A Study of Gems and Jewellery Export

A Project Report On “A

STUDY OF GEMS AND JEWELLERY EXPORT” At

Gosil Exports Pvt. Ltd .

Submitted in partial fulfillment of the requirements of Post Graduation Diploma in Management 2008-2010

Ajay Yadav

SUBMITTED TO

SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION (SIMCA), PUNE

DECLARATION I, the the unde unders rsig igne ned, d, here hereby by decl declar are e that that the the Proj Projec ectt

Study y of Gems Gems and and Jewe Jewell ller ery y Repo Report rt entit entitle led d “A Stud Export” written and submitted by me to the Sinhgad inst in stit itut ute e of mana managem gement ent and and comp comput uter er appl applic icat atio ion n (Pune) in partial fulfillment of the requirements for the awar award d of Post Post Grad Gradua uati tion on di dipl plom oma a in Mana Manage geme ment nt under the guidance of Prof. Kanak Tara is my original work and the conclusions drawn therein are based on the material collected by myself.

Date: Research Student Place: Pune Ajay Yadav

2

CERTIFICATE

This is to certify that the Project Report entitled “A Study

of

Gems

and

Jeweller lery

Export“

which

is

being

submitted here with for the award of the Post Graduation Diploma in Management, Pune is the result of the original rese resear arch ch work work com compl plet eted ed by Mr.

Ajay jay

Yadav. He

completed the work under my supervision and guidance, and to the best of my knowledge and belief the work embodied in this Project Report has not formed earlier the basis for the award of any degree or similar title of this or any other University or examining body.

3

Dr. Apoorva Palkar Tara (Director SIMCA) Guide)

Prof. Kanak (Project

Date : Place :

ACKNOWLEDGEMENT Words are indeed inadequate to convey my deep sense of gratitude to all those who have helped me in completing this summer project to the best of my ability. Being a part of this project has certainly been a unique and a very productive experience on my part.

I am really thankful to Mr. Kailash Agarwal (Managing Director) for making all kinds of arrangements to carry the project successfully successfully and for guiding and helping me to solve all kinds of quarries regarding the project work. His systema systematic tic way of workin working g and incomp incompara arable ble guidanc guidance e has inspired the pace of the project to a great extent.

Mr. Prakas Prakash h Rijhva Rijhvani ni I extend end my warm thanks nks to Mr. (Manager), who who guid guided ed me with with thei theirr expe expert rt advi advice ce,, which proved to be worth full for my project without which the project could have not at all been easy. 4

Last but not least I would like to thank all the employees of Gosil Exports Pvt. Ltd. who have directly or indirectly helped me with their moral support for the completion of my project.

I would also like to thank my course project guide and mentor Prof. Kanak Tara for assigning me a project of such a great learning experience and acquainting me with real life project financing and appraisal.

TABLE OF CONTENT Executive Summary Chapter ~ 1

Introduction 

Gems & Jewellery Sector



Classification

Chapter ~ 2

Objectives of the Study

Chapter ~ 3

Literature Review 

Gems & Jewellery Sector in India



Diamond processing



High-end jewellery



Gems and Jewellery/ Background

5

Chapter ~ 4 Chapter ~ 5



Structural Characteristics



Market Players in Gems & Jewellery Industry



Diamond



Exports in Gems & Jewellery Industry

Gosil Exports Pvt. Ltd. Research Methodology 

Chapter ~ 6

Chapter ~ 7

Nature of Data



Data Collection



Tools of Analysis

Data Presentation 

Present state of the industry:



Diamonds



Future prospective:



Questionnaire Analysis

Conclusions Bibliography Annexure

6

EXECUTIVE SUMMARY

Diamonds, gems and Jewellery have been a part of the Indian civilization since its recorded history, the significance of the gems and Jewellery industry in the Indian economic scenario scenario is a development development of the last three or four decades. In 1966-67, the export turnover of the Gems & Jewellery Jewellery industry was just Rs 220 m representing a 3 per cent of total merchandise exports. However, it has now grown to become one of the leading export oriented industries in India recording an export turnover of around Rs 91617.53 Crore during 2008-09, making it a significant foreign exchange earner for the country. The gems and jewellery sector, which has seen a substantial fall in exports since 2007 due to the withdrawal of a 6 per cent duty concession under the Generalized System 7

of Preferences on jewellery exports to the US, has been severely affected by the economic meltdown. As a result, India’s share of gems and jewellery exports to the US has come down from 36 per cent in 2006 to 20 per cent in 2009. The UAE was the largest importer of gems and jewellery from India in 2008-09, with a share of 31 per cent. This was followed by Hong Kong with a 25 per cent and the US with 20 per cent. The gems and jewellery sector accounted for 13 per cent of India’s total merchandise exports. During April 2009, the total gems and jewellery exports of the country was $1,144 million, million, as against $1,740 million million during the same period last fiscal, a fall of about 34 per cent. CHAPTER~1

INTRODUCTION Gems & Jewellery Sector

Diamonds, gems and Jewellery have been a part of the Indian civilisation since its recorded history, the significance of the gems and Jewellery industry in the Indian economic scenario scenario is a development development of the last three or four decades. In 1966-67, the export turnover of the Gems & Jewellery Jewellery industry was just Rs 220 m representing a 3

8

per cent of total merchandise exports. However, it has now grown to become one of the leading export oriented industries in India recording an export turnover of around Rs 875 bn during 2006-07 and contributing 16 per cent of total exports, making it a significant foreign exchange earner for the country.

Classification: Gems & Jewellery Sector

1. Polished Diamonds: India is one of the best markets in the world in the polished

diamonds for its world-class quality of diamonds as well as exquisite cutting skills. Over 83 per cent of India's Gems & Jewellery cut and polished diamonds account for exports. Jaipur and Surat are famous as world class polishing and designing centers. 2. Gem Stones: This category refers to the stones other than diamonds, these stones

comes under two basic categories that are precious stones and Semi precious stones. stones. There is a huge demand for these these gemston gemstones es especial especially ly of Sapphire Sapphire,, Emerald and Ruby. India's exports of gems have crossed 5000000 carats this year. 3. Gold and Jewellery: This category represents the gold and Jewellery, which is

used in the manufacturing of various ornaments. Indian is the country that is the

9

largest consumer of gold in the world, In the year 2007 gold consumption in India was 850 tons 33% up from the last year. 4. Synthetic Stones: Synthetic diamond is diamond produced through chemical or

phy physic sical al proce processe ssess in a labor laborat atory ory.. Like Like natur natural ally ly occurr occurring ing diamo diamond nd it is composed of a three-dimensional carbon crystal. Synthetic diamonds are also call called ed cultu cultured red diam diamond onds. s. Synth Synthet etic ic diamo diamond nd is not the same same as diam diamond ond imitation, which can be made of other material. This is an upcoming market in India.

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STATEMENT ABOUT THE PROBLEM India has been one of the most important countries for the production of Gems And Jewellery. One of the highlights is the production of Studded Jewllery. Studded Jewellery trading in India is age old as it is established by the fact that in 1650 A.D., sources report the employment of more than 60,000 workers in the Eluru mines, where they dug and washed the precious stones. Today though India has almost no raw Studded Jewllery left within her own soil still we produce 70% of the World gems in terms of quantity and 45% in terms of value. India is the original country which discovered gems and initiated gem craft. The gems produced here gave birth to a fabulous industry and global trade. India Indian n Gems Gems and Jewel Jewelle lery ry Indust Industry ry have have achie achieved ved a premi premier er posit positio ion n in the the International market. Today India has been recognized as a significant manufacturing exporti exporting ng center center apart apart from its traditi traditional onal strength strengthss in handmad handmadee jewell jewellery ery,, the country has niche for itself in machine made commercial commercial jewellery arena. The export industry has come of age and is now entering a new phase of development. Gearing up to achieve further growth, the industry has already captured a 55% share of world market by the turn of this century. India is a primary source of imports for the developed countries, mainly because of abundant availability of skilled and cheap labor, but now this no longer remains the competitive edge for India as heavy competition is faced by various countries like China, Thailand Thailand and Sri Lanka. But at the same time, India India has managed to keep its position healthy and have brighter prospects ahead.

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CHAPTER~2

OBJECTIVES OF THE STUDY 

To review the present status of the Indian Gems and Jewellery Sector & Analyze its contribution to the economy.



To critically evaluate the export performance of Indian Gems And Jewellery sector over the years and its share in the global trade in Gems And Jewellery



To study about the competitive position of Indian Gems and Jewellery export.



To find out who is better potential importers of Indian Gems & Jewellery product.



To analysis the vital steps for improving the Gems & Jewellery export.



To understa understand nd the importa importance nce and effectiv effectivenes enesss of export export in present present market market situation.



To examine in detail the Europe as a market for Gems And Jewellery and India’s current performance in the market, with particular focus on Gosil Exports(Jaipur)

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CHAPTER~3

LITERATURE REVIEW GEMS & JEWELLERY SECTOR IN INDIA Gems and jewellery play a significant role in Indian customs and traditions, making this sector integral to the economy and one of the fastest growing industries in the country. Worldwide, the gems and jewellery industry has been growing at a good pace and is currently estimated at over US$ 130 billion. In India, it accounts for nearly 20 per cent of total Indian exports. It provides employment to 1.3 million people directly and indirectly. Apart form being the world’s largest diamond processing (cutting and polishing) country with an 80 per cent share in world market India’s favorable trade policies have made India the hub for gems and jewellery. Leading Branded jewellery is the new mantra in the market, having rapidly acquired a niche over the past few years. Increasing purchasing power and disposable incomes of India’s middle class has resulted in consumption growth of this industry by about 11 per cent in the five-year period preceding 2006-07. Add to that the insatiable Indian craving for gems and jewellery, and the demand will skyrocket to US$ 20 billion by 2010 and US$ 30 billion in 2015, according to industry experts. India’s gems and jewellery industry has been allowed 51 per cent foreign direct investments by the government in single brand retail stores attracting both global and domestic players to this sector. The burgeoning retail industry in India is instrumental in innovatively marketing and branding diamonds and traditional jewellery, making inroads in this sector and contributing to the nation’s economy. According to a report

13

relea released sed by Tech Technop nopak ak Advis Advisors ors on Chang Changin ing g Reta Retail il Lands Landsca cape pe in India, India, the jewellery and watches market is pegged at about US$ 13.52 billion. It is expected to register a 12 per cent growth by 2012, touching US$ 23.54 billion. India’s economic economic boom in the country has translated translated into a large consumer market market for jewellery and other luxury products, offering a lucrative opportunity for major brands to make their foray into the Indian market and establish their presence. Experts believe that by 2013, India will become the biggest consumer of jewellery. Thee histor Th history y of the the India Indian n gem and jewe jewell llery ery,, a $30 $30-bi -bill llio ion n indust industry ry,, began began and flourished in the two leading States of Maharashtra and Gujarat. Exports from the industry fetched $17.1 billion in 2006-07 against $16.64 billion in 2005-06, showing a growth of 26 per cent. But in past 1 year we have seen some decline due to recession. The journey of a diamond is said to begin with mining of roughs followed by sourcing them by trading firms after which they trade it with the processors who then process the rough diamonds to manufacture cut and polished diamonds which then end with the trade of the polished diamonds.

Diamond processing Today, India houses the worlds’ largest diamond processing (cutting and polishing) industry with an estimated 1,000,000 processors. India processes over 57 per cent of the world’s rough diamonds by value. It is said that 11 out of 12 stones (diamonds) set in jewellery are cut and polished in India. Surat in Gujarat is home to a majority of these diamond processors. India’s exports of cut and polished diamonds in calendar year 2008 stood at Rs 48,905.57 crore or 349.389 lakh carats down 9.25 per cent from Rs 53,892.02 crore or 419.9 lakh carats during same period in 2007.

14

Processing is done on rough diamonds in full range of sizes and qualities, including stones larger than 10 carats.

Diamond trading hub After After maki making ng its its mark mark in the the worl world d diamo diamond nd proces processin sing g indust industry ry,, the the indus industr try y fraternity has taken up the motto to make ‘India the diamond trading hub’. Thus Mumbai, the financial capital of the country, is said to be Indian Antwerp in the making. The current format of diamond trade has four different types of channels involved in the sourcing and trading of diamonds namely, centralised distribution, direct selling, rough trade and brokerage. Bharat Diamond Bourse, a service oriented non-profit guarantee company, is an 18 lakh sq. ft. complex in Mumbai. It was set up with the primary objective of establishing necessary infrastructural facilities for promotion of export of diamonds, including jewellery from India and to make India an international trading centre. Instituted to cater to all the needs of the diamond trade, the bourse is anticipated to deal with over 30,000 people a day. The facilities here will include offices of diamond traders, strong rooms, lockers, customs clearance facilities with all the modern facilities required to carry day-to-day business.

High-end jewellery As the gem and jewellery companies are based out of Mumbai, the city is home to various various types types of jewelle jewellery ry from the traditi traditional onal to the high-end high-end designer designer fashion fashion jewellery. It is one of the largest producers and exporters of jewellery, which is estimated to be over $13 billion. Prominently, it accounts for over 15 per cent of the world jewellery fabrication pie.

15

Not only this, India is one of the fastest growing markets for jewellery, growing at the rate of 10.20 per cent per annum over the last five years. Today, the Indian consumer consumer market for jewellery jewellery is said to be $13.1 billion, billion, an increase of close to 8 per cent over the previous year. A study by KPMG says that India is set to realise total jewellery sales of $21 billion by 2010 and $37 billion by 2015. Currently, out of the eight key world retail markets, the US is number one accounting for 31 per cent of the jewellery sales. India and China follow with 8.3 and 8.9 per cent respectively. According to the KPMG study, India’s growing importance in the global jewellery market is only expected to increase in the future. The total demand is expected to reach $18.25 billion in 2010 and to $ 28.28 billion in 2015. Diamond jewellery consumption in India is estimated to jump by 78 per cent in 2010.

Forecast India and China together are predicted to emerge as a market equivalent equivalent to that of the US by 2015, according to the KPMG report on the global gems and jewellery industry – Vision 2015: Transformation for Growth. The industry can see capital infusion of around $ 10 billion, according to experts. As per forecasts, by the year 2015, the industry will witness a good fragmentation in the jewellery retail business while keeping the area of diamond mining, sourcing, processing within the confines of either niche or mass players. Mining is at the heart of the gem and jewellery industry as the activity is the only natural source of raw material for the industry. The Geological Survey of India has stated that India has a great potential for diamond deposits. Based on this and independent analyses, some of the diamond exploration companies are making efforts

16

to make make India India anothe anotherr target target desti destinat natio ion n for for diam diamond ond explor explorat ation ion.. Mahar Maharash ashtra tra features on the list of potential states for diamond exploration. The Gem and Jewellery Export Promotion Council (GJEPC) (GJEPC) is primarily primarily involved in introducing the Indian gem & jewellery products to the international market and promoting exports. To achieve this, the Council provides market information to its members regarding foreign trade inquiries, trade and tariff regulations, regulations, import duties, and information about jewellery fairs and exhibitions. It also takes up relevant issues with government and agencies connected with exports and submit documents for consideration consideration and inclusion inclusion in the EXIM Policy. There are a lot of opportunities from setting up factories to retailing through showrooms for a prospective investor

Gems and Jewellery/ Background The two major segments of the gems & jewellery (GJ) business in India are gold and diamond jewellery. The GJ indust industry ry has an impor importa tant nt role role in the the Indian Indian econo economy my.. While

a

predominant

portion

of

gold

jewellery

manufactured manufactured in India is for domestic domestic consumption, a large portion of rough, uncut diamonds processed in the form of either polished diamonds or finished diamond jewellery is exported. With an estimated estimated consumption of around 800 tonnes tonnes during during 2007 (including (including jewelle jewellery ry consump consumption tion), ), India India is the largest largest consumer of gold in the world. India is also estimated to hold nearly 14,000 tonnes of gold, accounting for nearly 9% of the world’s cumulative mine production. Apart from its historical religious significance, gold is valued as an important savings and investment vehicle.

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Gold in Indian families remains the Indian bride’s `Streedhan’, the wealth she takes with her when she marries and which remains hers. Gold jewellery is the preferred jewe jewell ller ery y worn worn by wome women n in India India irres irrespe pect ctive ive of thei theirr reli religio gious us beli beliefs efs.. Gold Gold jewellery is very popular among farmers, with an upsurge in gold sales after a good agricultural season. Buying of gold is also an important part of every stage of an Indian citizen’s life—at birth, marriage, construction of home, festivals, religious ceremonies, setting up of new business, and death.

SIZE  Large market for Gems & Jewellery with domestic sales of over $10 billion

 4% of the global Gems and Jewellery market

 Exports Exports of over US $15.5 billion billion;; over 18% of India’s India’s exports. exports. Accordi According ng to recent statistics of the Gems & Jewellery Export Promotion Council (GJEPC), India India's 's expor exports ts of gems gems & jewell jeweller ery y (GJ) (GJ) aggreg aggregate ated d Rs. Rs. 15787.09 15787.09 Crores Crores (US$3958.64million) during the month April-May- 08.

 India is the largest consumer of gold jewellery in the world

 Accounts for about 20% of world consumption

 India is the largest diamond cutting and polishing centre in the world, i.e., 60% value share, 85% volume share and 92% share of the world market by number of pieces

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 The Indian domestic diamond jewellery market was estimated at around Rs. 76 billion during 2005.

 China ranks sixth in the world in terms of diamond jewellery retail value, ahead of India which is in seventh place. India ranks third in terms of diamond value, while China holds the seventh position.

Indian diamond diamond jewellery jewellery industr industry y is the third third largest largest consume consumerr of polished polished  Indian diamonds after USA and Japan

Structural Characteristics  The Indian Gems & Jewellery industry is highly fragmented with a large number of domestic private sector companies. The bulk of the GJ industry in India is concentrated in the unorganised sector.

 The majority of India’s diamond workforce is employed by small units that process diamonds on a job-lot basis. The number of gold jewellery manufacturing units is put at 0.1 million.

cutting & polishing centre in the world, followed  India is the largest diamond cutting by Israel and employs an estimated 2 million workers serving over 0.45 million goldsmiths, and around 0.1 million diamond processing units.

 India has several well recognised strengths which have made it a significant force in the global Gems and Jewellery business, like i) highly skilled, yet lowcost cost labou labour, r, and ii) ii) establ establish ished ed manuf manufact acturi uring ng excel excelle lence nce in jewe jewell llery ery and and diamond polishing.

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POLICY  In 1990, the Gold (Control) Act was abolished, which had forbidden the holding of gold in bar form.

 In 1993, the GOI also permitted non-resident Indians (NRIs) to bring 5 kg of gold into the country twice yearly on the payment of import tax of Rs. 250 per 10 grams; this allowance was raised to 10 kg per trip in January 1997. In 1997, the GOI also permitted import and export of gold under Open General Licence.

 In the trade policy (2004-09) issued in April 2006, the GOI has allowed import of precious metal scrap and used jewellery for melting, refining and reexport export of jewell jewellery ery for higher higher utilisa utilisation tion of meltin melting, g, refining refining and jewelle jewelleryrymaking production capacity.

Jeweller lery y is permi permitt tted ed to be export exported ed on a consi consignm gnmen entt basis basis,, allow allowin ing g  Jewel exporters who have had to deal with the problem of unsold jewellery in foreign mark markets ets to now re-i re-imp mport ort the unsol unsold d piece pieces. s. steps steps taken taken incl include ude allow allowing ing exporters to re-import the rejected precious metal jewellery subject to refund of duty exemption benefits on the inputs only and not the duty on jewellery as was being done earlier; reduction in value addition norms for export of gold & silver jewellery from 7% to 4.5%.

 100% FDI is permitted in the Gems & Jewellery sector through the automatic route

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Jewellery Parks have been set up to promote investments  SEZs and Gems and Jewellery in the sector

 Cutting and polishing of gems and jewellery treated as manufacturing for the purposes of exemption under Section 10A of the Income Tax Act

Outlook  India is the fastest-growing jewellery market in the world

 Branded jewellery likely to be the fastest-growing segment in domestic sales

 The sector is expected to grow at 40% p.a. to $2.2 billion by 2010

 Exports expected to grow from $15.5 billion in 2005 to over $25 billion by 2010

 India is the most technologically advanced diamond cutting centre in the world and has the opportunity to address one of the world’s largest and fastestgrowing Gems and Jewellery markets

 Indian industry has been gaining prominence as an international sourcing destination for high quality designer jewellery

 Wal-Mart, JC Penney etc. are increasingly procuring jewellery from India

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India's Exports of Gems & Jewellery (2000-03 ( 2000-03 to 2006-07) (In US$ million)

2002-03

ITEMS

Cut

&

2003-04

2004-05

2005-06

2006-07

Polished

6 18 7

5 97 2

7 11 1

8 62 7

1 1 18 2

203

183

192

178

19 3

Gold Jewellery

1 15 0

1 16 7

1 51 3

268

38 13

Pearls

3

3

4

4

3

56

64

85

99

12 9

2

2

1

1

1

10

10

10

10

-

12

13

13

18

-

7 62 2

7 41 4

8 92 9

11620

15 32 0

157

142

241

536

35 8

7 77 9

7 55 6

9 17 0

12156

15 67 8

Diamonds Coloured Gemstones

Non-Gold Jewellery Synthetic Stones Costume/Fashion Jewellery sales

to

Foreign

Tourist TOTAL Expo Export rtss to Roug Rough h Diamonds Net Exports

SOURCE: GJEPC, India

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MARKET PLAYERS IN GEMS & JEWELLERY INDUSTRY In the recent years a large number of players have been attracted to the Indian gems and jewellery retail sector:

⇒

Reliance Retail is planning an aggressive entry into the jewellery retail market through its about 400 to 500 jewellery retail outlets across the country.

⇒

Damas India, part of one of the largest jewellery retail outlets in the world, is adding 16 new stores to its present dozen stores in India.

⇒

Swarovski, Swarovski, the global crystal goods manufacturer manufacturer and marketer marketer plans to set up 30 stores by 2009, from the current 13.

⇒

The Gitanjali Group bought 'Nakshatra', the premium brand of jewellery promoted by Diamond Trading Company (DTC)

⇒

Mumbai-based Vardhaman Developers plans to build four more jewellery malls in the city and is already set to launch Jewel World-Mumbai’s first jewellery mall.

⇒

Dubai-based Joy Alukkas has recently opened its largest showroom in Chennai.

⇒

Viswa and Devji Diamonds a partnership between the Indian group and the top jewellery retailer in UAE opened its first diamond retail outlet.

⇒

Gitanjal Gems Ltd opened its first luxury jewellery mall in Gurgaon, where a number of international brands have started their retail business.

⇒

Gold Souk India has plans for bringing 100 Souks in 100 months

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GOLD The gems and diamonds industry industry contributes over 15 per cent of India's total exports. The industry is jewellery industry is predominantly divided into two segments: Gold jewellery and fabricated studded jewellery (diamonds as well as gemstone studded jewellery)

⇒

India consumes nearly 800 tonnes of gold accounting for about 20 per cent of the world world gold gold consu consump mpti tion. on... .... ..of of whic which h nearl nearly y 600 tonne tonness goes goes into into maki making ng jewellery.

⇒

According to The World Gold Council (WGC) total gold supply in the second quarter this year stood (Q2FY08) at 840 tonnes, whereas the demand was 944 tonnes.

⇒

A study by KPMG reveals the Indian jewellery market to be US$ 13.5 billion in fiscal 2006-07, accounting for 8.3 per cent of world jewellery sales.

DIAMOND The Indian diamond trade generates over US$ 4 billion per annum in exports, its large labor force is integral to catapulting catapulting the country as the biggest diamond cutting center for small roughs. India was known to have diamond mines many centuries ago and has continued to maintain maintain its tradition tradition of diamond cutting cutting with an estimated 1 million processors handling over 57 per cent of the world’s rough diamonds by value.

⇒

11 out of 12 stones (diamonds) set in jewellery are cut and polished in India (proce (processi ssing ng is don donee on rough rough diamo diamonds nds in full full range range of sizes sizes and quali qualitie ties, s, including stones larger than 10 carats).

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⇒

India's share in this sector is about 80 per cent of the world market.

⇒

India also accounts for 90 per cent of the volume of diamonds processed in the world.

⇒

India employs over 90 per cent of the global diamond industry workforce.

'Diamond jewellery consumption is likely to jump to nearly 80 percent in 2010 and over 95 per cent between 2010 and 2015,' according to Assocham..

India to develop jewellery industry :a global market India has offered technical support and skill-training help to top diamond and gold producing African nations, including South Africa, to develop their gem and jewellery industry. India believes it would be beneficial for the African nations, the largest produ produce cers rs of rough rough diam diamond ondss and gold, gold, as well well as India India,, whic which h is its its bigges biggestt consumer.

Employment Almost the entire gold and diamond sold or processed in India is imported. Having futuristic futuristic arrangements and agreements agreements with top diamond and gold producing nations will help this crucial sector to thrive. The aim is to make India a global hub for diamond market. Africa alone accounted for nearly 50 per cent of the world's total diamond production, India India was specific specifically ally looking at South South Africa, Africa, Botswana, Botswana, Ghana, Ghana, Namibi Namibiaa and Angola for rough diamonds. Most of the rough diamonds came from Antwerp in

25

Belgium, Belgium, but now major suppliers had shown keen interest in supplying uncut stones directly to Indian companies.

Diamond imports India's diamond imports in 2006-07 stood at $9 billion, while that of gold was $11 billion. Interestingly, India is the largest diamond cutting and polishing centre in the world. India is also the world's top gold consumer, accounting for about 20 per cent of global demand at 800 tonnes annually.

Joint venture initiatives India has also proposed to develop the gem and jewellery industry of these Africa nations, besides providing skill training. Then there could be joint venture initiatives between the companies and trade bodies of India and African nations.

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CHAPTER~4

GOSIL EXPORTS PVT LTD. HISTORY OF GOSIL EXPORTS

Gosil Gosil Export Exportss pvt. pvt. ltd. ltd. (est (estab abli lish shed ed in 1998 1998)) is a prem premie ierr fine fine jewe jewelr lry y manufacturer serving the needs of wholesale customers. Based in India Gosil is reno renown wned ed for for its its comm commit itme ment nt to expe expert rtis isee crea creati tivi vity ty,, qu qual alit ity, y, valu valuee and and professionalism.

Gosil commits being the leading leading color stone stone jewelry jewelry manufactu manufacturers rers through a pledge of exceptional selections, professional service and excellent value. We promise the legacy of trust earned over 9 years of selling fine jewelry, which will be nurtured in an environment where customer satisfaction is paramount. We promise to be as dependable as the diamonds and color stone Jewelry we sell. Gosil exports pvt.ltd. brings to you exclusive designs that are an amalgamation of regal antiquity and contemporary trends. Our current manufacturing manufacturing strength could produce up to 30,000 to 40,000 articles per month under different process and with variety of colored gemstone combinations which is a major key strength for us, be it a regular calibrate gemstone or one under the exotic gemstone category.

27

Our management principles are based on the natural evolution processess where in each member tries to achieve the next level of betterment for the overall benefit of the society. Our jewels are created like art objects. In our unique creations, Gosil Exports has drawn inspirations inspirations from many sources- from the nature, from the ancient cultures cultures and civilizations. Gosil Exports has a whole gamut of designs and techniques, involving the mix of gold with rich stones- emeralds, rubies and sapphires and most famously with diamonds that work so well on gold. We are a reputed manufacturer, exporter and trader of a vast collection collection of jewellery jewellery including Diamond Jewellery, Jewellery, Gemstones Jewellery Gold Jewellery, and Precious Stone. Refined designs, combining the finest aesthetic looks with the highest quality are the distinguishing elements that characterize our products. Each single piece is made with the greatest greatest care and attenti attention. on. Among Among our top priorit priorities ies are excelle excellent nt customer customer service and the final satisfaction. Everything that contributes towards reaching the above objectives is a duty for us. Gosil exports have a huge client base from inte intern rnat atio iona nall mark market ets. s. Gosi Gosill expo export rtss beli believ evee in buil buildi ding ng long long-t -ter erm m busi busine ness ss relationships with our customers.

For us, quality is the foremost concern and every step is taken diligently to ensure that each product, besides being attractive, is also a specimen of the best quality. Gosil Exports also customize specific designs as per the special needs/requirements of the buyers. To ensure flawless quality, Gosil Exports subject our products to multiple rounds of checks.

28

Our team team of quali quality ty contro controll profe professi ssiona onals ls monit monitor orss each each and every every level level of the manufacturing stage, right from the procurement of raw material to the dispatch of finished products in the market. The Diamonds & gems stones, Gosil Exports use in our products are of superior quality brought from different parts of the world so that Gosil Exports can guarantee customer satisfaction. The design of our finest pieces of jewelry gives us another edge over others.

Gosil Exports specialize in: Diamonds Diamonds,, Rings, Rings, Pendant Pendant,, Bracele Bracelet, t, Earring Earringss and Ring Ring Sets, Sets, Gemston Gemstonee Rings, Rings, Gemstone Pendant, Gemstone Bracelet, Gemstone Earrings, Gold, Precious Stones. So Gosil Gosil Exports Exports believe believe in building building long-ter long-term m business business relatio relationshi nships ps with with our customers. Our whole team is dedicated to serve customers and provide them with innovative jewelry designs that are liked by people of all age groups.

GOSIL EXPORTS (P) LTD. E-70, EPIP, SITAPURA, JAIPUR-303905, INDIA. TEL: +91-141-5142065 FAX: +91-141-2771064 +91-141-2771064 Email: [email protected]

29

PRODUCTS OF GOSIL EXPORTS

30

GOSIL EXPORTS

Product Na Name

: Rhodium Plated Br Bracelets

GOSIL EXPORTS Product Na Name

: Rhodium Pl Plated Br Bracelets

31

GOSIL EXPORTS Product Na Name

: Rhodium Plated Br Bracelets

GOSIL EXPORTS Prod Produc uctt Nam Namee

: Rhod Rhodiu ium m Plat Plated ed Pend Penden entt Set Setss

CHAPTER~5

RESEARCH METHODOLOGY

32

The appropriate research design formulated is detailed below. Exploratory research: this kind of research has the primary objective of development of insights into the problem. It studies the main area where the problem lies and also tries to evaluate some appropriate courses of action. The research methodology for the present study has been adopted to reflect these realties and help reach the logical conclusion in an objective and scientific manner. The present study contemplated an exploratory research

NATURE OF DATA Primary data:

primary data will be collected through a questionnaire raised among the Gems And Jewellery traders and manufacturers in Jaipur

SAMPLE SIZE

100

SAMPLE AREA

JAIPUR

SAMPLE UNIT

GEMS

AND

JEWELLERY

MANUFACTURERS

OPERATING

TRADERS IN

JAIPU IPUR,

& IN

PARTIC PARTICULA ULAR R THE OWNERS OWNERS,, MANAGE MANAGERS RS & OTHER OTHER OFFICIALS OFFICIALS OF GOSIL EXPORTS EXPORTS (JAI PUR) SAMPLING TECHNIQUE RANDOM SAMPLING TECHNIQUE

Secondary data: secondary data that is already available and published .it could be

internal internal and external external source of data. data. Interna Internall source: source: which which origina originates tes from the

33

specific field or area where research is carried out e.g. publish broachers, official reports etc. External source : This originates outside the field of study like books, periodicals,

journals, newspapers and the Internet.

DATA COLLECTION Secondary data has been used which is collected through articles, reports, journals, magaz magazine ines, s, news newspap papers ers report reportss prepar prepared ed by resea research rch schola scholars, rs, univer universit sitie iess and internet

SAMPLING TECHNIQUE Random sampling technique has been employed to extract the fruitful results.

CHAPTER~6

DATA PRESENTATION

34

SWOT ANALYSIS OF INDIAN GEMS & JEWELLERY INDUSTRY: Strengths: ⇒

About one million craftsmen are associated with this industry. Their skills can be utilized for designing and making modern Jewellery

⇒

Availability of abundance of cheap and skilled labor in India.

⇒

Presence of excellent marketing network spread across the world.

⇒

Supportive government industrial/ EXIM policy.

Weaknesses: ⇒

Small firms lacking technological/ export information expertise.

⇒

Low productivity compared to labor in china, Thailand and Sri Lanka.

⇒

As the major raw material requirements need to be imported, companies normally stock huge quantities of inventory resulting high inventory carrying costs.

Opportunities: ⇒

New markets in Europe & Latin America

⇒

Growing demand in South Asian & Far East countries.

⇒

Rupee value depreciating resulting in a windfall increase in the profitability.

⇒

Industry moving from a phase of consolidation

Threats: ⇒

China, Sri Lanka and Thailand's entry in small diamond segment 35

⇒

Infrastructure bottlenecks, absence of latest technology

⇒

Unusual increase in the prices of gold and rough dia

PRESENT STATE OF THE INDUSTRY:

36

The year 2007-08 has witnessed a growth in all the major segments of the Gem and Jewellery Jewellery industry and the total exports stood at Rs.67500 crore, a growth of 29.27% as compared to the previous year. Exports of diamond have continued to rise and the Jewellery sector has turned in another record-breaking performance. India’s share of the world's polished diamond market is 60 per cent in terms of value, 85 per cent in terms of volume and 92 per cent in terms of pieces. Global gold Jewellery consumption increased 33% in the year 2005, the buoyant demand in countries like India, the Gulf States, China and Turkey pulled up the overall figures. Since early 90's, the Jewellery has averaged a growth of over 30%, making India the fastest growing Jewellery exporter exporter in the world and also in the year 2004 the demand for gold Jewellery in India increased by 29% in value to become the fastest growing Jewellery market in the world.

2004-05

2005-06

2006-07

Diamonds

37

2007-08

India enjoys domination in the world cut and polished diamond market and smaller diamonds in particular, which was amply reflected in the export growth of diamond industry with a total export of US$ 11181.48 million (48000 crore) for the year ended 31st March, 2008 as compared to US$ 8627.48 million (37000 crore) against the corresponding period in last year.

Jewellery The year 2007-08 was a good year for the global Jewellery sales as well as to the Company. Demand was fuelled by good economic growth and improved demand particularly from Asia and the Middle East. Gold Jewellery sales in United States of America increased by 4% in 2007 to a huge 73000 crore. The Jewellery sector recorded a massive growth of 49.23% for the year ended 31st March 2008. The demand for the diamond Jewellery will continue to grow stronger due to continued marke marketi ting ng suppor supportt by the the indust industry ry espec especial ially ly in the the U.S. U.S.,, India India and and China China.. Th Thee Jewe Jewell ller ery y has has an ever ever-i -inc ncre reas asin ing g mark market et abro abroad ad and and the the comp compan any y with with its its manufacturing manufacturing facility comparable to international international standards has been able to capture a reason reasonab able le porti portion on of the the same. same. Whil Whilee opp opport ortuni unitie tiess are are abunda abundant nt,, polit politic ical al uncertainty could affect this industry most.

Major Players: ⇒

Vaibhav Gems Ltd.

⇒

Classic Diamond (India) Ltd.

⇒

Shrenuj & Company Ltd.

⇒

Goldiam international Ltd.

38

⇒

Su-raj Diamonds & Jewellery Ltd.

⇒

Rajesh Exports Pvt. Ltd.

⇒

Financial Comparison

* Figures up to March 2008

Topics

Shrenuj & Goldiam Company International Ltd. Ltd.

Adjusted EPS 10.24 (Rs) Cash EPS (Rs) 12.61 Book Value (Rs) 104.46 Dividend Per 3 Share (Rs) Retu eturn On Net 9.8 Worth (%) Return On Capital employed 8.99 (%) Operat Operating ing Profit Profit 7.35 Margin (%) Gross Profit 6.82 Margin (%) Net Profit 2.28 Margin (%) Current Ratio 6.39 Quick Ratio 2.92 Long Lo ng term term debt debt 2.26 to equity Total Debt to 2.26 equity Inte nterest Cover over 2.24 (times)

Assets Turnover 8.2 Ratio

Rajesh Exports Pvt. Ltd

Su-Raj Vaibhav Diamonds & Gems Jewellery Ltd. Ltd.

Classic Diamond (India) Ltd.

14.95

125.42

7.62

13.39

17.19

15.78 102.83

127.47 211.62

8.31 121.56

14.56 60.54

20.11 2 04

2.5

10

1.2

2.5

1.8

17.82

29.08

6.27

23.62

8.42

15.2

73.1

8.76

24.49

8.56

11.39

-1.43

4.41

10.04

6.8

10.77

-1.46

4.18

9.31

6.44

13.48

1.01

2.98

9

2.12

4.44 3.83

16.51 15.3

3.57 2.93

7.56 4.47

5.82 3.47

0

0.2

0

0

2.17

0

4.33

0.42

0.44

2.17

68.09

3.07

4.36

10.33

1.97

11.28

76.52

20.6

10.64

17.53

39

Average Raw Material Holding 0 (in Days)

34.47

0

20.77

97.44

0

Average Finished Good Holding (in 0 Days)

5.26

4.83

33.2

1.66

0

Num Number ber of days days of net net work workin ing g 230.91 capital

183.36

65.41

208.78

164.39

263.21

Inventory Turnover Ratio

11.28

71.72

7

4.71

2.81

Expo xport as % of 0 Total Sales

100.61

99.17

94.35

99.64

0

Bonus component Equity (%)

70.42

0

26.2

69.07

0

2.42

in 0

FUTURE PROSPECTIVE: PROSPECTIVE: With the world economy doing well and increase in the personal disposable income of the general public demand for the gems and Jewellery has increased worldwide. This year Jewellery sector grew by 49%. Exports contribute 70% of the total sales of the

40

industry. With United States contributing most (35%) in the export bill. With rupee value depreciating against the U.S. dollar there may be a windfall increase in the profitability in the coming times for the industry. Many companies are on the hunt for acquiring subsidiaries Indian companies will able to strengthen their retail network. One of the areas of concern for the industry is the surge in the prices of rough diamond pieces and India depends upon other countries but with the proposal of increase in the FDI limit on mining from 74% to 100%, dependence on the other countries will be reduced. Overall with the economic fundamentals looking good, favorable government policies and exploration of the newer markets industry looks all set for a good time ahead.

Government Policy: ⇒

Levy of two per cent excise duty on premium branded Jewellery.

⇒

100 per cent Export Oriented Units (EOUs) and units in the Export Processing Zones (EPZs)/Special Economic Zones (SEZs), enjoy a package of incentives and facilities, which include duty free imports of all types of capital goods, raw material, and consumables in addition to tax holidays against export.

⇒

Currently 74% FDI in Mining, 100% proposed.

41

QUESTIONNAIRE ANALYSIS 1.

Role of the Gems & Jewellery industry to the Indian economy.

Very Very Sig Signi nifi fica cant nt -------------------------------------------------

19 per per cent cent

Sign Signif ific ican antt ----------------------------------------------------------

38 per per cen centt

Insi Insign gnif ific ican antt -------------------------------------------------------


Very Very insi insign gnif ific ican antt ---------------------------------------------


Do not not kno know/ w/ can can not not say say -------------------------------


40% 35% 30% 25% 20% 15%

Very Significant

10%

Significant Insignificant

5%

Very insignificant 0%

Do not know/ can not say

Very Significant

19%

Significant

38%

Insignificant

20%

Very insignificant

7%


16%

42

Interpretation: As may be seen from the above response that the Gems & Jewellery sector in India contributes significantly to the Indian economy

43

2.

Contribution of the Gems & Jewellery sector.

Empl Employ oyme ment nt ------------------------------------------------------------------


Expo Ex port rt ----------------------------------------------------------------------------


GDPGDP------------------------------------------------------------------------------


Othe Otherr sect sector orss ---------------------------------------------------------------


Do not know/ can not say ---------------------------

07 per cent

80% 70% 60% 50% 40% Employment

30%

Export

20%

GDP Other sectors

10%


0% Employment

72%

Export

46%

GDP GD P

32%

Other sectors

25%


7%

44

Interpretation: Gems & Jewellery sector occupies an important place in the Indian economy as it contr contrib ibute utess signi signific ficant antly ly to emplo employm yment ent genera generati tion on and and export export earni earnings ngs.. Th Thee economic importance of the sector also lies in its high employment potential, high capital investment, high value addition and continuously increasing demand both in the domestic and overseas markets.

45

3.

Thee Impa Th Impact ct of of glob global aliz izat atio ion n and lib liber eral aliz izat atio ion n to the the Gems Gems &

Jewellery export. Acceler Accelerated ated the expor exportt ---------------------------------------------------------------


Adversel Adversely y affected affected the export export -----------------------------------------------

10 per cent cent

Did not affect affect the export export ----------------------------------------------------------

07 per cent cent

Do not not know know// can can not not say say ---------------------------------------------------


80% 70% 60% 50% 40% 30%

Accelerated the export

20%

Adversely affected the export

10%

Did not affect the export

0% Do not know/ can not say Accelerated the export

76%

Adversely affecte affected d the export

10%


7%


7%

46

Interpretation: Indian Gems & Jewellery are now available in global markets, so also foreign crafts in our shops. Gems & Jewellery constitute constitute a significant significant segment of the decentralized sector of our economy and its importance is being felt when it is assessed that it provides employment to lakhs of jewellery –makers scattered especially in the weaker sections of our society such as SCs, STs and the women, producing goods worth thousands of Crores of Rupees per year.

47

4.

The growth of e-commerce is beneficial to Gems & Jewellery sector.

Agre Agreee ----------------------------------------------------------------


Disa Disagr gree ee ----------------------------------------------------------


Do not not know now/ Can Can not say say ----------------------------

12 per per ce cent

80% 70% 60% 50% 40% Accelerated the export

30% 20%

Adversely affected the export

10%


0% Accelerated the export

76%

Adversely affecte affected d the export

10%


7%

Do not know/

7%


Interpretation: With the growth of e-commerce strategy, the Indian Gems & Jewellery marketing strategy has been strengthened, leading to increase in the volume of trade in the Gems & Jewellery sector.

48

5.

E-commerce is beneficial for the urban artisans instead of rural.

Agre Agreee ------------------------------------------------------------------


Disa Disagr gree ee ------------------------------------------------------------


Do not not kno know/ w/ Can not not say say ------------------------------


70% 60% 50% 40% 30%

Agree Disagree

20%

Do not know/ Can not say

10% 0% Agree

68%

Disagree

20%


12%

Interpretation: The e-commerce strategy in the Gems & Jewellery sector has been of limited utility confining itself more in the urban sector. Its expansion to the rural areas will be expanding its utility in a more effective manner.

49

6.

Better potential importers of Indian Gems & Jewellery product.

USA USA -------------------------------------------------------------------


UK ---------------------------------------------------------------------


Germ German any y ----------------------------------------------------------


Other countries ------------------------------------------------- ----------

11 per cent

70% 60% 50% 40% Agree

30%

Disagree Do not know/ Can not say

20% 10% 0% Agree

68%

Disagree

20%


12%

Interpretation: The largest export market for Indian Gems & Jewellery is the United States. In the changing world scenario, Gems & Jewellery product Jewellery productss exported to various countrie countriess form a part of lifestyle lifestyle products products in interna internation tional al market. market. The impact is due to the changing consumer taste and trends.

50

7.

Exported product from India to other country.

⇒

Diamond ond stu studded dded jewellery --------------------------------------

15 per ce cent

⇒

Necklaces

32 per cent

⇒

Bangl anglees ---------------------------------------------------------------------

⇒

Rings & Other Other products products -------------------------------------------------------------------- 25 per cent

-- ---- --- ---- --- ---- --- ---- -

28 per cent

35%

30%

25%

20%

15%

Diamond Diamond studded studde d jewellery jewellery Necklaces Bangles

10%

Rings & Other products 5%

0% Diamond studded jewellery

15%

Necklaces

32%

Bangles

28%

Rings & Other products

25%

51

which are exported out of the country, the Interpretation: As far as the products which respondents felt that it is the Diamond studded jewellery, Necklaces, Bangles, Rings & Other products which dominate the export composition of the Gems & Jewellery products.

8.

The challenges of the Gems & Jewellery export.

Better quality products from foreign companies --------

33 per cent

Competition in the domestic sector -----------------------

23 per cent

Lack of institutional support -------------------------------

25 per cent

Other factors -------------------------------------------------

12 per cent

Do not know/ can not say ----------------------------------

07 per cent

52

35%

30%

25%

20% Better quality products from foreign c ompanies ompanies

15%

Competition in the domestic sector

10%

Lack of institutional institutional support Other factors

5%


0% Better quali qu ality ty products from foreign c ompanies ompanies

33%

Competition in the domestic domestic sector

23%

Lack o f institutional institutional support

25%

Other factors

12%


7%

Interpretation: There are various problems and challenges that stand as barriers to the export market of the Indian Gems & Jewellery products. These include better competitiveness of the foreign companies followed by lack of institutional support, competition in the domestic sector and other factors.

53

9.

The vital steps for improving the Gems & Jewellery export. ⇒

Establishing Gems & Jewellery special economic economic zones --------------- 30 per cent

⇒

Promotion of Gems & Jewellery in the rural rural areas ---------------------------- 20 per cent

⇒

Special support to the Gems & Jewellery sect ector in in the the trad rade po policy -

27

per cent ⇒

Inst Instit itut utio iona nall fina financ ncin ing g -------------------------------------------------------------


⇒

Othe Otherr meas measur ures es --------------------------------------------------------------------------


54

30%

25%

20%

15%

Establishing Jems & Jewell Jewe llery ery special econom e conomic ic zones

10%

Promotion of Jems & Jewellery in the rural areas

5%

Special support to the Jems & Jewellery sector in the trade policy policy

0%

Institutional financing

Establishing Jems & Jewellery Jewellery special economic zones

30%

Promotion of Jems & Jewellery Jewellery in t he rural areas

20%

Special support to the Jems & Jewellery Jewellery sector in the trade p olicy olicy

27%

Institutional financing

15%

Other measures measures

8%

Other measures

Interpretation: Setting up Gems & Jewellery special economic zones accompanied

with institutional institutional support and other promotional promotional measures can be effective to improve the export potential of the Indian Gems & Jewellery products. Jewellery products.

55

10.

Competition of India with china, Philippines and Thailand in regarding Gems and Jewellery export.

⇒

Very Very competit competitive ive ----------------------------------------------------------

18 per cent

⇒

Competi Competitive tive ---------------------------------------------------------------------

35 per cent

⇒

Lacks Lacks com compet petit itive ive str stren ength gth -----------------------------------


⇒

Not Not at at all all comp compet etit itive ive ---------------------------------------------


⇒

Do not kno know/ w/ can can not not say -------------------------------------

15 per cent cent

35% 30% 25% 20% 15% Very competitive

10%

Competitive 5%

Lacks competitive strength Not at all competitive

0%


Very competitive

18%

Competitive

35%

Lacks competitive strength

20%

Not at all competitive

12%


15%

56

11.

Future of the market of the Gems & Jewellery export in India.

Very good good -------------------------------------------------------------------

24 per cent

Good ---------------------------------------------------------------------------

35 per cent

Not good ood --------------------------------------------------------------------

20 per cent

Do not know/ can not say ------------------------

31 per cent

35% 30% 25% 20% 15%

Very good Good

10%

Not good Do not know/ can not say

5% 0% Very good

24%

Good

35%

Not good

20%


31%

57

CHAPTER~7

CONCLUSION

Growth in global demand for jewelry may slow from the 5.2 percent Compounded Annual Growth Rate (CAGR) it registered since 2000, to 4.6 percent by 2010 or 2015, unless appropriate collective action is taken by players in the industry. The projection is based on an assessment of the impact of eight key business trends that the two bodies believe will affect the performance of the industry. These trends include: include: the local local benefici beneficiati ation on in the mining mining countrie countries; s; fragmen fragmentati tation on of supply supply sources and an increase in rough supply; consolidation consolidation across the value chain; rise of new centers for jewelry manufacturing; growth in the use of synthetics and non precious metals in jewelry; a decline in demand for plain gold jewelry; organization and and cons consol olid idat atio ion n in the the emer emergi ging ng mark market etss of Indi Indiaa and and Chin China; a; and and inte intens nsee competition from other luxury goods. Based on the findings, the report estimates that worldwide jewelry sales will rise from $146 billion billion in 2005 to $185 billion in 2010 and and $230 billion in 2015. 2015. However, However, it stresses that if the industry as a whole focuses on “growing demand for jewelry as a category” and “strengthening industry-level and enterprise-level capabilities” in the “next 12-18 months,” sales could reach $280 billion in 2015, registering a CAGR of 6.7 percent. Some of the statistical highlights include:

•

Gold and diamond jewelry will continue to dominate the market, accounting for about 82 percent of overall market share

58

•

Diamond jewellery will be the slowest growth segment at a Compounded Annual Growth Rate of 3.3 percent

•

Synthetics will have sales of close to $2 billion at wholesale price by 2015, and will impact sales of natural diamond jewelry to the extent of $6 billion at the retail level

•

Palladium is expected to establish itself as an alternative metal for jewelry fabrication

•

China (13 percent) and India (12 percent) together will emerge as a market equivalent to that of the US share (26% percent)

•

Middle East (9 percent) will be another large market

•

China, Turkey and India will emerge as new centers for jewelry fabrication

•

Value addition in diamond processing will increase from 29.3 percent to 34.1 percent

•

India’s share in diamond processing will drop from about 57 percent by value to 49 percent

•

China’s share in diamond processing will rise to 21.3 percent

•

About 9 percent of world’s diamond will be processed locally by mining countries

•

Central Centralized ized distribu distribution tion of rough will will drop from 55 percent percent in value value to 40 percent

59

•

Rough sold through traders will account for 45 percent

BIBLIOGRAPHY Daily newspapers ⇒

www.indiabulls.com

⇒

www.myiris.com

⇒

www.moneycontrol.com

⇒

www.google.com

⇒

www.altavista.com

60

ANNEXURE QUESTIONNAIRE 1.

How do you perceive the contribution of the Gems & Jewellery industry to the Indian economy?

2.

Very Very Sig Signi nifi fica cant nt -------------------------------------------------


Sign Signif ific ican antt ----------------------------------------------------------


Insi Insign gnif ific ican antt -------------------------------------------------------


Very Very insi insign gnif ific ican antt ---------------------------------------------


Do not not kno know/ w/ can can not not say say -------------------------------


Sele Select ct the the area areass in whic which h the Ge Gems ms & Jewe Jewell ller ery y sect sector or cont contri ribu bute te significantly. You can choose more than one option.

Empl Employ oyme ment nt ------------------------------------------------------------------


Expo Ex port rt ----------------------------------------------------------------------------


GDPGDP------------------------------------------------------------------------------


Othe Otherr sect sector orss ---------------------------------------------------------------


Do not know/ can not say ---------------------------

61

07 per cent

3.

How did the policies policies of globaliz globalizatio ation n and liberali liberalizatio zation n affect affect the

export scenario of the Gems & Jewellery in India?

4

.

Acceler Accelerated ated the expor exportt ---------------------------------------------------------------


Adversel Adversely y affected affected the export export -----------------------------------------------

10 per cent cent

Did not affect affect the export export ----------------------------------------------------------

07 per cent cent

Do not not know know// can can not not say say ---------------------------------------------------


Do you agree that with the growth of e-commerce strategy, Indian Gems & Jewellery sector has been positively benefited from this?

5.

Agre Agreee ----------------------------------------------------------------


Disa Disagr gree ee ----------------------------------------------------------


Do not not know now/ Can Can not say say ----------------------------

12 per per ce cent

Is it true that the e-commerce strategy has been more beneficial only in the urban areas leaving the rural artisans out side the ambit of this strategy?

Agre Agreee ------------------------------------------------------------------


Disa Disagr gree ee ------------------------------------------------------------


Do not not kno know/ w/ Can not not say say ------------------------------


62

6.

Which countries are the better potential importers of Indian Gems &

Jewellery products?

7.

8.

USA USA -------------------------------------------------------------------


UK ---------------------------------------------------------------------


Germ German any y ----------------------------------------------------------


Other cou count ntrries -----------------------------------------------

11 per per ce cent

What are the products which are exported from India to other countries?

Diamond studded jewellery ------------------------

15 per cent

Necklaces

32 per cent

-- ---- --- ---- --- ---- --- ---- -

Bangles ----------------------------------------------

28 pe per ce cent

Rings Rings & Other Other produc products ts ------------------------------------------------------------

25 per cent cent

What are the problems of the export of the Gems & Jewellery products from India?

Better quality products from foreign companies --------

33 per cent

Competition in the domestic sector -----------------------

23 per cent

Lack of institutional support -------------------------------

25 per cent

Other factors -------------------------------------------------

12 per cent

Do not know/ can not say ----------------------------------

07 per cent

63

9.

What are the the measures measures that that can can be taken taken for for improvi improving ng the the export export potential of the Gems & Jewellery sector in India?

10.

Establishing Gems & Jewellery special ec economic zo zones -----------

30 pe per ce cent

Promotion of Gems & Jewellery in the rura rurall area reas -------------------------

20 per cen cent

Special support to the Gems & Jewellery sect sector or in the the tra trade de poli policy cy -


Institutional financing ----------------------------------------

15 per cent

Other me measures --------------------------------------------------

08 pe per ce cent

How do you compare the export potential of the Indian Gems & Jewellery prod produc ucts ts when when comp compar ared ed with with othe otherr coun countr trie iess Ge Gems ms & Jewe Jewell ller ery y products like that of china, Philippines and Thailand?

11.

Very competitive -------------------------------------------------- ---------------

18 per cent

Comp Compet etit itiv ivee ------------------------------------------------------------


Lack Lackss comp compet etit itiv ivee stre streng ngth th ---------------------------------


Not Not at all all com competi petiti tive ve ------------------------------------------


Do not not know know// can can not say say ----------------------------------

15 per per cent

Future of the market of the Gems & Jewellery industry in India.

Very good good -------------------------------------------------------------------

24 per cent

Good ---------------------------------------------------------------------------

35 per cent

Not good ood --------------------------------------------------------------------

20 per cent

Do not know/ can not say ------------------------

31 per cent

64

A Study of Gems and Jewellery Export

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