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India
By Zainab Morbiwala
This is the time of the year when all the industries in India — including gems and jewelry, apparel, textiles and petrochemical — have their fingers crossed. The reason? They are awaiting the Union Budget declaration on whether or not their industry suggestions and requests have been accepted by the Indian government. The budget was released after press time on February 28. The gems and jewelry industry is hoping for the same changes it has been seeking for several years now: revision of the presumptive tax structure and the establishment of special Notified Zones for imports and the trading of rough diamonds. The zones are intended to attract international mining companies and traders to sell rough in India.
As much as the industry does not like the fact, the slowdown in demand in the American and European markets led to a 17 percent drop in gems and jewelry exports in 2012 to $38.3 billion, compared to $46.2 million the preceding year. The numbers were reported recently by the Gems and Jewellery Export Promotion Council (GJEPC). “Demand exists in the market but buying is requirement-based only,” reported Anil D. Shah of Venus Jewel. “Stocking up for inventory is not being done. Supply is short in VS2-and-lower goods. Customer preference seems to be for round, square, emerald, pear and cushion shapes in F to H color and VS2 to I1 clarities. Overall, it has been a good beginning to the year and we have seen some positive signs. This makes us think the recovery has started and makes us hopeful we can take advantage of this movement so it does not fade.” Sharing his views on international demand, Shah said, “We see a lot of potential in China’s market because there will be a huge addition to that country’s middle class in the next three years, who could well serve as potential customers for the gems and jewelry industry.”
The India Trade Promotion Organisation (ITPO), along with GJEPC and the Ministry of Commerce and Industry, announced a collaboration to organize the First India Gems & Jewellery Fair (IGJF), to be held in New Delhi from April 6 to 9. Targeted directly at consumers in New Delhi and the northern region of the country, the fair represents GJEPC’s first foray into Business-to-Consumer (B2C) exhibitions after having successfully organized various Business-to-Business (B2B) exhibitions in India, as well as other countries. The ITPO and GJEPC have agreed to host the exhibition for the next three years, with plans to take it to an international platform in future years. GJEPC also announced that its signature event, India International Jewellery Week, will be held in New Delhi for the first time in 2013, from April 4 to 5. After receiving a phenomenal response to the event in Mumbai over the past three years, GJEPC was keen to extend it to the capital city of New Delhi. At the Gitanjali Group, it is “party time” with a good report card for its most recent quarter. Commenting on the company’s performance for the nine months that ended on December 31, 2012, Mehul Choksi, chairman and managing director of Gitanjali Gems Ltd., said that the company achieved net sales of $2.16 billion versus $1.65 billion in the corresponding period year on year, an increase of 30 percent. The company’s net profit increased to $87 million from $70.8 million, for a growth of 23 percent. Gitanjali’s online presence served as a valuable tool, with a marked increase in the number of people purchasing jewelry online, which supplemented purchases from brick-and-mortar retail formats. In international markets, occasions such as Thanksgiving, Christmas, Cyber Monday and the New Year witnessed a strong surge in sales backed by store promotions and first-class service in retail outlets. Crediting a positive consumer mood in the U.S., the company said that Samuels, Gitanjali’s retail arm in the U.S., witnessed a 9 percent rise
in sales.
Since its inception, the Gem and Jewellery National Relief Foundation (GJNRF), the corporate social responsibility (CSR) arm of GJEPC, has concentrated on providing relief to areas torn by natural and man-made calamities, including war, floods and earthquakes. In one project, it helped 25,000 families cultivate 25,000 acres of rice to feed themselves following a disaster. Gitanjali’s two largest CSR initiatives are Saksham, which provides training and employment to people with disabilities, and BETI — which translates to “daughter” in English — a program that opposes a wide range of atrocities against women. Venus Jewel has focused on education and water. It contributed to the Computer Engineering Faculty at the Sarvajanik College of Engineering and Technology (SCET) in Surat, educational institutions in North Gujarat and South Gujarat, water development projects in Saurashtra and the rescue of animals and people during severe famines.Article from the Rapaport Magazine - March 2013. To subscribe click here.
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