MANUFACTURING SECTORIAL of INDIAN ECONOMY

IN MANAGERIAL ECONOMICS

BYR.ABHISHEK PAREEK

Indian Gem and Jewellery Industry

3

OVERVIEW Large market for Gems & Jewellery with

domestic sales of over RS.251000 crores. 7% of contribution in indian economy by Gems

and Jewellery market. Exports of over 14% of world’s exports. India is the largest consumer of gold jewellery

in the world. India is the largest diamond cutting and

polishing centre in the world. Platinum jewellery could cross the Rs 2,500

crore

G em stones

Gemstones

Diamonds

Gem & Jewellery

Silver and Silver

Jewellery

Gold and Gold

JewelleryPearls

Gemstones studded

Jewellery

Coloured Stones

Precious Metals and Jewellery

Gold and diamond forms two major segments of Indian gems and jewellery market

Value chain of the Gems and Jewellery sector

GEMS AND JEWELLERY Gems and Jewellery is an important emerging sector

and Ranked among the fastest growing sector economy, it is also a leading sector for foreign exchange generation.

Major Segments The sector comprises of two major segmentsGold used around 80% of the Indian jewellery market,

balance comprising fabricated studded jewellery (Diamonds and Gemstones).

High levels of manufacturing and domestic consumption.

Diamonds World's largest cutting and polishing Industry Well supported by the banking sector and government

policies. Export for polished diamonds / finished diamond

jewellery.

Size of jewellery Retail Market in India

800

700

600

500

400

300

200

100

0

Gold jewellery Diamond Other fabricated

Jewellery Jewellery

Size in year 2013(in `000 crores )

63

3217.5

999.9 kdm 91.6 KDM(22ct) 22/20 ct 18 ct

Classification of gold

Reasons behind the increase and decrease of

gold rates…

DIAMONDS INDUSTRY

Largest diamond cutting and polishing centre in the world—with 60 per cent value share,

82% carat share 95 % share of the world market in terms of number of

pieces.Nearly 9 out of 10 diamonds sold worldwide are cut and

polished in India.Preparation of diamonds by 4c`s

clarity Color Cut carat

DIAMONDS INDUSTRY

India accounts for approximately 60% of global polished diamonds market in terms of value and more than 90% in terms of pieces.

With the rise in gold prices, consumers are turning to diamond studded jewellery which gives them a higher perception of luxury and value.

About 25% of the gold jewellery purchasers have switched to diamond ( diamond jewellery is typically casted in less-pure 18-carat gold compared to gold jewellery which is made from 22-carat gold).

Comparative costs of processing diamond in different countries(As per 2013)

Indian retail Gems& jewellery overview

Yesterday Today

Unbranded Branded

Silver & Gold jewellery Gold & Diamond jewellery

Investment Investment + Fashion

Traditional design Fashionable & innovative

design

Marriage & festival is peak

season

Wear ability and gifts

Jewellery sold on commodity

basis with labour charges

Jewellery being sold on a per

piece basis

Name of the company

nameof the md employees

manufacturing place

turnover in crores

Asian Star Co Ltd. Mr. VIPUL SHAH 2000mumbai &surat 1853Gitanjali Gems Pvt Ltd

Mr. MEHUL C. CHOKSI 1894mumbai 976

Hindustan Diamond Co. Pvt. Ltd. Ms. ALKA TYAGI 1786mumbai &surat 775sheetal manufacturing co pvt ltd vijay tawde 1754mumbai 1265

PP jewellery Mr. KAMAL GUPTA 1700delhi 689Rajesh Exports Pvt. Ltd mr.RS geonka 1684banglore 954

Rosy Blue Mr. Russell Mehta 1536mumbai 2000Su-Raj Diamonds Ltd

Mr. JATIN R.MEHATHA 1235surat 584

Top gems & jewellery companies in india

The Current Economic ConditionGems & Jewellery

India’s Current Advantage

Ability to deliver good quality at low costs

Cost of cutting diamonds in India is 7%, of that in Belgium and chain is 60% of China

The exports are expected to grow of 15%, amounting to 5800 crores by 2015 from current size of 2500 crores

010203040506070

25

58

Gems & Jewellery Exports ( 100 crores)

2009 2015

The government of india had reduced duty on gold &diamonds for huge transaction of money

Antrewp bank had gave a offer of 5-25% on diamonds to sell it fast

in the past 15months gold rate has been reduced hugely Again it is growing to RS.27700(per 10grms)Offered bonus to the employees on diwali festival in the form of

car, flat, diamond necklace by harikrishna exports pvt ltd

NEWS

REFERENCES http://portal.indiainfoline.com/ Daily newspapers www.indiabulls.com www.moneycontrol.comhttp://www.ibef.org/download/

GemsandJewellery_sectoral The economic times

Thank you