For the complete report, get in touch with us at : info@netscribes.com Abstract: Netscribes’ latest market research report titled Gems and Jewelry Market in India 2013 mentions that the players operating in the gems and jewelry market will benefit from the high demand being witnessed for their products. The sector is one of the leading foreign exchange earners for the country. A number of reasons has aided growth in this sector; the most important being the love that Indians have for jewelry, especially gold. However, Indians are increasingly willing to spend on other forms of jewelry such as diamonds and gemstones studded in gold or precious white metals such as platinum. This trend will help in the development of the overall jewelry market and the country may not just remain one of the largest processors of rough diamonds, but may start consuming a lot of the finished, polished diamonds as well. Although there are several industry bodies working for the development of the market, the high imports of gold into the country has resulted in several attempts by the government to restrict imports as well as reduce the consumption of gold. This is largely in order to correct the unfavorable current account deficit that the country is facing. Also, the beneficiation program in Africa acts as a threat to diamond processors in India. However, despite these challenges, the market is expected to continue to develop. Moreover, mandatory hallmarking of jewelry has ensured that the market will continue to grow steadily over the next few years. Table of Contents: Slide 1: Executive Summary Macroeconomic Indicators Slide 2: GDP at Factor Cost: Quarterly (2009-10, 2010-11, 2011-12, 2012-13), Inflation Rate: Monthly (Nov 2012 – Apr 2013) Slide 3: Gross Fiscal Deficit: Monthly (Sep 2011-Feb 2012), Exchange Rate: Monthly (Dec 2012 – May 2013) Slide 4: Lending Rate: Annual (2009-10, 2010-11, 2011-12, 2012-13), Trade Balance: Annual, FDI: Annual (2009-10, 2010-11, 2011-12, 2012-13) Introduction Slide 5: Gems and Jewelry – Segments Overview Slide 6-7: Gems and Jewelry – Segments Description Value Chain Slide 8: Gems and Jewelry – Value Chain Slide 9: Pockets of Jewelry Manufacturing in India Market Overview Slide 10: Gems & Jewelry – Market Overview, Market Size & Growth (Value-Wise; 2012 – 2017e) Slide 11: Jewelry Market – Segments Overview, Market Segmentation (Value-Wise; 2012, 2017e) Slide 12: Gold – Market Overview, Market Size & Growth of Gold for Jewelry (Volume-Wise; 2012 – 2017e), Market Size & Growth of Gold for Investment (Volume-Wise; 2012 – 2017e) Slide 13: Diamond-Studded Jewelry – Market Overview, Market Size & Growth (Value-Wise; 2012 – 2017e) Slide 14: Colored Gemstones – Market Overview, Market Size & Growth (Value-Wise; 2012 – 2017e)

1. Gems & Jewelry Market – India
October 2013

2. Executive Summary
Market
 Gems and Jewelry (G&J) market in India was valued at INR ‘a’ bn in 2012 and is expected to grow at x% CAGR
 G&J market includes gemstones such as diamonds, colored stones and pearls; and precious metals and jewelry
such as gold & gold jewelry, silver jewelry and gemstones-studded jewelry
Drivers:






Drivers &
Challenges
Challenges:
Mass appeal and growing income among households
Low cost and abundance of skilled labor
Growing use of high-end technology
Advantages of SEZs
Changing consumer perceptions & preferences
Growing training institutes
 Rising gold prices
 Stiff competition among players
 Dependence on raw materials
imports
 Emerging threat from other
countries
Trends




Growing organized retail space
Aggressive marketing and advertising
Online retailing of jewelry
Preference towards affordable jewelry
 Large scale shows and exhibitions
 Domestic players acquiring foreign
companies
 Investments from PE firms
Government
Policies and
Initiatives




Industrial policy
FDI policy
Taxes
Kimberley Certification Process
 Hallmarking
 Foreign Trade Policy (2009-2014)
Initiatives
 Import Duties and Relaxations
Competitive
Landscape
Major Companies
Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
GEMS & JEWELRY MARKET IN INDIA 2013.PPT
2

3. •Economic Indicators
•Introduction
•Value chain
•Market Overview
•EXIM
•Drivers & Challenges
•Trends
•Industry Bodies and Associations
•Government Policies and Initiatives
•Competitive Landscape
•Strategic Recommendations
•Appendix
GEMS & JEWELRY MARKET IN INDIA 2013.PPT
3

4. Economic Indicators (1/3)
GDP at Factor Cost: Quarterly
INR tn
14
a1
b1
12
c1
a2
b2
c2
11
d1
b4
c4
b3
d2
13
c3
d4
d3
10
Q2
2009-10
Q1
2010-11
Q4
Q3
2012-13
2011-12
Inflation Rate: Monthly
%
1.0
a
c
0.8
0.6
b
d
e
Feb 2013 - Mar 2013
Mar 2013 - Apr 2013
0.4
0.2
0.0
Nov 2012 - Dec 2012
Dec 2012 - Jan 2013
Jan 2013 - Feb 2013
SANITARYWARE MARKET IN INDIA 2013.PPT
4

5. India’s major strength in the G&J value chain is its strong
processing capability
Stage 1
India’s Involvement:
High/Moderate/Low
•x
Stage 2
Stage 3
Stage 4
India’s Involvement:
High/Moderate/Low
India’s Involvement:
High/Moderate/Low
India’s Involvement:
High/Moderate/Low
•x
•x
GEMS & JEWELRY MARKET IN INDIA 2013.PPT
•x
5

6. Willingness of Indians to spend on jewelry has ensured that
G&J market in the country is growing at a steady pace
Gems & Jewelry – Overview
• Gems & jewelry is a fast growing industry in the country and is one of the leading foreign exchange earning
sectors in the country
• Country 1 and Country 2 have emerged as the leaders in terms of consumption in the global jewelry market
• Although traditionally the gems & jewelry sector has been dominated by small unorganized players, it is gradually
getting more professionalized and organized
Market Size and Growth (Value-Wise)
INR bn
3,000
2,500
2,000
1,500
1,000
500
0
x%
a
2012
b
2013e
c
2014e
d
2015e
GEMS & JEWELRY MARKET IN INDIA 2013.PPT
f
2016e
g
2017e
6

7. G&J sector has been one of the biggest contributors to
India’s forex earnings
Export-Import – Overview
• G&J accounted for ~’y’% of India’s total merchandise exports during FY 20-• Exports in the industry have registered remarkable growth over the past ‘a’ decades, from USD ‘m’ mn in
FY 19-- when ‘Industry Body A’ was established, to USD ‘n’ bn in FY 20-• However, G&J exports declined ‘u’’% in dollar terms and ‘v’% in rupee terms in 20-- due to the
stagnating demand from Region 1 and Region 2
 Decline in dollar terms was partly set off by the depreciation in the rupee
 Overall, G&J exports fell to INR ‘p’ tn in 2012, compared with INR ‘q’ tn in the previous year
• Diamonds account for ‘r’% of the total G&J export volumes with gold jewelry contributing ‘s’%, colored
gemstones and others contributing ‘t’% each and rough diamonds contributing ‘w’% of the total share
• Major importers of G&J from India are Country 1, Country 2, and Country 3 contributing ‘b’%, ‘c’% and
‘d’% respectively of the total exports
• Country 4 is the major supplier of raw materials, contributing ‘f’% of all imports
In the Union Budget for FY 20--, the import duty on pre-forms of precious and semi-precious
stones was reduced from ‘g’% to ‘h’%
GEMS & JEWELRY MARKET IN INDIA 2013.PPT
7

8. Export-Import (1/16)
Pearls, natural or cultured, whether or not worked or graded but not strung, mounted or set
Exports (Value-Wise)
Imports (Value-Wise)
INR mn
INR mn
6,000
d1
600
4,000
400
2,000
a2
b2
2010
2011
c2
d2
2012
2013
200
a1
b1
c1
2010
0
2011
2012
0
2013
Exports (Region-Wise: 2013)
q1%
r1%
s1%
Imports (Region-Wise: 2013)
UAE
Hong Kong
USA
UAE
s2%
q2%
Hong Kong
r2%
t2%
Japan
China
Others
Others
p2%
p1%
HS Code:
GEMS & JEWELRY MARKET IN INDIA 2013.PPT
8

9. Drivers & Challenges – Summary
Drivers
Mass appeal and growing income
among households
Low cost and abundance of skilled
labor
Growing use of high-end technology
Advantages of SEZs
Challenges
Rising gold prices
Stiff competition among players
Dependence on raw materials imports
Emerging threat from other countries
Changing consumer perceptions &
preferences
Growing training institutes
GEMS & JEWELRY MARKET IN INDIA 2013.PPT
9

10. Key Trends – Summary
Growing organized retail space
Aggressive marketing and advertising
Online retailing of jewelry
Trends `
Preference towards affordable jewelry
Large scale shows and exhibitions
Domestic players acquiring foreign companies
Investments from PE firms
GEMS & JEWELRY MARKET IN INDIA 2013.PPT
10

11. Government Policies and Initiatives – Summary
Industrial policy
FDI policy
Taxes
Government
`
Policies and
Initiatives
Kimberley Certification Process
Hallmarking
Foreign Trade Policy (2009-2014) Initiatives
Import Duties and Relaxations
GEMS & JEWELRY MARKET IN INDIA 2013.PPT
11

12. Competitive Benchmarking (x/y)
Key Ratios of Top 5 Companies – Operational Basis (FY 2013) (p/q)
Gross Margin
%
30
Net Margin
a1
a3
20
10
Operating Margin
b1
b3
c1
a2
0
Titan Industries Ltd.
b2
c2
Rajesh Exports Ltd.
a5
a4
c3
Tribhovandas
Bhimji Zaveri Ltd.
b4
c4
Gitanjali Gems Ltd.
b5
c5
Shrenuj Company Ltd.
• Company 1 recorded the highest gross margin of a1%, while Company 2 with a2% recorded the lowest gross margin
• Company 1 recorded operating margin of b1%, higher than that of its peers, while Company 2 recorded the lowest
operating margin with b2%
• Net margin was also highest for Company 1 with c1% while it was lowest for Company 2 which recorded net margin of
c2%
GEMS & JEWELRY MARKET IN INDIA 2013.PPT
12

13. Public: Domestic Company – Company 1
(1/4)
Company Information
Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Products and Services
Category
Head Office
Products/Services
Key People
Name
Designation
Person 1
Whole-time Director
Person 2
Managing Director
Person 3
Whole-time Director
Person 4
Director
GEMS & JEWELRY MARKET IN INDIA 2013.PPT
13

14. Public: Domestic Company – Company 1
(2/4)
Financial Snapshot
Key Ratios
Total Income
INR mn
Net Profit/Loss INR mn
b2
c2
d2
a2
a1
b1
c1
d1
2010
2011
2012
2013
60,000
40,000
20,000
0
2,000
1,500
1,000
500
0
Financial Summary
• Company earned a net profit of INR XX mn in FY 20XX, as
compared to net profit of INR Y mn in FY 20YY
• It reported total Income of INR XX mn in FY 20XX,
registering an increase of X per cent over FY 20YY
• It earned an operating margin of X.X per cent in FY 20XX
an increase of X.X percentage points over FY 20YY
• The company reported debt to equity ratio of X.XX in FY
20XX, an increase of X.X per cent over FY 20YY
Key Financial Performance Indicators
Indicators
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Value (dd/mm/yyyy)
Particulars
y-o-y change
(2013-12)
2013
2012
2011
2010
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved
GEMS & JEWELRY MARKET IN INDIA 2013.PPT
Decline
14

15. Public: Domestic Company – Company 1
(3/4)
Key Business Segments
Key Geographic Segments
Segment 1
Region 1
100%
100%
50%
Region 2
100%
100%
100%
100%
50%
0%
0%
2010
2011
2012
2013
p1%
q1%
r1%
p2%
q2%
r2%
2010
2011
2012
Business Highlights
Description
Overview
Diamond Business
Jewelry Business
Overseas Presence
News
• Company 1 was established in 19-- for manufacturing and trading diamonds
• Principal operations of the company are classified into Business Segment 1 and Business Segment 2
• It set up its first factory for manufacturing cut and polished diamonds in City 1 in 19-- and its second
manufacturing facility in City 1 for manufacturing large size polished diamonds in 20-• They procure the rough diamonds directly from Company A as well as from the open market
• Company B, a subsidiary of Company 1, designs and manufactures, diamond studded jewelry which is
retailed under the brand name ‘Brand 1’ across the world
• Company B owns a jewelry manufacturing facility in City 2, State 2
• It has sales and distribution associates in ‘z’ countries that include Country 1, country 2, Country 3,
Country 4 and Country 5
GEMS & JEWELRY MARKET IN INDIA 2013.PPT
15

16. Public: Domestic Company – Company 1 – SWOT Analysis
(4/4)
S
W
O
T
CORONARY STENTS MARKET IN INDIA 2013.PPT
16

17. Thank you for the attention
Gems & Jewelry – India report is part of Netscribes’ Consumer Goods Industry Series.
For any queries or customized research requirements, contact us at:
Phone:
E-Mail:
+91 22 4098 7600
info@netscribes.com
Follow us on:
About Netscribes, Inc.
Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of
investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its
core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients’
profitability and growth objectives.
Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is
not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior
permission is required for guidelines on reproduction.
CORONARY STENTS MARKET IN INDIA 2013.PPT
17