coupledwith weak consumer sentiment. Thescenario has become even morechallenging due to the Covid-19impact on the economy. As a result,the business growth prospect hasbecome further constrained.

“Therefore, we have to focus on

streamlining our operations andenhancing our cost-efficiency. Weneed to be cautious while deployingand managing our assets as cash-flowis affected by the nationwidelockdown. We will relook at oursupply chain strategy, productstrategy and customer acquisitionstrategy to achieve marketcompetitiveness and strengthenbusiness sustainability,” Ahammedopined.

Tax relaxation measures willimprove capital adequacy in thebusinesses in this time of crisis,Ahammed believed, and says that

the government should extend loanrepayment tenure under the GoldMetal Loan by 180 days. “Deferringthe GST return will also boost tradesentiment. Extending workingcapital credit lines to the jewelleryindustry with flexible terms is a greattrade booster for the organizedsegment of the industry. Thegovernment should initiate adialogue with the jewellery tradebodies to create the ground,” hestated. Malabar will be focusing onenhancing their already establisheddigital platforms to enhanceconsumer engagement and loyalty.

Malabar Gold and Diamonds will relook at its supply chain strategy, product strategy and customeracquisition strategy to achieve market competitiveness and strengthen business sustainability.


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SOME CHEER AMIDSTTHE GLOOMThe Ministry of Commerce and Customs department worked relentlessly for gearing up gems andjewellery exports amidst the covid-19 lockdown. The State Governments have allowed limited diamondand jewellery operations during the lockdown at Mumbai, Jaipur, Delhi, Surat and Chennai

Thousands of gems andjewellery exporters inMumbai heaved a breath of

relief as the government ofMaharashtra allowed designatedexport units of diamond andjewellery to begin their operations inMumbai. However, considering theongoing covid-19 pandemic, thestate government has permittedlimited workforce in these jewelleryexport units. Additionally, transportof the employees will be theemployer’s responsibility during thelockdown period.

This move is significant as gemsand jewellery export operations willcommence in Mumbai’s BharatDiamond Bourse and SEEPZ, twoof India’s largest jewellery exportdesignated zones. Also, it is believedthat Bharat Diamond Bourse hasreceived export interest applications

from the members worth $550million from 1673 consignmentparcels, while SEEPZ is expected toexport $10 million worth ofdiamond exports from 50 units.

On the other hand, SuratDiamond Bourse and Jaipurresumed work after a gap of almostfive to six weeks. These centres areoperational by adhering to thecovid-19 safety guidelines set up byGujarat government. The Gem andJewellery Export PromotionCouncil (GJEPC), along with othertrade bodies, has been pursuing state

Gem and jewelleryindustry’s exports$1bn worth ispending


COVER STORY


and central government to make allmajor gem and jewellery centresoperational across India. This willclear the backlog of orders from thepre-lockdown period.

Pramod Kumar Agrawal,chairman, GJEPC said, “This is agreat step by the Maharashtragovernment as it will helpcommence the exports of gem andjewellery from Mumbai and clearpending orders. I would like toexpress my gratitude to ChiefMinister, Uddhav Thackeray, andofficials from the CMO for thislandmark decision. I also thankPiyush Goyal, Union Minister ofCommerce & Industry, Departmentof Revenue and Department ofCustoms for the continued support.Bharat Diamond Bourse and SEEPZin Mumbai are major centres thathave a huge backlog of orders andthe industry is happy that thesecentres will be operational withinfew days. We would make sure thatall factories and units are operationalfollowing strict guidelines ofmaintaining social distancing andensuring frequent sanitisation offactory premises, equipment, andworkers.”

Colin Shah, vice chairman,GJEPC added, “It has been acollective effort from all thestakeholders that has helped us startgem and jewellery exports. Asalways there has been a tremendoussupport from the Ministry ofCommerce & Industry. TheCustoms department has remainedopen during the ongoing lockdownand officials have bravely comeforward to ensure exports to takeplace. Both the Ministry ofCommerce and Customsdepartment worked relentlessly for

the gems and jewellery exports andwe as an industry thank them fortheir constant support. As a result,cancellation of orders wereminimised from Mumbai SEEPZ,Surat Diamond Bourse and Jaipur.”

Jaipur is another important centrefor gem and jewellery wherein on anaverage daily seven to eightshipments take place from ACC,

Jaipur (DTA). Till date, 40 units inSEZ, Sitapura and 25 units in gemsand jewellery zone of EPIP, Sitapurahas commenced their production.DTA has cleared 185 shipments ofvalue `22,87,79,565 and from SEZ,42 shipments of value `8,81,05,254were cleared till May 9, 2020.

“Exports of gold, silver andimitation jewellery has started.Exports of studded jewellery willalso begin soon,” added Agrawal.

Exporters are using the parcelservices of logistic companies tosend consignments as it is cheaperthan booking directly on cargoflights following an increase in airfreight rates. The parcel sizes are alsosmaller compared with usual times,as the output of factories has comedown as the factories have notstarted in full strength. “Exports ofgold, silver and imitation jewelleryhas started. Exports of studdedjewellery will also begin soon,”

added Pramod Agrawal.At Surat SEZ, operations of G&J

units commenced post 27 April,2020 with the first export of gemsand jewellery commodity takingplace on 5 May, 2020. Eight unitsstarted their operations in SpecialNotified Zone, Sachin, Surat andtwo export shipments worth`109.12 lakh was cleared in firstweek of May, 2020. ACC,Ahmedabad cleared 10 shipments inApril, 2020 worth `18.8 lakhs.

Surat Hira Bourse is facilitatingexporters in clearance of shipmentsand exports to Hong Kong has beenpossible from Mumbai airport withdirect flight/cargo connection. Fiveunits in Gem & Jewellery Park,Ichhapore, Surat have startedoperations with minimum strengthof the staff.

One consignment export of goldjewellery commenced in May fromDelhi Port and few silver jewelleryexports are in pipeline. Noida SEZis also operational. Few units ofgems and jewellery exports inChennai, too, have startedfunctioning and exports to resumein May.

GJEPC and the trade fraternity isthankful to the support extended byMinistry of Commerce andIndustry, Department of Commerceand State Governments across thecentres. Customs at each Centre ofMumbai, Surat, Jaipur and Delhihave been providing continuedassistance and backing the trade inclearing parcels both at Import andExport. It is expected that theIndian gem and jewellery industrywill be gaining back its momentumslowly by strictly adhering to theCovid-19 safety guidelines set up byGovernment.

We would make sure that allfactories and units are operationalfollowing strict guidelines ofmaintaining social distancing andensuring frequent sanitisation offactory premises, equipment, andworkers.



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CORNERED BY COVID-19To mitigate Covid-19’s economic effects, GJEPC has taken several proactivesteps. These include setting up an `50 crore corpus from its own reserves forwelfare measures and liaising with global trade bodies and apex industryorganizations to ensure that price stability and supply and demand equilibriumare maintained. Moreover, it is constantly interacting with authorities ofcentral government agencies, to ensure that much-needed relief is extended tothe sector, particularly micro, small and medium enterprises

By Rashmi Arora and Sabyasachi Ray

When a report appeared in the SouthChina Morning Post on November2019 that a patient from Hubei was

diagnosed with a novel Coronavirus strain, fewpaid attention to it. Within a month, this newdisease had spread rapidly across China’s Hunandistrict, afflicting close to 266 people. That iswhen the Chinese authorities announced theemergence of the dreaded Covid-19 virus.

Within weeks, the SARS-like virus becamea pandemic, affecting 40,13,728 people across203 countries and killing 2,78,993 deaths asper World Health Organization's report onMay 12, 2020. On the same date, Indiarecorded 67, 152 confirmed cases with 2,026

people succumbing to it. These numberscontinue their unfortunate upward climb.

To contain Covid-19's rampant human-to-human transmission, on March 25, 2020, PrimeMinister Narendra Modi announced a 21-daylockdown. In his public address to the nation, hesaid that this aggressive step was necessaryadding, "If this pandemic is not contained, itcould set us back by decades." However, as thecases kept rising, the lockdown was extended toMay 3, 2020. To lessen hardship to the public,and provide economic support to low-incomeearners, select additional activities werepermitted in non-containment areas during theperiod.”


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GEARING UP FOR SLOWDOWN

While the nationwide lockdown was necessitatedkeeping public welfare in perspective, it isexpected to hit the Indian economy, which wasalready reeling under sluggish growth for the pastfew quarters, really hard. Barclays estimates that itcould bring the country’s growth down to 2.5%,from its earlier estimation of 4.5%.

The biggest brunt of this economic blow willbe felt by India’s large MSME segment.According to Union minister Nitin Gadkari thissector accounts for 48% of exports and employs11 crore people, which underline its sheerimmensity. On taking charge of the MSMEportfolio last year, he had said, “One of the mostimportant things is to raise the employmentpotential and it is my priority, both in rural andurban areas.” Now, with the lockdown andwidespread global recession looming in thebackground, the very survival of MSME players isunder threat.

Let’s take the case of India’s gems and jewelleryindustry. It contributes 7% to country’s’ totalGDP and employs more than 5 million in thework force, with majority of them being in theMSME domain. Mumbai’s Zaveri Bazaar, whichis acclaimed as the country’s largest gold andjewellery market and is home to many MSMEjewellers and manufacturing units, is closed untilfurther notice.

When the first lockdown was announced,

retail outlets across the country downed shuttersto comply with the government regulations andalso because no customers are visiting their stores.After almost a month and half of inactivity,brands Tanishq reopened select showroom ingreen zones in May. To follow social distancingnorms, it decided to get shoppers to seekappointments before visiting the outlets andencourage cashless payments. Kalyan Jewellers,too, opened 10 stores in Odisha, Assam,Puducherry and Karnataka after getting clearancefrom respective state governments, as did SencoGold & Diamonds which reopened outlets inWest Bengal, Assam, Odisha and Karnataka.Moreover, traders have been urged to pay fullsalaries to their employees to ease the latter’sfinancial woes during the pandemic.

However, MSME entities are now worriedabout their own financial challenges in thecurrent scenario. Order books are drying up fordomestic and export business, production cyclesare askew, supply chains are disrupted, and thefinancial markets have turned volatile. Thislabour-intensive industry will likely witnesspeople being retrenched as the export-orientedbusiness bears the brunt of this crisis.

A DISMAL SCENARIO

The Gem and Jewellery Export PromotionCouncil (GJEPC) noted that following theCovid-19 outbreak, declining rate of gem and

EXPORT TO KEY EXPORT DESTINATIONSWITNESSED A DECLINE (US$ MILLION)

Countries Apr-Nov 2018 Apr-Nov 2019 % Growth (Y-o-Y) Feb-19 Feb-20 % Growth (Y-o-Y)

UAE 7,068.91 6,863.09 -2.91 806.03 1,013.01 25.68

Hong Kong 7,446.57 6,747.66 -9.39 1,466.66 526.59 -64.10

USA 7,348.61 6,411.16 -12.76 716.47 761.93 6.35

Belgium 1,273.00 1,289.47 1.29 138.65 171.39 23.61

Israel 708.72 604.92 -14.65 69.36 123.25 77.69

Turkey 38.27 500.91 1,208.94 74.29 4.03 -94.57

Singapore 389.07 441.61 13.51 62.42 40.71 -34.79

Thailand 393.35 429.99 9.31 56.58 64.84 14.59

UK 455.37 325.00 -28.63 82.62 35.38 -57.18

Japan 278.74 269.88 -3.18 31.00 36.59 18.02

Others 1,417.85 1,366.15 -5.85 185.15 196.84 6.32

Total 26,818.46 25,249.84 -5.85 3,689.23 2,974.56 -19.37

Source: GJEPC Statistics Dept. Analysis


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jewellery exports doubled to -11.32% duringDecember 2019 to February 2020 as compared to-5.53% registered in the previous quarter. It hasprojected that the gems and jewellery exportscould lose up to a whopping $2.57 billion by endof March 2020 due to this crisis.

Gems and jewellery exports have beenrecording waning trends since the beginning of FY2019-20. This can be majorly attributed to factorslike a rise in import duty on precious stones –namely polished diamonds and coloured gemstones - tightening of lending terms by banks,stringent customs inspection procedures, sluggishimport demand and withdrawal of GeneralisedSystem of Preferences (GSP) benefit by the US.These resulted in exports in this sector decliningby 5.53% during April to November 2019.

Challenges for the sector were aggravated withthe Covid-19 outbreak. As the disease spreadacross continents, manufacturing and tradingactivities were stalled or suspended, businessevents were cancelled, confirmed orders weredeferred, customer demand lessened and the cycleof receivables became drawn-out.

Since this sector is highly export-oriented, theimpact of global health emergencies can be

estimated through its continuous slump in ofexports. This has recorded a steep decline of -19.37% in February 2020 against a deceleratingrate of -9.17 % in January 2020 and -1.89% inDecember 2019.

In February 2020, exports of gems andjewellery recorded the highest fall of -19.37% inthe present fiscal year to $2.97 billion ascompared to $3.69 billion in the same period inFY 2019. This reflects the impact of coronavirus.Overall, in value terms, exports fell by $2.56billion to touch $33.63 billion during April 2019to February 2020 as compared to $36.19 billionin the same period last FY 2019.

Similarly, cut and polished diamonds, colouredgemstones and imitation jewellery have recordeda significant fall of -40.92%, -64.58% and -39.78% respectively in February 2020. It isexpected that all other gems and jewellerycommodities are likely to witness severe slump asall customs and other operations are currentlyshut in the country.

Exports of gem and jewellery commodities toHong Kong, Turkey, Singapore and the UK havebeen most affected. Exports to these countriesbefore the Covid-19 outbreak in December 2019

Mumbai’s Zaveri Bazaar, home to many MSME jewellers and manufacturing units, is closed following lockdown regulations. Traders have beenurged to pay salaries to employees to ease the latter’s financial woes during the pandemic


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were registering either growth or relatively lessdeclining growth. In February 2020, exportswitnessed a drop of -64.1% (Hong Kong), -94.57% (Turkey), -34.79% (Singapore) and -57.18% (UK).

STEPPING IN TO SUPPORT

Therefore, GJEPC is addressing regulations,policy and other issues that the respective industrysegment is facing. This could provide an impetusto tradespeople to recover their business duringthe Covid-19 period and in its aftermath.

GJEPC’s chairman, Pramod Kumar Agrawal,vice chairman Colin Shah and executive director,Sabyasachi Ray have already initiated severalproactive measures to benefit the community.This includes setting up a `50 crore corpus out ofGJEPC’s own reserves towards welfare measuresto be undertaken in the current scenario. TheCouncil has also decided to contribute `21 crore

to ‘PM-CARES Fund’ pledging its commitmenton behalf of the entire gem and jewellery trade ata time when the nation is facing anunprecedented crisis.

Additionally, it is liaising with different tradebodies and apex industry organisations across theworld, such as the World Federation of DiamondBourses (WFDB) and the World Gold Council(WGC). These discussions are centred on stepsthat can be taken to ensure that the supply anddemand equilibrium as well as price stability aremaintained in these troubled times.

To enable trade during the lockdowns, GJEPCinitiated talks with respective embassies toorganise virtual B2B meets. This initiative canenable buyers of respective countries to connectwith Indian sellers of various gems and jewelleryproducts. The Council will facilitate this onlineconnectivity platform to give exports businesssome momentum. It is also communicating with

After the Covid-19 outbreak, GJEPC consultedbusiness stakeholders, collated opinions on waysto mitigate the stress that the industry wasundergoing and shared that with thegovernment. Following this, Finance Minister,Nirmala Sitharaman, announced thesemeasures to reduce the potential impact on thetrade:

GST related1. Last date for filing GST returns for March,

April and May 2020 is extended to June 30,2020 from March 31, 2020

2. Date for opting for composition scheme isextended till June 30, 2020

3. No interest, late fee or penalty for companieswith less than `5 crore turnover

4. Interest at reduced 9% rate with no late feeor penalty for companies with over `5 croreturnover

Income Tax related1. Last date for filing Income Tax Return for

2018-19 is extended to June 30, 2020 fromMarch 31, 2020 and interest on delayed taxreduced from 12% to 9%

2. Interest on delayed TDS deposited has been

reduced from 18% to 9% 3. The date for Aadhar-PAN linking is extended

to June 30, 20204. Settlement of IT cases under ‘Vivad Se

Vishwas’ scheme can be done up to June30, 2020 without payment of 10% penalty

Banking related1.To help MSME units, the bankruptcy

threshold limit has been increased from `1lakh to `1 crore

2. Bank charges for digital trade transactionsreduced

3. No minimum balance required formaintaining bank accounts for three monthstill June 30, 2020

4. Debit card holders can withdraw cash fromany bank’s ATMs without any charge till June30, 2020

Customs related1. Customs will work as an essential service

24x7 till June 30, 20202.The last date for settlement of customs

related issues under ‘Vivad Se Vishwas’scheme has been extended to till June 30,2020, without any penalty interest

A QUICK RESPONSE


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several High Commissions so that exporters ofgems and jewellery from India can start supplyingto Switzerland, Japan and Singapore.

TALKING BUSINESS

GJEPC is interacting with various authorities ofthe central government to arrange for much-needed relief measures for the sector, particularlythe MSMEs. It is in touch with the Ministry ofCommerce & Industry (DGFT), Ministry ofFinance (Customs / CBIC / ICEGATE),Ministry of Finance (DFS / RBI), Ministry ofLabour and Ministry of Human ResourceDevelopment.

One of the recommendations it made to theseagencies includes revising the definition criteria ofMSME from the basis of capital investment toturnover base. In light of challenges in managingfunds, it has also suggested relaxing NPArecognition norms from 90 to 180 days.

Moreover, GJEPC has proposed prioritylending to the MSME segment with only 25%

collateral requirement. This will help them gettheir businesses on track once the pandemic ismedically resolved. They can get a furtherincentive with an additional 2% interestsubvention for a total of 7% interest subsidy. TheCouncil believes that the implementation of thesesuggestions will jumpstart export trade andprotect India’s precious forex earnings.

In its representation to the Ministry ofCommerce & Industry (DGFT), GJEPCsuggested that the export period be extended byanother 90 days for exporters of gold, silver andplatinum jewellery, who were obtaining preciousmetals from nominated agencies on outrightpurchase or loan basis. It also endorsed thatexports realisation be extended from nine monthsto 15 months, which is in line with what wasdone during the 2008 downturn. Goods sent onconsignment basis should be given an extensionperiod of six months.

Usually for replenishment, the exporter can bookwith the nominated agency within 120 days after the

0

-5

-10

-15

-20

-25

-4.35

Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb

-4.44-0.33 -1.89

-9.17-10.05

-10.72-8.02

-3.67 -2.5

-19.37

MONTH-WISE GEM AND JEWELLERY EXPORTS TRENDS (IN %)

COVID-19’S IMPACT ON EXPORTS Declining rate of gems and jewellery export doubled to -11.32% during December 2019 to

February 2020 as compared to -5.53 registered during April to November 2019

Gems and jewellery export recorded the highest fall of -19.37% in February 2020

Cut and polished diamonds, coloured gem stones and imitation jewellery are the severely hit keyexport commodities

Going forward, all other gems and jewellery commodities would have a challenging time, untilbusiness sentiments and consumer confidence are regained

Exports to key destinations, especially Hong Kong, have witnessed a steep decline

GJEPC Statistics Dept. Analysis


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The Gem & JewelleryExport PromotionCouncil (GJEPC), the

apex body of the gem andjewellery industry in India, hascome forward to contribute a fundof `50 crores from its ownreserves to help the needy workersof the industry impacted byCovid-19.

Under the leadership of PrimeMinister Narendra Modi, theIndian government has initiatedevery proactive measure to contain the spread of thisvirus in the country. The Fund allocated by GJEPC willalso be utilised to support the Indian government inundertaking several initiatives to fight the current crisisin the country.

Pramod Agrawal, chairman, GJEPC, said, “In ourendeavour to combat the situation caused by Covid-19,GJEPC, from its own reserves, has decided to contribute`50 crore towards several welfare initiatives to beundertaken in the current scenario. India’s economicsituation and that of our industry has taken a severebeating. Our businesses are impacted, but those mostaffected is our daily wage worker community. This is anindustry that contributes 7% to India’s total GDP andemploys more than 5 million people. It becomesimportant and mandatory at such distressing times totake adequate care of our employees and support themwholeheartedly. We have braved many turmoils beforeand this time will be no different. This is the time toshow solidarity towards our nation and our industry. It’stime for us to reveal our philanthropic side once again.”

Colin Shah, vice chairman of GJEPC, added, “We atGJEPC will leave no stone unturned when it comes toprotecting and taking care of the industry workers as theyare the trade’s backbone. We are thankful to thegovernment for announcing certain waiver in complianceand tax filings to mitigate the woes of all industries. Wehave also made representations to the Finance Ministerand Commerce Minister with measures that need to beimplemented to revive the Indian gem and jewellery

industry from this crisis. Dailywage job workers are renderedjobless due to cancellation ofexport orders. In order to ensureminimum livelihood to these jobworkers, we have proposed to thegovernment that the gems andjewellery sector be included in thelist of job works covered under theMNREGA scheme. This will helpthem sustain themselves during thisdifficult time.”

HHeerree aarree ssoommee sstteeppss uunnddeerrttaakkeenn bbyy GGJJEEPPCC ttoowwaarrddssrreelliieeff mmeeaassuurreess::

11.. GJEPC has appealed to all its members to take careof their employees during the lockdown period asalso stated by the government and demonstrate aunited and humane approach at theseunprecedented times.

22.. GJEPC has contributed a sum of `50 crore from itsown reserves to mitigate the impact of Covid-19on the industry and nation at large.

33.. The Council has formed a Task Force to decide onmodalities of utilisation of `50 crore donated byGJEPC by identifying the industry needs andgovernment initiatives to support in the currentscenario.

44.. The fund allocated by GJEPC will be utilised toaid daily wage workers employed in the gems andjewellery industry whose livelihood is directlyimpacted by Covid-19.

55.. The contributed resources will also be used forfunding specific initiatives undertaken by thegovernment to fight Covid-19, such as creation ofmedical facility, health related needs or any other

GJEPC urges all sections of the gems and jewelleryindustry, including trade bodies and organisations, tocome forward and replicate is donation efforts withgenerosity. Their support in helping the needy workersof the trade and funding initiatives of government willgo a long way in tackling the Covid-19 crisis and itsaftermath.

AN INDUSTRY WITH A HEART GJEPC has contributed `50 crore from its reserves to fund livelihood of daily wage workers of theindustry and support the government’s initiatives to fight Covid-19

GJEPC’s chairman, Pramod Agrawal with vice chairman,Colin Shah.


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exhibition or export promotion tour as against theitems sold abroad. This period could be doubledfrom 120 days to 240 days for those exporters whosetime limit expired on March 1, 2020.

Additionally, as per para 4.80 of the HandBook of Procedures (HBoP), unsold items inoverseas exhibitions should be reimported within60 days of the event’s closing, while the time forUS exhibitions is 90 days. GJEPC has requestedthat the reimport period be extended by a further90 days for all countries.

While interacting with officials at the Ministryof Finance (Customs / CBIC / ICEGATE),GJEPC proposed that uploading of permissionsand KP certificates on e-SANCHIT be allowedfor traders who were not registered on ICEGATEtill May 21, 2020. Applicants who have startedthe detailed registration process could also bepermitted to file the copy of the KP certificate forexport-import till their application is approved orrejected. This process usually takes three to sevendays on e-SANCHIT, during which time a dailydemurrage charge of `5000 is levied, if shipmentsare not cleared.

HELP FOR ALL

GJEPC also made representations to the Ministryof Finance (DFS/RBI) for three major topics.This included interest and incidental charges onexport credit. It suggested that this be waived offfor a period of 180 days up to June 30, 2020 toaccommodate business loss. Similarly, the timelimit for packing credit for exports could beextended by 180 to 270 days, while the postshipment credit could be extended from nine to15 months.

RBI may contemplate taking up these tworecommendations, while including continuation ofeligible interest subvention for the extendedperiod. It may also advise banks to consider ad hoc10% to 20% credit facilities. This could be morethan 10% for firms having term loan servicingcommitments. These facilities could help themmeet their fixed overheads like salaries and taxes.RBI is also likely to issue a notification to relaxclassification norms by minimum 180 days.

Additionally, GJEPC has requested forextension of gold loan repayment by 180 days

wherein nominated agencies or banks couldconsider extending fixed value gold loans. It alsopointed out that the slowdown could impact cashflow, affecting traders’ ability to make timelyrepayment. Hence, there is a need to offerflexibility in revolving the gold loan.

According to GJEPC, gold metal loans shouldbe allowed to all manufacturers through ADs.This will encourage exports and preventmanpower retrenchment in the gems andjewellery industry.

While making a strong case to the Ministry ofFinance (DFS/RBI), the apex body said that theentire sector should be extended a 7% interestsubvention benefit for at least another year. Byproviding a special interest-free term loan to 20%WC limits, the stress on this domain would comedown substantially. Additionally, banks can relaxcredit rating eligibility of jewellery companies toBB level, while capital subsidy of 25% can beoffered to new projects or those underimplementation with capital investment ceilingup to `10 crore.

GJEPC has also urged the Ministry ofCommerce & Industry to reintroduce WTPimmediately for the entire sector. To supportMSME exporters, Export Credit GuaranteeCorporation of India (ECGC) can address issueslike cancellation of orders by buyers or revisedpayment terms negotiated by them.

Similarly, it has urged that SEZ rulespertaining to domestic sales be relaxed in thewake of the Covid-19 slowdown. Permissionshould be given to SEZ units to sell in thedomestic market after paying necessary duties toavoid double taxation. Workers can, thus, retaintheir jobs if these units are utilised for domesticmarket production.

As the global and national response to tacklethe pandemic continues, from a medical andeconomic perspective, GJEPC is doing its best torespond to the business challenges Covid-19 hasflung at the gems and jewellery industry. It isconstantly communicating with key stakeholders– government agencies, global trade bodies,organisations and local traders. All this in aproactive bid to minimise the risk of businessdisruption.


VIEW POINT


ANSWERING QUERIES REGARDINGPAYMENT OF WAGES DURING THELOCKDOWN PERIOD

The Ministry of Home Affairs had issuedOrder No 40-3/2020-DM-I (A) datedMarch 24, 2020, whereby the National

Disaster Management Authority confirmed thethreat of Covid-19’s spread. The NationalAuthority then invoked Section 10 (2) of theDisaster Management Act 2005 and a lockdownwas enforced throughout the nation for 21 daysfrom March 25, 2020.

The above order was followed by addendumOrders dated March 25, 2020 and March 27,2020, addressing the issue of migration of largenumber of people mainly workmen. Furtherdirections were issued under Section 10 (2) of theDisaster Management Act.

The relevant extract in the Order inter alia,reads as follows:

“Whereas, to deal with the situation and foreffective implementation of lockdown measuresand to mitigate the economic hardship of themigrant workers.... to take following additionalmeasures:

iii. All the employers, be it in the industry orin the shops and commercials establishments, shallmake payments of wages for their workers, attheir workplaces, on the due date, without anydeduction, for the period their establishments areunder closure during the lockdown;

In the backdrop of the above Order datedMarch 29, 2020, the Department of Industry,


VIEW POINT


Energy and Labour under the Government ofMaharashtra vide Resolution No - Misc2020/Q.No 54/work-9, took a decision regardingall the workmen/employees who have beenaffected by the Order issuing lockdown.

The decision taken in the above resolution hasbeen translated and extracted below:

‘The Government of India had ordered acomplete lockdown owing to the outbreak ofCovid-19. The State Executive Committee of theMaharashtra State Disaster ManagementAuthority has decided to invoke Section 24 of theDisaster Management Act 2005 in respect of allthe workmen/employees who have been affectedby the above order.

All private establishments, factories,companies, shops shall pay the salary andallowances to workmen/employees towards theperiod where the workmen/employees wereasked to stay at home as per the Order of theGovernment. That for such period the employeeswould be considered deemed to be on duty.

That a workman/employee includes thoseemployees on contract, outsourced, temporary,daily wages.

This Order is applicable to all industrial,commercial and shop establishments inMaharashtra.’

The office bearers of SEEPZ Gems &Jewellery Manufacturers Association, Santacruz,Electronic Export Manufacturers Associations andExport Promotion Council for EOUs and SEZsin SEEPZ-SEZ have raised the following queries,which have been addressed as follows:

WWhheetthheerr tthhee aabboovvee oorrddeerrss aarree bbiinnddiinngg oonn tthheeSSEEZZ uunniittss??

The above orders are applicable to allestablishments, factories, shops and units. ThePayments of Wages Act, 1936 and other Labourlegislations are applicable to SEZ with slightmodifications viz with special rules framedthereunder.

Hence, the Employers are liable to pay wagesto all the workmen/employee as per the above

order for lockdown period.

WWhheetthheerr tthhee lloocckkddoowwnn ppeerriioodd ccaann bbee aaddjjuusstteeddaaggaaiinnsstt ppaaiidd lleeaavvee??

That the Order dated March 29, 2020 is clearthat the wages/salaries will be paid without anydeductions. The above resolution dated March31, 2020 has invoked Section 24 of the DisasterManagement Act, directing the employers tomake payment towards wages/salaries andallowance by deeming such lockdown period asworkmen/employee on duty. Hence, thewages/salaries for the lockdown period cannot beadjusted against paid leave.

WWhheetthheerr tthhee uunniittss ccaann aasskk tthhee wwoorrkkeerrss ttoo wwoorrkkffoorr eexxttrraa ddaayyss eeqquuiivvaalleenntt ttoo tthhee lloocckkddoowwnn ppeerriioodddduurriinngg sseeaassoonn??

The SEZ units being of prime importance tothe nation’s economy, the units could definitelyask the workmen/employees for extra days dueloss of works during the lockdown period so to asto ensure the production/service is not adverselyaffected. But the workmen/employees should bepaid for the extra days they worked for and thesame cannot be adjusted.

WWhheetthheerr tthhee uunniittss ccaann aasskk tthhee EEmmppllooyyeeee SSttaatteeIInnssuurraannccee CCoorrppoorraattiioonn ((EESSIICC)) ttoo bbeeaarr tthhee wwaaggeesseeqquuiivvaalleenntt ttoo tthhee lloocckkddoowwnn ppeerriioodd bbyy wwaayy ooffaaddjjuussttmmeenntt aaggaaiinnsstt ppaayymmeennttss dduuee ttoo EESSIICC??

As replied above, all establishments, factoriesand shops should ensure payment ofwages/salaries for the entire lockdown period for21 days. If any workmen/employee hasunfortunately contracted the Covid19 pandemicvirus or any other sickness and the saidworkmen/employees seeks medical benefit underESIC the same shall be implemented by the ESIauthority.

PENALTY PROVISION

Please note that the government has the powersto prosecute the management for violation of anyof the provisions referred herein above.



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It was a regular working day for Kumar Jain ofUmedmal Tilokchand Zaveri till he checkedhis mail and saw a show cause notice (SCN)

for non-levy of customs duty. Rubbing his eyesin disbelief, the Mumbai-based jeweller checkedagain and saw that it was for re-imports of unsoldgems and jewellery exported for a promotionalevent on consignment basis.

Perplexed, he called an industry peer, KishoreGajaria, who also participates in internationalevents. Imagine his surprise, when he learnt thatGajaria, too, had received a similar missive!

Vasantraj Birawat of Chain N Chain Jewels,who did not receive a SCN, soon learnt about theissue and became worried. The trader communitydecided to escalate matters to the Gems and

Jewellery Export Promotion Council (GJEPC),which got cracking with its team of experts tounderstand the issue at hand and resolve itquickly.

EXERCISE OF EXCISE DUTY

Around 1,000 exporters were issued SCN fornon-levy of customs duty. These were charged onre-import of unsold gems and jewellery exportedfor exhibitions and export promotion tours onconsignment basis under the entry at Sr No 3 ofthe table contained in Customs Notification No94/96-cus dated 16-12.1996. Many exporters alsoreceived a pre-notice consultation (PNC) foravailing undue notification benefit undernotification no.46/2017.

AT THE FRONTLINE OFRESOLVING CUSTOMS ISSUESWhen several exporters were issued show cause notices for non-levy ofcustoms duty on re-import of products exported for international trade shows,GJEPC stepped in quickly to resolve matters. It also made representations toofficials about keeping ‘Origin of Goods’ in abeyance for a while


POLICY MATTERS


GJEPC representatives met the AdditionalCommissioner of Customs, Member Customs,CBIC, Additional Director General of ForeignTrade, Additional General of Export Promotionand CHA to discuss this matter. It disseminated acircular among its members outlining steps theycan take on receiving a SCN and how to submitan extension letter on its receipt. It also guidedthem on attending the personal hearing (PH) andrequesting for time to submit their reply.

Moreover, it distributed a mailer regarding theextension letter to members who received theSNC and informed them about the modalitiesinvolved in submission for extension letter to thecustoms department. To everyone’s delight, theMinistry issued a clarification, vide circularno.17/2019, which made everyone heave a hugesigh of relief.

Taking cognisance of those members who hadreceived PNC for availing undue notificationbenefit, GJEPC officials made a representation tothe Chief Commissioner of Customs, requestingfor withdrawal of instructions issued forconstitution of task force for the purposes ofissuance of PCNs and SCNs in the matter. It alsodistributed circulars to members with a reply draftfor PNC and a reply draft on receipt of SCN.This came as a ready resource for members whowanting to seek an extension so that they couldprepare their documents accordingly.

The Council also guided members on how tofill out these drafts, including information to befilled in the blanks provided, where to submit it,what the various paras meant, where to take theprintout, should to put their initials ondocuments, etc. GJEPC also conducted a seminarto educate them about SCN and PH, what is anormal notary or a registered one, the value ofstamp paper and should they submit an affidaviton receipt of PH. TThhee oouuttccoommee ooff tthheesseeiinniittiiaattiivveess wwaass tthhaatt oonn ssuubbmmiissssiioonn ooff tthheeddooccuummeennttss,, mmeemmbbeerrss rreecceeiivveedd aann oorrddeerr ffoorr nnoonn-ppaayymmeenntt ooff dduuttyy..

HELPING IN STREAMLINING PROCESSES

The Office of the Commissioner of Customs,Mumbai, directed industry members to provide

elaborate details of rough diamonds declared forexport to decide their value. It noted that thedescription of goods stated in the documents filedfor clearance was often incomplete and, in mostcases, the imported and exported goods weremerely stated as ‘Rough Diamonds’. This wasprimarily in the case of valuation of roughdiamonds, which had been disseminatedsuspecting the same as cases of ‘suspected mis-declaration’.

A note from the Customs Office stated thatdetails like origin, size, shape (octahedrons, longs,mackles, flats, triangles, etc.), colour and clarityare essential for proper assessment of importedrough diamonds or those entered for export. Itput the onus on the importer or exporter to statethese details in the bills of entry or shipping Billsfiled for the clearance of such goods.

GJEPC pointed out that India is the Chair ofKimberley Process Certification Scheme (KPCS)2019. A special forum on ‘Valuation on RoughDiamonds’ was conducted in June 2019 whereintersessional meeting with WCO representativeswere invited. It therefore requested the Customsoffice to keep this procedure in abeyance and notimplement it for the time being.

The Indian government has been working hardto boost domestic manufacturing and promoteexports. The board decided to incorporateadditional attributes in the Shipping Bill to enablethe Customs System to capture the Districts andStates of Origin for goods exported.

GJEPC met the Commissioner of Customsand officials at the Ministry of Commerce toapprise them about the practical challenges in thisdomain. They also recommended keeping theinformation provided on Origin of Goods inabeyance, till the practical solution to somechallenges are finalised.

They requested the Customs department toallow exporters to carry on their exports bymentioning Mumbai as the district andMaharashtra as state since exports takes place fromMumbai’s Precious Cargo Customs ClearanceCentre. A circular about this meeting was sharedwith the Council’s members, so they were awareabout the proceedings.


INDIA’S GOLD INDUSTRY IS ONTHE CUSP OF TRANSFORMATIONIn an exclusive interview to Solitaire International, Somasundaram PR,managing director – India, World Gold Council, sheds light on the newgold policy, contemporary challenges and an exciting future filled withinnovations

Somasundaram PR, managing director -India, World Gold Council has been alwaysthe leading voice of the Indian gold

industry. A staunch advocate of a progressivepolicy for the trade, he explained how it canaugment demand, promote development of thegold market, increase employment opportunities,spur exports and enhance consumer protection -making it a win-win proposition for the entireecosystem.

WWhhaatt aarree ssoommee cchhaalllleennggeess pprreevvaalleenntt iinn tthhee IInnddiiaannggoolldd mmaarrkkeett?? The Indian gold industry’s growth has beenimpressive since the withdrawal of the GoldControl Act in 1990. Despite its significant size,it has remained a fragmented, largelyunorganized, sector with significant untappedpotential.

With an annual demand of approximately 800tonnes to 900 tonnes and a market size secondonly to China, India still lags in infrastructure andstandards. It has not leveraged its buying power tohave any influence on the global gold market.

There is a pressing need to reform India’s goldmarket. There is serious lack of standards affectingintegrity of gold, very low mining and limitedrecycling of household gold restricting the growthof domestic gold market and resulting in the

majority of demand being met through imports. Additionally, there exists a large segment of

unorganised trade (over 60%) with a complex andfragmented supply chain, with varying degrees ofcompliance. Higher taxes on gold and short-termoutlook and frequent tax changes hindersconfidence of the trade in making investmentsbehind innovation and exports.


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WWiillll tthhee nneeww ggoolldd ppoolliiccyy rreessoollvvee tthheesseecchhaalllleennggeess??A comprehensive gold policy that addressesboth opportunities and challenges, wouldbe a prime enabler to ensure that theeconomic benefits of gold are amplifiedand visible. A stable policy environmentand an integrated approach to domestic andexport is critical to alter the role of gold inthe economy - from being perceived as anegative asset impacting tax transparency toone that is a compliant mainstream assetwith significant potential to protect wealthand boost economic growth.

In the absence of such a policy,frequently, short-term policy interventionsin the form of import curbs have beenmade, leading to unintended consequencesincluding smuggling and tax evasion, whichkeep the industry from becomingprogressive and mainstream. Effectivereforms could create impact at multiplelevels; grow demand without creatingmacroeconomic instability, promote orderlydevelopment of the gold market, increaseemployment sizeably, spur investments invalue added manufacturing, boost exportsand enhance consumer protection.

WWhheenn ddoo yyoouu eexxppeecctt IInnddiiaa ttoo iimmpplleemmeenntttthhee nneeww ggoolldd ppoolliiccyy?? HHooww aarree tthheessttaakkeehhoollddeerrss mmaakkiinngg aa ccoolllleeccttiivvee eeffffoorrtt ttooeennssuurree iitt iiss rroolllleedd oouutt aatt tthhee eeaarrlliieesstt??Further to budget announcement about acomprehensive gold policy in 2018, NITIAayog released a comprehensive report totransform India’s gold industry. Withindustry support, we have publishedblueprints on specific recommendationslike gold spot exchange and bullionbanking.

We believe 2020 will see phasedintroduction of further policy measuresdesigned to increase transparency in gold asan asset class. We expect policy-led andindustry-led initiatives that will reflect amarked shift in the next three yearstowards making the industry betterorganised.

HHooww wwiillll tthhee jjeewweelllleerryy mmaannuuffaaccttuurriinngg aannddrreettaaiilliinngg sseeggmmeenntt bbeenneeffiitt ffrroomm aannoorrggaanniisseedd,, ttrraannssppaarreenntt ggoolldd mmaarrkkeett??Gold is a global market and Indianhandcrafting is an untapped opportunity inthis area. Enhanced consumer trust, moreinvestments, easy access to finance, betterinnovation and greater reach will be someof the benefits of an organized market. Therisk of remaining unorganized in anincreasingly global market is too wellknown to need re-statement.

WWhhaatt wwoouulldd bbee tthhee ppootteennttiiaall rreevveennuuee ooffIInnddiiaa’’ss bbuulllliioonn bbaannkkiinngg ooppeerraattiioonnss oonnccee uuppaanndd rruunnnniinngg??Bullion banks are, and continue to be, akey pillar of the gold market - they buildgreater trust across the gold value chain,drive efficiency, provide liquidity, promotetransparency and support price discovery.The result is that customers can participatein the bullion market with confidence.

Several countries, including the UK,US, China and Switzerland have fullyfunctional, well-organised bullion markets.In these countries, participants access thebullion market through bullion banks.Bullion banking has the potential togenerate massive revenues, primarily frominterest from financing activities, andbrokerage and fee income from sales andtrading activities.

In 2017, revenue from global bullionbanking operations was estimated at US$1.5-1.8 billion. The revenue potential ofeach bank differs according to the breadthand depth of services offered. While tier Ibanks such as UBS, HSBC and JP Morganeach generate revenues of US$100-250million from bullion banking, smaller, tierII banks generate revenues of less thanUS$50mn.

The development of an effective bullionbanking industry in India will require realcommitment from both banks andpolicymakers in seeking to create a viabledomestic bullion banking market. Apartfrom substantial revenue, increased bullion

A stable policyenvironment and anintegrated approach todomestic and export iscritical to alter the roleof gold in the economy– from being perceivedas a negative assetimpacting taxtransparency to onethat is a compliantmainstream asset withsignificant potential toprotect wealth andboost economicgrowth.

– SOMASUNDARAM PRMD - India, World Gold

Council


INDUSTRY INSIGHT


demand should also result insignificant job creation. It isestimated that higher manpowerrequirements could create anadditional 15,000-25,000 jobs.

HHooww ccaann mmaannddaattoorryy ggoollddhhaallllmmaarrkkiinngg aaccrroossss IInnddiiaa bbeenneeffiitt tthheettrraaddee??India’s gold industry is at the cusp oftransformation, as transparency,standards and infrastructure begin todefine the next phase of reforms.Making hallmarking mandatory is amuch-awaited progressive step tosafeguard the interests of theconsumers, particularly women,who put their hard-earned savingsinto this asset class.

This reform should be backed bya tight enforcement mechanism andhas potential to enhance trust inIndian gold jewellery, therebyenabling a favourable environmentto market our famed handcraftingskills appropriately. Employmentpotential in assaying and hallmarkingwill increase.

Hallmarking will also create alevel playing field, benefitting smallplayers. The transition time of oneyear will allow the industry enoughtime to sell the existing inventory-while simultaneously, plugging anygap in infrastructure or makingsuitable changes in logistics. Tomake this a smooth success,government and the industry playersshould also create a strong consumerpull, through consumer awarenesscampaigns.

HHooww iiss WWGGCC eennssuurriinngg tthhaatt ggoollddjjeewweelllleerryy hhaass ttoopp-ooff-mmiinndd rreeccaallllaammoonnggsstt ccoonnssuummeerrss?? WWiillll iitt rreevviivveeiittss hhiigghhllyy ssuucccceessssffuull jjeewweelllleerryy-rreellaatteeddpprroommoottiioonnss iinn IInnddiiaa lliikkee GGoollddEExxpprreessssiioonnss,, AAzzvvaa,, eettcc..??Our strategy changes from time to

time depending upon the needs ofthe market. Currently, the priority isto make sure the future of thisindustry is aligned to the broadereconomic agenda. To this end, ourcurrent efforts are focused onworking with stakeholders for astable policy environment.

WWiillll WWGGCC ffooccuuss ppuurreellyy oonniinnvveessttmmeenntt-ddrriivveenn ddeemmaanndd??There is no difference betweeninvestment-driven demand andjewellery. In India, gold in any formis an investment and our householdsunderstand that like any seasonedeconomist. We are buildingmarketing support and a strong casefor gold through industry events anddigital platforms such asMyGoldGuide.

AAllmmoosstt aallll eeffffoorrttss ttoo ssmmuuggggllee ggoollddiinnttoo IInnddiiaa sstteemm ffrroomm tthheeggoovveerrnnmmeenntt’’ss eeffffoorrttss ttoo ccuurrttaaiill iittssiimmppoorrtt.. HHooww ccaann tthhee ccoouunnttrryybbaallaannccee tthhee ccuullttuurraall aaffffiinniittyy ffoorr ggoolldd

wwiitthh mmaaccrroo-eeccoonnoommiicc pprreessssuurreess??India’s per capita gold consumption,despite being a large gold market, islow at less than 0.50 grams, lowerthan many advanced countries thathave sophisticated financial markets.This speaks of a large pent updemand at the lower end of theeconomic hierarchy.

As more people grow out of thesubsistence level to become middleclass, their desire to hold gold will

Bullion banks are, and continue tobe, a key pillar of the gold market -they build greater trust across thegold value chain, drive efficiency,provide liquidity, promotetransparency and support pricediscovery.

World Gold Council is building marketing supportand a strong case for gold through industry eventsand digital platforms such as MyGoldGuide.


INDUSTRY INSIGHT


only drive demand. A 1% increasein income leads to a 1% increase ingold long term. So, instead of tryingto curb demand, we should look atways of making gold more accessiblethrough banks so gold savingshappen through the banking system-which can put this to use just asany other savings.

Supporting innovation in goldthrough a massive tech programmeon gold, promoting exports andreviewing India’s untapped goldmining opportunities are ways wecan balance the macro-economicpressures. GMS and SGB need to bemade more flexible and that can addease supply side pressure - besidesmaking the market more organised.

DDeessppiittee bbeeiinngg tthhee sseeccoonndd bbiiggggeessttggoolldd ccoonnssuummeerr,, wwhhyy ddooeess IInnddiiaa hhaavvee

ssuucchh lliittttllee iinnfflluueennccee iinn tthhee gglloobbaallmmaarrkkeett,, iinn tteerrmmss ooff sseettttiinngg tthhee ggoollddpprriiccee??This has to do with a limitedpurpose and inconsistent policies sofar. It tended to focus on justcontrolling imports rather thanleveraging gold as an asset class, onethat promoted savings at all levels ofthe social and economic hierarchy.

WWhhaatt iinnnnoovvaattiioonnss ccaann wwee eexxppeecctt ttoosseeee iinn tthhee IInnddiiaann ggoolldd mmaarrkkeett oovveerrtthhee nneexxtt ffiivvee yyeeaarrss??We can expect innovations in bothinvestment products and jewellery.This will be led by digital trends,bullion banking and technologyintegration into the jewellerylifecycle - covering manufacturing,selling, marketing, storing, usageand recycling.

Apart from substantial revenue,increased bullion demand shouldalso result in significant jobcreation. It is estimated that highermanpower requirements couldcreate an additional 15,000-25,000jobs.



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Nirupa Bhatt will be transitioning fromher full-time position as managingdirector of Gemological Institute of

America, India (GIA India), from June 15, 2020.She announced that she intends to transition to aconsulting advisory position focusing on GIA’sDiamond Origin Report service. “This decisionoffers a smooth succession plan for GIA India,with me available to personally guide a qualitytransition for customers and the trade,” sheadded.

Bhatt’s position will be filled by SriramNatarajan, currently vice president of LaboratoryOperations, and he will report to theorganisation’s board of directors. Prior to joiningGIA India in August 2017, he held operationaland leadership roles in a variety of internationalindustries. Apoorva Deshingkar, who joined GIA

India in 2009, has been announced as theorganisation’s senior director of sales, reporting toNatarajan.

Bhatt joined GIA India on January 1, 2008,with a responsibility to expand education

programmes and laboratory services. She oversawthe opening of the GIA India laboratory inMumbai, and increased the scope of GIAeducation offerings in India. In 2018, GIA Indiaopened a laboratory in Surat to serve clients inthat important diamond manufacturing centre. Inher role as managing director, Bhatt oversaw thesuccessful 10-year expansion of GIA India.

Susan Jacques, president and CEO of GIAcommented, “Nirupa has overseen the launch ofthe GIA India laboratories in Mumbai and Surat,and the GIA education programmes in India. Shehas been instrumental in the establishment of GIAIndia, and her tremendous contribution to theindustry, to GIA India and to our mission willhave a lasting impact that will long beremembered.”

Bhatt noted, “The Indian gem and jewelleryindustry is very important for its role inemployment generation, forex earnings andsocio-economic development. I’m glad to haveworked with organisations like Argyle / RioTinto and GIA that have given me theopportunity to contribute to the growth story ofthe industry.”

Prior to joining GIA India, Bhatt was with themining conglomerate Rio Tinto, owner of theArgyle Diamond Mine in Australia and the

Diavik Diamond Mine in Canada, for 20 years.She also managed the Indo Argyle Diamond

Council. Apart from her full time jobs, Bhatt hasbeen active in many industry and tradeorganisations, including The Gem & JewelleryExport Promotion Council (GJEPC), the AllIndia Gem and Jewellery Domestic Council(GJC), the Indian Diamond & ColorstoneAssociation (IDCA) New York and the Women’sJewelry Association (WJA). She also served onseveral juries for industry awards and sheestablished the India chapter of WJA.

NIRUPA BHATT TAKES ON NEWROLE AT GIA INDIA From June 15, 2020, she will take on a consulting advisoryposition focusing on GIA’s Diamond Origin Report service

Since joining GIA India in 2008, Nirupa Bhatt oversaw the opening ofits Mumbai and Surat laboratory, and increased the scope of GIAeducation offerings in India


SPECTRUM


YYoouu wweerree tthhee ffiirrsstt wwoommaann iinn IInnddiiaa ttoo bbrreeaakktthhee ggllaassss cceeiilliinngg iinn tthhiiss iinndduussttrryy,,eessppeecciiaallllyy ssiinnccee tthhee iinndduussttrryy wwaass mmaallee-

ddoommiinnaatteedd.. NNBB: My approach has been that I am first a

human being, then a woman. This has helped meto be strong, empathetic and an assertiveprofessional. It is a privilege to be born as awoman, and I have enjoyed my journey in thegem and jewellery industry.

Each role and industry presents challenges andopportunities. I focussed on the opportunitiespresented in this sector. My efforts inunderstanding the industry and its needs helpedme to connect with the enterprising diamondcommunity and jewellers. I have great admirationand respect for the Indian diamantaires forestablishing our country as a global cutting andpolishing centre. I owe my success to the lessons Ilearnt from owners of small cutting units tomulti-million-dollar global business owners.

Earlier, I worked in the engineering industryand travelled to smaller towns across the countryfor sales. I learned early on that effectiveness isappreciated irrespective of gender. I applied beingsincere and truthful to the cause and so, did nothave problems.

I lost my father at a young age. My mother wasa strong-willed, hard working woman. I saw herraising us in adversity and she encouraged us toachieve our dreams. My training in the NationalCadet Corps and becoming a senior under officer,attending the Republic Day Parade and national

camps gave me confidence to be myself. Thanksto my family that empowered me, and taught menot be intimidated.

TTeellll uuss mmoorree aabboouutt yyoouurrsseellff,, aanndd tthhee rreeaassoonnsswwhhyy yyoouu cchhoooossee ttoo jjooiinn tthhiiss iinndduussttrryy..

NNBB:: The uniqueness of this industry is itsability to teach newcomers how to flourish andcontribute towards its growth. I am grateful to somany for giving me their time and helping me togrow.

My entry to the industry was accidental and Iam so glad to be here. During these years, I haveworked with two generations - the firstgeneration was my guru, and I am happy to havecontributed to the growth of many from thesecond generation. Today, many of these youngmen and women are leading the businesses andmy connection with their families for the last 30years has helped me nurture those relationships.

WWhhiicchh wwaass yyoouurr ffiirrsstt jjoobb iinn tthhee iinndduussttrryy aannddwwhhaatt lleessssoonnss ddiidd yyoouu ttaakkee aawwaayy ffrroomm iitt??

NNBB:: The journey into the world of gems isalways fascinating and mine has been veryfortunate. I worked with Argyle Diamonds and itwas a great place to work at. Argyle was new tothe industry and was keen to make a difference. Itwas not easy to get the role in Argyle as there wassome hesitation to hire a woman in India.However, once I was hired, there was no lookingback.

My expertise at the time was market

THE GRANDE DAME OF INDIA’SDIAMOND INDUSTRYNirupa Bhatt needs no introduction to the Indian gem and jewellery industry. She radiatesa sense of self-assuredness and purpose that comes with the territory. Recognised withseveral accolades and awards by her peers, Bhatt has played a pivotal role in theprominent positions she has held during her long and illustrious career. Disentangling oneself from stereotypes is not an easy task, but Bhatt has always let herwork speak for itself. She has toiled with a singular purpose - to ensure the welfare of theindustry at large. The announcement of her stepping down from the managing director’spost of GIA India took the industry by surprise. But for a woman whose aim has alwaysbeen able to rediscover herself through the different and challenging roles that she takeson each time, she is clearly excited about her onward journey. Bhatt, in an email interviewwith Solitaire International, reminisces about her life, career, challenges and learnings.


SPECTRUM


intelligence and I was able to provide them with abetter understanding of the industry. I acquiredknowledge through my work with those in thediamond trade, and from other experts andjewellers in India, Antwerp, Australia and the US.Their goal was to help the Indian industryimprove technical capabilities to cut and polishdiamonds and market them effectively. Weworked with the diamond cutters in Gujarat toimprove their productivity and yield from roughdiamonds.

Another major role was to work with jewellerymanufacturers and exporters to help them design,merchandise and market jewellery for Americanretailers. I feel very satisfied that I could make adifference through those programmes. I amfortunate to serve industry organisations and thathas helped me to contribute to the greater goodof the industry. My biggest lesson from ArgyleDiamonds was to respect and fulfil customerneeds.

CCoouulldd yyoouu sshhaarree aann aanneeccddoottee oorr ttwwoo aabboouutt tthheehhuurrddlleess yyoouu ffaacceedd tthheenn aass aa nneewwccoommeerr??

NNBB:: I distinctly remember two stories. Thefirst was my interaction with Mike Mitchell,general manager of sales and marketing, when Iwas visiting the Argyle Diamonds headquarters inPerth within a few weeks of joining the company.He called me into his beautiful corner officeoverlooking the park and said, “India is veryimportant for Argyle Diamonds and the need tounderstand and support the industry.” He alsotold me that I was hired against the conventionalwisdom (he was referring to hiring a woman inIndia from a male-dominated industry) and thatArgyle was investing in me. Sensing hishesitation, I assured him that he and ArgyleDiamonds will never regret the decision. The restis history. I learned a lot from Mike. He was agreat manager, a taskmaster, and a fine gentlemanwho kept the team spirit high. I am lucky to haveworked with the Argyle team.

The second instance is when the Argyle Boarddecided not to renew their contract with DeBeers, and go to market directly in 1996. It wasone of the most challenging times, as I used tovisit diamond offices in Opera House, Mumbai,to support the existing customers and identify

potential customers. I was told by a few leadingdiamantaires that I was wasting my time withArgyle Diamonds and that this decision to go tomarket directly would fail. The entire Argyleteam worked diligently and sincerely to make thisboard’s decision successful. The leadership ofmanaging director Gordon Gilchrist and generalmanager Mike Mitchell led us to success, and itbecame a turning point in the history of thediamond industry. Some of these diamantairesbecame Argyle Diamonds customers. It was awell-deserved success.

WWhheenn ddiidd yyoouu aaccttuuaallllyy ssttaarrtt ttoo mmaakkee aa mmaarrkk ffoorryyoouurrsseellff?? EExxppoouunndd oonn tthhee qquuaalliittiieess oonnee rreeqquuiirreess -ttoo ssccaallee uupp tthhee llaaddddeerr ooff ssuucccceessss..

NNBB:: It took about three years for me to get myvehicle in top gear. I started doing pricediscoveries and connected with grassrootsworkers in villages and small towns of Gujarat.Diamantaires in Opera House were not willing togive me the time. However, over those threeyears, they started to hear about me visitingfactories, providing technical support and myefforts to work with jewellery manufactures tounderstand the US market.

Formation of the Indo Argyle DiamondCouncil (IADC) and the development ofBusiness Excellence Model (BEM) were the twoimportant milestones. My experiences havetaught me to adapt in a challenging environment.I live and thrive in uncertainties, and I do not giveup.

After having spent 20 years with ArgyleDiamonds (later Rio Tinto Diamonds), I startedmy stint with the Gemological Institute ofAmerica (GIA) India as managing director ofIndia and Middle East in 2008. My role was tocreate awareness about the institute’s mission ofensuring public trust in gems and jewellerythrough research, education and laboratoryservices across the length and breadth of India andthe Middle East. I felt this was the perfectopportunity for me to contribute extensively tothis industry.

YYoouurr aaddvviiccee ttoo tthhee wwoommeenn eennttrreepprreenneeuurrss aannddddeessiiggnneerrss ooff ttooddaayy..

NNBB:: The gem and jewellery industry thrives


SPECTRUM


because of women and I believe that an increaseof women in the workforce at all levels will bringfresh perspectives, hopefully leading to expansionand improved quality. We are fortunate to be ableto work with natural precious gemstones likediamonds and precious metals like gold andplatinum. Entrepreneurs and designers -regardless of their gender - should respect theintrinsic value of these natural resources. Thebeautiful ornaments which are gifted andpurchased often serve as a memory for decades.

There are plenty of opportunities and tradebodies, like the GJEPC, are making efforts to givewomen the platform to shine. I urge women tocome forward and demonstrate the value they addto their chosen profession. Persistence, purposeand passion are keys to recognition and making adifference.

HHooww wwaass iitt wwoorrkkiinngg aatt tthhee hheellmm ooff aaffffaaiirrss aattGGIIAA IInnddiiaa?? AAnndd nnooww aass aa ccoonnssuullttaanntt wwiitthh GGIIAA......

NNBB:: In the past 12 years, I have built amanagement team committed to furthering GIA’smission. I was the first employee of GIA India in2008, and today GIA India has more than 1,300skilled and committed staff. I am confident thatthe team will take GIA India to greater heights.GIA’s leadership has been supportive andencouraging of India operations. The Indiandiamond industry has benefitted with GIA’sgrading services available at their doorsteps. In myopinion, there is great potential for GIA’scoloured stone and pearl identification services inIndia.

I am looking forward to working with GIA inan advisory/consulting role and focus on the GIADiamond Origin Report. Backed by scientificmatching of polished and rough diamond, theDiamond Origin Report service enables retailersto tell the story of where diamonds come fromand the socio-economic impact it has on the

region. I visited Argyle mine a few times and havewitnessed the development of local community interms of education, health and employability.

OOtthheerr tthhaann bbeeiinngg sstteeeeppeedd iinn iinndduussttrryy mmaatttteerrssaanndd GGIIAA-rreellaatteedd wwoorrkk aallll tthhiiss wwhhiillee,, hhooww ddoo yyoouuuunnwwiinndd?? TTeellll uuss aabboouutt yyoouurr hhoobbbbiieess..

NNBB:: I love teaching and my first job was as ateacher. In the past three decades, I havementored and coached many young men andwomen, helping them grow in their roles. Duringmy Argyle days, I played a role of consultant tocustomers and IADC participants to manage,design and merchandise for the target market. Iam a certified coach and love to empower peopleby coaching them. I also love reading, watchingmovies and cooking for my family. My favouritebook is Atlas Shrugged by Ayn Rand.

Post coronavirus pandemic, where, accordingto you, will the Indian diamond industry beheaded? How long do you think it will take forthe industry to come out of the downturn?

NB: This is a difficult and unprecedented timefor all industries across the globe. I am not ahealth expert and do not know when will it beover.

Jewellery has an emotional appeal. It is possiblethat as we come out of this situation, consumerswill return to stores. Since industries like tourismare likely to be adversely impacted, there may be apossibility that some consumer spend could bedirected at discretionary purchases.

AAnnyy oonnee kkeeyy mmaannttrraa tthhaatt yyoouu tthhiinnkk tthheeiinndduussttrryy sshhoouulldd aaddoopptt ttoo rreeaacchh ggrreeaatteerr hheeiigghhttss??

NNBB:: The manufacturing competency of Indiangem and jewellery industry is recognised globallyand has potential to be the single-point sourcingcentre for retailers. Indian jewellerymanufacturers should focus on quality,productivity and design.


GJEPC NEWS


The Gem & Jewellery ExportPromotion Council (GJEPC)has advised all its member-

exporters to approach their banksdirectly and seek benefits arising fromcertain changes in provisions relatedto packing credit and extension oftime for repayment that have beenrecently introduced by the RBI.These changes in the MasterDirection - Export of Goods &Services 2016, issued by RBI, havebeen announced by the central bankin the context of disruptions tobusiness due to the current Covid-19 pandemic.

It may be recalled that the GJEPChad last month requested thegovernment for certain relaxations intime limits for repayment of exportcredit due to then anticipated delaysin realisation of export proceeds. At

that time the impact of Covid-19 wasmainly limited to Hong Kong andChina, which account for about one-third of India’s exports. Since then,the virus is reported to have spread tomore than 100 countries across theglobe.

GJEPC said that after it had furtherdiscussions with the Ministry ofCommerce & Industry (MoC&I) andMinistry of Finance (MoF) about theimpact on the trade, the governmenthas introduced some changes in termsof Packing Credit and Extension ofTime for realisation of exportproceeds for delays arising due to theimpact of Covid-19 on the business.

Some key highlights includeseeking permissions for delays inshipment under packing credit;granting of period of nine monthsfrom the date of export for realization

and repatriation of export proceeds forexports from SEZs, EOUs, StatusHolder Exporters and certain others;and of 15 months from the date ofshipment of goods in the case ofgoods exported to a warehouseestablished outside India.

Additionally, AD Category-I bankshave been permitted to extend theperiod of realization of exportproceeds beyond the stipulated periodof realization from the date of export,up to a period of six months, undercertain conditions as stipulated byRBI. The Council has stressed that allreporting of exports should be doneunder the EDPMS and has askedtrade members-exporters to make useof above provisions and approach thebanks directly so as to streamlinebusiness activity in the currentsituation.

GJEPC MEMBERS MAY APPROACH BANKSFOR BENEFITS FOR EXPORT CREDITMember-exporters are advised to approach their banks directly toseek benefits following changes in provisions related to packingcredit and extension of repayment time introduced by the RBI

Banks can extend the period of realization of export proceeds up to six months from the date of export, subject to certain RBI stipulations.’



EX

PO

RT

DA

TA

GEM AND JEWELLERY EXPORTSApril-February 2020 (US$ million)

Apr 2018-Feb 2019

2211,,995533..4466

Apr 2019-Feb 2020

1177,,669999..4400

19.38

Apr 2018-Feb 2019

77,,779988..9999

Apr 2019-Feb 2020

88,,220077..2222

5.23

CUT & POLISHED DIAMONDS PLAIN GOLD JEWELLERY

Apr 2018-Feb 2019

776644..7700

Apr 2019-Feb 2020

11,,445599..3399

90.84

SILVER JEWELLERY

Apr 2018-Feb 2019

336699..2233

Apr 2019-Feb 2020

330077..2255

16.79

COLOURED GEMSTONES

Apr 2018-Feb 2019

6611..2211

Apr 2019-Feb 2020

5555..9922

8.64

Apr 2018-Feb 2019

88..4433

Apr 2019-Feb 2020

99..6699

14.95

IMITATION JEWELLERY

PLATINUM JEWELLERY

9.72

Apr 2018-Feb 2019

22111199..5577

Apr 2019-Feb 2020

22229922..8899

8.18

OTHERS

Apr 2018-Feb 2019

3366,,119922..0033

Apr 2019-Feb 2020

3333,,662299..9999

7.08

GROSS EXPORTS

Source: GJEPC Database

Figures for April 2019 to February 2020 are provisional and subject to revision

Data does not include exports/imports figures pertaining to FPO-Jaipur for May 2015 to Feb 2020. Others include Gold Medallion,

Rough Diamonds, Pearls, Synthetic stones, etc.

Apr 2018-Feb 2019

22992211..0088

Apr 2019-Feb 2020

33220055..0022

STUDDED GOLD JEWELLERY



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TAKING A SHINE TOTHE MIDDLE EASTAs buying preferences evolve, customers in the Middle East are gravitatingaway from heavy jewellery towards contemporary and minimalisticdesigns, which can be worn more than once. Traditional gold and diamondjewellery still has a market, albeit for occasions like weddings or festivals

By VINITA BHATIA

When his company participated in theGems and Jewellery Export PromotionCouncil’s annual (GJEPC) IIJS

Signature 2020 exhibition this February, MaheshSeth of Mumbai’s SK Seth Jewellers was unsurewhat to expect. The Indian industry had beensuffering in the aftermath of volatile gold rates andthe Budget had not been particularly encouraging.

However, he was pleasantly surprised with theresponse to the event, especially to his company’swedding jewellery collection, Vivah Muhurtham.He bagged orders from a couple of UAE clientsfor these handmade bridal sets, which wereavailable in lightweight and heavy varieties.

In fact, bridal jewellery has always been a bigdraw for buyers in the entire Middle East market,not just the UAE, who regularly participate inIIJS Signature. Rohan Sharma, managing directorof RK Jewellers, South Extension 2 predictedthat while this category will continue to sustain in

terms of business, it might witness budget cuts.The reasons are varied - the geo-political issuesthat currently envelop the region, fluctuating goldprices, changing buyer preferences for morelightweight designs, and yes, the fallout of theCovid-19 outbreak.

A VITAL MARKET

The gems and jewellery industry plays a vital rolein a country’s economy especially India’s’ as it isone of the largest exporters and contributes a majorchunk to its total foreign reserves. In the absence ofa transcontinental export break-up for the MiddleEast region, Sharma elaborated, “India’s overall netexports rose from $15.66 billion in FY2004-05 to$32.71 billion in FY 2017-19, growing at a 5.83%CAGR during this period.”

The Middle East has always been among thetop consumers of Indian gems and jewelleryproducts. Interestingly, one of the reasons why


DEMAND MAPPING


people invest in gold here is notmerely due to traditional practices,but also considering the volatility inthe region. This habit is especiallyprevalent among the large numberof expats spread throughout GCC.

Bhavesh Triveni, an analystexplained, “Whenever the marketsare headed in an inflationarydirection, people prefer to invest ingold, which they consider as avaluable physical asset, rather thancurrency. This is because they worrythat the latter might devalue withoutnotice. Gold, on the other hand, haslong-term asset value.”

Fortunately, these customers havea plethora of brands to buy from inthe Middle East, which is also hometo several indigenous brands,including Joyalukkas, Malabar Gold& Diamonds and Kalyan Jewellers.Of course, one can’t forget that thisregion is the world’s best knowndestination for uber luxury nameslike Damas Jewellery, Tiffany,Chopard, Bulgari, Harry Winston,Pandora, David Yurman, etc.

This is in addition to regionalbrands like the Mouawad Group,Ali Bin Ali Luxury Group, Dusoulby Dhamani, etc., and local ateliers.Some prominent ones includeBahrain’s Aisha Jewellers, AlMahmood Pearls and RamzanaJewellers; Saudi Arabia’s NadineJewellery, Charmaleena FineJewellery and Bin Matar Gold,Jewellery and Diamonds; Qatar’sSky Jewellery, Ghada Al Buainain,Amiri Gems and Al FardanJewellery, as well as Al ZainJewellery that is spread out acrossGCC in Bahrain, Qatar, and UAE.

According to Leshna Shah,creative director and founder ofIrasva, while the Middle Eastremains a lucrative market in termsof luxury jewellery there has been a

gradual shift to everyday wearjewellery in the region. “People areunwilling to invest in heavyjewellery, except on occasions suchas weddings or festivals. Customersare looking for unique andcontemporary designs, which areminimalistic and can be worn morethan once,” she noted.

Sharma seconded this surmise,“After India, the Middle East is theonly other market that has anappetite for jewellery. They have atradition of wearing heavy jewelleryon weddings and also giftingjewellery to each other on specialoccasions. That is what makes it amuch more lucrative market thanthe rest of Asia.”

Customised creations are alsobecoming quite popular amongcustomers. Qatar’s Haya Jewellery,which has been dealing in gold,diamonds and pearls for over twodecades offers many made-to-orderand custom designs. Turkey’s VerdaAlaton also designs interestingcustom-made pieces with naturalstones that she collects during hertravels across the world. Moreover,for some clients, she designs piecesthat match their personality.

Lebanese designer DonnaHourani, who has owns a brandunder her name, said that this

personal touch has become verypopular among her clientele. Shecreates limited collections annuallyand especially focuses on jewellerypieces based on birthstones or familyheirlooms, which can be handeddown generations as keepsakes.

FUSION STYLES

India shares many parallels with theMiddle East - be it cuisine, cultureor a sense of communaltogetherness. This affinity isreflected in the jewellery trendsprevalent in the latter region.

For starters, traditional MiddleEastern ladies, especially from thelocal populace, favour heavy goldand diamond jewellery, which theycan showcase as a symbol of theirfamily’s prosperity. They especiallylike to flaunt it on special occasionslike weddings, family functions orduring festivals, much like theirAsian counterparts.

Emeralds, amethyst and tourmaline are embeddedin this signature gold ring by Donna Hourani.

Lebanese jeweller Donna Hourani recycles andcustomises old jewellery pieces as keepsakes forgenerations to come.


DEMAND MAPPING


This is where brands like MalabarGold & Diamonds are best placed tofulfill their needs. The company hasa wide collection of designs in goldand diamond jewellery from Italy,Turkey, Bahrain and India in itsbranded jewellery segment. Thisincludes ‘Era’ uncut diamondjewellery, ‘Ethnix’ handcrafteddesigner jewellery, ‘Divine’ Indianheritage jewellery, ‘Mine’ diamondsunlimited and ‘Precia’ gemjewellery.

However, for regular wear,customers in the Middle East seekcontemporary designs, which are

minimalistic yet individualistic.Joyalukkas’ Zenina 22-karat goldcollection is inspired by Turkishdesigns to meet this need. Similarly,Qatar’s Amiri Gems offers fusioncreations like its ‘Panjshir Ring’.Inspired by Kabul’s Panjshir Valley,it has emeralds from this region,which are renowned for theircoveted green hues. Its ‘MiniatureDemi Mogra Ear Jacket’, available inblue tanzanite, yellow aquamarine orpink tourmaline, is based on thefamous Indian flower. Bahrain’sDevji jewellery store recentlyunveiled a collection of Arab-oriental necklace and earring set

with meenakari details for Mother’sday, this year.

Narendra Zaveri, a jeweller inDubai’s old Hamdan Street said that22-karat gold jewellery and diamondjewellery have emerged as thepopular choice among Asian buyers.“Europeans customers are keener on18-karat gold jewellery withcontemporary designs. Even theyounger crowd is going for thesetrendier designs instead of heavypatterns,” he added.

THE WELL-ADORNED BRIDE

Another similarity that the MiddleEast shares with India is extravagantwedding celebrations. And in eventslike these, bridal jewellery take prideof place. In most Indian families,weddings are occasions whenspending on jewellery is nevercurtailed. In the Middle East, it isincreased to the point ofextravagance!

When it comes to what appeals tobrides, Sharma of RK Jewellers,South Extension 2 stated that itvaries from one lady to another.“However, most brides are veryquality conscious and prefer DFlawless diamonds. One bride maygo for a 1-carat diamond, whereasthe other would go for a 10ct. Butnone of them would compromise onquality. Also, this year, gemstones,especially tanzanites and rubies, willdo well,” he added.

Lebanese jewellery designer DonnaHourani has noticed that most of herclients have been re-designing and re-setting their old solitaires. “Manyhave a budget and prefer to use othertypes of stones instead of diamonds.Some favour a bigger coloured stonethan a smaller diamond, for instance.People also like the idea of having aunique and different wedding ring asopposed to your traditional kind.

Sometimes clients choose their stonesbased on their metaphysicalproperties,” she added.

Narendra Zaveri has seen acontinuous uptake for gold bridaljewellery among the Indian diaspora,albeit with more delicate work. “Tilla few years ago, many brides wouldopt for heavy, traditional goldjewellery, probably due to traditionalreasons. However, the youngergeneration is keen to exploreoptions with diamonds and realnatural gemstones like emeralds,rubies and blue sapphire,” heelaborated.

CHILD’S PLAY

Another interesting marketemerging in the region is forchildren. Spotting an opportunity inthis space, companies like Qatar’sSky Jewellery, have a special rangecalled ‘Glyde’ that targets childrenwith tiny jewellery pieces. Thesebear pretty animal, flower andmusical motifs embedded with tinydiamonds with a well-rounded edgeto avoid hurting their skin.

Malabar Gold & Diamonds, too,has its ‘Starlet’ kids’ jewellery rangefor ages one to 10 years. Thisincludes everything from earrings tobracelets and rings to pendants andfeatures funky shapes to suit thetarget audience’s taste. Theornaments are crafted in meenakari

Malabar Gold & Diamonds has a wide collection ofbranded jewellery designs from Italy, Turkey,Bahrain and India.

According to TechSci Research,UAE’s gems and jewellery marketstood at $8.4 billion in 2018 and isprojected to grow at a CAGR ofaround 8%, to cross $13 billion by2024. This growth is expected to bedriven by rising disposable income,changing consumer lifestyle,growing e-commerce and organizedretail channels, coupled withinnovative and premium productlaunches by leading jewelleryplayers in the UAE.


DEMAND MAPPING


designs with a bright appeal, whichalso make for great gifting options.

When it comes to gifting,weddings, birthdays andanniversaries have been the bedrockfor the jewellery business. However,Leshna Shah has increasingly foundthat customers are now focusing onself-care and self-gifting as a practiceof wellness and mindfulness. Sheadded that brands are increasinglychanging their messaging toconvince people to buy forthemselves by creating morepersonalized jewellery to expressone’s personality. Minimalisticdesigns are gaining momentum aschunky and heavy jewellery takes aback seat.

2020’S SHAKY START TO

CONTINUE

This year began on a rocky note formost jewellery companies withweakening consumer buyingsentiment and rising gold prices. It isexpected that it will take some timefor the demand for luxury productsto pick up in the region.

The political uncertainty in theentire GCC region, especially theIran-US tension, added to thebusiness woes in the region.Tourism saw a dip in various

countries, which affected jewellerysales as well.

Even the annual Dubai ShoppingFestival (DSF) was not spared fromthis business debility. Dubai, oftencalled the City of Gold with anentire souk dedicated to trading ofthe yellow metal, hosts a month-long shopping festival. This eventhas made it a popular shoppingdestination among tourists, who visitit to buy jewellery at affordableprices.

According to Chandu Siroya,vice-chairman, Dubai Gold &Jewellery Group, the rising goldprice coupled with geo-politicalissues led to a dip in jewellery salesmidway during DSF this year. Therewas a decline in footfalls fromtraditional buyers from Asiancountries like India, Pakistan,Bangladesh as well as other GCCcountries, who are heavy shoppersduring this event. Fortunately, theimpressive prizes offered during thecampaign helped boost sales, whichreflected in encouraging total overallbusiness, he added.

Damas, a leading Dubai retailer,is banking on the power of 22-karat,and over the coming few months, itwill unveil new 22-karat retailconcepts throughout UAE and the

Gulf region. Regional brands likeBahrain’s Devji Diamonds are tryingto retain their customers with buy-back schemes, which are popularamong the expat community.

However, with devastation thatCovid-19 has wrecked oneconomies globally, many jewellersare expecting further slowdown inthe business. Sharma said, “Weexpected demand to go up by thesecond half of this year. However,we are now looking at a negativegrowth. For the next two years, alsothe growth is not going to be great.”

Leshna Shah is more optimistic.“It is essential to focus on asustainable business model, apartfrom technological innovations.Brands also need to focus on thedrastically changing consumerdemands. Companies need to investin projects that can ensure a long-term supply of goods to themarket.”

As the market evolves andcustomer buying preferenceschange with trends like ecommercegaining ground, it is likely thatconsumers in the Middle East willgravitate away from larger andhigher-priced jewellery tominimalistic designs with uniquedesign cuts. They are also likely tobe on the lookout for pieces thatoffer them better value for theirinvestment, which might lead tothe emergence of multi-purposejewellery. This is especially withthe younger generation clued intosocial media platforms, where theycan exchange ideas and photos ofjewellery that they can flaunt daily,rather than letting it languish intheir closet - only to be paraded onspecial occasions.

Qatar’s Sky Jewellery’s ‘Glyde’ range of gold ornaments is aimed at children. It has tiny jewellery pieces withplayful motifs.



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FLEUR & NOËLLE’SHEARTS BEAT FOR INDIAThe annual ritual ‘Design Inspirations’, a seminar organised by the Gem & JewelleryExport Promotion Council (GJEPC) in association with trend forecaster Paola De Luca ofThe Futurist Ltd., was held on the last day of IIJS Signature on February 16, 2020. A galaxyof speakers from various fields shared their experiences with the audience, giving theminsightful directions whilst promoting an exchange of cross-disciplinary thinking. Here’sthe first article in the Design Inspirations series based on the session dedicated to ‘Heritageand Values’.

Meet Fleur Damman-van Gelder and Noëlle Viguurs, the two sisters who run the VanGelder Indian Jewellery (VGIJ) in the Netherlands, which was founded by their mother,Bernadette van Gelder-van der Ven in 1980. VGIJ is a leading international dealer,specialising in traditional Indian jewellery.

The sisters got hooked to the unique aesthetics of Indian jewellery and two decadeslater, they took charge of VGIJ. Even as they embraced the new world, they have not losttheir grip on the company’s core business. India was, and remains, the focus of theircollections, and last year, they relaunched the ‘Heritage’ and ‘Contemporary’ collection,which includes four lines - Colors, Jali, Jodha Bai and Chandra - all inspired by thecountry that is close to their heart.

By SHANOO BIJLANI

Colin Shah, vice chairman, GJEPC and Shreyas More, Green Charcoal Project with Fleur Damman and Noëlle Viguurs of Van Gelder Jewellery.


An act of providence ledNetherlands-based Bernadette vanGelder-van der Ven to dive deeper

into Indian jewellery. The country’sculture, history, mythology and artistryfascinated her so much that she went on tospecialise in Indian heritage jewellery.Soon, Van Gelder Indian Jewellery (VGIJ)grew into a leading international dealer,displaying its products at top galleries,museums and shows such as the TEFAF.

Her daughter, Noëlle, recalledBernadette’s tryst with India during her

keynote address at the ‘Heritage andValues’ session on the last day of IIJSSignature 2020. “The first time mymother travelled to India with my father,

she felt like it was a homecoming. Shewas completely in love with thecountry, the people, their kindness andespecially, the jewellery. India is anation, but for us, it is a continent.Every culture, and the tradition in

each and every corner of thecountry is different. It intrigues us

so much that we want to knowmore,” she stated.

Bernadette’s entrepreneurialnature drew her to India acouple of times a year, and shebegan collecting heritagejewellery pieces to understandthem. Noëlle said that thiscomprehensive study

prompted her to specialise in Indianjewellery, adding, “If you want to achievesuccess, you need a bit of luck and mymother had that luck. She was at the rightplace at the right time. She also met theright people who guided her.”

THE FAMILY JEWELS

Growing up, Noëlle and Fleur, too,became acquainted with the history ofIndian jewellery, courtesy Bernadette’senthusiasm. “Every time she would returnfrom India, we little kids would get to see

A small gold jhumar chabkkahead ornament shows the open-worked top kundan set withfoiled white sapphires and rockcrystal on blue foil (jadat) in anintricate pattern of flowers, acrescent moon and sun symbol,flanked by two peacocks.Suspended from the top is anelaborate fringe of gold collets,kundan-set with white sapphires,sides decorated with red andgreen enamel, suspended pearlsand turquoise glass beads. The reverse of the jhumar isdecorated with Safed Chalwanenamel, red and green on awhite base in a crescent moon,flower and bird design, echoingthe frontal design. The jhumaror chabkka is a traditionalMuslim wedding ornament wornby women on the left side of thehead. It is not an ornament thatis to be worn daily.

DESIGN INSPIRATIONS



DESIGN INSPIRATIONS


unique jewellery and learn how tohandle them; how to wear them;learn about their quality; the meenawork and so on. It was a gift for us!Hence, it was a logical and naturaldecision to join the company oncewe grew up,” Noëlle added.

The two sisters, who have an Artsbackground and spent years studyingin Italy and France, joined VGIJ in2000 to become torchbearers oftheir mother’s legacy. However,both were clear that they did notwant to replicate what Bernadettedid, but add their individualisticsignature to the designs over time.

“Initially, we did what Bernadettehad left behind, which itself waschallenging. We displayed Indianjewellery at international art fairslike TEFAF and various art andexhibition events. Although theshows were successful, we laterexplored avenues to exhibit thecollections through differentcollaborations. We curated museumexhibitions and teamed with fashiondesigners and also started our owncontemporary jewellery collection,”Noëlle recollected.

As second generationbusinesspersons, the duo felt theurge to express their interpretation

of Indian jewellery in theNetherlands, while remaining closeto country’s tradition. They wantedto make these collections feasiblethrough designs.

Additionally, they wanted theirdesigns to carry a detailed historywith scientific specifications. So, in2012, the sisters extended theirresearch methods with a completeand factual scientific review bycommissioning an independentprecious metal and gemmologicalresearch report. They collaboratedwith Dr JC Zwaan of TheNetherlands Gemological

Laboratory Leiden. Today, every item in their

collection is accompanied by a fullart history and an independentgemmological scientific account,gold report, as well as its wear andtear information. “We take ourresponsibility and reputation withregard to our company, collectionand clients very seriously.”

REVISITING TRADITION

In 2007, Fleur met with a seriousaccident, which put the pair’s plans

on the backburner for a while. Butovercoming this challenge, sheemerged stronger and actuallystarted sketching designs.

Talking about those trying times,Fleur said, “During this difficulttime, I encountered a void that Iwanted to explore and see what itbrings me to. I wanted to go beyondto the acquired knowledge aboutIndian jewellery that we grew upwith. The void gave me a distance tolook from further than I could haveever imagined and visualise theoutlines. And with the beautifulminiscule images that I used to seeunder the microscope in the labmade me discover the origin ofquality, intricacy of designs, gemsand their amazing flaws, and whatmakes something so special. Thishelped me embrace the newperspective to create the variouscollections.”

This resulted in the relaunch ofthe ‘Heritage’ and ‘Contemporary’collections. The former is VGIJ’sbackbone, and defines the best kindof sustainable luxury, which shouldbe re-worn all the time. Fleur

18-karat gold ear pendants from the Colorscollection bear an oval top with a suspended stem.The gold oval bead halfway down the stem and agold oval bead at the end are decorated withdelicate white enamel in a wave like linear pattern.

The spherical 18-karat gold ear pendants fromthe Colors collection feature an oval top with asuspended stem, terminating with a sphericalwhite agate oval bead. The gold stem isdecorated with three delicate rims of whiteenamel in a linear pattern.

A pair of white gold Jodha Bai ear pendants, toppedwith a suspended tapered stem decorated withdelicate filigree, twisted wire and engraved linearpatterns. The blunt bottom is carved with a stylisedfloral motif. The earrings are enhanced with blueand green enamel.


commented, “We look formuseum-quality pieces, which arecollectibles.” They also have aworkshop in Amsterdam, where thecompany restores old jewellery withoriginal elements.

The challenge in creating the‘Contemporary’ range lay in infusingthe same credence into it as the‘Heritage’ collection. “We had totake care that the designs hadmultiple aspects - including tactileappeal. Above all, it had to be anintelligent, well-thought-through,balanced design.”

The ‘Colors’ collection wasinspired by colours seen on theIndian streets - the colourful saris,belles carrying water pots gracefullywith a flowing sense of femininity.The ‘Jaali’ (trellised) series wasinfluenced by the screens ofFatehpur Sikri palace’s architecture,which have a linear geometric visuallanguage.

“We incorporated rigid patternsin the line. The Jaali not only shields

the view but filters light through iton the floor, regulates temperatureby allowing air to come into theroom in a compressed way. Wewanted to lend that flowy andflexible feel to the collection,”explained Fleur.

BEJEWELLED BEAUTY

The ‘Jodha Bai’ collection, namedafter one of Mughal emperorAkbar’s favourite wives, is againinspired by her palatial quarters inFatehpur Sikri. The ornateenamelled collection is an ode to theformidable queen.

Rajasthan evokes stories of thestrength of Rajput warriors androlling expanses of deserts. Theseelements are reflected in the‘Chandra’ collection, which hassolid and strong designs in silver orwhite gold jewellery. “Silver isrepresented by the moon and goldby the sun, and the combinationsymbolises the male and female

influence. We will launch two morecollections later in the year,” Fleurnoted.

Sharing a few words of advice fordesigners wanting to make a markfor themselves, she suggested,“Make jewellery that is meaningfulfor you. Ask yourself, ‘What do Iwant to bring to the table?’ Yourdesign represents who you are.Materialise your vision, and comeback to the same question again andagain: ‘Why did you want to be adesigner in the first place?’

And if designers want to makeinroads into foreign markets, it isimportant to use the power ofstyling - to envision the blending ofWestern and Eastern aesthetics, shesaid.

VGIJ continues to build bridgesbetween international clients andIndia. And their glorious journeycontinues.

The 18-karat gold latticed (Jali) cuff showcasesopen and cupped circular elements of varyingsize. The interior of the each cupped shape has ahigh polished, mirror-like finish, while the rest ofthe bangle has a matte finish.

A pair of flexible 18-karat yellow gold Jaliearrings features five hexagonal linked pendants,which are crafted with matte knife-edge outlineand inside, high polished round trellis, creating ageometrically latticed decor. The version with thegemstone ruby, are the stones randomly set as areference to damaged, coloured glass in Mughalpalaces.

Obverse and reverse view of enamelledChampakali necklace from the Heritage collection.

Heritage baju band, 1980.

DESIGN INSPIRATIONS




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The optimism that January heralded wasshort-lived as global retail has seen a verysignificant slowdown in the subsequent

months. Covid-19 brought China to a standstillduring one of its main selling seasons, andcontinues to keep stores shut.

Whilst the US has not been affected till theBonas Market Report for February-March 2020was drawn up, reordering has been lacklustre inthe first couple of months despite a decentseason. Europe is also feeling the effects due tothe drop-off in Chinese tourists. And things havesteadily gone south from there, as the threat fromCovid-19 has only increased globally.

This has had an obvious impact on sales fromthe mid-stream. Polished prices have softenedquickly and stocks are beginning to build again.Confidence has been severely shaken. Majorminers had to take decisive action in 2019, andthey are starting to do so again.

The hope is that the virus disappears as quicklyas it arrived, and that the return to normality isswift. But at this stage, no one really can foreseehow long the current situation will last.

BUSINESS CONFIDENCE DIPS IN INDIA

The current business slowdown has impacted the

Indian diamond industry in many ways. Therehas been a serious net change in cashflow.Nobody had expected or prepared for such astrong brake to be applied to consumer demandin the Far East. This has directly impactedinventory levels and cashflow positions.

Cashflow from other investments has also driedup. Banks are again selectively tightening lending,which is creating further stress on companies.

Confidence has been severely shaken.Manufacturing has slowed and demand isdepressed. No one knows when this will be over,and the concern is that we haven’t seen the worstyet.

Moreover, competition amongstmanufacturers is so fierce that when there is anorder for goods, the terms are not in their favour.Worries are also re-surfacing about who isfinancially strong enough to do business with. DeBeers boxes that had been in demand formanufacturing in December and January are nowbeing sold on the market at discounts, as there islittle confidence to hold those goods. Mostfactories are reducing their manufacturing levelsto match the reduced demand.

Even trading is very slow in India due to theloss of confidence because of the coronavirus, a

COVID-19 SLAMS THE BRAKES ONDIAMOND INDUSTRY GLOBALLYThe Bonas Market Report for February-March 2020 points out that globalretail has seen a very significant slowdown, which is likely to worsenfollowing lockdowns in several parts of the world


INTELLIGENCE


depreciating rupee and pressure onpolished prices.

There is some demand for US-driven retail and polished prices areholding in that area. Well-madefancy goods in 1.5ct+ are alsoperforming well. But demand forChinese goods has all but stopped.A few players have dropped theirpolished prices by 2-3% and areselling small businesses to those thatcan pay cash.

India is experiencing a huge slowdown as liquidity dries up. Retailoverall has decelerated. For Indianjewellers, gold prices have gone upbut demand at these prices isreduced. As the rupee devalues,diamonds get 2-5% moreexpensive.

DEFICIENT DESIRE FOR

ROUGH IN ANTWERP

As with other diamond centres,Antwerp is not immune to thevirus outbreak. The mood on themarket has worsened since January2020, with many believing that thesituation has deteriorated beyondthat seen last year or even in 2008.It is likely that this could continuefor another few months. As a result,the appetite for rough has sloweddramatically.

De Beers did not make any pricechanges. But it did offer flexibilityby allowing people to defer boxesthat predominantly produce goodsfor the Far East. This move waswelcomed and applauded by many.However, there are otherchallenges, such as lack of flexibilityin smaller sizes. As a result, someboxes got refused on top of thedeferrals.

Whilst December and Januarywere good months for Antwerp,that has now drastically changed.Many fear that significant quantities

of polished will be coming off thewheels soon and will distort themarket further. There areexpectations that some largecompanies may yet again faceliquidity issues, potentially resultingin distress sales.

Polished trading plunged inrecent weeks. Business has droppedanywhere between 10-50%. Noone knows how long thecoronavirus crisis will last, how farit will spread and what impact itwill have on consumer luxuryspending. While many hope to seea V-shaped recovery at some point(soon), there is a general belief thatthe polished market won’t see apick-up until second half of theyear.

Feedback on sales is spotty; somebuyers are still ordering as they haveongoing jewellery production lines,while others have slowed down oreven stopped completely. Sourcingis price point focused and polishedactivity is concentrated on areassuch as 1-2ct commercial goodsand selective clean smalls. Severalbrands (especially those with highexposure to Chinese consumers)have indicated that they will bebuying (much) less, going forward.

THE RETAILING LANDSCAPE

The consumer confidence indicatorin the Euro area was confirmed at -6.60 points in February, the highestreading since last September, thanksto households’ brighterexpectations in respect of thegeneral economic situation. Itoutstripped slightly more upbeatappraisals of their past and futurefinancial situation, as well as theirintentions to make majorpurchases. It seems that the threatof the coronavirus has not affectedthe European consumer confidence

levels and/or has not fully kicked inyet, as per European Commission.

While the year started in a bettermood, all European markets havenow been seriously affected byconcerns about the spreadingCovid-19 virus. Italy, Europe’sbiggest diamond market, has beendescribed as ‘dead’. Last week twokey fairs, Baselworld and Watches& Wonders Geneva (formerly SalonInternational de la HauteHorlogerie (SIHH)), decided to

cancel their shows. As this is themain gathering for brands to collectorders from their retailer partners, itgoes without saying that this willimpact and complicate their salesand forecasts.

Coming to the US, theConference Board ConsumerConfidence Index improvedslightly in February, following anincrease in January. The Index nowstands at 130.7, up from 130.4 inJanuary. “Consumer confidenceimproved slightly in February,following an increase in January.Consumers’ assessment of currentconditions was less favourable in

US INDICATORS

Consumer Confidence+ 0.3 pts

Employment TrendsIndex+ 1.29%

Leading EconomicIndex+ 0.8%

Measure of CEOConfidence+ 9.0 pts


INTELLIGENCE


February, however consumers weremore optimistic about the short-term outlook (combination ofincome, business and labour marketconditions). This, coupled withsolid employment growth, shouldbe enough to continue to supportspending and economic growth inthe near term,” according to TheConference Board.

Watches of Switzerland Groupannounced that sales at Mayors forits third financial quarter, whichincludes the Christmas period, wereup 9% on a like-for-like basis.However it is believed that most ofthis was driven by demand forwatches.

Macy’s announced thatcomparable store sales for thefourth quarter were down 0.5%,but its destination business, whichincludes fine jewellery, rose 4.3%.

Most retail shops in Hong Kongare open but have no business,whereas stores in mainland Chinawere closed and are graduallyopening again, depending on thearea in which they are located.Chow Tai Fook recently publishedan activity report for the first twomonths of the year that shows thaton a same store sales basis, volumeswere down 52% in mainland China

and 61% in Hong Kong andMacao; down 50% and 57%respectively, in gem-set jewellery.

The report also stated that 70%of CTF’s POS in mainland Chinaresumed operations and 64% inHong Kong and Macao. The slowsell-through over that period meansinventory levels with all retailers arehigher than usual, and that willlimit their appetite to buy newproduct.

A survey of 28 CEOs andCFOs-conducted by Altagamma,an association of Italian luxurycompanies, in conjunction withBoston Consulting Group andinvestment firm Bernstein-estimated the industry could lose€30bn to €40bn in sales this year,for an estimated total sale of€309bn in 2020. The consequencewould be a roughly 15% drop inearnings for the industry, meaning aloss of about €10bn.

The main concern is business inChina, where sales are plummetingdue to widespread store closuresand shoppers hunkering down intheir homes. The survey estimatesas many as 10 to 15 millionproducts originally destined forChina could go unsold, forcingcompanies to redirect those items

to other parts of the world. That said, many analysts believe

economic activity will normalizefrom Q2 onwards, partly helped bythe frontloading of monetary andfiscal stimulus, and a relaxation ofregulation.

Consumer confidence indicator in the Euro Area was confirmed at -6.60 points in February thanks tohouseholds’ brighter expectations in respect of the general economic situation.

HOW COMPANIESPERFORMED IN ANTWERP Market premiums on De Beers

boxes came down by asubstantial margin, with manyboxes trading below cost

Alrosa did not make anynoticeable changes to theirpricing in February. Manybelieve they sold over $300m.The fact that Alrosa soldearlier in the month is likely tohave helped them achieve this.Premiums also fell for Alrosaboxes

Catoca did adjust to themarket and reportedly goodswere sold slightly cheaper thanthe month before

Dominion sold a few goods onthe Antwerp market. Priceswere quite stable compared tolast month

Rio Tinto generally kept pricesflat for both Diavik and Argyle,however some diamondcompanies believe that Argylegoods were actually slightlymore expensive than lastmonth

Diavik volumes were about20% lower and are expectedto be 10-15% below last year’slevels for the rest of 2020.Argyle also sold small volumes

ODC recently concluded itssale, which saw prices downsubstantially. With an averageprice anywhere between 7 to10% lower, this gives a pictureas to the situation on themarket



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GIVING THE MSMESEGMENT A BIG BOOSTGJEPC organised a series of seminars for MSME jewellers andkarigars in association with local trade bodies and industryexperts. Together, they shared their perspectives on how thesetraders could elevate their business potential

In its endeavour to promote the MSMEsector, the Gem and Jewellery ExportPromotion Council (GJEPC) has been

regularly organizing MSME seminars,workshops and camps across the country.Taking this initiative forward, it heldMSME events in Bhopal, Indore, Ujjain,Satara, Mumbai, and Ratnagiri.

Eminent speakers from various tradeand government organizations were invitedto participate and make the seminar moreinformative at each of these cities. Duringthe seminars, Mithilesh Pandey, directorMembership, GJEPC spoke about theCouncil’s various initiatives, includingmembership, Micro Membership, ParichayCard, Swasthya Kosh, Swasthya Ratna,Jewellery Park, Common Facility Center(CFC), Cluster Development, IIJSPremiere, Signature exhibition, BuyerSeller Meets, Mobile App and Help desk.He briefed the attendees about the benefits

of Cluster Development Scheme, LeanManufacturing Competitiveness Schemeand Technology upgradation scheme formachinery where exporters can receive aloan of up to INR 1 crore with a subsidyof 15% and interest subvention scheme.

GJEPC's MSME assistant manager,Mrunali Elle, provided an overview ofseveral government schemes for thesegment. She briefed attendees about DIC,NSIC, SIDBI, Udyog Aadhar registrationas well as banking rocedures anddocumentation required for the same.While talking about benefits of technologyupgradation scheme, she also describedMSME schemes available for machineryloans, exhibition and infrastructure relatedbenefits. She updated new entrepreneursabout the eligibility and procedures to availthese loans and also touched upon theimportance of having good infrastructurethrough CFC.

TOPICS DISCUSSED ATTHE SEMINARS1. Role of MSME-DI in

export facilitationand development ofMSMEs

2. GJEPC initiatives forthe sector

3. Banking andfinancing

4. Hallmarking

5. GST

6. ECGC

7. New businessopportunities forjewellers using ITand online platforms

At Satara, GJEPC organised the seminar along with the Satara Saraf Association.



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The Gem & JewelleryExport PromotionCouncil’s (GJEPC) Gem

Testing Laboratory (GTL) Jaipurand eBay signed a MoU inJanuary 2020. Under thisagreement, GJEPC-GTL willoffer certification services to eBaysellers for a nominal fee. Thisarrangement will facilitate sellerson the ecommerce platform toobtain authentic reports fromGTL Jaipur before theirgemstones are delivered to buyerslocated in various geographiesoutside India.

At present, many of thesesellers are unable to affordcertification fees for commercialgrade goods that are commonlysold on ecommerce websites,including eBay. Hence, thesegemstones are sold without anyvalidated reports, or are backedby reports from ill-equippedlaboratories, or in worstscenarios, even fake reports! Thelowered certification fee is likelyto encourage sellers to providereports from a reputed lab evenfor commercial grade gemstones.

A GLOCAL PUSH

Addressing the audience duringthe signing ceremony, PramodKumar Agrawal, chairman,GJEPC, said, “This agreementwill facilitate all types ofgemstones to be certified,

including disclosure of presenceor absence of treatments ongemstones, as per existingcriteria. This strategic initiativeenhances consumer trust andcredibility in the global marketsand also helps to promote brandIndia internationally throughcredible certification. It will helpsellers on eBay to build customerconfidence as well as assist inincreasing sales of Indianhandcrafted gemstones and alliedjewellery in overseas markets.This is a significant step in takingIndian gemstone craftsmanshipand designs to internationalmarkets in 2020, and we expectmany more ecommerceplatforms to sign similaragreements with GTL Jaipur.”

Vidmay Naini, eBay’scountry head added, “We havemore than 15,000 MSMEs andartisans exporting across 195countries using the eBay globalmarketplace platform. Indianjewellery is amongst the most

popular products across our 180million global buyers. To buildtrust and saliency for Indianjewellery sellers and enhancetheir business, we are partneringwith GJEPC to enable eBayIndia Seller’s certify gemstonessold on our marketplace. TheGTL certification ensures thatglobal customers are assured ofthe best quality of gemstoneswhich are ‘Made in India’.”

This MoU is expected toresult in reports being issued foran additional 20,000 gemstonesannually, helping brand Indiareach an equivalent number ofconsumers globally. Indiangemstone sellers will definitelygain an edge over other globalsellers, since no gemmologicallaboratory with world-classadvanced laboratory set-upissues reports at such a nominalfee of `250. Within a span of amonth, the testing under thisMoU has already crossed the1000 mark.

GJEPC’S GTL SIGNSCERTIFICATION PROGRAMMEMOU WITH eBAY FOR SELLERSWithin a span of a month, the testing under this MoU has alreadycrossed the 1000 mark.

Pramod Agrawal, Chairman, GJEPC addressing the audience at the MoU signing ceremony


ON GROUND


DiscussingFiscal Matters

With an objective toaddress various criticalbanking and financial

issues being faced by our memberexporters and to resolve the same atthe earliest and to provide themuch-needed financial respite, theRegional Office-Delhi organisedthree interactive sessions with threeleading banks. Senior banks officials,along with their compliance, made apresentation and also promised toresolve queries of exporters.

An interactive session wasorganized on January 6, 2020wherein Pankaj Singh, regionalhead, ICICI made the presentation

and discussed key banking issues ofmember exporters in northernregion. Around 20 membersattended the session.

An interactive session wasorganized on January 10, 2020

wherein Anuj Sahai with hiscompliance team from Axis Bankinteracted with member exporters.They discussed the key bankingissues in detail with 20 memberswho attended the session.

The Gem & Jewellery ExportPromotion Council(GJEPC), Surat jointly with

RSM Astute organized a seminar toanalyse the Union Budget 2020 onFebruary 3, 2020. Keynote speaker,Nirav Jogani, vice chairman, RSMAstute Consultech, gave a briefstructure of India’s macro economyand fund flow. A detailedpresentation covered macro-economic data, prominent themes ofbudget 2020, direct and indirect taxproposals.

GJEPC’s Chennai officeorganized Export Awarenessmeeting at Udupi on February 5,2020. The chief guest was NagarajAcharya, president Udupi JewellersAssociation, along with Girish Shet,secretary of Udupi Jewellers

Association. Jaya Acharya, chairmanof Karnataka Jewellers Federationwas the special guest at the event.

The Surat Regional Office ofGJEPC hosted an Open House-Cum-Awareness Programme on e-SANCHIT with Customs, Suraton February 18, 2020. The Deputycommissioner of Customs, SuratHira Bourse, Dr Prasad Varwantkar,provided guidance on e-SANCHITand encouraged members to followthe process mandated by thedepartment. He added that thedepartment would work towardsreducing the time taken to clearshipments. He stressed the need forcompanies to follow best practices inforeign trade to avoid problems inthis process.

GJEPC’s Delhi office organised a

seminar on e-SANCHIT onFebruary 26, 2020 to informmember exporters that customs hasintroduced Single Window Interfacefor facilitating Trade (SWIFT) aspart of ease of doing business forseamless processing of import andexport clearances. One componentof SWIFT is e-SANCHIT. Thissystem allows a trader to submit allsupporting documents for clearanceof consignments electronically,making the entire process paperless.Every exporter is required to registeron ICEGATE to carry on the tradeprocess smoothly. Babu Lal Meena,deputy commissioner, CBIC wasinvited to demonstrate how theregistration can be done anduploading of documents on thesystem.

A GLIMPSE AT REGIONAL ACTIVITIESGJEPC organized technical and strategic dialogues for members in various cities

An interactive session was organized on January 29, 2020 wherein Inder Mohan Uberoi with his complianceteam from Kotak Mahindra Bank interacted with member exporters to discuss the key banking issues indetail. Around 20 members had attended the session.



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IIJS Signature 2020 spread a palpable wave ofoptimism among the trade, with most aislesabuzz with frenzied trading activity over the

four-day period from February 13 to 16, 2020.Although the footfalls, at more than 15,000, weremoderate to above average, exhibitors werethrilled about the high percentage of genuinebuyers who attended the show, resulting in ahigher conversion rate.

IIJS Signature 2020 hosted more than 700exhibitors and 1,300 booths, spanning an area ofover 45,000 sq m. at the Bombay ExhibitionCentre, Mumbai.

One of the show’s most-talked-about newfeatures was the Jewellery Startup Zone in Hall 6that promoted 16 budding designers and 16women entrepreneurs. This novel concept wonunanimous praise from visitors and participantsalike.

The 13th edition of IIJS Signature and the 7thedition of India Gem & Jewellery MachineryExpo (IGJME) commenced the year’s first buyingopportunity for the domestic and global trade.The show was inaugurated by Subhash Desai,Maharashtra’s Minister of Industries and Mining,along with the Gems & Jewellery Export

POSITIVE VIBES AT IIJSSIGNATURE 2020All segments of the Indian gem and jewellery supply chain - from rawmaterial suppliers to jewellery manufacturers, designers, wholesalers,exporters and retailers - participated wholeheartedly in IIJS Signature 2020.The show also witnessed an influx of international buyers seekingalternatives amid changing international trade equations and China’sposition as the epicentre of the coronavirus outbreak

by REGAN LUIS and SHANOO BIJLANI

(From left) Shailesh Sangani, member, National Exhibitions Sub-Committee, GJEPC; Sanjay Kothari, chairman, GJSCI; Richa Singh, MD, Diamond ProducersAssociation; Pramod Kumar Agrawal, chairman, GJEPC; Colin Shah, vice chairman, GJEPC; Sabyasachi Ray, executive director, GJEPC; and Mansukh Kothari, co-convener, exhibitions and COA member, GJEPC at the inauguration of IIJS Signature 2020 and IGJME 2020.


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Promotion Council’s (GJEPC) chairman, PramodAgrawal; GJEPC vice chairman, Colin Shah;GJEPC convener, National Exhibitions Sub-Committee, Mansukh Kothari; GJEPC co-convener National Exhibitions Sub-Committee,Kirit Bhansali; GJEPC convener Gold JewelleryPanel, K Srinivasan; GJEPC executive director,Sabyasachi Ray; GJEPC National Exhibitionssub-committee member, Shailesh Sangani;GJEPC former vice chairman and Committee ofAdministration (COA) member Russell Mehta;and GJEPC Western Regional chairman, AshokGajera, amongst others.

Addressing the inaugural session, PramodAgrawal said, “IIJS Signature is now seen as anintegral part of an Indian jeweller’s business cycle.Despite business and environment headwinds,people from India’s gem and jewellery exports

spanning every stage of the supply chain - fromraw material suppliers to manufacturers,designers, wholesalers and retailers - participatedwholeheartedly with energy and enthusiasm. Wewitnessed an influx of international buyers whoare looking for alternatives considering theemerging international trade equations andChina’s current situation.”

He added, “We have been pursuing ourgovernment constantly with few concerns thatrequire immediate attention like reduction inimport duty on precious metalsgold/silver/platinum from 12.5% to 4%;reduction of import duty on cut and polisheddiamonds and gemstones from 7.5% to 2.5%;amendment in taxation laws enabling sale ofrough diamonds in the special notified zone(SNZ), Mumbai. This is very important to give a

(From left) Milan Chokshi, convener, Promotion, Marketing & Business Development, GJEPC, with some of Design Inspirations speakers, including filmmakerRishabh Anupam Sahay; Narendra Kumar of Amazon Fashion; Thomas Lazzarini of Farfetch; and Ash Allibhai of ASBO magazine.


EVENTS


level playing field to our traders inthe global market.”

Colin Shah added, “Despitevarious challenges like coronavirusand global slowdown, we had adecent attendance of over 15,000participants at the IIJS Signature2020. We anticipate that globally,the second half of the year will bebetter than the first half and hence,business will scale up going forward.Buyers have shown interest and havepre-booked orders at the IIJSSignature, which is a healthy sign forthe Indian diamond and jewellery

exports business.”Commenting on the feedback he

received, Mansukh Kothari noted,“The overall enthusiasm of buyerswas high. The Startup Zone got agood response and the industryappreciated the initiative. I got tohear from exhibitors that there wereonly serious buyers at this show,which was a good thing. We alsowitnessed demand for light tomedium weight jewellery.”LESS IS MORE

Hardik Shah of BR Designs, whichspecialises in high-end diamond

jewellery, said the show had beengreat. “We are meeting lots ofpotential buyers. The networkingevent last night was brilliant as itgave us an opportunity to connectwith international buyers. Seriousbuyers had come to this show andwe are seeing good movement ofgoods between `15,000 and`2,50,000.”

First-time exhibitor at the IndiaGem & Jewellery Machinery Expo(IGJME), Vijay Parekh, managingdirector of Rishikesh Electromatic,exclaimed that his experience at the

GJSCI, GJEPC SIGN MOU FOR DATA SHARINGThe GJEPC and Gem & Jewellery Skill Council of India (GJSCI) signed a Memorandum of Understanding(MoU) for the mutual sharing of data of craftspersons. GJSCI’s CEO Rajeev Garg said,“The GJEPC hascollected the Parichay Card data and we run the Recognition of Prior Learning (RPL) initiative and both ofthese activities address the craftspersons. So, the MoU is about exchanging this data so that both bodiescan have a wider reach, and eventually we want to include it in the Labour Management Information Systems(LMIS), as it will help us collate genuine, verified data.”


EVENTS


show had been “beautiful!” “Wehave already sold four of stockingmesh and gope chain machines bythe second day. After this positiveexperience, we are keen to exhibitin the August IIJS Premiere show.”

Mehul Dhinoja, director of salesand marketing, CVM, whichspecialises in antique rose-cutdiamond jewellery, said that whilefootfalls on the first day weremoderate, he was hopeful of a biggercrowd on the weekend. “We areseeing more corporate buyers at thisshow and would be happier if we getmore inquiries from single-storeowners. There is decent demand for

bridal sets between 40 grams and300 grams.”

A’Star marketing executive SaketShah said that 95% of the buyers hemet were regular customers. “Theshow is pretty decent, but we arenot seeing too many new buyers.We are getting queries from pan-India and earrings, rings andpendants below `50,000 are in gooddemand,” he said.

Siddharthaa Sawansukha, directorof Sawansukha Jewellers, Kolkata,found that people at the show wereplacing orders hesitantly. “Jewellerybelow INR 2 lakh is popular.Buyers these days are opting for

GJSCI LAUNCHES ‘UNLEASHING JEWELLERY MANUFACTURING EXCELLENCE’ BOOKDuring the inauguration function on the first day, the Gem & Jewellery Skill Council of India’s (GJSCI)chairman, Sanjay Kothari and GJSCI’s CEO, Rajeev Garg, along with GJEPC officials, released a book titled‘Unleashing Jewellery Manufacturing Excellence’. It is a compilation of the 20 papers presented during theinaugural India Jewellery Excellence Symposium (IJES) that was adapted on the lines of the Santa FeSymposium.

Jaipur Jewels by Vaibhav Dhadda


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classic, minimal and youth-orienteddesigns. They are coming to theshow well prepared and areconducting extensive researchbetween themselves before attendingtrade shows.”

Abhishek Sand, co-founder anddirector of Savio Jewellery said hewas not concerned by the low foottraffic at IIJS Signature because theshow had a 100% conversion ratefor him, as against a 15-20%conversion rate at IIJS Premiere.“India is benefitting from factorssuch as the US-China trade war andmore recently the coronavirusoutbreak, which has led manycompanies in the US to divert theirorders to India. Another reason forIndia doing well is that our productfinish has improved significantly asmany Indian manufacturers areintroducing CAD/CAM into their

manufacturing process. This hasseveral benefits including raisingaccuracy levels, which is essential forensuring uniformity when fulfillinglarge international orders.”

TIME TO CONNECT WITH

NEW BUYERS

Mumbai-based Anand Shah washappy to meet new buyers frommany regions across the country,while regular customers keptcoming as well. He noted thattrends are changing and customersare opting for light weight jewellery- not above 125 grams - with gooddesigns. “The price of gold didimpact the demand. Currently, themarkets across India are sluggish dueto this factor,” he noted.

Sanjay Jain, proprietor, ManojOrnaments, felt that the show livedup to his expectations. Apart from

Subhash Desai (sixth from left), minister for Industries & Mining, Maharashtra, and Pramod Agrawal (centre), chairman, GJEPC, inaugurated the 13th edition of IIJSSignature and the 7th edition of India Gem & Jewellery Machinery Expo (IGJME) on 13 February 2020. Joining them are (from left) Sanjay Kala, member, nationalexhibitions committee, GJEPC; K Srinivasan, convener, GJEPC; Mahendra K Tayal, regional chairman - South, GJEPC; Mansukh Kothari, convener, Nationalexhibitions sub-committee, GJEPC; Kirit Bhansali, co-convener exhibitions sub-committee, GJEPC; Sabyasachi Ray, executive director, GJEPC; Shailesh Sangani,member, national exhibitions sub-committee, GJEPC; Russell Mehta, former VC and COA member, GJEPC; Ashok Gajera, regional chairman, GJEPC; and PrakashPincha, regional chairman - East, GJEPC.

Anand Shah


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regular buyers, he got to meet fewnew buyers from the northernregion. His firm exports jewelleryacross the globe, and saw demandfor gem-studded, designer jewelleryfrom some international buyers. Itintroduced a collection of opal,mother-of-pearl, and some othernew concepts - all lightweight lineswith affordable price points.

The response was great for thisyear’s show, according to ViralKothari, partner, Kosha Fine Jewels.He notes that IIJS Signature hasalways been a serious buyer-sellershow. “Lightweight and daily weardesigner jewellery, which mostmillennials aspire for, did well. Welaunched lightweight ring-cum-pendant pieces and two-in-one.The trend of lightweight designerjewellery is only getting stronger.”

Amish Kothari, CEO,Rosentiques Fine Jewellery,revealed, “The show has beengrowing in strength year-on-year.Though buyers from the northernregion were less in numbers, we hadgood meetings with our existingbuyers and some new customers aswell.” Since the manufacturerspecialises in couture and bridalcollections, it received decent ordersfrom across India. This time,Rosentiques presented a specialrange of tanzanite-infused earringsunder its sub-brand Amolya.

Toshiba Jariwala of Mumbai’sZundaa revealed that the show wasbelow average for them as footfallswere less than expected. “However,we were able to attract new buyers,and we got enquiries from two verybig visitors - one from the west andanother from the south. There is asharp shift from high ticket items tolow-ticket tags - clients aredefinitely looking for jewellery withfancy-cut diamonds in designer

jewellery, but with an eye onmaintaining price points.” Zundaagot a good amount of orders for itsbracelets, a product line that is soldoff the shelves quite quickly.

VOLATILITY HAS HIT BUYER

PREFERENCES

Kulthiaa Jewel of Kolkata got bridalorders but with specific price pointsin mind. “This time we focussed onsettings that gave an expansive lookwith the usage of rounds and fancy-cut diamonds and carved or massivecolour stones with changeableoptions,” noted Anand Kulthiaa,adding, “Overall, the industry hasbeen reeling under the after-effectsof volatile gold rates and the budget.

Compared to last year, the demanddid drop in terms of the amount ofgold used. Buyers are looking forjewellery that have considerablylesser usage of gold and yet lookgrand. Like the international market,a lot of buyers have also foundinterest in different purity, namely,14-karat gold.”

This point was seconded byNaman Kala of Kalajee Jewellery,Jaipur. “Due to the high gold rates,we are seeing a marked shift to 14-karat jewellery from retailers whohad never strayed from 18-karat gold

GJSCI PROMOTES

INDIA’S HERITAGE

CRAFTS - TEMPLE,

BIDRI AND FILIGREEThe Craft Pavilion in Hall 6promoted three traditionalIndian jewellery crafts -temple, bidri and filigree, withlive demonstrations byartisans at the booth. GJSCICEO Rajeev Garg toldSolitaire,“Apart frompromoting these crafts, weare also documenting craftslike tarakashi. We havealready preparedqualification packs so thatthe training material is ready.We are doing the same forhupri payal, whose artisanswere brought to the previousshow.There is a National SkillDevelopment Corporation-approved (NSDC)qualification pack, soanybody can start trainingusing those documents.Next, we will document bidri.The aim is to preserve theknowledge of these crafts forposterity because right nowthey are only being passeddown the generations byword of mouth or throughon-the-job training.Theauthenticity of these craftshas to be retained, becausetheir USP is that it is all100% handmade. Already,people have started usingcast components for templejewellery, which is partcasting and part handmade;that is a business reality. Onevery heartening thing to noteis that all the three craftshave drawn qualified peoplesuch as graduates and evenchemical engineers, which isa promising sign and itdemonstrates that they arecoming back to jewelleryprofession.”

Bhavesh Jewellers


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in so many years,” observed Kala.He added that his company wasseeing a rising demand in tier-2 andtier-3 cities also such as Ambala,Karnal, Dhanbad, Kota, SriGanganagar, Bareily, Hardoi andmany others.”

Kulthiaa stated that the westernand southern Indian regions have astrong liking for diamond and goldjewellery, respectively. “In westernIndia, consumers are experimental

and wouldn’t mind splurging onproducts that are unique in terms ofevery element involved in jewellerymaking. Down south, gold is givena lot of importance, particularlytraditional jewellery. At this time,the industry is feeling the heat ofsurging gold rates and a tougheconomic scenario. With increasingtechnology and better innovations, I

am optimistic about our industry’sgrowth and definitely see itbouncing back in all its glory.”

Milan Chheda of Tara FineJewelry, Mumbai, too, got buyersfrom the southern and westernregions. “We had serious buyers,though the footfalls were less this

time.” Designer jewellery piecesranging from `1 lakh to ` 3 lakhwere sought after, and bridal setsbetween `8 and `25 lakh werebooked. However, mid-ticket itemshad no takers. Tara’s collectionswere replete with rose cuts,diamonds and gemstones such astanzanite, morganite, opal, andchalcedony. “Jewellery business is atan all-time low,” says Chheda, “as aresult of the high gold rate.However, there is demand for dailyand couture segment. This is a phasewe have to ride through with

BR Designs

Kulthiaa Jewel

Savio Jewellery

Jewellery Startup Zone in Hall 6.


EVENTS


equanimity. I am sure everythingwill be back to normal soon, orperhaps the new normal.”

ROOM FOR ALL

Viral Kothari believes that thecurrent market is conducive fororganised retailers as well asmanufacturers. “With theimplementation of GST, thejewellery trade is getting formalised,and I welcome the change.”

According to Sawasukha, risinggold prices have dented demand.“The steady climb of gold prices hasbeen affecting the trade adversely.The entire industry was hopingthere would be a slash in the importduty and GST in the 2020 Budgetfrom the present rate of 12.5% and3% respectively. The slash wouldhave brought much-needed relief tothe sector. Having said that, Ibelieve that with time and propergovernment policies, the market canrevive as gold is seen as aninvestment among Indians. Thejewellery market, fortunately, hasstayed strong in both the eastern andsouthern parts of India. I am happyto observe that the Bengali karigariof the eastern region is finding itslong due appreciation globally. AndI am hopeful that the future is brightfor all of us.”

Vaibhav Dhadda, creative headand founder, Jaipur Jewels, “Interms of sales January was better aswe saw the gold prices stabilising inDecember. But in January again wewitnessed volatility in gold prices;therefore, buyers were deferringtheir purchases in February.Considering all factors affecting thecurrent global economicenvironment, I feel India is still thebest bet as the love for jewelleryboth as investment and adornmentwill remain forever.”

Dhadda received good response atthe show and met a few new buyersfrom South India and Maharashtra,apart from the old customers. Theatmosphere at Signature is morerelaxed, and we get the time tointeract with our clients, he says.“That’s a good time to do the

groundwork ahead of IIJS Premiere.Buyers want to be wowed all thetime, and this time we presented acollection of one-of-a-kind cameojewellery and daily wear cameojewellery at the show.”

Sunil Datwani of Gehna felt thatmarkets such as Punjab, MadhyaPradesh and Hyderabad may offerpotential to grow. “We met

LINDSEY STRAUGHTON,INDUSTRYAMBASSADOR,THE NATIONALASSOCIATION OFJEWELLERS, UK:Our journey at the IndiaInternational Jewellery Show(IIJS) Signature has been oneof fascination, wonderment andexcitement at all thecollaborative possibilitiesbetween the UK jewelleryindustry and the Indianjewellery industry. What wefound amazing and excitingwas the marriage betweentraditional handcraftsmanshipand cutting-edge engineeringtechnology and how that hasbeen fused together to createan exciting and innovativefuture.The National Association ofJewellers has over 2,000members who represent theentire supply chain, from stonedealers and designers toretailers. We are the trade bodyfor the UK jewellery andsilversmithing industry. SomeUK retailers attended the showand industry consultant HelenDimmick also joined us. I planto bring around a dozen buyersto the Jaipur show in April as itis especially designed to caterfor the export market.

VISITOR VOICE

A Star Jewellery

Sangam Chains


EVENTS


potential buyers from northernIndia, who opted for trendy designs.Lately, among them, there is acuriosity about modernity injewellery which was missing earlier.So this is an exciting avenue toexplore.”

In terms of demand, Datwaninoted: “At the wholesale level wehaven’t felt any impact yet. At theretail level, the confidence of thecustomer could do with a littleboost. The jewellery industry hasfaced many challenges in the last fewyears, and I feel challenges onlymake you stronger! The enthusiasmamongst buyers at the show is aheart-warming factor.

“The current market scenario isencouraging. This year there are alot of auspicious days, and no matterhow modern we get, I thinkjewellery will always retain its statusthat it enjoys.”

Archana Jain, creative head,Swastik Jewellers, Mumbai, statedthat despite lesser number offootfalls, the conversion of querieswas good - thanks to the presence ofgenuine buyers at the show. Jainreceived most buyers from majorchain stores based in South India.The new collection of mangalsturasand ‘men’s sutras’ received a lot ofattention from retailers. Lightweightjewellery with a lesser component ofgold was on top of the charts.“Demand for gold jewellery hasbeen definitely affected due to thehigh cost of the yellow metal, andgoing forward the I can see that tier2 and 3 cities are still investing inprecious jewellery as compared tometros.”

STARTUP ZONE - SUPER HIT

Exhibitors at the Startup Zonesection expressed their gratitude forthe opportunity given to them at a

big platform like IIJS Signature.They were happy to interact withB2B buyers from across India, whichwas a new experience for most ofthem as, as earlier they had dealtonly with end consumers.

The Startup Zone, which wasfashioned on the lines of the SkillIndia, Stand Up India and Start-upIndia initiatives launched by theGovernment of India, gaveexhibitors an idea about the needs ofserious buyers. They were all readyto participate in the coming year ifgiven a chance, and informed thatthey would now be better preparedto meet the B2B customers nexttime.

Designer Rosily Paul said she hadnothing but gratitude for theorganiser, GJEPC, for providing thisplatform to emerging entrepreneurs.“This is an ideal place forexperimentation where we can testfresh concepts and ideas. I hope thisinitiative continues in the future aswell.”

Kapila Bhutta of Joolrie Fusionsaid she was extremely thrilled aboutthe opportunity to exhibit at theStartup Zone. “I’m absolutelycertain that this is a tremendousopportunity, but it will take time tobear fruit.”

An exuberant Gitanjali Sahijwaalaof Lotus Ssutra said that the StartupZone was a wonderful networkingplatform as she got to meet peoplefrom across India. “It is a great placefor up-and-coming designers to getgood exposure.”

The Startup Zone is genius, saidan excited Shweta Aarsaria. “This isa great initiative. Even though thefootfalls may be light, for me thisinitiative is all about connection, notselling. I hope the stall allocation isdone earlier next time as it would beof great help for people like me who

Kosha Fine Jewellery

Gehna Jewellers

Wondercuts


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Savio Jewellery

are from out of town.”

ON THE SIDELINES

On February 15, 2020 the GJEPCpresented the first ever Business

Knowledge Forum, in associationwith EconomicTimes.com, whichdiscussed the importance ofmodern-day information technologyand tools like Robotics, ArtificialIntelligence, Digital Marketing,Importance of Social Media andImpact of Influencers, etc.

The Forum had eminent speakerslike Raghunath Subramanian,chairman UI Path; Animesh Samuel,

co-founder and product head, NLPBots; Vedanarayanan Vedantham,SME business head, Razorpay;Sowmya Iyer, founder and CEO,Dvio Digital; Aditya Bhat, head, JioStudios; Bollywood actress, AditiGovitrikar and TV actress, TridhaChoudhury.

The daylong Design Inspirationsseminar on the last day of IIJSSignature was conducted byjewellery trend forecaster, Paola DeLuca. The core themes of DesignInspirations 2020 were SocialCulture (The era of volatility),Sustainable (Being planet sensitiveand conscious), Heritage (Lookingdeeper into authenticity) and,Design (Envisioning the ideals oftomorrow).

Among the eminent speakers at

Design Inspirations were Ash Allibhai,international fashion & contentdirector, ASBO Magazine; NarendraKumar, creative director, AmazonFashion; Thomas Lazzarini, privateclient personal shopper at Farfetch;Shreyas More, interior designer,Green Charcoal Project; FleurDamman and Noëlle Viguurs, co-founder, Van Gelder Indian Jewellery;Saikat Mitra, creative director, VanHeusen and VP design at Aditya BirlaFashion and Retail; Akash Das,creative director at MeWeStudioX.The speakers shared with the gatheredtrade members their insights,perspectives and knowledge gleanedfrom their diverse backgrounds.

Zundaa

Tara FineJewellery



FOR YOUR EARS ONLY

Earrings are a staple in every woman’s treasure box. From jhumkis, shoulder-dusters and single earrings to ear-climbers and more, this versatile category hasseen varied manifestations in the recent past. At IIJS Signature 2020, we spottedsome notable ear studs-large, sophisticated, classic, colour-infused, folkloric andfuturistic. Here’s what caught our eye!

A’Star Jewellery

Jaipur Jewels byVaibhav Dhadda

Jewels of Jaipur

TRENDS


TRENDS


Kalajee Jewellery

Savio Jewellery

Wondercuts


ARTISAN AWARDS


ARTISAN AWARDS 2020:TOASTING THE WINNERSPulsating emotions, collective celebrations and sighs, glamorous celebrities and above all,an avant-garde star of the global jewellery world, legendary British designer StephenWebster, who gave away The Artisan Awards. This was the culmination of theextravaganza organised by the Gem & Jewellery Export Promotion Council (GJEPC) atFour Seasons Hotel, Mumbai, on 12 February 2020

Teeming with celebrities,international guests andmedia, and top industry

leaders, there couldn’t have been amore fitting finish to The ArtisanAwards, India’s highest honour injewellery design, which waspresented by the Gem & JewelleryExport Promotion Council (GJEPC)and powered by the GemologicalInstitute of America (GIA). Thewinners held up their trophies in thespotlight before an august audience,who cheered them on.

This distinction of winning anArtisan Award will go a long way intheir journey to fulfil their dreams as

designers in this industry. Amongthe dignitaries who graced theoccasion were GJEPC’s Chairman,Pramod Agrawal; GJEPC vicechairman, Colin Shah, GIA India &Middle East’s MD, Nirupa Bhatt,and GJEPC convener of thePromotion, Marketing and BusinessDevelopment (PMBD) sub-committee, Milan Chokshi.

Speaking at the event, Britishjewellery designer Stephen Webstersaid, “For a piece of jewellery,materials are everything. Materialsand craft form the basis, but theelement of design pushes thingsfurther. Design competitions are

important because they challengeyou to push yourself creatively, topush your own boundaries. India issteeped in tradition and India hasinfluenced nearly all jewellerydesigners. I congratulate all thewinners of The Artisan Awardspresented by GJEPC and can say wehave seen some great pieces.”

CREATIONS THAT AWED

The Artisan Jewellery DesignAwards 2020 invited talenteddesigners from across the country totake up the challenge and createextraordinary pieces of jewellerybased on the core theme of

Winners seen with the GJEPC dignataries and chief guest Stephen Webster


‘Architectural Gems’. Architectureand jewellery share similar tenets offunction and design; both follow keyprinciples of durability, utility andbeauty, and that’s what the finalistsproved with their ground-breakingcreations.

The theme was furthersubdivided into three periods: ArtDeco, Islamic Arabesque and NeoFuturism, to celebrate three keyperiods from different architecturaleras. Participants were asked tosubmit their sketches choosing fromany one of three categories listed:Art Deco, which focuses onstreamlined geometric symmetry;Islamic Arabesque, which pertains torhythmic linear patterns interspersedwith swirling foliage motifs; andNeo Futurism, which suspends oldnotions of function and possibilitywith dynamic forms and lines.

In his address, Pramod Agrawalsaid, “India has an extremelytalented pool of jewellery designers.The Artisan Awards is a one-of-its-kind initiative of the GJEPC tofelicitate the best talent in jewellerydesign. The objective of organisingArtisan Awards is to encourage andmotivate our students and designersto reach their full potential and makeit big in this industry. I congratulateall the designers who crafted suchbeautiful designs and themanufacturers who brought thesedesigns to life. Looking at theseexquisite jewellery pieces, I can saythat the future of this industry is insafe hands.”

Commenting on the ArtisanAwards, Colin Shah noted, “India’scraftsmen are amongst the best inthe world when it comes to productengineering. At GJEPC, it is oursincere effort to nurture the designtalent, provide platforms to showcasetheir potential to the world. One

amongst various initiatives thatGJEPC has undertaken is TheArtisan Awards. In its third year, wehave fairly good representation fromIndia and abroad. Through thisplatform, we tapped talent that notonly has the vision to create designsthat push the boundaries ofcreativity but also imbibe factors thatgive jewellery a 360-degree touch tobe accessible to the end user.”

Milan Chokshi said, “The kind ofdesigns we saw through this processhave been truly amazing. Theeminent jury had a real tough task inselecting the finalists and winners.And the support that themanufacturers gave these youngdesigners was heartening to see. Thisyear’s theme ‘Architectural Gems’has been devised to inspire designersto use a nonlinear approach to createjewellery, inspired by three distincteras of architecture. I congratulate all625 participants for their inspiringinterpretations of the theme.”

The Artisan Awards 2020 had astringent judging process thatencompassed three rounds. The firstround involved scrutinising 625sketches that were evaluated ontechnical grounds. The first panel ofjudges included IIGJ senior faculty

Sushma Sawant, Meenal Chokshi,creative director at Moksh Jewellery,and Vikram Singh, the creative headof Walking Tree, who narrowed theselection down to around 300finalists.

The second round of judging wasconducted by an eminent juryconsisting of architect and interiordesigner Ashiesh Shah, fashiondesigner Rimzim Dadu, fashionphotographer Jatin Kampani andjewellery expert Richa Goyal Sikri,

ARTISAN AWARDS


FINALISTSAshishkumar DoshiOopal Diamonds

Budoor AlbudoorLa Marquise Diamonds, Dubai

Hema Harika ChandanaImaginarium, India

Juhee BolakheVummidi Bangaru Jewellers

Saurabh JhaveriTiara Silver

Shruti SharmaKP Sanghvi

FIRST RUNNER-UPArif HossainA’Star Jewellery

SECOND RUNNER-UPMonu Jain GuptaMonu Jain Gupta

WINNERHarjas KaurA’Star Jewellery

ART DECO


ARTISAN AWARDS


along with high-end jewellersPavan Anand of Dagmar Jewelleryand Abhishek Haritwal ofSymetree, who whittled thenumber down further to 27finalists. The designers were then

asked to manufacture the pieces,which were vetted by the thirdpanel of judges.

The third and final round ofjudging took place at Soho House inMumbai with a distinguished jury

drawn from across the arts and craftsworld. The winners were adjudgedby Aparna Badlani, co-founder atAtosa; Ambika Anand, fashionconsultant and TV anchor; NehaDani, fine jewellery designer; Anna

FINALISTSArchangel CaszoReliance Jewels

Ashishkumar DoshiOopal Diamonds

Juhee BolakheVummidi Bangaru Jewellers

Mitali KikaniH. Ajoomal Fine Jewellery

Saayli DhongadeDiagold Creation

Anant JainMukti Gold

NEO-FUTURISM

WINNERNamrata BhardwajA’Star Jewellery

FIRST RUNNER-UPKosha Shah Anand Shah

SECOND RUNNER-UPJinal PatelReliance Jewels

WINNERKoushik MondalTanvirkumar & Company

SECOND RUNNER-UPSonali ShethSphereFIRST RUNNER-UP

Ketki AmbardekarJewel Goldi

FINALISTSBhagyashree VaidyaTanvirkumar & Company

Jaydeb DoluiTribhuvandas Bhimji Zaveri

Pratiksha GandleReliance Jewels

Rakesh BakulyKiran Gems

Saloni KaushikTitan Company Ltd.

Tanaya AgarwalImaginarium India

ISLAMIC ARABESQUE


ARTISAN AWARDS


Martin, board president andexecutive committee member ofGIA; Nirupa Bhatt of GIA India andMiddle East; and Smriti Bohra,creative director at JewelsEmporium.

SPECIAL EXHIBITOR

CATEGORY

The Artisan Awards included aspecial award category of BestProduct Inventory exclusively forIIJS Signature 2020 exhibitors.Participants were asked to emailphotographs of their finishedproducts in any two of thefollowing categories: CoutureCuffs, Cocktail Rings, SilverJewellery, Daily Wear DiamondJewellery, Coloured Gemstonejewellery, Couture DiamondJewellery, Gold Jewellery, andKundan Meena Jewellery.

The finalists were narroweddown by IIGJ faculty memberSushma Sawant and jewellerydesigner, Hetal Vakil. The winnerswere then picked by Ishu Datwaniof Anmol Jewellers and Apurva

KothariofSavaab.

BEST PRODUCT INVENTORY ATIIJS SIGNATURE 2020Couture CuffsAnand Shah Jewels

Cocktail RingsAnand Shah Jewels

Silver JewelleryIra Jewels

Daily Wear Diamond JewelleryManak Jewellers

Coloured Gemstone JewellerySanskriti Jewels

Couture Diamond JewelleryBirdhichand Ghanshyamdas

Gold JewelleryShakti Jewellers

Kundan Meena JewellerySparsh Jewellers

Ira Jewels-Winner Silver Jewellery

Manak Jewellers-WinnerDaily Diamond Wear

Shakti Jewellers-WinnerGold Jewellery

Sparsh Jewellers-Winner Kundan MeenaCategory

Sanskriti Jewels-Winner CGS Jewellery

Anand Shah- WinnerCocktail Rings

Anand Shah -WinnerCouture Cuffs

Birdhichand Ghanshyamdas –Couture Diamond Jewellery


EVENTS


Innovation is the only way to stay relevant incontemporary times. Hence, at the 13thedition of IIJS Signature 2020, GJEPC

organised a Business Knowledge Forum poweredby Economictimes.com. This platform offeredvaluable insights into emerging technologies inthe digital world and highlighted how jewellerscould use these to their advantage.

Amongst the many experts at the BusinessKnowledge Forum was Animesh Samuel, co-founder of Light Information Systems and NLPRobots, who spoke on the theme ‘Reinvent withArtificial Intelligence (AI) and MachineLearning’. Here are excerpts from hispresentation at the event:

EMERGENCE OF AI

During the Industrial Revolution, peopletransferred their physical powers to machines.This was followed by transference of computationpowers where machines were taught to processinformation for faster results. Later, they wereprogrammed to manage various repetitive jobs, sothat they could achieve within minutes whathumans would take days to do.

Today, mankind is on the verge oftechnological breakthrough. Now that machineshave taken care of physical, computational andautomation attributes, it only lacked the ability tothink. With AI, this absence has been fulfilled.

To understand how AI does this, let’s take theexample of a single document and thenextrapolate it to one lakh documents. A user cantag each document as either an invoice, receipt orcertificate. This is called training data for themachine’s neural networks. So when a freshdocument is added to its system, the machine willautomatically tag it as either invoice, receipt or

AI’S POTENTIAL TO HELPBUSINESSES GROWAI can free customer service executives from routine supportrequests so that they can focus on complex tasks. Similarly, withits self-learning capability, it can resolve service issues before theyarise, which could lower customer abandonment. These are fewexamples of the critical role it can play in any businessenvironment


EVENTS


According to the InternationalData Corporation (IDC) WorldwideSemiannual Cognitive ArtificialIntelligence Systems SpendingGuide, global spending oncognitive and AI systems isexpected to continue its trajectoryof robust growth as businessesinvest in projects that utilise thesecapabilities. According to theresearch agency, spending oncognitive and AI systems willreach $77.6 billion in 2022, morethan three times the $24.0 billionforecast for 2018.


EVENTS


certificate, after assessing certainparameters, without human intervention.

A BRIEF HISTORY OF AI

Contrary to popular notion, AI isn’t a newconcept. It has been spoken about since the1950s. Back then conversations revolvedaround cybernetics and early neuralnetworks, Turing’s Test, Game AI,Symbolic reasoning and the LogicTheorist, though momentum was lost after1956. From 1974 interest reawakened inreasoning as search and natural language.

The period from 1980 to 1987 saw therise of expert systems, the knowledgerevolution and a revival of connectionism,before funding for these projects taperedoff. The last decade of the centurywitnessed a lot more research on deeplearning, Big Data and AI behind thescenes.

AI requires lots of data to operate. Itmight not always be perfect but it will self-learn to avoid repeating mistakes. It alsorequires tons of computational power toaccess various algorithms and take the right

decision. More importantly, there are noformulae that apply to AI.

Currently, this concept is taken a lotmore seriously. One of the reasons isbecause increasing computational andcomputing prowess is readily available. Thesecond is collaboration; today, morenumbers of industries and companies arecollaborating across continents. When

Colin Shah, vice chairman, GJEPC felicitates AnimeshSamuel, co-founder, NLP Bots and Light InformationSystems

By 2020, 80% of allcustomers will behandled without a

human agent, freeingthis manpower for

more critical work. AI,chatbots and

automated self-servicetechnologies free up

call centre fromroutine tier-one

support requests sothey can focus on

complex tasks.Additionally, resolving

customer serviceissues before they

arise couldsignificantly lower

customerabandonment.


EVENTS


these two elements are brought together, itmeans disruption is occurring at aphenomenal pace.

PUSHING THE FRONTIERS OF

COLLABORATION

When Star Trek series burst on TV screensin 1966, the thought that people couldcommunicate with each other across longdistances using portable devices seemedfantastical. Today, though, we can freelyvideo chat with anyone across the world.This unimaginable feat underlines thatchange is occurring at a fast clip.

So, why is this happening now? Therapid adoption of AI-powered applicationsais because of varied reasons. Firstly, 2.5quintillion bytes of data is created daily, ofwhich 80% is unstructured. This isespecially in enterprises, which havesystems like ERP, CRM, HRMS, etc.Identifying, classifying and then utilisingthis data for appropriate reasons is humanlyimpossible. However, AI can do it fasterwith better outcomes.

Additionally, availability of betterhardware with faster chips for graphicsprocessing units (GPUs) and tensorprocessing units (TPUs) is no longer achallenge. Secondly, there is constantinnovation in algorithms that iterativelylearn to enhance data that helps AI betterpredict outcomes. Thirdly, theproliferation of apps, systems and AIsolutions has led to lowering of costs andimproved savings for enterprises that arekeen to deploy this technology. This, inturn, is encouraging them to create moreuse cases for AI-based solutions.

REIMAGINE EVERYTHING

AI has changed everything, compellingenterprises to reimagine everything. Forinstance, in the future when self-drivingcars will become the norm, AI will takedecisions for the driver. It will also knowthat it will have to steer clear from thedriver ahead of vehicle. The reason? It hasaccessed his insurance records in real time

and found the driver pounded his car fivetimes in the past year!

With the introduction of a 5G network,machines will be able to communicate witheach other faster. In the gems and jewelleryindustry especially this will have severalramifications. For example, with 3Dprinting in the backdrop, manufacturerscan use AI for making customised productsat a faster pace.

Homosapiens have been around forapproximately 5,00,000 years. And after allthese years, renowned physicist StephenHawking noted that with AI, mankind is atthe cusp of a revolution in its evolution.This shows the kind of revolution that AIcan herald in the world, across variousaspects, be it business or welfare.

ANIMESH SAMUELAn alumni of St John the Baptist High School and Pune’sFergusson College, Animesh Samuel completed his Bachelors inMechanical Engineering from Kolhapur’s Shivaji University in1999. He was always inclined towards technology from a youngage and when he was just 25, he became CEO of CompulinkIndia. A couple of years later, he joined Pune’s KAPS InternationalLLC as Partner, where he offered corporate training, functionalconsulting and counselling to several leading corporationsincluding Infosys and Cognizant Technology Solutions.

In 2012, he co-founded Light Information Systems with anobjective to transform man-machine interactions in the future byusing AI and natural language processing. Its enterprise product,NLPBots automates conversations and processes in the areas ofHR (employee engagement or hiring automation, etc.), customercare, marketing assist, reseller/partner management, technicalsupport, lead generation, user validation processes, etc.



TH

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LG

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EDUCATING PEOPLE,BUILDING INDIAKKAANNTTIILLAALL CCHHHHOOTTAALLAALLPartnersMMRR AASSHHIISSHH KKAANNTTIILLAALL MMEEHHTTAA,, MMRR MMIILLAANN RRAAJJNNIIKKAANNTT MMEEHHTTAA,, MMRR PPAARRTTHHIIVV MMEEHHTTAA,, MMRR AAKKSSHHAARR MMIILLAANN MMEEHHTTAA

The best way to give back to the society isby investing in its future’. That is themotto Ashish Kantilal Mehta and his

three partners - Milan Rajnikant Mehta, ParthivMehta and Akshar Milan Mehta - live by. It hasheld them in good stead while managing theaffairs of the Vidyamandir Trust.

This well-known education Trust, located inGujarat’s Banaskantha district was started in 1948by Late Kantilal Chhotalal Mehta. A diamantairefrom Palanpur city, his main aim was to providequality education to the youth and an economicimpetus to the Banaskantha district, which wasdeclared a backward region by the government.

He established Kantilal Chhotalal as a diamondsolitaire manufacturing unit in Mumbai in 1941.Today, the company is in the business of tradingcut and polished diamonds as well asmanufacturing and trading of jewellery, cateringto a diversified clientele in the domestic andoverseas markets.

A COMMUNITY INITIATIVE

Over the years, diamantaire families fromPalanpur supported Late Kantilal ChhotalalMehta’s philanthropic efforts by extendingfinancial support and help in running theVidyamandir Trust. One family that has beenclosely involved with the Trust since inception isRosy Blue and presently its chairman, RussellArunbhai Mehta, heads Vidyamandir Trust.

The charitable body currently runs English andGujarati medium schools from the kindergartenlevel to higher secondary. Since the 1970s, it hasoperated its own teachers’ training colleges forpre-primary, primary and secondary school levels,as well as a special college for teaching differently-abled students. Today, it manages over 135educational across 14 campuses with a team of250 teachers catering to around 5,800 students.

One innovation by Vidyamandir Trust is aneducation programme for children of rural schoolslacking basic infrastructure like a library and

The Trust runs Kalayatan, where students are trained in song, dance, music and drama.


THE REAL GEMS


science lab. Its mobile lab and libraryreaches around 5,000 students in 52schools in as many villages.Promising students from theseinstitutions are provided specialcoaching at classes conducted byVidyamandir teachers every Sundayin regular classrooms and labs at itsPalanpur schools.

The Trust also has facilities like astate-of-the-art English language lab,separate labs of physics, chemistryand biology, a library with over30,000 books, a 600-seater air-conditioned auditorium and alandscaped garden spread over 12acres.

PROMOTING SELF-RELIANCE

A special feature of the campus isMamtamandir, an institute for the

differently-abled, including visuallyimpaired, hearing impaired,orthopaedically handicapped andmentally challenged students.Founded in 1963, it is the onlyestablishment of its kind in Gujaratand education is provided absolutelyfree to students.

Mamtamandir provides vocationaltraining to help the students becomeself-reliant and a part of the socialmainstream. It is also a pioneer inthe concept of integrated educationwhere visually impaired studentsstudy alongside normal students inthe same classroom. This method,pioneered by Vidyamandir in 1969,was later accepted by educationistsall over India.

The Trust has been at theforefront of change by introducing

new technologies and teachingtechniques. For example, it firstintroduced computers to thestudents in the 1980s and soon after,incorporated it into the regularsyllabus.

It has also been encouraging itsstudents to pursue medical careers.About 20% of its students from thehigher secondary section opt formedical careers choosing thecountry’s leading medical colleges,and with many of its alumni buildingsuccessful careers in differentprofessions. Due to the number ofstudents opting for medicine,Palanpur has become the hub formedical tourism with people fromsurrounding areas, including thebordering state of Rajasthan, cominghere to avail quality medical service.

GOING BEYOND BOOKS

In addition to a regular curriculum,all Vidyamandir Trust schools placeplenty of emphasis on extracurricularactivities for a student’s overallpersonality development. They areencouraged to participate in sports,drawing and essay competitions.

Several of them have won laurelsat the district and state levels in thesefields, bringing honour to theirteachers and institutions. The sportsacademy of the Trust offers trainingunder expert coaches in 15 differentdisciplines and many students areselected to represent the district andstate in national and state levelcompetitions.

The Trust, furthermore, runsKalayatan, where students aretrained in song, dance, music anddrama. They get an opportunity toperform at functions held by theTrust and at competitions organizedby the government and privatecultural organizations. Mamtamandir provides vocational training to help the students become self-reliant and a part of the social

mainstream.


THE REAL GEMS


FOCUSING ONPRIMARY ISSUES

Established in 1960, MahendraBrothers has become centralplayers in India’s diamond

business. A manufacturingSightholder of the Diamond TradingCompany since 1969, amongst thefirst in the country, it has been, andstill is, a one-stop destination fordiamonds. With a wide array ofdiamonds ranging from round,princess, marquise, taper andbaguettes in qualities from 300 percarat to 2 carats in VVS to I3clarities, it remains a preferredpartner for clients across the world.

CONTRIBUTING TOWARDS

SOCIETY’S HEALTH NEEDS

In 1983, Mahendra Brothersestablished Parikh Foundation withan objective to create and managestructured CSR programmes. Thecompany’s family members areactively involved as trustees and run itprofessionally. The Foundationfocuses on four primary areas, namelyhealthcare, animal care, education aswell as relief and rehabilitation.

Besides contributing for manyhealthcare needs across India, ParikhFoundation has helped build some

charitable hospitals. The principalamongst them is ‘BA’ Smt. LilabenChimanlal Parikh Cancer Centre, aradiotherapy and cancer care centreestablished in Gujarat’s Navsaridistrict in 2011. It is implementedunder the state government’s publicprivate partnership scheme.

The facility has state-of-the-artequipment along with futuristictechnology. It conducts cancerawareness programmes on a regularbasis and provides cancer detectionand therapy at extremely subsidizedrates.

Mahendra Brothers have been directly involved in providing free education and hostel facilities to the students of Mamta Mandir Residential School.

MMAAHHEENNDDRRAA BBRROOTTHHEERRSS EEXXPPOORRTTSS PPVVTT.. LLTTDD..MMRR SSAAUUNNAAKK JJ PPAARRIIKKHH,, Director


THE REAL GEMS


Growing over the years, ‘BA’Smt. Lilaben Chimanlal ParikhCancer Centre currently has pre-and post-operative facility for cancercare. This includes radiation,mammography, CT scan, x-ray andchemotherapy.

Its recognition as a Centralgovernment’s Ayushman Bharatcenter has come as a boon forwomen in the area. Regular cancerawareness programmes areconducted in villages, and womenforums are engaged for earlydetection and preventive care ofbreast cancer within 100km area ofNavsari.

CARING FOR ANIMALS

Established in 1994, Mahavir VishwaKalyan Trust is a shelter homespread over 6 lakh square feet fordeserted animals and ailing birdsnear Navsari. Around 1,100 to 1,200small and big animals are shelteredand looked after here with consistentmedical check-up and treatment.

Close to 20 caretakers visitvillages in Navsari’s surroundingareas to conduct medical camps on aregular basis and provide medicalfacilities to domestic and abandonedanimals. Animal welfare awarenessprogrammes are held periodicallyand medical camps are scheduledbetween November and February.School children are invited andlessons on environment, Jeevdayaand kindness towards animals areimparted.

SPEARHEADING RELIEF &

REHABILITATION WORKS

Parikh Foundation has been at theforefront of relief and rehabilitationof people affected by naturalcalamities like earthquakes, floodsand cyclones across India. TheFoundation’s work includesrebuilding of homes, schools, roadsand other infrastructure facilities forthose affected directly and indirectlyby the calamities.

During the 2001 Bhuj

earthquake, Parikh Foundation builthouses in Gujarat’s Morbi regionbesides doing community workalong with others associations. 80houses were built in Ram Nagaralong with a community hall for 100people. The Foundation also created‘Leela Gram’ and built 80 housesand another community hall forabout 100 people there.

TEACHING FOR

EMPOWERMENT

Since the early 1990s, MahendraBrothers has been directly involvedin providing free education andhostel facilities to the students ofMamta Mandir Residential School,managed by Manav Kalyan Trust.This is an institute for the deaf andmute and other differently abledchildren in Navsari.

The school educates childrenfrom nursery till class X, enrichingtheir experience through a host ofextra-curricular activities. Anestimated 1,500 students havegraduated from Mamta Mandir sincethe early 1990s and more than 700are currently enrolled.

Parikh Foundation is also a majorcontributor to many educationalinstitutions, and has done a greatdeal of work for deaf and mutestudents in Gujarat. To have skilledworkforce for the gems andjewellery industry, ParikhFoundation, together with GJEPC,set up the Indian Institute of Gems& Jewellery (IIGJ), also known asBagmal Laxmichand Parikh Campusin Mumbai. Since 2003, the institutehas provided more than 4,000 skilledworkforce to the industry.

Mahendra Brothers tries to addvalue to any initiative it takes up sothat over a period of time it has awider reach and benefits a largersection of society around the facility.

‘BA’ Smt Lilaben Chimanlal Parikh Cancer Centre is one of its kind radiotherapy and cancer care centre inNavsari, Gujarat.



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ROYAL ASSCHER’S PRESIDENTRETIRES AFTER 50 YEARSFollowing patriarch Edward Asscher’s retirement, his daughter, Lita,and son, Mike Asscher, will take manage the business as co-presidents.

Edward Asscher, president ofNetherlands’ Royal AsscherDiamond Company has

retired after managing the familydiamond dynasty for 50 years. Uponhis departure, Edward’s daughterLita, and son Mike Asscher willserve as the firm’s co-presidents.

Edward joined the family businessin 1970 after completing hisacademic studies. He apprenticedwith his father and uncle, workingalongside some of the finestdiamond craftsmen in the industry,making him the fifth generationfamily member to join the dynasty.

10 years later, he stepped into hisfather’s shoes as company president.During 36 years, his brother Joop,and he worked cohesively, beforethe former passed away in 2006.Upon taking the company’s helm,Edward expanded Royal Asscher’sreach in the international market,creating a presence and developingstrategic partnerships, on all of the

globe’s continents.With Mike and Lita coming on

board as the family’s sixthgeneration, Royal Asscher began tofocus on the manufacturing of fancycut diamonds, investing ininnovative technology, which led tothe patenting of four proprietarydiamond cuts based on popularexisting shapes.

Talking about his five decadelong journey, Edward said, “It was apleasure and an honour to workwith three generations of Asschers -my father, my late brother, Joop,and two of my three children. Ourindustry has had its challenges inmany aspects, but ethical standards,transparency, innovation, andprofessionalism have become thenorm and will keep the industry asbeautiful as the product itself. I nowleave, with confidence that thefuture of Royal Asscher is in theable hands of the next generation!”

Talking about her father, Litaadded, “He is an amazing example,and has instilled us with a drive andpassion for the diamond business.His work ethics, his command ofcomplexities, his devotion and focushave been exemplary at thecompany. His achievements andenergy will always resonatethroughout Royal Asscher.”

Her brother, Mike Asscher,added, “Working alongside myfather has been an incredibleexperience. He has been a mentor,friend, and business partner for over21 years. Together we have createdsome of the world’s most beautiful

patented diamond cuts, which arenow part of our family tradition. Iwant to thank Edward for all he hasdone for Royal Asscher. I lookforward to continuing to workclosely with Lita in leading ourcompany, serving our expandingclient base and delivering stronggrowth for our retailers across theglobe.”

Outside of the family business,Edward is a passionate campaignerfor an ethical responsible diamondindustry that respects human andenvironmental rights. He held boardpositions across numerous charitiesand industry bodies and served aspresident of the World DiamondCouncil (WDC) from 2014 to 2016,beginning another two-year term inJune of this year. As an NGO, theWDC represents the completediamond supply pipeline, frommining to retail, in the KimberleyProcess (KP). With Asscher’s focuson human rights, he will promotefurther changes in the globaldiamond supply chain.

Other illustrious positions thatEdward held in the past includedpresident of the InternationalDiamond Manufacturers Association(IDMA), president of theInternational Diamond Council,president of the Liberal Party inAmsterdam. He also served as asenator for the Liberal Party in theDutch parliament from 2007 to2011 and received a knighthood forhis social and ethical work and wasconsequently named an Officer inthe Order of Oranje-Nassau.


GLOBAL UPDATES


NEWLY DISCOVERED MINERALNAMED AFTER GIA GOVERNOR,DR BARBARA DUTROWDutrowite, the newest species of tourmaline, was discovered in theApuan Alps of Italy’s Tuscany region.

Dutrowite, a newlydiscovered mineral speciesof the tourmaline group, is

the namesake of GIA governorBarbara L. Dutrow, Ph.D.Discovered in the Apuan Alps ofTuscany, Italy, this unique mineral -now recognized by the InternationalMineralogical Association - isformed from the compression andheating of a volcanic rock calledrhyolite.

Researchers from Austria, Italyand Sweden who discovereddutrowite named the mineral afterDutrow in recognition of her manycontributions to mineral sciencesand crystal chemistry, andparticularly for her well-known andcomprehensive research intotourmaline and its embeddedgeologic information. Of the 34tourmaline species, dutrowite is thefirst species named after a woman.

“Gems, and especially minerals,have been my life’s passion. It istremendously gratifying to receivethis honour,” said Dutrow.“Discoveries such as this show usthat there is still much to learn aboutour earth and its many minerals andthe geologic information theycontain.”

Dutrow is the Gerald Cire andLena Grand Williams AlumniProfessor in the Department ofGeology and Geophysics atLouisiana State University (LSU).Her teaching and research havefocused on mineralogy, petrology,geochemistry, and computational

modeling and visualization for morethan 25 years. She has authored andcoauthored many publications,including her textbook “Manual ofMineral Science,” a worldwidestandard and reference for the studyof minerals now in its 23rd edition.Dutrow earned her master’s degreeand Ph.D. in geological sciencesfrom Southern MethodistUniversity, TX. She joined the GIABoard of Governors in November2016.

Sample of dutrowite (brown) anddravite (blue) tourmalines in meta-rhyolite from Italy (From Biagionaet al. 2019).

“On behalf of the Institute, wecongratulate Barbara on thisexceptional honour and recognitionof her many contributions and

achievements,” said Susan Jacques,GIA president and CEO. “Barbara isa significant contributor to ourBoard given her research andscientific expertise, as well as herfocus on the student experiencefrom her higher educationbackground.”

Six GIA contributors have beenhonoured through the years withminerals named after them for theiroutstanding work. This began morethan four decades ago with formerGIA president Richard T. Liddicoatwho was honoured with liddicoatite,a species of tourmaline; rossmanite,another tourmaline species, wasnamed after former GIA governorDr. George R. Rossman; themagnetic mineral known as valleyitewas named after GIA governor Dr. John Valley; G. RobertCrowningshield, a pioneeringresearcher at GIA, was honouredwith crowningshieldite; and in2019, johnkoivulaite was namedafter GIA researcher John Koivula.

The members of the GIA Boardof Governors are innovators andleaders in their fields. They havehigh-level experience in diverseprofessions, industries and academicdisciplines. Their role is to direct thestrategy of the Institute to ensurethat the consumer protectionmission and vision of GIA arereflected in all decisions; that thereputation of GIA is preserved andcontinues to grow globally; and thatthe financial goals of the Institute aremet.

Dutrowite was named after GIA governor Barbara L.Dutrow in recognition of her contributions tomineral sciences and crystal chemistry, especiallyher comprehensive research into tourmaline.


GLOBAL UPDATES


PANDORA WITHDRAWS 2020 FINANCIALGUIDANCE FOLLOWING COVID-19Announced on February 4, 2020,the financial guidance excludedany impact from Covid-19, andthe jewellery giant said it is nolonger meaningful

Jewellery company, Pandora, haswithdrawn its financial guidancefor 2020, stating it is “no longer

meaningful” amid the impactcoronavirus is having on business. Thecompany stated that the recent Covid-19 escalation has had a negative impacton the global economy, affectingjewellery firms like Pandora. TheDenmark-based company designs,manufactures and markets hand-finished jewellery, which is sold inover 100 countries through 7,400points of sale, including more than2,700 concept stores.

While financial performance wasstrong in January and February, withparticularly good developmentonline and total like-for-like,excluding China, is better than thefull-year financial guidance, theCovid-19 escalation has led to amaterial weakness in sales acrossmarkets.

It added that in China, like-for-like has been between -70% and -80% since late January 2020.Revenue is currently slightlyimproving, but a return to normaldemand will expectedly take timeand is outside Pandora’s control.The European markets, and Italy inparticular, have been visiblyimpacted since late February.

Italy generated solid positive like-for-like in January and February,while trading in March has nowalmost come to a complete halt.Australia is impacted due to a

decline in tourism and most othermarkets are now indirectly impactedthrough a general dampening ofconsumer sentiment. In the marketsaffected by lockdowns and othergovernmental measures, revenue isexpected to be negligible while thesecircumstances prevail. The companysaid that the timing and pattern ofthe return to normalised business isobviously subject to uncertainty andoutside its control.

It added that it is activelymanaging cost levels, includingmedia, rent and other store costs, toensure an appropriate balancebetween protecting profits whilecontinuing to drive revenue from itsonline store and build on theunderlying momentum of the brand.

Despite the headwind caused byCovid-19, profitability is expectedto continue to be strong in Q12020. The profitable and cashgenerative business model meansthat Pandora can absorb severalmonths of suppressed traffic and stillbe profitable and cash generative forthe full year. Combined with aconservative capital structure policy,light funding covenants and healthy

funding availability, Pandora has astrong financial position to managethrough this downturn period.

To preserve a strong balance sheetunder these extraordinarycircumstances, Pandora has decidednot to buy back any further treasuryshares under the authorisation givenat the 2020 Annual GeneralMeeting. It expects to initiate aprogramme when the situationimproves, subject to the capitalstructure policy of having netinterest bearing debt includingcommitted leases of 0.5-1.5 timesEBITDA excluding restructuringcosts.

While continually monitoring thepandemic’s development, thejewellery company said that itsprimary focus was the well-being ofemployees and ensuring safeenvironments for customers.Guidelines set by local authoritieswill be followed, and the companyhas temporarily closed stores andoffices as advised. Pandora’smanufacturing facilities in Thailandcontinues to run with stable suppliesand currently without notableimpact from the situation.


after covid-19...business to resume limited jewellery operations). colin shah, vice chairman, gjepc,...

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