::Asian Star::

		Home

	Investor Center

	• MD's Message

	• Corporate Governance
	> Code of Conduct
	> Investors Contact

	• Company Snapshot

	• Financial Results
	> Quarterly Results
	> Annual Reports

	• Shareholding Pattern

	• Announcements

	• Stock Data

	• Market Information

Market Information

Industry Type

Gems & Jewellery

Industry Specifics

The Gems and Jewellery (G & J) industry forms an integral part of the Indian economy. It is a leading foreign exchange earner and also one of the fastest growing industries in the country, with an annual growth rate of approximately 15 per cent. It accounts for 16% of the country's total exports and provides employment to 1.5 mn people directly and indirectly.

The two major segments of the sector in India are diamonds and jewellery. A predominant portion of gold jewellery manufactured in India is consumed in the domestic market. In diamonds, however, a major portion of rough diamonds processed in India is exported, either in the form of loose polished or finished diamond jewellery.

Besides being the largest consumer of gold (around 23% of global consumption), India is also the leading diamond cutting nation (47% by value of the global market). In terms of individual country growth in 2010, the star performer on the retail levels was India (+37% in pwp diamond content).

Industry size

Gold Jewellery forms around 80% of the Indian Jewellery market, with the balance comprising studded jewellery that includes diamond studded as well as gemstone studded jewellery.

The gold and diamond studded jewellery exports have been increasing at 10 per cent year-on-year basis. India has become the biggest exporter of jewellery to the US, as about 30 per cent of the jewellery imported by the US comes from India.

The export revenue for 2010-11 was US $ 43.14 bn, cut & polished diamonds contributing US $ 28.25 bn and jewellery US $12.88 bn.

Prospects of the Industry

The G & J Industry is heading towards a promising future. With an extremely good year in 2010, the industry is very positive and hopeful to build on recent revival and upswing in overall economic sentiment. According to a FICCI report, the G & J industry in India is expected to grow to US $ 100 bn by the year 2015.

The key drivers for growth in the industry are –

Indian G&J players diversifying their business to emerging markets like China and the Middle East and not completely relying on the US.
Conscious marketing efforts to promote ‘The Made in India’ brand to the international jewellery market.
A large domestic market with a rising young population with the urge to spend on jewellery since it’s regarded a fashion accessory.

The industry continues to make rapid strides in design, powered by a new generation of young, professionally trained, technology driven designers and equipped with the latest CAD / CAM design systems. Advanced technology solutions are also available for production control, supply chain and inventory management in the G & J industry today.

The domestic Indian market is set to cross US $ 35 - 40 bn by 2015, growing at a CAGR of 13%, on the back of improving lifestyle. Also, greater emphasis is being placed on branding of jewellery, Hallmarking & Certification by the trade community & industry bodies like GJEPC, DTC etc in order to enhance consumer confidence.

Emerging trends like hand-crafted, couture and ensemble jewellery though still in the nascent stage are fast becoming popular. The diamond sector is expected to continue to shine in coming years. Soaring gold prices have lead to a sharp growth in diamond jewellery sales. The consumption of diamond jewellery is expected to touch US $ 6.1 bn by 2012.

Sitemap | Feedback