GEMS AND JEWELLERY

INDUSTRY
Introduction
• The Indian Gems and Jewellery sector is one of the largest in the
world, contributing around 29% to the global jewellery
consumption. The sector employs over 4.64 million employees and
is home to over 300,000 gems and jewellery players. The sector
contributes 7% to the Gross Domestic Product (GDP) of the country.

• Indians have always been connoisseurs of precious stones and

ornaments. Trade secrets of the jewellery business have been handed
down over generations, ensuring continuity of traditional craft. Thus,
India is today the world's largest diamond cutting and polishing
centre. India has been adding modern techniques to its traditional
know how that are more in tune with global market trends.
Introduction
• India is deemed to be the hub of the global
jewellery market because of its low costs
and availability of high-skilled.
Introduction
 India is the world's largest cutting and polishing
centre for diamonds

 India exports 95 per cent of the world's diamonds

 Contributes in a big way to the country's Foreign

Exchange Earnings (FEES)Sector is viewed as a
thrust area for export promotion

 In FY 14, India's gems and jewellery sector

contributed US$ 34,746.90 million to the country's
FEES
Market size of sector
• India gems and jewellery market is anticipated to project
robust growth in the forecast period, 2022-2027, with a
CAGR Compound annual growth rate of 8.34% on
account of changing lifestyle, rising disposable income,
changing consumer preferences of branded jewelry
products, and growing urbanization. Other major factors
such as product innovation and technological
advancements, the introduction of new jewelry segments
by market players such as men’s jewelry, costume jewelry,
lightweight jewelry, etc., are anticipated to further drive
the growth of the India gems and jewelry market in the
upcoming five years.
Market size of sector
 Rising Disposable Income Fueling the Market Growth

 The rapid increase in family members' combined earnings is

resulting in higher disposable income for consumers, significantly
increasing their spending power. As a result, an increasing
number of consumers nowadays are unwilling to compromise
product quality regardless of cost and prefer to purchase various
types of authentic gems and jewelry available in the market.
Moreover, the rising disposable income levels have increased the
purchasing power of consumers, which has resulted in an
improved standard of living. Furthermore, the education levels of
women have risen in India, leading to an increase in the ratio of
women in the workforce and providing them more purchasing
power. Such factors are positively influencing the gems and
jewelry market of India.
Market size of sector
 Rising Government Support

 The government of India is continuously coming up with

various initiatives in order to encourage the growth of the
gems and jewelry sector of India. For instance, in 2021, the
Ministry of Consumer Affairs, Food & Public Distribution
made Hallmarking of gold mandatory to precisely ascertain
the proportionate content of precious metals in jewelry.
However, the jewelers with an annual turnover of up to Rs
40 lakh will be exempted from mandatory hallmarking.
Similarly, in February 2021, the base custom duty on gold
and silver was cut from 12.5% to 7.5%. Moreover, in 2021,
the World Gold Council and the Gem and Jeweler Export
Promotion Council (GJEPC) decided to collaborate to market
gold jewelry in India.
Market size of sector
 Market Segmentation
 The India gems and jewelry market is
segmented based on type, distribution channel,
region, and competitional landscape. Based on
type, the market is further fragmented into
gold, diamond, silver, gemstones, others (pearl,
platinum, etc.). Based on the distribution
channel, the market is segmented into offline
and online. The market analysis also studies the
regional segmentation to devise regional
market segmentation, divided among north,
south, west & east.
Market size of sector
Market size of sector
 In FY21, exports of gems & jewellery stood at US$ 25.30 billion. In March 2021,
exports of gems & jewellery stood at US$ 3.42 billion.
 The Government of India is aiming at US$ 70 billion in jewellery export in the
next five years (until 2025), up from US$ 35 billion in 2020. In FY21, gems &
jewellery exports in India stood at US$ 25.30 billion.
 In FY22 (until October), India exported gems & jewellery worth US$ 23.65 billion
compared with the US$ 11.482 billion recorded in FY21 (until October).
 In October 2021, India exported gems & jewellery worth US$ 4.17 billion
compared with the US$ 2.92 billion recorded in October 2020.
 In FY22 (until September), India exported gems & jewellery worth US$ 18.98
billion compared with US$ 8.01 billion in FY21 (until September).
 In September 2021, India exported gems & jewellery worth US$ 3.16 billion
compared with US$ 2.4 billion in September 2020.
 In August 2021, the GJEPC announced an ambitious target of raising exports of
the sector to US$ 44 billion in FY22.
 Growth in exports is mainly due to revived import demand in the export market
of the US and fulfilment of orders received by numerous Indian exhibitors during
the Virtual Buyer-Seller Meets (VBSMs) conducted by GJEPC. In August 2021, the
GJEPC announced an ambitious target of raising exports of the sector to US$ 44
billion in FY22.
FDI INFLOW IN SECTOR
• The Gems and Jewellery sector plays a significant role in the Indian economy,
contributing around 7% of the country’s GDP and 15% to India’s total
merchandise exports. It also employs over 4.5 million workers and is
expected to employ 8.23 million by 2022. One of the fastest-growing sectors,
it is extremely export oriented and labour intensive.

• Cumulative FDI inflows in diamond and gold ornaments in India stood at US$
1,194.00 million between April 2000 and June 2021 according to Department
for Promotion of Industry and Internal Trade (DPIIT).

• India has a significant Gems and Jewellery sector and is one of the largest in
the world contributing 29 per cent to the global jewellery consumption. The
sector is home to more than 300,000 gems and jewellery players. Its market
size will grow by US$ 103.06 billion during 2019-2023.

• The gems and jewellery market in India is home to more than 300,000
players, with the majority being small players. Its market size is about $75
bn as of 2017 and is expected to reach $100 bn by 2025
 FDI INFLOW IN SECTOR
 Cumulative FDI inflows in
diamond and gold ornaments
stood at US$
1,190.83 million between April
2000 and March 2021.
The Government of India
permitted 100% FDI in the sector
through
automatic route.
 The Rs. 250,000 crore (US$ 35.77
billion) big household jewellery
industry is probably going to get
a major lift through government’s
decision for FDI in retail.
FDI INFLOW IN SECTOR
 The Indian Government has permitted 100% FDI in
Indian diamond industry or gems and jewellery
sector under the automatic route.

Years FDI Equity Inflows FDI Equity Inflows in % share of

In India G & J Sector FDI in G & J Sector
(US $ million) (US $ million)
FY2015 29737 263.16 0.88

FY2016 40001 75.57 0.19

FY2017 43478 123.91 0.28

FY2018 44857 233.03 0.52

FY2019 44366 29.01 0.06

 FDI INFLOW IN SECTOR

•FDI inflows in G&J sector from April 2000 – December 2019 is noted at
US$1.17 billion constitutes for 0.26% of the total FDI inflows of US$457 billion
in the country.
Export and Import
Activities
 India is the most preferred country in terms of gems and
jewellery export.

 Indian gems and jewellery are exported across continents.

 India is the world’s second largest gold consumer.

 The total gems and jewellery export accounted is $16.06

billion from April 2021 to August 2021.

 In FY21, the total gems and jewellery export accounted for

$26.02 billion, and for March 2021 it was $3.61 billion.
Export and Import Activities
 In August 2021, India exported $3.43 billion worth of gems and
jewellery as compared to $1.82 million in August 2020.

 The overall net export of gems and jewellery stood at $29.01

billion in FY21.

 India exported $18.66 billion worth of cut and polished diamonds

in FY21. It contributed 64% to the total gems and jewellery export.

 India’s top export destinations for gems and jewellery are US,
Europe, Japan and China. US accounts for nearly one-fourth of the
country's total gems and jewellery export.

 The Government of India is aiming at $80 billion in jewellery

export over the next five years from 2022.
Export and Import Activities
 The major importers of gem exports from India are the
following nations;

1. United Arab Emirates

2. United States of America
3. Russia
4. Singapore
5. Hong Kong
6. Latin America
7. China
Export and Import Activities
Export and Import Activities
Export and Import Activities
Private Players in this
Sector
• The gems and jewellery industry majorly
includes sourcing, processing,
manufacturing and selling of precious
metals and gemstones such as gold,
platinum, silver, diamond, ruby, sapphire,
among others. The highly fragmented
sector comprises of more than 500,000
gems and jewellery players across the
country, with the majority being small
players.
Private Players in this Sector
• Though organised retail accounts for about 4-6 per cent
of the entire market, Indian is increasingly getting
acclaimed as an international sourcing destination for
high-quality designer jewellery. Global companies such
as Walmart and JC Penney source jewellery from India.

• Some of the major brands in the Indian jewellery

segment are Gili, Tanishq, Carbon, Oyzterbay and
Trendsmith while companies like Reliance Retail, Damas
Jewellery, Gitanjali Gems Ltd., Swarovski, Diamond
Trading Company, Vardhaman Developers, Dubai-based
Joy Alukkas, Viswa and Devji Diamonds and Gold Souk
India are major players in the Indian gems and jewellery
retail sector.
Private Players in this Sector
Shree Ganesh Jewellery House (SGJH) has formed a joint venture
(JV) with Rocks Creation Limited of Dhaka, Bangladesh for
manufacture of gold jewellery, both plain and studded with
diamonds and other precious and semi-precious stones.
• World Gold Council (WGC) has formed a separate private

company in India to take up activities on a larger scale in the

Indian market including entering into commercial set-up with
banks and gold industry players in the coming years. The
corporate structure will legally help WGC remove the
disadvantages of operating as a liaison office.
• The gems and jewelry sector plays a big role within the Indian

economy, contributing around 7% to the country’s GDP and 15%

to India’s total merchandise export. It employs over 4.64 million
people, which is predicted to succeed in 8.23 million by 2022.
one among the fastest-growing sectors, it’s extremely export-
oriented and labor-intensive.
Private Players in this Sector
• Based on its potential for growth and value addition, the govt
declared the gems and jewelry sector as the attention area for
export promotion. The government has undertaken various
measures recently to market investment and upgrade technology
and skills to market ‘Brand India’ within the international market.
Private Players in this Sector
• Malabar Group:
• Industry : Luxury Goods & Jewelry
• Number of employees : 1001-5000
• Location : Kozhikode, Kerala
•

Malabar Group is a Luxury Goods & Jewelry

company and has headquarters in Kozhikode,
Kerala. Malabar Group has 1001-5000
employees. Malabar Group was founded in
1993. Malabar Group is a privately held
company.
Private Players in this Sector
Industry : Luxury Goods & Jewelry
Number of employees : 201-500
Location : Chennai, Tamil Nadu
• Grt Jewellers (india) Private Limited is a Luxury

Goods & Jewelry company and has headquarters in

Chennai, Tamil Nadu. Grt Jewellers (india) Private
Limited has 201-500 employees. Grt Jewellers
(india) Private Limited was founded in 1964. Grt
Jewellers (india) Private Limited is a privately held
company. Grt Jewellers (india) Private Limited is
founded by G.rajendran. CEO of Grt Jewellers (india)
Private Limited is R. Vijayaraghavan.
EXCHANGE RATE
Porter’s Analysis on Jewelry
Industry
1. The threat of new entrants – LOW TO MEDIUM

2. The bargaining power of buyers – LOW

3. The bargaining power of suppliers – MEDIUM

4. The substitutes products – LOW

5. The competitors in the industry – HIGH

Porter’s Analysis on Jewelry
Industry
The Bargaining Power of Suppliers
• When we talk about the bargaining power of suppliers

in the jewelry industry, it’s medium. What are the

potential reasons behind? The reason is that India is
one of the largest players and this is the main concern
of the suppliers. For the country, there are lots of
suppliers available i.e. national as well as international.
In this scenario, the bargaining power of the suppliers
should be low, so why it’s medium? The reason is that
the jewelry industry also needs the reliable suppliers to
retain its position in the global market so this is the
reason for which the bargaining power of the suppliers
remains medium for jewelry industry of India.
Porter’s Analysis on Jewelry
Industry
The Bargaining Power of Buyers
• For jewelry industry, when we talk about the

bargaining power of buyers, it’s quite low. What

can be the potential reasons behind the low
bargaining power of Indian Jewelry industry? As a
matter of fact, the India has two types of buyer
i.e. domestic buyers as well the foreign buyers for
both gold and diamond jewelry. In this scenario,
the position of India becomes string for the reason
that the high demand for the jewelry from inside
as well as from outside the country gives the
power to the industry as compared to the buyers.
Porter’s Analysis on Jewelry
Industry
The Competitive Rivalry
• This porter force deals with the inter-firm rivalry. For

instance, when we talk about the jewelry industry of

India, we look for all competitors in the industry. In this
scenario, any player of the jewelry industry faces two
types of rivalry, for instance, the first one from inside the
country and the second one from outside it. In this regard,
it is obvious that the competition amongst the firms is
really high for the reason that the industry is too vast and
all the players of the industry are playing well, especially
inside the country. When we talk about the international
competitors in the jewelry industry for India, china comes
at the top of the list. So, all these things combine to make
the competition amongst firms really high
Porter’s Analysis on Jewelry
Industry
 The Threat of Substitute Products
 In this force of porter analysis, we get to know about all the
substitute products in comparison with the industry being
analyzed. When we talk about the jewelry industry, what can be
the potential substitutes to gold jewelry and diamond jewelry? The
most important substitutes of it that come to our mind are
imitation or artificial jewelry, stone jewelry or the bagasra jewelry
etc. But as a matter of fact, all these substitutes can’t deny the
importance of gold or diamond jewelry. The reason is that the way
of living of the people is being enhanced with the each passing
day. The standard of living as well as the status of the people is on
the high increase. So, all these substitute products can’t produce
a threat for gold or diamond jewelry for the reason that these are
high in demand so the threat of substitute products for jewelry
industry of India remains low.
 The other potential substitutes other than imitation or stone
jewelry are stock market, real assets, mutual fund investment as
well as bank deposits etc
Porter’s Analysis on Jewelry
Industry
 The Threat of New Entrants
 This is the last force of porter’s analysis in which we determine the
threat of new entrants in any specific industry, for instance, we look for
the all barriers for new entrants and judge is it difficult to enter or not.
When we talk about the jewelry industry, the barriers for the new
entrants aren’t very high for the reason that the capital requirements to
enter in this industry are low and one can easily enter into this industry
and can earn a name for the reason that the demand for gold and
diamond jewelry is high. It’s been called medium for the reason that the
rules and regulations by the government to enter in the industry are
really strict. Also, to enter into the jewelry industry, one requires skilled
manpower for the reason that it is an essential thing in this regard. The
last but not the least thing that makes the threat of new entrants
medium for this industry is advanced technology requirement, which is
really essential to enter this marketplace.
 Analyzing all these forces for your business will assist you to get to know
about all the strengths and weaknesses and then take appropriate steps
accordingly so that you could maximize your success chances.
Thank You!!