For the complete report, get in touch with us at: info@netscribes.com In India, jewellery is revered and valued as a treasure from ages, be it any festival or a marriage, the celebrations are incomplete without gold and silver ornaments. Being the biggest consumers of gold, the industry is set to thrive for a very long time. However, the market is highly dominated by the unorganized players, but with the prospering economy and surging income levels, the organized segment and retailing of branded jewellery is fast catching up in the currently fragmented market which is worth USD 16 bn and shows huge potential for growth in the future. The report begins with an introduction to the gems and jewellery (G&J) sector existent in India with a brief description of all the sub segments within both the categories The following section explains the value chain in the sector and India’s involvement from raw material procurement to sales. It provides information regarding the prime destinations for G&J in India and their involvement in the value chain. The overview section indicates the total market size and growth, the segmentation of the jewellery market, the export and the import structure of the total industry in India. An analysis of the drivers explain the factors for growth of the industry including mass appeal and growing income among households, low cost and abundance of skilled labour, growing use of high-end technology, advantages of SEZs, changing consumer perceptions and preferences and growing training institutes. The key challenges identified encompass rising gold prices, competition from unorganized players, dependence on raw material import and emerging threat from other countries. Key trends identified include the growth in organized retail space, aggressive marketing and advertising, large scale shows and exhibitions, domestic players acquiring foreign companies, investments from PE firms and corporate houses entering the market. The major government bodies regulating this sector have been described and the policies adopted by the government have also been analyzed including industrial policy, FDI policy, Kimberley certification process and hallmarking. The key initiatives of the government identified include tax benefits, import duty relaxations, provisions for exports and other initiatives. The competition section provides an overview of the competitive landscape in the industry illustrating the share of organized and unorganized players. It also includes a detailed profile of the major players in the market including their financials and expansion plans. The key developments in the sector have also been highlighted.

1. Gems & Jewellery Market – India
May 2010

2. Executive Summary
Gems and Jewellery (G&J) market in India was valued at USD X bn in 20-- and is expected to grow
at P% CAGR
Market G&J market includes – Gemstones like diamonds, colored stones and pearls; Precious metals and
Jewellery like gold & gold jewellery, silver jewellery and gemstones studded jewellery
LE
Drivers: Mass appeal and growing income among households, low cost and abundance of skilled
P
labour, growing use of high-end technology, advantages of SEZs, changing consumer perceptions
Drivers and
and preferences, growing training institutes
M
Challenges
Challenges: Rising gold prices, competition from unorganized players, dependence on raw
Trends SA
material import, emerging threat from other countries
Growing organized retail space
Aggressive marketing and advertising
Domestic players acquiring foreign companies
Investments from PE firms
Large scale shows and exhibitions Corporate houses enter the market
Government Government has adopted various policies for the manufacturers in terms of Industrial Policy, FDI
Policy, Kimberley Certification Process and Hallmarking
Policies and
Initiatives of the Government include tax benefits, import duty relaxations, provisions for exports
Initiatives
and other initiatives
The market is largely dominated by the unorganized players making it very fragmented
Competition Branded and designer jewellery is showing tremendous growth potential
Players are utilizing the high skilled labour available in India and are making considerable
improvements in their collections and services
GEMS & JEWELLERY MARKET IN INDIA 2010.PPT 2

3. •Introduction
•Value chain
•Market Overview
•Drivers & Challenges
•Trends
•Government Bodies, Policies and Initiatives
•Competition
•Key Developments
GEMS & JEWELLERY MARKET IN INDIA 2010.PPT 3

4. Gold and diamond form the two major segments of Indian
gems and jewellery (G&J) market
• The industry can be classified into various sub segments like diamonds, coloured stones, gold and silver jewellery,
pearls, etc. However, the two major segments in India are gold and diamonds
• The industry is characterized by highly unorganized trade, labour intensive operations, working capital and raw
material intensiveness, price volatility of gold and export orientation
Gems & Jewellery
PLE
Gemstones
SAM Precious Metals
and Jewellery
Gold and Silver and Gemstones
Colored
Diamonds Pearls Gold Silver Studded
Stones
Jewellery Jewellery Jewellery
Source:
GEMS & JEWELLERY MARKET IN INDIA 2010.PPT 4

5. G&J market shows great potential for higher penetration
and increased revenues for players
Overview Total G&J Market – Size and Growth
• Globally, India’s jewellery market stands at X position
USD bn
• Presence of highly skilled, low-cost labor enables s
30 b%
India to design and make high volumes of exquisite
LE
25
jewellery at relatively low costs r
20
P
• Emergence of branded jewellery is a new trend that q
15 p
is shaping the Indian jewellery market
M
10
• Traditional handcrafted jewellery is slowly giving way
A
5
to machine-made jewellery
S
0
• Indian diamond jewellery market stands at USD A bn 2006 2008 2010e 2015e
in 20-- and is expected to grow to USD B bn by 20--
owing to the rising prices of gold Segmentation of Jewellery Market
• Low penetration of diamond jewellery provides Segment 2
opportunities to the players Segment 1 C%
• Prices of gemstones like diamonds are generally fixed B%
and as such high-end consumers are showing greater
interest in this category
• City X has emerged as the biggest diamond
processing hub with country B consuming most of
A%
the Indian gems
Segment 3
Source:
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6. Drivers & Challenges
Drivers
Mass appeal and growing income Challenges
among households
Rising gold prices
Low cost and abundance of skilled
labour Competition from unorganized players
Growing use of high-end technology
Dependence on raw material import
Advantages of SEZs Emerging threat from other countries
Changing consumer perceptions &
preferences
Growing training institutes
GEMS & JEWELLERY MARKET IN INDIA 2010.PPT 6

7. Key Trends
Growing organized retail space
Aggressive marketing and advertising
Large scale shows and exhibitions
Trends `
Domestic players acquiring foreign companies
Investments from PE firms
Corporate houses enter the market
GEMS & JEWELLERY MARKET IN INDIA 2010.PPT 7

8. Government Bodies, Policies and Initiatives – Summary
Major Government Bodies
Government
Support
Government Initiatives Government Policies
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9. Strong competition exists among players in the branded
gems and jewellery market
Overview Market Structure
• The Indian G&J sector is dominated by unorganized Segment 2
players and is fragmented in nature
A%
• It has a large number of domestic private sector
LE
companies which are operating from a long time as
family oriented business
having revenues over USD P mn
MP
• ~A players in gold processing industry, with only B
goldsmiths and processors
~X goldsmiths and Y gold jewellers
SA
• India is a home to a large number of jewellers,
~Z diamond processing players and S diamond jewellers
B%
Segment 1
• However with constant improvement in product
varieties and service rationale, the organized players
are expected to grow potentially to occupy ~Z% of
the total G&J market by end of 20--
• The branded jewellery players are constantly
opening exclusive retail outlets in malls and in high
footfall locations
Source:
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10. Major Players (1/16)
SAMPLE
Company Snapshot: Company 1
Corporate Information Financial Performance
Revenue
Headquarters City 1 Revenue Profit
INR mn Profit / Loss INR mn
Founded 19-- 15,000 r s 500
p q
400
Type Listed 10,000
300
Area of Expertise Diamond & jewellery manufacturing 5,000
200
100
Mr. X – Chairman 0 0
Key People
Mr. Y – MD & CEO 2005-06 2006-07 2007-08 2008-09
Business Highlights
• It is one of the world’s leading diamond manufacturers and a Company X sight holder
• Has its marketing offices spread across X continents – Country A, Country B and Country C
• Exports its diamonds to Country 1, Country 2 and Country 3
• Operates retail brand “X”
Expansion Plans:
• Plans to expand its jewellery retail business, with the launch of about X-Y stores during the next B-C years at an
investment of up to INR P mn and the stores are expected to be opened in the South and western regions of the
country
Source:
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11. Thank you for the attention
The Gems & Jewellery Market report is part of Research on India’s Consumer Goods industry.
For more detailed information or customized research requirements please contact:
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