Gems & Jewellery
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Gems & Jewellery Gujarat : An Enduring Strong Economy ► Population : Over 50 million (5.0% of India) ► Geographical area : 1,96,000 sq. km (6.2% of India) ► Gross State Domestic Product (GSDP) : US$45.3 billion ► Per Capita Income : US$915 at current prices ► Urbanisation: 37.4% ► High industrial growth : Gujarat has demonstrated a Composition of GSDP as per economic activity high industrial growth rate of 12.5% from 2002 -2007 (2006-07) ► Industrialisation: Gujarat is home to over 800 large 18.2% industries and 3,20,000 micro, small and medium Primary sector 44.0% enterprises Secondary sector 37.8% Tertiary sector Source: Socio Economic Review 2007-08 Gujarat : A Thriving Industrial State Contribution to India's economy Presence across industry sectors Employees 9.5% No. of Factories 10.0% Petroleum products 31.2 % Net value added 14.0% Chemical & Pharma 22.9 % by manufacture Engineering Industries 12.6 % Value of output 15.6% Food & Beverages 9.7 % Fixed capital investment 17.0% Textiles & Apparels 6.5 % Exports 19.2% Mineral based industries 2.9 % Coastline 22.0% Metallurgical Industries 7.5 % Stock market capitalization 30.0% Others 6.7 % Significant share in key sectors & products Soda ash production 98.0% § World’s largest producer of castor and cumin Salt processing 85.0% Diamond processing 80.0% § World’s largest gas based single location sponge iron plant Plastic industry 65.0% § World’s largest producer of processed diamonds Petrochemicals 58.0% § World’s 3rd largest producer of denim Chemicals 50.0% Groundnut 42.3% § Asia’s largest grass root petroleum refinery at Jamnagar Pharmaceuticals 42 % § India’s largest producer of cotton Cotton 35.0% Fabrics 30.0% § India’s first LNG chemical port terminal at Hazira Source: Socio Economic Review 2007-08 Gujarat: Robust Infrastructure Power Dependable power supply –key to industrial development ► Present power generation capacity is 9,628 MW; plans afoot to raise it to 25,000 MW by 2012 ► Per capita power consumption is 1,354 units against the national average of 665 units ► Rich availability of natural gas (34 MMCD) and lignite (1,072 MMT) ► 24-hour 3-phase uninterrupted power supply Gujarat is the only State to carry out interlinking of rivers Water ► An extensive water grid network of 75,000 km for irrigation and drinking ► It will cover 75% population of the state by 2010 Gas Transformation of economy through natural gas ► Gujarat State PetronetLimited (GSPL) supplies piped gas to 13 districts, 5 more districts will be added ► Total length of Integrated Gas Grid will be 2,200 km, of which 1,453 km is complete and the rest is under construction Gujarat: Robust Infrastructure Rail and Road Surfaced road length –one of the highest in India ► State-of-the-art road infrastructure: India’s first National Expressway from Ahmedabadto Baroda ► Total road length is 74, 018 km -95% surfaced road ► Total rail length - 5188 km (8.25% of India) Gujarat Ports opening the gateway to prosperity Ports ► 42 ports along 1,600 km coastline, including 1 major port at Kandla and 41 minor ports ► Landmark projects such as LNG port terminal at Haziradeveloped by Shell India Limited, green field port at Mundradeveloped by Gujarat AdaniPort Limited, LNG terminal at Dahej developed by PetronetLNG Ltd. and Pipapavport developed by Gujarat PipapavPort Ltd Airports Airport connectivity –a cutting edge for business ► 13 airports -Vadodara, Surat, Jamnagar, Rajkot, Bhavnagar, Porbandar, Bhuj, Pipavav, Mandvi, Mundra, Kandla, Palanpurand Ahmedabad(International Airport) The Indian Gems and Jewellery Industry ► The global market for gems and jewelleryis estimated to be worth US$ 85 billion with key markets such as South Africa, Table 1: Indian gems and jewelleryindustry snapshot USA, Italy, Belgium and Israel having registered an average of (2006-07) compound annual growth rate (CAGR) of 5-10% in the last decade Jewellery market size US$ 13.5 billion Diamond jewellery US$ 1.2 billion ► The global market for gold is estimated to be 3,300 tonnes Gold jewellerymarket growth 15% ► India’s exports in gems and jewellerywas US$ 20.89 billion in Diamond jewellerymarket growth 27% 2007-08 ► The sector contributes 13.4% to India’s total exports India’s position in the global market ► 11 out of 12 stones set in jewelleryare cut and polished in ► World’s largest hub for diamond processing India ► Largest consumer of gold in the world ► Diamonds processed in India account for 55% share in terms of ► Second largest producer of gold jewellery in the value, 80% in terms of cartage and 90% in volume, of the total world world market ► World’s largest cutting and polishing industry ► 94% of global workers involved in diamond industry are in India ► Total estimated jewellerysales in India is expected to reach US$ 21 billion by 2010 and US$ 37 billion by 2015 Source: India Brand Equity Foundation (IBEF) Report on Gems & Jewellery, Gems & Jewellery Export Promotion Council (GJEPC) Gujarat: The Gems and Jewellery Hub of India ► Gujarat accounts for 72% of the world’s share of processed Map 1: Gems and jewelleryclusters diamonds and 80% of total diamonds processed in India ► Almost 8 out of 10 diamonds in the world today are Ahmedabad processed in Gujarat Rajkot ► Diamonds processed in Gujarat were estimated to be worth Vadodara USD 9000 million (2004-05), constituting 80% of India’s total Surat diamond exports ► 90% of total diamonds in Gujarat are processed by about 10,000 diamond units located in and around Surat Table 2: Assaying and Hallmarking centres in Gujarat ► Suratis referred to as the ‘Silky City Sparkling with Center Name District Diamonds’ Gujarat Gold Centre Ahmedabad ► The State is home to several Centresof Excellence such as Kesar Hallmarking Centre Ahmedabad the Indian Diamond Institute, which offer courses related to MMTC Ltd. Ahmedabad the Gems and jewelleryindustry ParkarGold Ahmedabad ShradhaAssaying and Ahmedabad ► Surat, Ahmedabadand Rajkot are the major gems and Hallmarking Centre jewelleryclusters Gujarat Gold Centre Vadodara ► Rajkot is internationally known for its unique hand made gold National Center for Hallmarking Surat Indian Diamond Institute Surat and silver ornaments which constitute 85% of the total VG Gold Assaying &and Rajkot jewelleryproduction in India Hallmarking Centre Source: IBEF Report on Gems & Jewellery, 2006, Bureau of Indian Standards Value Chain Analysis Gemstone Jewellery Jewellery Mining processing manufacturing retailing Diamond, Gemstone, Cutting and Design and Studded Gold Platinum polishing fabrication jewellery Expanded Diamond value chain Mining Sourcing Rough trade Processing Gujarat’s presence in the gems & jewelleryvalue chain Mining Processing Fabrication Consumption Diamond Gold Platinum Silver and Others Established presence Emerging centre / market Not applicable in Gujarat Source: Report on “The Global Gems & Jewellery Industry, Vision 2015:Transforming for Growth” Gujarat: Leading Industry Players Company Business description ► Founded in 1969, Venus Jewel is based in Surat, and its businessincludes diamond processing ► They manufacture a wide array of diamonds including round brilliants, emeralds, radiants, ovals, pears, and marquises, ranging from 0.50 cents to 5 carats and above, D to K colours and IF to 13 purities ► In 1996, Venus Jewels developed a grading system –the Venus Grading System based on standardisationin grading and rational price structure ► Pioneered the concept of online stock for increasing sales ► The group’s core business is the export of polished diamonds and diamond studded jewellery and manufacture of diamonds and jewellery ► The group has a large network of marketing offices spanning across USA, Hong Kong, Belgium, Japan, Australia, Canada and Singapore ► SanghaviExports has a hi-tech diamond manufacturing factory, SanghaviDiamond Manufacturing at Surat, which is one of the largest units in Asia ► Key manufacturer and exporter of diamond jewellery ► The Company’s products include diamond jewellery, gold jewellery and loose diamonds ► The group manufactures polished diamonds and diamond jewellery ► Karp’s diamond manufacturing facility is located at Surat Gujarat: Small Industry Clusters Table 3: Gems and Jewelleryclusters Map 2: Gems and jewelleryclusters Region Gems & Jewellery Clusters Ahmedabad Diamond processing, Gold & Silver jewellery Palanpur Surat Diamond processing, Jewellery Ahmedabad Palanpur Diamond processing Khambhat Rajkot Bhavnagar Diamond processing Navsari Diamond processing Bhavnagar Surat Rajkot Gold and Silver Jewellery Navsari Khambhat Gemstone (Agate) Valsad Valsad Jewellery Source: Industries Commissionerate / iNDEXTb, Government of Gujarat, 2007, Indian Diamond Institute Special Economic Zone –SUR SEZ Diamond and Gem Development Corporation Developer Sachin, Surat Area 50 (Hectares) Sector Multi-product Status Functional ►Nearest NH/SH: National Highway 8 (13 km), Navsari- Surat SuratState Highway (3 km) Connectivity ►Nearest Rail Head –Sachin(1 km) ►SuratAirport –15 km ►Nearest Port (JNPT) -260 km ►Support infrastructure such as power, water, drainage, Availability of ►Common Effluent Treatment Plants (CETPs) infrastructure ►JewelleryTraining Institute in the premises ►140 residential dwelling units, schools, medical centres, and recreational facilities Major industries ►Diamond cutting & polishing, jewellerymaking, textiles. located in SEZ home furnishing, healthcare & engineering 162 functional units AdaniExports, ZaveriExports, KK Jewels, Gem Star Co. 31 new units planned Major clients Pvt. Ltd., HimsonInternational,