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APRIL–MAY 2020

INTERNATIONAL BI-MONTHLY GJEPC MAGAZINE

Cornered by Covid-19 GJEPC Fights Back

FUTURE OF BUSINESS AFTER COVID-19

FEATURING VIEW POINT I POLICY MATTERS I INDUSTRY INSIGHT I SPECTRUM I ON GROUND I DEMAND MAPPING I DESIGN INSPIRATIONS I INTELLIGENCE I EVENTS I THE REAL GEMS gjepc-Apr 20-final-F-V2-Digital-NEWORDER.qxd 5/18/2020 8:54 PM Page 2

GJEPC Board

INTERNATIONAL Chairman Bimonthly magazine of the Gem & Jewellery Export Pramod Agrawal Promotion Council Vice Chairman Gem & Jewellery Export Promotion Council, Colin Shah Tower AW 1010, Bharat Diamond Bourse, BKC, Bandra Promotion Marketing & Business Development – East, Mumbai – 51 Sub-CCommittee

Phone: +91 22-26544600 Convener – Milan Chokshi Toll-free number: 1800-103-4353 Co-CConvener – Russell Mehta Missed call number: +91 7208048100 Member – Ankit Mehta Member – Rajiv Mehta Website: www.gjepc.org Member – Nirupa Bhatt Facebook: GJEPC Member – Shailesh Sangani Member – Prakash Pincha Twitter: GJEPCIndia Instagram: gjepcindia Executive Director Sabyasachi Ray April–May 2020 PMBD, Director Disclaimer: Dolly Choudhary This disclaimer informs readers that the views, thoughts, and opinions expressed in the magazine belong solely to the authors Consultant – Editor and are independent in nature, and not necessarily to the authors’ Shanoo Bijlani employer, organization, committee or other group or individual. Consultant – Associate Editor Regan Luis Times Group A division of Consultant – Editor, TGB Books Bennett, Coleman & Co. Ltd. Vinita Bhatia The Times of India, First Floor, Gulab Bhawan, 6, Bahadurshah Zafar Marg, New Delhi-110002 Designer, TGB Phone: 011-40738253, Email: [email protected]; Subhasish Munshi www.timesgroupbooks.com Cover Jewellery: Van Gelder Indian Jewellery gjepc-Apr 20-final-F-V2-Digital-NEWORDER.qxd 5/18/2020 8:54 PM Page 1 gjepc-Apr 20-final-F-V2-Digital-NEWORDER.qxd 5/18/2020 8:54 PM Page 2

CONTENTS

04 Cover Story: Future of business after Covid-19

18 View Point: To mitigate Covid- 19’s economic effects – GJEPC releases `50 crore corpus, liaises with government for relief measures

29 Industry Insight: WGC’s India MD, Somasundaram PR discusses the new gold policy amid 27 contemporary challenges Policy Matters: Customs duty woes – Creating awareness about rules, procedures and documentation 33 Spectrum: Change of Guard at GIA 39 News from GJEPC Demand Mapping: Middle East 37 buyers increasingly prefer modern designs that can be 38 Export Data worn repeatedly gjepc-Apr 20-final-F-V2-Digital-NEWORDER.qxd 5/18/2020 8:54 PM Page 3

43 Design Inspirations: Sisters Fleur Damman-van Gelder and Noëlle Viguurs are fascinated with traditional Indian jewellery

Intelligence: Global retail’s slowdown 47 could worsen following worldwide lockdowns 50 MSME Diary: GJEPC’s series of seminars for MSME jewellers and karigars 53 On Ground: GJEPC GTL Jaipur’s MoU with eBay for certifying its sellers and 55 Events: IIJS Signature 2020 other activities – Exuding positive vibes

66 Trends

Artisan Awards 2020: Toasting The Real Gems: Kantilal Chhotalal 68 talented jewellery designers 76 and Mahendra Brothers

Business Knowledge Forum: AI’s Global updates 72 potential to help companies grow 80 gjepc-Apr 20-final-F-V2-Digital-NEWORDER.qxd 5/18/2020 8:55 PM Page 4

FUTURE OF BUSINESS

COVER STORY COVER AFTER COVID-19

Post the lockdown, returning to work will be defined by strict hygiene compliances and taking cautious and calculated risks. Solitaire International spoke to a handful of government and industry stalwarts for their views on prerequisites for getting back to business post Covid-19

ovid-19 is an unforeseen and expected to return to normalcy within four unprecedented situation that has turned months. Luk Fook Jewellery in region reported Cthe world upside down. And like every improved sales for the first two weeks of April. major disruption, it is pushing the industry’s Closer home, Jaipur’s EPIP and SEZ Zone 1 boundaries of resilience. The industry - be it and 2 have started production. Surat Hira Bourse, miners, manufacturers, retailers or wholesalers - too, has exported 10 shipments while Surat SEZ will have to gear up for a world where the old has started operations in eight units. norms will have to be reframed. Pramod Agrawal, chairman, the Gems and Instead, new rules and different social mores Jewellery Export Promotion Council (GJEPC), will have to be put into place. Resuming said, “The Indian gem and jewellery industry has operations in the midst of a pandemic requires a a backlog of over $1 billion-worth of orders. This lot of thinking through and courage - because this needs to be delivered soon, or else there is fear of virus, so far, has no cure. losing business to neighbouring countries like Already, the world over, the gem and jewellery China or Thailand, as both the countries are industry has started resuming operations gradually operational. We are in talks with the Maharashtra and with caution. The wheels of the global government to allow minimal operations at economy are slowly starting to turn again. SEEPZ, Bharat Diamond Bourse (BDB), etc., Lucapa Diamond Company announced which are the most prominent export zones in recommencement of scaled mining operations at India. GJEPC along with the Bharat Diamond Angola’s Lulo alluvial diamond mine. Similarly, Bourse is working with Maharashtra Industrial in South Africa, Petra Diamonds said it was Development Corporation (MIDC) to formulate permitted to ramp up to 50% of labour capacity an SOP to commence minimal operations at during the nationwide lockdown. Though stores BDB, while complying with Covid-19 safety in China are not open fully, the country is guidelines set by the state government. At the

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same time, GJEPC, along with the SEEPZ endeavoured to put together a holistic view of the authorities, is pursuing the state government to way forward through interviews with officials commence minimal operations with the objective from the government, mining segment, to clear backlogs by adhering to the guidelines.” marketing and jewellery retail. (See page 16 for the latest updates about the state As the business world slowly awakens from the government permitting gems and diamond never-ending nightmare that is the Covid-19 business to resume limited jewellery operations). pandemic, there is a universal understanding and Colin Shah, vice chairman, GJEPC, stated, acceptance that things will never be the same again. “This industry has emerged from every crisis It is essential to remember that Covid-19 is – more resilient. This time, it will take longer to first and foremost – a humanitarian crisis, not find the new normal, which could be about 20% purely an economic one. It should be below the pre-Coronavirus level in value terms. acknowledged that the GJEPC had made health The industry collectively took a decision to halt care its top priority years earlier when it rough diamond imports for a month starting from launched the Swasthya Ratna health insurance May 15th, 2020 to stabilise diamond prices and scheme for employees of member companies. clear the existing inventory.” This was followed a few years later by the While there’s a definite buzz in the industry to introduction of the Swasthya Kosh health restart, a conscious effort will have to be insurance fund for the large number of undertaken to realign old ways with new ones. independent jewellery artisans who hold the To shed light on the situation, Solitaire has Parichay Card. 

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UNITE TO SURVIVE Once the lockdown is lifted, the gem and jewellery industry needs to ensure that its massive workforce starts to slowly return to work and get the economic engine back on track.

Along with government initiatives, the industry should also unite to help and protect the precious human resource.

RUPA DUTTA, Economic supply chains of various sectors and jewellery where the products are also Advisor, Ministry of Commerce and industries. Restrictions on travel by high value items. Industry, Government of India many countries have resulted in The future of all businesses cancellation of business events, including the diamond, gold and The future of the diamond, gold deferment of committed orders, gemstone industry remains and gemstone industry remains reduced demand, elongation of uncertain till some certainty is uncertain, and it will take some time receivables, etc. reflected on controlling and before we see exports revive. What Further, rising uncertainties and containment of the Covid-19 steps can the industry take to resume fear of severe value loss along with pandemic. It will take some time operations and revive the industry’s the prospect of instability in business before we see some revival in moribund state? has aggravated trade sentiments exports. Covid-19’s unprecedented globally. It is severely impacting all However, once the lockdown is impact on business across the globe sectors, especially the export- lifted, the gem and jewellery has completely derailed established oriented sectors like gems and industry needs to ensure that its

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massive workforce starts to slowly this time is just to save the job/work efficient stock-keeping, reducing return to work and get the of the human resources so that they wastage, building a strong client economic engine back on track. For can survive in this crucial period. database and connecting with this, the industry will have to ensure What is the commerce ministry’s potential customers through digital availability of work and job security. plan to support the industry during mediums. Sustaining manufacturing over the these tough times? Besides, the possibility of holding next two to three months will be Both the government and Virtual Fairs needs to be explored. crucial and conserving cash on hand industry must jointly do everything Events can be held using the existing will be the key to survival for most in their power to ensure that jobs are videoconference/teleconference businesses. As such along with saved and families are unhurt by platforms where the exporters, government initiatives, the industry Covid-19’s economic impact. The GJEPC and Indian missions abroad, also should unite to help and protect government has already announced along with prospective buyers can be the precious human resource. several fiscal measures to assist brought on the same platform. traders in this period of uncertainty. What are the commerce Various policy measures/relaxations What about reviving the domestic ministry’s expectations from gems and changes in regulatory market in some months? Could you and jewellery industry leaders? compliance have been initiated to suggest some plans of action to deal The coronavirus’ outbreak has minimise the hurdles faced by the with the pandemic’s ramifications? created an unprecedented situation exporters/industry players and This will depend on how the globally. Humans have encountered facilitate ease of doing business in coronavirus pandemic is contained outbreaks of diseases earlier too, but such a critical time. in the coming months, followed by this is the first viral In a continuous process, the relaxations in lockdowns and outbreak/pandemic of this nature government is coming up with resumption of necessary business and scale. different relief measures for various activities in a phased manner. Even The gem and jewellery sectors from time to time based on after the lockdown is over, millions community has initiated several the changing economic situation in will avoid going to work because of reforms to fight and overcome the the country. While the Government fear, bad health or lack of transport. Covid-19 pandemic at individual of India has undertaken numerous This shortage of workers will hit industry levels. The Gem & measures and ensure availability of the supply of goods and services. Jewellery Export Promotion facilitating measures to help the Further, there will be a slowdown in Council (GJEPC) has provisioned a industry in these tough times, it is demand in the gems and jewellery fund of `50 crore for the sector out also expected that this industry takes sector and people fearing a recession, of which `21 crore has been steps and devise measures where may put off their purchases. As such, contributed to the ‘PM CARES’ community members support, revival in the gem and jewellery fund. The balance is being spent for sustain and nurture each other. sector will definitely take more time the well-being of the industry, as compared to other sectors. workers/artisans and employees to Are there any new marketing However, the coming festival and help them cope up with the present strategy that the industry should marriage seasons will surely help in strain of the pandemic. focus on, since all the shows and some revival of domestic sales of Now, we expect the industry to events are postponed or cancelled? gems and jewellery. Besides, usage of unite and survive this crisis by taking During the lockdown, the entire digital gold and other financial care of its workforce. We hope from world conducted business via video instruments, including the existing that daily wagers are paid minimum conferencing calls. The integration Gold Monetisation Scheme, should wages required for survival till work of technology in daily business will be explored. Focus on promoting sale is resumed. Additionally, the industry continue to grow in coming years. of low cost and high value addition is expected to protect its employees’ Now more than ever, the use of data jewellery such as imitation and silver pay and job by availing reserves and analytics will be crucial for jewellery through e-commerce will created for such purposes or by any studying sales information, analysing help in creating demand as well as other means. The utmost priority at customer behaviour, maintaining increasing margin of profit. 

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EMBRACE THE DIAMOND INDUSTRY’S RIPPLE EFFECT Global diamond demand from the cutting centres may decline by 50-60% in 2020! By CHAIM EVEN-ZOHAR AND PRANAY NARVEKAR

he now inevitable economic slowdown bankruptcies, the enormous unemployment will impact the entire diamond pipeline, which we will face in the post-corona era, the Tbut each phase will be impacted in a recession (if not outright depression) in the different way - with the diamond cutting centres United States, the uncertainties about renewal of taking the more severe beating, only second to coronavirus attacks (new peaks in winter), the the producers. The economic phenomenon that 10% or maybe higher decline in global GDP, will explains with considerable certainty the ways reduce the level of income and the savings of diamond and players are going to be affected is virtually all consumers. the “ripple effect” - a theory that has proven itself over time within our industry. EXCESS DISPOSABLE INCOME WILL FALL If diamond jewellery retail consumption OR DISAPPEAR declines by only 15% by the end of 2020, I think The liquidity crunch and economic uncertainties we should consider ourselves extremely lucky. It are greater (and globally wider) now than they is likely to be higher. We better prepare ourselves were in previous crises. The de-stocking by the for more. The “destruction” of trillions of dollars retail trade and in the jewellery manufacturing globally as a result of stock market crashes and sector, the resultant decrease in demand for

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polished diamonds and destocking in the cutting let’s say 5%, could well trigger a correspondent centres, will have a most severe negative impact rise of industry rough diamond off-take of some on the rough diamond market. We are facing 15-20%. already a significant fall in rough demand, The reverse may also be true, as we have seen downward pressures on rough prices, shortage of in 2001: a small decline in retail sales, in liquidity and reduced pipeline profitability conjunction with negative trade sentiments, may (especially on the level of the producers). cause a substantial fall in demand for rough and Consumers may not have any money left to cutting centre polished diamond sales. This purchase luxury items. Diamond jewellery will be occurrence is known as the ‘ripple effect’ and the impacted. Before explaining how the “ripple ‘reverse ripple effect’. effect” (economists also refer to this as “bullwhip How does this phenomenon manifest itself? If effect”) works, allow me a graphic illustration: it takes an average of 22-26 months for a diamond Another way to look at the ripple is shown in to move from ex-DTC level to the consumer, the following illustration. It shows how a small this means that the total normal pipeline stock change (volatility) at the retail level can create level is $36-$43 billion (rough and polished, enormous wave as the cutting centres and rough expressed in wholesale polished prices). This diamond production levels: figure is of vital importance and means that at the

HOW THE RIPPLE WORKS retail level it takes almost one year for the The ripple works both ways - both in a growing inventory to be turned over (in some places it is and in a falling market. It is premised on the facts slightly shorter). that under certain circumstances, increases of If consumer purchases of diamond jewellery diamond retail sales of a few percentage points, decline, as we expect will happen in 2020, the

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need for the retailer to replenish stocks falls 10% (in this hypothetical view by 31%). What accordingly. Depending upon trade sentiment, he happens in the retail sector also occurs in diluted will also be satisfied with a lower level of stock. form at each stage of the pipeline, and this causes Thus, a small reduction in retail sales will trigger a steep rough diamond sales fluctuations in the far greater decline in the level of replenishment. cutting centres. These dynamics will be repeated at every One of the problems the industry is facing this intermediate level of the diamond pipeline. This time around is the suddenness and severity of the explains why even a 2-33% decline in the diamond economic crisis caused by the corona pandemic, jewellery retail market, coupled with a negative introducing exacerbating factors. The total trade sentiment, can cause a 20-330% reduction in standstill of the supply chain. Diamonds cannot cutting centre sales. move from mine to sorting centres and to sales This is the ripple effect. Take a hypothetical offices. Half the world is in lock-down. Business example (see following table): A retailer whose has come to a halt at each level of the pipeline. stock turns around once a year has an opening We are mostly concerned with the industry’s stock of diamonds of $100,000. His sales also “front line”: the retailers. In Europe and the US totalled $100,000. In the next year, he sells there are already reports about credit lines being $120,000, ie a 20% increase on the preceding slashed - when a retailer doesn’t make sales he year. Being optimistic about the future, he wants also will not have the funds to replenish, thus he to have a stock of $120,000 at the year-end. simply won’t. He will have less goods to offer - Consequently, his diamond purchases went up and will sell even less. A bad year will dampen the that year by 40%, from $100,000 to $140,000. retailer’s confidence. Whatever happens, given Now let’s look at a different scenario in which the negative sentiments, he will replenish at the market falls. In the third year, the retailer’s significantly lower levels in the year or years sales declined by 10% to $108,000. Because of his ahead. now pessimistic view of the economy, he feels That’s the Ripple Effect at work. As this still that his stock level should be adjusted in line with early stage we can only quote the stewardess his sales volume. In such a year, the retailer’s (when we still were allowed to fly) who diamond purchases from his wholesale supplier demanded that we fasten our seat belts and sit would plummet by a figure much greater than tight. We are in for a very bumpy ride. 

HYPOTHETICAL DIAMOND RETAILER’S SALES AND INVENTORY MOVEMENTS Year Opening stock & Purchase Sales Sales Closing Sales Sales/Stock & Purchases (US$) Change (%) (US$) Change (US$) Stock (US$) Change (%) Ratio

1 100 100 100 100 1.0 2 100 140 +40 120 +20 120 +20 1.0 3 120 96 31 108 -10 108 -10 1.0 4 108 122 +27 115 +6 115 +6 1.0

CHAIM: INDIA WILL EMERGE Group); Hitesh Patel (Dharmanandan STRONGER FROM THIS CRISIS Diamonds); Vipul Shah (Asian Star and The Gem & Jewellery Export Promotion Council incumbent vice chairman of the GJEPC) and (GJEPC) organised a Webinar on “Indian Russell Mehta (Rosy Blue). The session was Diamond Industry: The Recovery Options” on moderated by GJEPC’s diamond panel convener, April 27, 2020. Sanjay Shah. The session included Chaim Even-Zohar, 3,082 participants joined the session from eminent industry journalist and analyst. He was across the world. Covid-19 has snowballed into accompanied by industry stalwarts from leading an unprecedented calamity and India, the world’s companies, including Dinesh Lakhani (Kiran largest manufacturing cutting and polishing hub,

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has been reviewing and taking stock of the market. The midstream needs to make more situation, contemplating, and implementing profit because it’s them who is taking most of measures to adapt and adopt new ways of doing the risk. business.  Post Covid-19, there may be a short-term The collective initiative in the form of pent-up diamond jewellery demand from suggestion by Indian diamond industry to impose postponed weddings. The industry will see a a month-long self-disciplined moratorium from flare of activity, but this will not translate into a May 15, 2020 on rough diamond imports is the renewed replenishment from cutting and first step to ensure that the supply chain pipeline trading centres, certainly not immediately. is not overburdened.  This industry has come out of every crisis more resilient, this time it will take much longer to HERE ARE SOME OF CHAIM’S KEY POINTS find the new normal, which could be about 20- AND TAKEAWAYS FOR INDIAN 30% below the pre-corona level in value terms. MANUFACTURERS:  India realistically requires a three-month  Over 30 years, rough sales have gone up, but moratorium on rough diamond imports. the diamond content in jewellery at retail has Voluntary curtailment will bear good results. remained the same. Though money is being  No one knows what polished prices will be made from high turnover and greater post Covid-19, so don’t overproduce. Be production, the midstream value addition has resilient and add value to the midstream. remained constant at only $5 billion.  Don’t compete with each other and don’t  India has a monopoly in cutting and polishing undersell polished goods. Restore price diamonds, so it should have more leverage and stability, and stop being too fixated on power over pricing. manufacturing for volume. Nobody should sell  Producers have long considered diamantaires to at a loss. be merely their distributors and dealers. And so,  Change the mind set and go for profit. Make it in a crisis, it is always the manufacturer who commercially viable since the industry has will go bankrupt. enough rough in India to last until end of 2020  A recent Bain & Co. report shows mines are - there is approximately $2.5 billion-worth of earning about 19-21% operating margin; polished in the pipeline. Stop over-producing retailers about 20%, and midstream is anywhere and competing with each other to the point of between -3% and +2%, despite taking the bankruptcy. maximum pipeline risk. So, what’s the return  India will emerge stronger from this crisis - but on capital? focus on marketing, along with bodies like the  The midstream should not go back to the status GJEPC. Educate people, hold town halls and quo post corona because it was not making take marketing very seriously. money.  The time has come that producers should share  Use coronavirus pandemic as a turning point the financial burden by offering credit to and become more united. If the industry manufacturers. leverages its collective strength, it will be the  Think about new, innovative marketing ideas, most powerful segment of the pipeline. The people are spending time productively – in nine midstream is taking a huge risk, it doesn’t know months there will a baby boom.  what the polished demand will be in the

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MINING PERSPECTIVE At the March trading session Alrosa reduced the mandatory buyout limit for long-term contracts to 50% even before the session began. Clients were allowed to purchase not less than 40% immediately and postpone buying of the rest (up to 10%) until the end of May 2020

of protective suits for drivers of our joint ventures and subsidiaries. The company provides maximum protection for employees. Administrative staff switched to ‘working from home’ regime where possible.” In times of crisis such as this, the mining companies have tried to minimise the burden on its clients. For instance, at the March trading session Alrosa reduced the An international travel ban added to the miners’ woes as rough diamond stocks couldn’t reach the market. mandatory buyout limit for long- term contracts to 50% even before he Covid-19 pandemic hit cutting and polishing operations, the session began. Clients were the mining industry as well had to put facilities in the state of allowed to purchase not less than T– production was scaled Gujarat on hold to limit the 40% immediately and postpone down, operations froze, and part infection’s spread. This has a direct buying of the rest (up to 10%) until owner of Canada’s Diavik and Ekati, impact on the demand for rough the end of May 2020. Dominion Diamond Mines was diamonds. At the same time, we are “It’s worth noting that we were forced to seek creditor protection seeing a slump in consumer demand the only large diamond miner with a under the insolvency law. An for diamond jewellery in developed trading session in March on international travel ban added to the economies, with stores temporarily schedule. Moreover, we supported miners’ woes as rough diamond closed and overall sentiment fading.” our clients with full flexibility for stocks couldn’t reach the market. What are some challenges that the April 2020 trading session, In an email interview with Alrosa is facing on a day-to-day lifting mandatory buyout Solitaire International in April, Alrosa basis? “Every day, Alrosa makes requirements. Clients were free to stated, “Our business is closely every effort to be prepared and to defer up to 100% of (rough connected with travel, and travelling provide safety and, if necessary, diamonds) allocated for April restrictions imposed between treatment for its workers and all the volumes to forthcoming sales countries put on hold traditional people in the regions where it periods of 2020 if they didn’t have diamond trade that implies experts’ operates. Recently, it invested over an opportunity to purchase goods at visit to diamond miners’ offices to 200 million rubles (approx. $2.7 the time of session. Those who were analyse offered goods.” million) to counteract the spread of interested in buying rough, could The lockdowns enforced in India Covid-19. We purchased lung apply for the required volumes.” and other countries impacted ventilators with monitors and Due to the global situation, the Alrosa’s business. “Main diamond concentrators for them, bactericide company decided to cancel the trading centres and hubs around the units, thermal cameras, recirculators, upcoming auctions for special-sized world had to close under quarantine non-contact thermometers, masks (over 10.8 carats) rough diamonds, and social distancing rules. Indian and protective suits, medicines. All simultaneously offering customers to authorities, who account for more this goes to equip our doctors and take part in a digital tender if they than 90% of the world’s diamond hospitals. We also launched sewing need such rough. 

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DPA PERSPECTIVE The Diamond Producers Association has introduced an e-learning platform wherein retailers educate staff during the current period

hile it may be difficult at this time to have consumers thinking of jewellery, David WKellie, CEO, Diamond Producers Association (DPA) believes that diamond jewellery is well positioned to connect with consumers as the world starts to open up. “Consumer respect and appreciation for all things natural will be enhanced by the crisis. Also the desire for a connection between friends and loved ones as we come out of isolation will grow. Both trends will favour natural diamond jewellery.” In order to show support to the trade community, DPA has introduced campaigns in various markets worldwide. These initiatives will be focused on skill building, keeping the trade engaged and encouraging consumers to support local jewellers. One such initiative is the Jeweller Support Network that was launched recently. It is a coalition of bodies, resources and skills, bringing together the Diamond Producers Association, the National Association of Jewellers (NAJ), the Company of Master Jewellers (CMJ), Houlden Jewellers, the London Diamond Bourse, the Goldsmiths’ Company, the Goldsmiths’ Centre, the Society of British Jewellers, the Women’s Jewellery Network (WJN) and the Responsible Jewellery Council (RJC). DPA’s initiatives will be focused on skill building, keeping the trade engaged and encouraging consumers to support local jewellers. Its goal is to minimise the damage and disruption caused by Covid-19 by directing small and large business consumers, building positive conversations around owners to relevant resources, including government natural diamonds. The current situation has given us financial advice, e-learning resources and trade-specific time to re-think our strategies and introduce new ways opportunities. Kellie stated, “For easy access, we have to leverage technology to engage with consumers and taken the digital approach through a dedicated web page trade alike,” he said. and Instagram account. We’re also working to provide Kellie further added, “The digital medium is the educational materials, webinars and other assets to most powerful tool we have at our disposal today. When independent jewellers to help them make the most of people are stuck within the confines of their homes, this challenging time.” they are turning more and more to technology to keep The DPA has introduced an e-learning platform themselves abreast of the happenings around the world, wherein retailers educate staff during the current period. connect with their loved ones and keep their minds “The e-learning initiative has received an extremely engaged. We are leveraging not only our social media positive response from trade partners. As physical platforms to keep alive the interest and desire for natural presence in stores is minimal, this is the ideal time for diamonds, but also placing relevant advertising messages sales staff to upskill and train in new ways of reaching on over-the-top (OTT) platforms.” 

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RETAIL PERSPECTIVE The jewellery retail trade has already started witnessing a huge drop in the cash-flow due to the ongoing lockdown. Banks have already cut exposure to the jewellery industry. There is liquidity crunch in the industry and the prevailing crisis will compound the scenario further. In the present scenario, private equity investors may not be bullish about investing in the jewellery trade. So, unless the jewellers show value to the investors and banking institutions with sustainable business models and regulatory compliance, and the government offers relaxation in loan repayment norms, the industry will continue feeling the liquidity pinch.

VINOD HAYAGRIV, managing director, C Krishniah Chetty & Sons (CKC), Bengaluru

ygiene and sanitisation will be the new watchwords Hafter the lockdown is lifted, especially in the retail segment. Hayagriv is of the opinion that it is imperative to follow the stipulated guidelines set up by the government and World Health Organisation (WHO). The company has demarcated social distancing marked areas for its customers who will visit the showroom for shopping. “Our sales staff will wear masks, gloves and transparent visors to protect our CKC & Sons hopes to gain more business traction on its CKC Live video-based shopping. It will pay home clients at all times.” visits where requested once vehicular movement is permitted. In the retail segment, nearly 70% of costs constitute rents, staff salary, our teams. It’s a sacrifice for all of us. its online activities. “We will be etc. Given the fact that overall We as directors are reducing our making a better sticky app as well, consumption will continue to remuneration to 50% for the next and increase our batches from the remain impacted for at least four to three months. Our goal is to ensure current 5,000 or so to around 7,500 six months, sustenance will be an all other services, manufacturing, to allow for more essential purchases issue for most retailers. “We will vendor payments are not delayed being available online. We also have have to observe on a week-by-week beyond unavoidable limits due to CKC LIVE video-based shopping, basis. In order to see the revenues lockdown, and we will make and are hoping to get more traction build, we are looking to defer or payments from our contingency there. We will pay home visits waive rents wherever possible,” funds and reserves. We are a where requested and as vehicle noted Hayagriv, adding that fixed conservative company otherwise. So movement allows.” salaries will be paid in full without we will continue to be cautious in The pandemic is expected to delays even during the lockdown. our expenditure till normalcy create a deep liquidity crisis post the “While variables will be tempered returns. We may not reduce all lockdown. Hayagriv hopes that the in keeping with sales, and if and marketing expenses but will be banks, RBI, and the government when the sales return to ‘normal’ we tempered to sales,” Hayagriv stated. will take more steps that will help hope to share the gains back with CKC is gearing up to strengthen businesses better. “We hope our

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representations will be heeded by `50,000/- per month without limit honourable Finance Minister should the government quickly,” he stated. of number of employees; no be reviewed and extended, if His wish list for extended imposing of penalties for delayed required, based on the situation going working capital credit lines include, statutory payments and statutory forward; and reducing Customs duty extending gold loan repayment to compliances; extending time to hold or alternately crack down heavily on 365 days from current 180 days; board and general meetings and smuggling of gold which is a menace waiving interest on working and other secretarial compliance to organised business.” term loans and gold loans for three requirements by three months; Post Covid-19, CKC’s objective months; allowing EMI payment for refunding all income tax, Customs is to offer a lot more value to the jewellery purchases to consumers; duty and GST refunds within one client - not by way of discounts, but allowing all tax disputes, if any, month; extending additional by getting more active on social including search cases, to be paid funding facilities to businesses to the media and digital platforms. “But without interest if assessed tax is extent of 20%, if businesses warrant. going forward, we hope to reach paid within three or four months (if “In fact,” Hayagriv noted, “all 80% of normal sales in about three the assesse does not intend to appeal banks, private and nationalised, could months, depending on how the the case); extending PF payment extend similar facilities. Other easing of the lockdown is schemes to all employees up to benefits already given by our strategized,” Hayagriv predicted. 

S AHAMMED, chairman, Malabar Gold and Diamonds, Kozhikode, Kerala

Every crisis - even the ongoing Covid-19 pandemic - presents an opportunity to reflect on the journey so far and reorganise the strategy. Ahammed commented, “While battling with the crisis, we have realised how important it is for Malabar Gold and Diamonds will relook at its supply chain strategy, product strategy and customer the business entities to develop a acquisition strategy to achieve market competitiveness and strengthen business sustainability. sustainable business model to withstand such sudden shock. Going streamlining our operations and the government should extend loan forward, we’ll intensify our focus on enhancing our cost-efficiency. We repayment tenure under the Gold environmental, social and need to be cautious while deploying Metal Loan by 180 days. “Deferring governance aspects while taking key and managing our assets as cash-flow the GST return will also boost trade business decisions.” is affected by the nationwide sentiment. Extending working In general, the margins have lockdown. We will relook at our capital credit lines to the jewellery always been under pressure in supply chain strategy, product industry with flexible terms is a great jewellery retail due to rising strategy and customer acquisition trade booster for the organized overheads and input costs coupled strategy to achieve market segment of the industry. The with weak consumer sentiment. The competitiveness and strengthen government should initiate a scenario has become even more business sustainability,” Ahammed dialogue with the jewellery trade challenging due to the Covid-19 opined. bodies to create the ground,” he impact on the economy. As a result, Tax relaxation measures will stated. Malabar will be focusing on the business growth prospect has improve capital adequacy in the enhancing their already established become further constrained. businesses in this time of crisis, digital platforms to enhance “Therefore, we have to focus on Ahammed believed, and says that consumer engagement and loyalty. 

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SOME CHEER AMIDST THE GLOOM

The Ministry of Commerce and Customs department worked relentlessly for gearing up gems and jewellery exports amidst the covid-19 lockdown. The State Governments have allowed limited diamond and jewellery operations during the lockdown at Mumbai, Jaipur, Delhi, Surat and Chennai

housands of gems and from the members worth $550 jewellery exporters in Gem and jewellery million from 1673 consignment TMumbai heaved a breath of industry’s exports parcels, while SEEPZ is expected to relief as the government of $1bn worth is export $10 million worth of Maharashtra allowed designated diamond exports from 50 units. export units of diamond and pending On the other hand, Surat jewellery to begin their operations in Diamond Bourse and Jaipur Mumbai. However, considering the This move is significant as gems resumed work after a gap of almost ongoing covid-19 pandemic, the and jewellery export operations will five to six weeks. These centres are state government has permitted commence in Mumbai’s Bharat operational by adhering to the limited workforce in these jewellery Diamond Bourse and SEEPZ, two covid-19 safety guidelines set up by export units. Additionally, transport of India’s largest jewellery export Gujarat government. The Gem and of the employees will be the designated zones. Also, it is believed Jewellery Export Promotion employer’s responsibility during the that Bharat Diamond Bourse has Council (GJEPC), along with other lockdown period. received export interest applications trade bodies, has been pursuing state

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and central government to make all the gems and jewellery exports and added Pramod Agrawal. major gem and jewellery centres we as an industry thank them for At Surat SEZ, operations of G&J operational across India. This will their constant support. As a result, units commenced post 27 April, clear the backlog of orders from the cancellation of orders were 2020 with the first export of gems pre-lockdown period. minimised from Mumbai SEEPZ, and jewellery commodity taking Pramod Kumar Agrawal, Surat Diamond Bourse and Jaipur.” place on 5 May, 2020. Eight units chairman, GJEPC said, “This is a Jaipur is another important centre started their operations in Special great step by the Maharashtra for gem and jewellery wherein on an Notified Zone, Sachin, Surat and government as it will help average daily seven to eight two export shipments worth commence the exports of gem and shipments take place from ACC, `109.12 lakh was cleared in first jewellery from Mumbai and clear week of May, 2020. ACC, pending orders. I would like to Ahmedabad cleared 10 shipments in express my gratitude to Chief We would make sure that all April, 2020 worth `18.8 lakhs. Minister, Uddhav Thackeray, and factories and units are operational Surat Hira Bourse is facilitating officials from the CMO for this following strict guidelines of exporters in clearance of shipments landmark decision. I also thank maintaining social distancing and and exports to Hong Kong has been Piyush Goyal, Union Minister of ensuring frequent sanitisation of possible from Mumbai airport with factory premises, equipment, and Commerce & Industry, Department direct flight/cargo connection. Five workers. of Revenue and Department of units in Gem & Jewellery Park, Customs for the continued support. Ichhapore, Surat have started Bharat Diamond Bourse and SEEPZ operations with minimum strength in Mumbai are major centres that of the staff. have a huge backlog of orders and Jaipur (DTA). Till date, 40 units in One consignment export of gold the industry is happy that these SEZ, Sitapura and 25 units in gems jewellery commenced in May from centres will be operational within and jewellery zone of EPIP, Sitapura Delhi Port and few silver jewellery few days. We would make sure that has commenced their production. exports are in pipeline. Noida SEZ all factories and units are operational DTA has cleared 185 shipments of is also operational. Few units of following strict guidelines of value `22,87,79,565 and from SEZ, gems and jewellery exports in maintaining social distancing and 42 shipments of value `8,81,05,254 Chennai, too, have started ensuring frequent sanitisation of were cleared till May 9, 2020. functioning and exports to resume factory premises, equipment, and “Exports of gold, silver and in May. workers.” imitation jewellery has started. GJEPC and the trade fraternity is Colin Shah, vice chairman, Exports of studded jewellery will thankful to the support extended by GJEPC added, “It has been a also begin soon,” added Agrawal. Ministry of Commerce and collective effort from all the Exporters are using the parcel Industry, Department of Commerce stakeholders that has helped us start services of logistic companies to and State Governments across the gem and jewellery exports. As send consignments as it is cheaper centres. Customs at each Centre of always there has been a tremendous than booking directly on cargo Mumbai, Surat, Jaipur and Delhi support from the Ministry of flights following an increase in air have been providing continued Commerce & Industry. The freight rates. The parcel sizes are also assistance and backing the trade in Customs department has remained smaller compared with usual times, clearing parcels both at Import and open during the ongoing lockdown as the output of factories has come Export. It is expected that the and officials have bravely come down as the factories have not Indian gem and jewellery industry forward to ensure exports to take started in full strength. “Exports of will be gaining back its momentum place. Both the Ministry of gold, silver and imitation jewellery slowly by strictly adhering to the Commerce and Customs has started. Exports of studded Covid-19 safety guidelines set up by department worked relentlessly for jewellery will also begin soon,” Government. 

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CORNERED BY COVID-19

To mitigate Covid-19’s economic effects, GJEPC has taken several proactive steps. These include setting up an `50 crore corpus from its own reserves for welfare measures and liaising with global trade bodies and apex industry organizations to ensure that price stability and supply and demand equilibrium are maintained. Moreover, it is constantly interacting with authorities of central government agencies, to ensure that much-needed relief is extended to the sector, particularly micro, small and medium enterprises By Rashmi Arora and Sabyasachi Ray

hen a report appeared in the South people succumbing to it. These numbers China Morning Post on November continue their unfortunate upward climb. W2019 that a patient from Hubei was To contain Covid-19's rampant human-to- diagnosed with a novel Coronavirus strain, few human transmission, on March 25, 2020, Prime paid attention to it. Within a month, this new Minister Narendra Modi announced a 21-day disease had spread rapidly across China’s Hunan lockdown. In his public address to the nation, he district, afflicting close to 266 people. That is said that this aggressive step was necessary when the Chinese authorities announced the adding, "If this pandemic is not contained, it emergence of the dreaded Covid-19 virus. could set us back by decades." However, as the Within weeks, the SARS-like virus became cases kept rising, the lockdown was extended to a pandemic, affecting 40,13,728 people across May 3, 2020. To lessen hardship to the public, 203 countries and killing 2,78,993 deaths as and provide economic support to low-income per World Health Organization's report on earners, select additional activities were May 12, 2020. On the same date, India permitted in non-containment areas during the recorded 67, 152 confirmed cases with 2,026 period.”

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GEARING UP FOR SLOWDOWN retail outlets across the country downed shutters While the nationwide lockdown was necessitated to comply with the government regulations and keeping public welfare in perspective, it is also because no customers are visiting their stores. expected to hit the Indian economy, which was After almost a month and half of inactivity, already reeling under sluggish growth for the past brands Tanishq reopened select showroom in few quarters, really hard. Barclays estimates that it green zones in May. To follow social distancing could bring the country’s growth down to 2.5%, norms, it decided to get shoppers to seek from its earlier estimation of 4.5%. appointments before visiting the outlets and The biggest brunt of this economic blow will encourage cashless payments. Kalyan Jewellers, be felt by India’s large MSME segment. too, opened 10 stores in Odisha, Assam, According to Union minister Nitin Gadkari this Puducherry and Karnataka after getting clearance sector accounts for 48% of exports and employs from respective state governments, as did Senco 11 crore people, which underline its sheer Gold & Diamonds which reopened outlets in immensity. On taking charge of the MSME West Bengal, Assam, Odisha and Karnataka. portfolio last year, he had said, “One of the most Moreover, traders have been urged to pay full important things is to raise the employment salaries to their employees to ease the latter’s potential and it is my priority, both in rural and financial woes during the pandemic. urban areas.” Now, with the lockdown and However, MSME entities are now worried widespread global recession looming in the about their own financial challenges in the background, the very survival of MSME players is current scenario. Order books are drying up for under threat. domestic and export business, production cycles Let’s take the case of India’s gems and jewellery are askew, supply chains are disrupted, and the industry. It contributes 7% to country’s’ total financial markets have turned volatile. This GDP and employs more than 5 million in the labour-intensive industry will likely witness work force, with majority of them being in the people being retrenched as the export-oriented MSME domain. Mumbai’s Zaveri Bazaar, which business bears the brunt of this crisis. is acclaimed as the country’s largest gold and jewellery market and is home to many MSME A DISMAL SCENARIO jewellers and manufacturing units, is closed until The Gem and Jewellery Export Promotion further notice. Council (GJEPC) noted that following the When the first lockdown was announced, Covid-19 outbreak, declining rate of gem and

EXPORT TO KEY EXPORT DESTINATIONS WITNESSED A DECLINE (US$ MILLION)

Countries Apr-Nov 2018 Apr-Nov 2019 % Growth (Y-o-Y) Feb-19 Feb-20 % Growth (Y-o-Y)

UAE 7,068.91 6,863.09 -2.91 806.03 1,013.01 25.68 Hong Kong 7,446.57 6,747.66 -9.39 1,466.66 526.59 -64.10 USA 7,348.61 6,411.16 -12.76 716.47 761.93 6.35 Belgium 1,273.00 1,289.47 1.29 138.65 171.39 23.61 Israel 708.72 604.92 -14.65 69.36 123.25 77.69 Turkey 38.27 500.91 1,208.94 74.29 4.03 -94.57 Singapore 389.07 441.61 13.51 62.42 40.71 -34.79 Thailand 393.35 429.99 9.31 56.58 64.84 14.59 UK 455.37 325.00 -28.63 82.62 35.38 -57.18 Japan 278.74 269.88 -3.18 31.00 36.59 18.02 Others 1,417.85 1,366.15 -5.85 185.15 196.84 6.32 Total 26,818.46 25,249.84 -5.85 3,689.23 2,974.56 -19.37

Source: GJEPC Statistics Dept. Analysis

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Mumbai’s Zaveri Bazaar, home to many MSME jewellers and manufacturing units, is closed following lockdown regulations. Traders have been urged to pay salaries to employees to ease the latter’s financial woes during the pandemic

jewellery exports doubled to -11.32% during estimated through its continuous slump in of December 2019 to February 2020 as compared to exports. This has recorded a steep decline of -5.53% registered in the previous quarter. It has -19.37% in February 2020 against a decelerating projected that the gems and jewellery exports rate of -9.17 % in January 2020 and -1.89% in could lose up to a whopping $2.57 billion by end December 2019. of March 2020 due to this crisis. In February 2020, exports of gems and Gems and jewellery exports have been jewellery recorded the highest fall of -19.37% in recording waning trends since the beginning of FY the present fiscal year to $2.97 billion as 2019-20. This can be majorly attributed to factors compared to $3.69 billion in the same period in like a rise in import duty on precious stones – FY 2019. This reflects the impact of coronavirus. namely polished diamonds and coloured gem Overall, in value terms, exports fell by $2.56 stones - tightening of lending terms by banks, billion to touch $33.63 billion during April 2019 stringent customs inspection procedures, sluggish to February 2020 as compared to $36.19 billion import demand and withdrawal of Generalised in the same period last FY 2019. System of Preferences (GSP) benefit by the US. Similarly, cut and polished diamonds, coloured These resulted in exports in this sector declining gemstones and imitation jewellery have recorded by 5.53% during April to November 2019. a significant fall of -40.92%, -64.58% and Challenges for the sector were aggravated with -39.78% respectively in February 2020. It is the Covid-19 outbreak. As the disease spread expected that all other gems and jewellery across continents, manufacturing and trading commodities are likely to witness severe slump as activities were stalled or suspended, business all customs and other operations are currently events were cancelled, confirmed orders were shut in the country. deferred, customer demand lessened and the cycle Exports of gem and jewellery commodities to of receivables became drawn-out. Hong Kong, Turkey, Singapore and the UK have Since this sector is highly export-oriented, the been most affected. Exports to these countries impact of global health emergencies can be before the Covid-19 outbreak in December 2019

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were registering either growth or relatively less to ‘PM-CARES Fund’ pledging its commitment declining growth. In February 2020, exports on behalf of the entire gem and jewellery trade at witnessed a drop of -64.1% (Hong Kong), a time when the nation is facing an -94.57% (Turkey), -34.79% (Singapore) and unprecedented crisis. -57.18% (UK). Additionally, it is liaising with different trade bodies and apex industry organisations across the STEPPING IN TO SUPPORT world, such as the World Federation of Diamond Therefore, GJEPC is addressing regulations, Bourses (WFDB) and the World Gold Council policy and other issues that the respective industry (WGC). These discussions are centred on steps segment is facing. This could provide an impetus that can be taken to ensure that the supply and to tradespeople to recover their business during demand equilibrium as well as price stability are the Covid-19 period and in its aftermath. maintained in these troubled times. GJEPC’s chairman, Pramod Kumar Agrawal, To enable trade during the lockdowns, GJEPC vice chairman Colin Shah and executive director, initiated talks with respective embassies to Sabyasachi Ray have already initiated several organise virtual B2B meets. This initiative can proactive measures to benefit the community. enable buyers of respective countries to connect This includes setting up a `50 crore corpus out of with Indian sellers of various gems and jewellery GJEPC’s own reserves towards welfare measures products. The Council will facilitate this online to be undertaken in the current scenario. The connectivity platform to give exports business Council has also decided to contribute `21 crore some momentum. It is also communicating with

A QUICK RESPONSE

After the Covid-19 outbreak, GJEPC consulted reduced from 18% to 9% business stakeholders, collated opinions on ways 3. The date for Aadhar-PAN linking is extended to mitigate the stress that the industry was to June 30, 2020 undergoing and shared that with the 4. Settlement of IT cases under ‘Vivad Se government. Following this, Finance Minister, Vishwas’ scheme can be done up to June Nirmala Sitharaman, announced these 30, 2020 without payment of 10% penalty measures to reduce the potential impact on the trade: Banking related 1.To help MSME units, the bankruptcy GST related threshold limit has been increased from `1 1. Last date for filing GST returns for March, lakh to `1 crore April and May 2020 is extended to June 30, 2. Bank charges for digital trade transactions 2020 from March 31, 2020 reduced 2. Date for opting for composition scheme is 3. No minimum balance required for extended till June 30, 2020 maintaining bank accounts for three months 3. No interest, late fee or penalty for companies till June 30, 2020 with less than `5 crore turnover 4. Debit card holders can withdraw cash from 4. Interest at reduced 9% rate with no late fee any bank’s ATMs without any charge till June or penalty for companies with over `5 crore 30, 2020 turnover Customs related Income Tax related 1. Customs will work as an essential service 1. Last date for filing Income Tax Return for 24x7 till June 30, 2020 2018-19 is extended to June 30, 2020 from 2.The last date for settlement of customs March 31, 2020 and interest on delayed tax related issues under ‘Vivad Se Vishwas’ reduced from 12% to 9% scheme has been extended to till June 30, 2. Interest on delayed TDS deposited has been 2020, without any penalty interest

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MONTH-WISE GEM AND JEWELLERY EXPORTS TRENDS (IN %)

Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb

-0.33 -1.89 0 -4.35 -4.44

-5 -10.05 -9.17 -3.67 -2.5 -10 -8.02 -15 -10.72

-20 -19.37

-25

COVID-19’S IMPACT ON EXPORTS  Declining rate of gems and jewellery export doubled to -11.32% during December 2019 to February 2020 as compared to -5.53 registered during April to November 2019

 Gems and jewellery export recorded the highest fall of -19.37% in February 2020

 Cut and polished diamonds, coloured gem stones and imitation jewellery are the severely hit key export commodities

 Going forward, all other gems and jewellery commodities would have a challenging time, until business sentiments and consumer confidence are regained

 Exports to key destinations, especially Hong Kong, have witnessed a steep decline

GJEPC Statistics Dept. Analysis

several High Commissions so that exporters of collateral requirement. This will help them get gems and jewellery from India can start supplying their businesses on track once the pandemic is to Switzerland, Japan and Singapore. medically resolved. They can get a further incentive with an additional 2% interest TALKING BUSINESS subvention for a total of 7% interest subsidy. The GJEPC is interacting with various authorities of Council believes that the implementation of these the central government to arrange for much- suggestions will jumpstart export trade and needed relief measures for the sector, particularly protect India’s precious forex earnings. the MSMEs. It is in touch with the Ministry of In its representation to the Ministry of Commerce & Industry (DGFT), Ministry of Commerce & Industry (DGFT), GJEPC Finance (Customs / CBIC / ICEGATE), suggested that the export period be extended by Ministry of Finance (DFS / RBI), Ministry of another 90 days for exporters of gold, silver and Labour and Ministry of Human Resource platinum jewellery, who were obtaining precious Development. metals from nominated agencies on outright One of the recommendations it made to these purchase or loan basis. It also endorsed that agencies includes revising the definition criteria of exports realisation be extended from nine months MSME from the basis of capital investment to to 15 months, which is in line with what was turnover base. In light of challenges in managing done during the 2008 downturn. Goods sent on funds, it has also suggested relaxing NPA consignment basis should be given an extension recognition norms from 90 to 180 days. period of six months. Moreover, GJEPC has proposed priority Usually for replenishment, the exporter can book lending to the MSME segment with only 25% with the nominated agency within 120 days after the

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AN INDUSTRY WITH A HEART GJEPC has contributed `50 crore from its reserves to fund livelihood of daily wage workers of the industry and support the government’s initiatives to fight Covid-19

he Gem & Jewellery industry from this crisis. Daily Export Promotion wage job workers are rendered TCouncil (GJEPC), the jobless due to cancellation of apex body of the gem and export orders. In order to ensure jewellery industry in India, has minimum livelihood to these job come forward to contribute a fund workers, we have proposed to the of `50 crores from its own government that the gems and reserves to help the needy workers jewellery sector be included in the of the industry impacted by list of job works covered under the Covid-19. MNREGA scheme. This will help Under the leadership of Prime them sustain themselves during this Minister Narendra Modi, the GJEPC’s chairman, Pramod Agrawal with vice chairman, difficult time.” Colin Shah. Indian government has initiated every proactive measure to contain the spread of this Here are some steps undertaken by GJEPC towards virus in the country. The Fund allocated by GJEPC will relief measures: also be utilised to support the Indian government in 1. GJEPC has appealed to all its members to take care undertaking several initiatives to fight the current crisis of their employees during the lockdown period as in the country. also stated by the government and demonstrate a Pramod Agrawal, chairman, GJEPC, said, “In our united and humane approach at these endeavour to combat the situation caused by Covid-19, unprecedented times. GJEPC, from its own reserves, has decided to contribute 2. GJEPC has contributed a sum of `50 crore from its `50 crore towards several welfare initiatives to be own reserves to mitigate the impact of Covid-19 undertaken in the current scenario. India’s economic on the industry and nation at large. situation and that of our industry has taken a severe 3. The Council has formed a Task Force to decide on beating. Our businesses are impacted, but those most modalities of utilisation of `50 crore donated by affected is our daily wage worker community. This is an GJEPC by identifying the industry needs and industry that contributes 7% to India’s total GDP and government initiatives to support in the current employs more than 5 million people. It becomes scenario. important and mandatory at such distressing times to 4. The fund allocated by GJEPC will be utilised to take adequate care of our employees and support them aid daily wage workers employed in the gems and wholeheartedly. We have braved many turmoils before jewellery industry whose livelihood is directly and this time will be no different. This is the time to impacted by Covid-19. show solidarity towards our nation and our industry. It’s 5. The contributed resources will also be used for time for us to reveal our philanthropic side once again.” funding specific initiatives undertaken by the Colin Shah, vice chairman of GJEPC, added, “We at government to fight Covid-19, such as creation of GJEPC will leave no stone unturned when it comes to medical facility, health related needs or any other protecting and taking care of the industry workers as they GJEPC urges all sections of the gems and jewellery are the trade’s backbone. We are thankful to the industry, including trade bodies and organisations, to government for announcing certain waiver in compliance come forward and replicate is donation efforts with and tax filings to mitigate the woes of all industries. We generosity. Their support in helping the needy workers have also made representations to the Finance Minister of the trade and funding initiatives of government will and Commerce Minister with measures that need to be go a long way in tackling the Covid-19 crisis and its implemented to revive the Indian gem and jewellery aftermath. 

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exhibition or export promotion tour as against the wherein nominated agencies or banks could items sold abroad. This period could be doubled consider extending fixed value gold loans. It also from 120 days to 240 days for those exporters whose pointed out that the slowdown could impact cash time limit expired on March 1, 2020. flow, affecting traders’ ability to make timely Additionally, as per para 4.80 of the Hand repayment. Hence, there is a need to offer Book of Procedures (HBoP), unsold items in flexibility in revolving the gold loan. overseas exhibitions should be reimported within According to GJEPC, gold metal loans should 60 days of the event’s closing, while the time for be allowed to all manufacturers through ADs. US exhibitions is 90 days. GJEPC has requested This will encourage exports and prevent that the reimport period be extended by a further manpower retrenchment in the gems and 90 days for all countries. jewellery industry. While interacting with officials at the Ministry While making a strong case to the Ministry of of Finance (Customs / CBIC / ICEGATE), Finance (DFS/RBI), the apex body said that the GJEPC proposed that uploading of permissions entire sector should be extended a 7% interest and KP certificates on e-SANCHIT be allowed subvention benefit for at least another year. By for traders who were not registered on ICEGATE providing a special interest-free term loan to 20% till May 21, 2020. Applicants who have started WC limits, the stress on this domain would come the detailed registration process could also be down substantially. Additionally, banks can relax permitted to file the copy of the KP certificate for credit rating eligibility of jewellery companies to export-import till their application is approved or BB level, while capital subsidy of 25% can be rejected. This process usually takes three to seven offered to new projects or those under days on e-SANCHIT, during which time a daily implementation with capital investment ceiling demurrage charge of `5000 is levied, if shipments up to `10 crore. are not cleared. GJEPC has also urged the Ministry of Commerce & Industry to reintroduce WTP HELP FOR ALL immediately for the entire sector. To support GJEPC also made representations to the Ministry MSME exporters, Export Credit Guarantee of Finance (DFS/RBI) for three major topics. Corporation of India (ECGC) can address issues This included interest and incidental charges on like cancellation of orders by buyers or revised export credit. It suggested that this be waived off payment terms negotiated by them. for a period of 180 days up to June 30, 2020 to Similarly, it has urged that SEZ rules accommodate business loss. Similarly, the time pertaining to domestic sales be relaxed in the limit for packing credit for exports could be wake of the Covid-19 slowdown. Permission extended by 180 to 270 days, while the post should be given to SEZ units to sell in the shipment credit could be extended from nine to domestic market after paying necessary duties to 15 months. avoid double taxation. Workers can, thus, retain RBI may contemplate taking up these two their jobs if these units are utilised for domestic recommendations, while including continuation of market production. eligible interest subvention for the extended As the global and national response to tackle period. It may also advise banks to consider ad hoc the pandemic continues, from a medical and 10% to 20% credit facilities. This could be more economic perspective, GJEPC is doing its best to than 10% for firms having term loan servicing respond to the business challenges Covid-19 has commitments. These facilities could help them flung at the gems and jewellery industry. It is meet their fixed overheads like salaries and taxes. constantly communicating with key stakeholders RBI is also likely to issue a notification to relax – government agencies, global trade bodies, classification norms by minimum 180 days. organisations and local traders. All this in a Additionally, GJEPC has requested for proactive bid to minimise the risk of business extension of gold loan repayment by 180 days disruption. 

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ANSWERING QUERIES REGARDING PAYMENT OF WAGES DURING THE LOCKDOWN PERIOD

he Ministry of Home Affairs had issued The relevant extract in the Order inter alia, Order No 40-3/2020-DM-I (A) dated reads as follows: TMarch 24, 2020, whereby the National “Whereas, to deal with the situation and for Disaster Management Authority confirmed the effective implementation of lockdown measures threat of Covid-19’s spread. The National and to mitigate the economic hardship of the Authority then invoked Section 10 (2) of the migrant workers.... to take following additional Disaster Management Act 2005 and a lockdown measures: was enforced throughout the nation for 21 days iii. All the employers, be it in the industry or from March 25, 2020. in the shops and commercials establishments, shall The above order was followed by addendum make payments of wages for their workers, at Orders dated March 25, 2020 and March 27, their workplaces, on the due date, without any 2020, addressing the issue of migration of large deduction, for the period their establishments are number of people mainly workmen. Further under closure during the lockdown; directions were issued under Section 10 (2) of the In the backdrop of the above Order dated Disaster Management Act. March 29, 2020, the Department of Industry,

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Energy and Labour under the Government of order for lockdown period. Maharashtra vide Resolution No - Misc 2020/Q.No 54/work-9, took a decision regarding Whether the lockdown period can be adjusted all the workmen/employees who have been against paid leave? affected by the Order issuing lockdown. That the Order dated March 29, 2020 is clear The decision taken in the above resolution has that the wages/salaries will be paid without any been translated and extracted below: deductions. The above resolution dated March ‘The Government of India had ordered a 31, 2020 has invoked Section 24 of the Disaster complete lockdown owing to the outbreak of Management Act, directing the employers to Covid-19. The State Executive Committee of the make payment towards wages/salaries and Maharashtra State Disaster Management allowance by deeming such lockdown period as Authority has decided to invoke Section 24 of the workmen/employee on duty. Hence, the Disaster Management Act 2005 in respect of all wages/salaries for the lockdown period cannot be the workmen/employees who have been affected adjusted against paid leave. by the above order. All private establishments, factories, Whether the units can ask the workers to work companies, shops shall pay the salary and for extra days equivalent to the lockdown period allowances to workmen/employees towards the during season? period where the workmen/employees were The SEZ units being of prime importance to asked to stay at home as per the Order of the the nation’s economy, the units could definitely Government. That for such period the employees ask the workmen/employees for extra days due would be considered deemed to be on duty. loss of works during the lockdown period so to as That a workman/employee includes those to ensure the production/service is not adversely employees on contract, outsourced, temporary, affected. But the workmen/employees should be daily wages. paid for the extra days they worked for and the This Order is applicable to all industrial, same cannot be adjusted. commercial and shop establishments in Maharashtra.’ Whether the units can ask the Employee State The office bearers of SEEPZ Gems & Insurance Corporation (ESIC) to bear the wages Jewellery Manufacturers Association, Santacruz, equivalent to the lockdown period by way of Electronic Export Manufacturers Associations and adjustment against payments due to ESIC? Export Promotion Council for EOUs and SEZs As replied above, all establishments, factories in SEEPZ-SEZ have raised the following queries, and shops should ensure payment of which have been addressed as follows: wages/salaries for the entire lockdown period for 21 days. If any workmen/employee has Whether the above orders are binding on the unfortunately contracted the Covid19 pandemic SEZ units? virus or any other sickness and the said The above orders are applicable to all workmen/employees seeks medical benefit under establishments, factories, shops and units. The ESIC the same shall be implemented by the ESI Payments of Wages Act, 1936 and other Labour authority. legislations are applicable to SEZ with slight modifications viz with special rules framed PENALTY PROVISION thereunder. Please note that the government has the powers Hence, the Employers are liable to pay wages to prosecute the management for violation of any to all the workmen/employee as per the above of the provisions referred herein above. 

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AT THE FRONTLINE OF RESOLVING CUSTOMS ISSUES POLICY MATTERS When several exporters were issued show cause notices for non-levy of customs duty on re-import of products exported for international trade shows, GJEPC stepped in quickly to resolve matters. It also made representations to officials about keeping ‘Origin of Goods’ in abeyance for a while

t was a regular working day for Kumar Jain of Jewellery Export Promotion Council (GJEPC), Umedmal Tilokchand Zaveri till he checked which got cracking with its team of experts to Ihis mail and saw a show cause notice (SCN) understand the issue at hand and resolve it for non-levy of customs duty. Rubbing his eyes quickly. in disbelief, the Mumbai-based jeweller checked again and saw that it was for re-imports of unsold EXERCISE OF EXCISE DUTY gems and jewellery exported for a promotional Around 1,000 exporters were issued SCN for event on consignment basis. non-levy of customs duty. These were charged on Perplexed, he called an industry peer, Kishore re-import of unsold gems and jewellery exported Gajaria, who also participates in international for exhibitions and export promotion tours on events. Imagine his surprise, when he learnt that consignment basis under the entry at Sr No 3 of Gajaria, too, had received a similar missive! the table contained in Customs Notification No Vasantraj Birawat of Chain N Chain Jewels, 94/96-cus dated 16-12.1996. Many exporters also who did not receive a SCN, soon learnt about the received a pre-notice consultation (PNC) for issue and became worried. The trader community availing undue notification benefit under decided to escalate matters to the Gems and notification no.46/2017.

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GJEPC representatives met the Additional elaborate details of rough diamonds declared for Commissioner of Customs, Member Customs, export to decide their value. It noted that the CBIC, Additional Director General of Foreign description of goods stated in the documents filed Trade, Additional General of Export Promotion for clearance was often incomplete and, in most and CHA to discuss this matter. It disseminated a cases, the imported and exported goods were circular among its members outlining steps they merely stated as ‘Rough Diamonds’. This was can take on receiving a SCN and how to submit primarily in the case of valuation of rough an extension letter on its receipt. It also guided diamonds, which had been disseminated them on attending the personal hearing (PH) and suspecting the same as cases of ‘suspected mis- requesting for time to submit their reply. declaration’. Moreover, it distributed a mailer regarding the A note from the Customs Office stated that extension letter to members who received the details like origin, size, shape (octahedrons, longs, SNC and informed them about the modalities mackles, flats, triangles, etc.), colour and clarity involved in submission for extension letter to the are essential for proper assessment of imported customs department. To everyone’s delight, the rough diamonds or those entered for export. It Ministry issued a clarification, vide circular put the onus on the importer or exporter to state no.17/2019, which made everyone heave a huge these details in the bills of entry or shipping Bills sigh of relief. filed for the clearance of such goods. Taking cognisance of those members who had GJEPC pointed out that India is the Chair of received PNC for availing undue notification Kimberley Process Certification Scheme (KPCS) benefit, GJEPC officials made a representation to 2019. A special forum on ‘Valuation on Rough the Chief Commissioner of Customs, requesting Diamonds’ was conducted in June 2019 where for withdrawal of instructions issued for intersessional meeting with WCO representatives constitution of task force for the purposes of were invited. It therefore requested the Customs issuance of PCNs and SCNs in the matter. It also office to keep this procedure in abeyance and not distributed circulars to members with a reply draft implement it for the time being. for PNC and a reply draft on receipt of SCN. The Indian government has been working hard This came as a ready resource for members who to boost domestic manufacturing and promote wanting to seek an extension so that they could exports. The board decided to incorporate prepare their documents accordingly. additional attributes in the Shipping Bill to enable The Council also guided members on how to the Customs System to capture the Districts and fill out these drafts, including information to be States of Origin for goods exported. filled in the blanks provided, where to submit it, GJEPC met the Commissioner of Customs what the various paras meant, where to take the and officials at the Ministry of Commerce to printout, should to put their initials on apprise them about the practical challenges in this documents, etc. GJEPC also conducted a seminar domain. They also recommended keeping the to educate them about SCN and PH, what is a information provided on Origin of Goods in normal notary or a registered one, the value of abeyance, till the practical solution to some stamp paper and should they submit an affidavit challenges are finalised. on receipt of PH. The outcome of these They requested the Customs department to initiatives was that on submission of the allow exporters to carry on their exports by documents, members received an order for non- mentioning Mumbai as the district and payment of duty. Maharashtra as state since exports takes place from Mumbai’s Precious Cargo Customs Clearance HELPING IN STREAMLINING PROCESSES Centre. A circular about this meeting was shared The Office of the Commissioner of Customs, with the Council’s members, so they were aware Mumbai, directed industry members to provide about the proceedings. 

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INDIA’S GOLD INDUSTRY IS ON THE CUSP OF TRANSFORMATION INDUSTRY INSIGHT

In an exclusive interview to Solitaire International, Somasundaram PR, managing director – India, World Gold Council, sheds light on the new gold policy, contemporary challenges and an exciting future filled with innovations

omasundaram PR, managing director - majority of demand being met through imports. India, World Gold Council has been always Additionally, there exists a large segment of Sthe leading voice of the Indian gold unorganised trade (over 60%) with a complex and industry. A staunch advocate of a progressive fragmented supply chain, with varying degrees of policy for the trade, he explained how it can compliance. Higher taxes on gold and short-term augment demand, promote development of the outlook and frequent tax changes hinders gold market, increase employment opportunities, confidence of the trade in making investments spur exports and enhance consumer protection - behind innovation and exports. making it a win-win proposition for the entire ecosystem.

What are some challenges prevalent in the Indian gold market? The Indian gold industry’s growth has been impressive since the withdrawal of the Gold Control Act in 1990. Despite its significant size, it has remained a fragmented, largely unorganized, sector with significant untapped potential. With an annual demand of approximately 800 tonnes to 900 tonnes and a market size second only to China, India still lags in infrastructure and standards. It has not leveraged its buying power to have any influence on the global gold market. There is a pressing need to reform India’s gold market. There is serious lack of standards affecting integrity of gold, very low mining and limited recycling of household gold restricting the growth of domestic gold market and resulting in the

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INDUSTRY INSIGHT

Will the new gold policy resolve these How will the jewellery manufacturing and challenges? retailing segment benefit from an A comprehensive gold policy that addresses organised, transparent gold market? both opportunities and challenges, would Gold is a global market and Indian be a prime enabler to ensure that the handcrafting is an untapped opportunity in economic benefits of gold are amplified this area. Enhanced consumer trust, more and visible. A stable policy environment investments, easy access to finance, better and an integrated approach to domestic and innovation and greater reach will be some export is critical to alter the role of gold in of the benefits of an organized market. The the economy - from being perceived as a risk of remaining unorganized in an negative asset impacting tax transparency to increasingly global market is too well one that is a compliant mainstream asset known to need re-statement. with significant potential to protect wealth and boost economic growth. What would be the potential revenue of In the absence of such a policy, India’s bullion banking operations once up frequently, short-term policy interventions and running? in the form of import curbs have been Bullion banks are, and continue to be, a made, leading to unintended consequences key pillar of the gold market - they build including smuggling and tax evasion, which greater trust across the gold value chain, keep the industry from becoming drive efficiency, provide liquidity, promote progressive and mainstream. Effective transparency and support price discovery. reforms could create impact at multiple The result is that customers can participate levels; grow demand without creating in the bullion market with confidence. macroeconomic instability, promote orderly Several countries, including the UK, development of the gold market, increase US, China and Switzerland have fully employment sizeably, spur investments in functional, well-organised bullion markets. value added manufacturing, boost exports In these countries, participants access the and enhance consumer protection. bullion market through bullion banks. Bullion banking has the potential to When do you expect India to implement generate massive revenues, primarily from A stable policy the new gold policy? How are the interest from financing activities, and environment and an stakeholders making a collective effort to brokerage and fee income from sales and integrated approach to ensure it is rolled out at the earliest? trading activities. domestic and export is Further to budget announcement about a In 2017, revenue from global bullion critical to alter the role comprehensive gold policy in 2018, NITI banking operations was estimated at US$ of gold in the economy Aayog released a comprehensive report to 1.5-1.8 billion. The revenue potential of – from being perceived transform India’s gold industry. With each bank differs according to the breadth as a negative asset industry support, we have published and depth of services offered. While tier I impacting tax transparency to one blueprints on specific recommendations banks such as UBS, HSBC and JP Morgan that is a compliant like gold spot exchange and bullion each generate revenues of US$100-250 mainstream asset with banking. million from bullion banking, smaller, tier significant potential to We believe 2020 will see phased II banks generate revenues of less than protect wealth and introduction of further policy measures US$50mn. boost economic designed to increase transparency in gold as The development of an effective bullion growth. an asset class. We expect policy-led and banking industry in India will require real – SOMASUNDARAM PR industry-led initiatives that will reflect a commitment from both banks and MD - India, World Gold marked shift in the next three years policymakers in seeking to create a viable Council towards making the industry better domestic bullion banking market. Apart organised. from substantial revenue, increased bullion

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demand should also result in time depending upon the needs of significant job creation. It is the market. Currently, the priority is estimated that higher manpower to make sure the future of this requirements could create an industry is aligned to the broader additional 15,000-25,000 jobs. economic agenda. To this end, our current efforts are focused on How can mandatory gold working with stakeholders for a hallmarking across India benefit the stable policy environment. trade? India’s gold industry is at the cusp of Will WGC focus purely on transformation, as transparency, investment-ddriven demand? standards and infrastructure begin to There is no difference between define the next phase of reforms. investment-driven demand and Making hallmarking mandatory is a jewellery. In India, gold in any form much-awaited progressive step to is an investment and our households safeguard the interests of the understand that like any seasoned consumers, particularly women, economist. We are building who put their hard-earned savings marketing support and a strong case into this asset class. for gold through industry events and This reform should be backed by digital platforms such as a tight enforcement mechanism and MyGoldGuide. has potential to enhance trust in Indian gold jewellery, thereby Almost all efforts to smuggle gold enabling a favourable environment into India stem from the to market our famed handcrafting government’s efforts to curtail its skills appropriately. Employment import. How can the country potential in assaying and hallmarking balance the cultural affinity for gold will increase. Hallmarking will also create a level playing field, benefitting small Bullion banks are, and continue to players. The transition time of one be, a key pillar of the gold market - they build greater trust across the year will allow the industry enough gold value chain, drive efficiency, time to sell the existing inventory- provide liquidity, promote while simultaneously, plugging any transparency and support price gap in infrastructure or making discovery. suitable changes in logistics. To make this a smooth success, government and the industry players with macro-eeconomic pressures? should also create a strong consumer India’s per capita gold consumption, pull, through consumer awareness despite being a large gold market, is campaigns. low at less than 0.50 grams, lower than many advanced countries that How is WGC ensuring that gold have sophisticated financial markets. jewellery has top-oof-mmind recall This speaks of a large pent up amongst consumers? Will it revive demand at the lower end of the its highly successful jewellery-rrelated economic hierarchy. promotions in India like Gold As more people grow out of the World Gold Council is building marketing support Expressions, Azva, etc.? subsistence level to become middle and a strong case for gold through industry events Our strategy changes from time to class, their desire to hold gold will and digital platforms such as MyGoldGuide.

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only drive demand. A 1% increase such little influence in the global in income leads to a 1% increase in market, in terms of setting the gold gold long term. So, instead of trying price? to curb demand, we should look at This has to do with a limited ways of making gold more accessible purpose and inconsistent policies so through banks so gold savings far. It tended to focus on just happen through the banking system controlling imports rather than -which can put this to use just as leveraging gold as an asset class, one any other savings. that promoted savings at all levels of Supporting innovation in gold the social and economic hierarchy. through a massive tech programme on gold, promoting exports and What innovations can we expect to reviewing India’s untapped gold see in the Indian gold market over mining opportunities are ways we the next five years? Apart from substantial revenue, can balance the macro-economic We can expect innovations in both increased bullion demand should pressures. GMS and SGB need to be investment products and jewellery. also result in significant job made more flexible and that can add This will be led by digital trends, creation. It is estimated that higher ease supply side pressure - besides bullion banking and technology manpower requirements could making the market more organised. integration into the jewellery create an additional 15,000-25,000 lifecycle - covering manufacturing, jobs. Despite being the second biggest selling, marketing, storing, usage gold consumer, why does India have and recycling. 

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NIRUPA BHATT TAKES ON NEW ROLE AT GIA INDIA SPECTRUM

From June 15, 2020, she will take on a consulting advisory position focusing on GIA’s Diamond Origin Report service

irupa Bhatt will be transitioning from programmes and laboratory services. She oversaw her full-time position as managing the opening of the GIA India laboratory in Ndirector of Gemological Institute of Mumbai, and increased the scope of GIA America, India (GIA India), from June 15, 2020. education offerings in India. In 2018, GIA India She announced that she intends to transition to a opened a laboratory in Surat to serve clients in consulting advisory position focusing on GIA’s that important diamond manufacturing centre. In Diamond Origin Report service. “This decision her role as managing director, Bhatt oversaw the offers a smooth succession plan for GIA India, successful 10-year expansion of GIA India. with me available to personally guide a quality Susan Jacques, president and CEO of GIA transition for customers and the trade,” she commented, “Nirupa has overseen the launch of added. the GIA India laboratories in Mumbai and Surat, Bhatt’s position will be filled by Sriram and the GIA education programmes in India. She Natarajan, currently vice president of Laboratory has been instrumental in the establishment of GIA Operations, and he will report to the India, and her tremendous contribution to the organisation’s board of directors. Prior to joining industry, to GIA India and to our mission will GIA India in August 2017, he held operational have a lasting impact that will long be and leadership roles in a variety of international remembered.” industries. Apoorva Deshingkar, who joined GIA Bhatt noted, “The Indian gem and jewellery India in 2009, has been announced as the industry is very important for its role in organisation’s senior director of sales, reporting to employment generation, forex earnings and Natarajan. socio-economic development. I’m glad to have Bhatt joined GIA India on January 1, 2008, worked with organisations like Argyle / Rio with a responsibility to expand education Tinto and GIA that have given me the opportunity to contribute to the growth story of the industry.” Prior to joining GIA India, Bhatt was with the mining conglomerate Rio Tinto, owner of the Argyle Diamond Mine in Australia and the Diavik Diamond Mine in Canada, for 20 years. She also managed the Indo Argyle Diamond Council. Apart from her full time jobs, Bhatt has been active in many industry and trade organisations, including The Gem & Jewellery Export Promotion Council (GJEPC), the All India Gem and Jewellery Domestic Council (GJC), the Indian Diamond & Colorstone Association (IDCA) New York and the Women’s Jewelry Association (WJA). She also served on Since joining GIA India in 2008, Nirupa Bhatt oversaw the opening of several juries for industry awards and she its Mumbai and Surat laboratory, and increased the scope of GIA established the India chapter of WJA.  education offerings in India

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THE GRANDE DAME OF INDIA’S DIAMOND INDUSTRY

Nirupa Bhatt needs no introduction to the Indian gem and jewellery industry. She radiates a sense of self-assuredness and purpose that comes with the territory. Recognised with several accolades and awards by her peers, Bhatt has played a pivotal role in the prominent positions she has held during her long and illustrious career. Disentangling oneself from stereotypes is not an easy task, but Bhatt has always let her work speak for itself. She has toiled with a singular purpose - to ensure the welfare of the industry at large. The announcement of her stepping down from the managing director’s post of GIA India took the industry by surprise. But for a woman whose aim has always been able to rediscover herself through the different and challenging roles that she takes on each time, she is clearly excited about her onward journey. Bhatt, in an email interview with Solitaire International, reminisces about her life, career, challenges and learnings.

ou were the first woman in India to break camps gave me confidence to be myself. Thanks the glass ceiling in this industry, to my family that empowered me, and taught me Yespecially since the industry was male- not be intimidated. dominated. NB: My approach has been that I am first a Tell us more about yourself, and the reasons human being, then a woman. This has helped me why you choose to join this industry. to be strong, empathetic and an assertive NB: The uniqueness of this industry is its professional. It is a privilege to be born as a ability to teach newcomers how to flourish and woman, and I have enjoyed my journey in the contribute towards its growth. I am grateful to so gem and jewellery industry. many for giving me their time and helping me to Each role and industry presents challenges and grow. opportunities. I focussed on the opportunities My entry to the industry was accidental and I presented in this sector. My efforts in am so glad to be here. During these years, I have understanding the industry and its needs helped worked with two generations - the first me to connect with the enterprising diamond generation was my guru, and I am happy to have community and jewellers. I have great admiration contributed to the growth of many from the and respect for the Indian diamantaires for second generation. Today, many of these young establishing our country as a global cutting and men and women are leading the businesses and polishing centre. I owe my success to the lessons I my connection with their families for the last 30 learnt from owners of small cutting units to years has helped me nurture those relationships. multi-million-dollar global business owners. Earlier, I worked in the engineering industry Which was your first job in the industry and and travelled to smaller towns across the country what lessons did you take away from it? for sales. I learned early on that effectiveness is NB: The journey into the world of gems is appreciated irrespective of gender. I applied being always fascinating and mine has been very sincere and truthful to the cause and so, did not fortunate. I worked with Argyle Diamonds and it have problems. was a great place to work at. Argyle was new to I lost my father at a young age. My mother was the industry and was keen to make a difference. It a strong-willed, hard working woman. I saw her was not easy to get the role in Argyle as there was raising us in adversity and she encouraged us to some hesitation to hire a woman in India. achieve our dreams. My training in the National However, once I was hired, there was no looking Cadet Corps and becoming a senior under officer, back. attending the Republic Day Parade and national My expertise at the time was market

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intelligence and I was able to provide them with a potential customers. I was told by a few leading better understanding of the industry. I acquired diamantaires that I was wasting my time with knowledge through my work with those in the Argyle Diamonds and that this decision to go to diamond trade, and from other experts and market directly would fail. The entire Argyle jewellers in India, Antwerp, Australia and the US. team worked diligently and sincerely to make this Their goal was to help the Indian industry board’s decision successful. The leadership of improve technical capabilities to cut and polish managing director Gordon Gilchrist and general diamonds and market them effectively. We manager Mike Mitchell led us to success, and it worked with the diamond cutters in Gujarat to became a turning point in the history of the improve their productivity and yield from rough diamond industry. Some of these diamantaires diamonds. became Argyle Diamonds customers. It was a Another major role was to work with jewellery well-deserved success. manufacturers and exporters to help them design, merchandise and market jewellery for American When did you actually start to make a mark for retailers. I feel very satisfied that I could make a yourself? Expound on the qualities one requires - difference through those programmes. I am to scale up the ladder of success. fortunate to serve industry organisations and that NB: It took about three years for me to get my has helped me to contribute to the greater good vehicle in top gear. I started doing price of the industry. My biggest lesson from Argyle discoveries and connected with grassroots Diamonds was to respect and fulfil customer workers in villages and small towns of Gujarat. needs. Diamantaires in Opera House were not willing to give me the time. However, over those three Could you share an anecdote or two about the years, they started to hear about me visiting hurdles you faced then as a newcomer? factories, providing technical support and my NB: I distinctly remember two stories. The efforts to work with jewellery manufactures to first was my interaction with Mike Mitchell, understand the US market. general manager of sales and marketing, when I Formation of the Indo Argyle Diamond was visiting the Argyle Diamonds headquarters in Council (IADC) and the development of Perth within a few weeks of joining the company. Business Excellence Model (BEM) were the two He called me into his beautiful corner office important milestones. My experiences have overlooking the park and said, “India is very taught me to adapt in a challenging environment. important for Argyle Diamonds and the need to I live and thrive in uncertainties, and I do not give understand and support the industry.” He also up. told me that I was hired against the conventional After having spent 20 years with Argyle wisdom (he was referring to hiring a woman in Diamonds (later Rio Tinto Diamonds), I started India from a male-dominated industry) and that my stint with the Gemological Institute of Argyle was investing in me. Sensing his America (GIA) India as managing director of hesitation, I assured him that he and Argyle India and Middle East in 2008. My role was to Diamonds will never regret the decision. The rest create awareness about the institute’s mission of is history. I learned a lot from Mike. He was a ensuring public trust in gems and jewellery great manager, a taskmaster, and a fine gentleman through research, education and laboratory who kept the team spirit high. I am lucky to have services across the length and breadth of India and worked with the Argyle team. the Middle East. I felt this was the perfect The second instance is when the Argyle Board opportunity for me to contribute extensively to decided not to renew their contract with De this industry. Beers, and go to market directly in 1996. It was one of the most challenging times, as I used to Your advice to the women entrepreneurs and visit diamond offices in Opera House, Mumbai, designers of today. to support the existing customers and identify NB: The gem and jewellery industry thrives

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because of women and I believe that an increase region. I visited Argyle mine a few times and have of women in the workforce at all levels will bring witnessed the development of local community in fresh perspectives, hopefully leading to expansion terms of education, health and employability. and improved quality. We are fortunate to be able to work with natural precious gemstones like Other than being steeped in industry matters diamonds and precious metals like gold and and GIA-rrelated work all this while, how do you platinum. Entrepreneurs and designers - unwind? Tell us about your hobbies. regardless of their gender - should respect the NB: I love teaching and my first job was as a intrinsic value of these natural resources. The teacher. In the past three decades, I have beautiful ornaments which are gifted and mentored and coached many young men and purchased often serve as a memory for decades. women, helping them grow in their roles. During There are plenty of opportunities and trade my Argyle days, I played a role of consultant to bodies, like the GJEPC, are making efforts to give customers and IADC participants to manage, women the platform to shine. I urge women to design and merchandise for the target market. I come forward and demonstrate the value they add am a certified coach and love to empower people to their chosen profession. Persistence, purpose by coaching them. I also love reading, watching and passion are keys to recognition and making a movies and cooking for my family. My favourite difference. book is Atlas Shrugged by Ayn Rand. Post coronavirus pandemic, where, according How was it working at the helm of affairs at to you, will the Indian diamond industry be GIA India? And now as a consultant with GIA... headed? How long do you think it will take for NB: In the past 12 years, I have built a the industry to come out of the downturn? management team committed to furthering GIA’s NB: This is a difficult and unprecedented time mission. I was the first employee of GIA India in for all industries across the globe. I am not a 2008, and today GIA India has more than 1,300 health expert and do not know when will it be skilled and committed staff. I am confident that over. the team will take GIA India to greater heights. Jewellery has an emotional appeal. It is possible GIA’s leadership has been supportive and that as we come out of this situation, consumers encouraging of India operations. The Indian will return to stores. Since industries like tourism diamond industry has benefitted with GIA’s are likely to be adversely impacted, there may be a grading services available at their doorsteps. In my possibility that some consumer spend could be opinion, there is great potential for GIA’s directed at discretionary purchases. coloured stone and pearl identification services in India. Any one key mantra that you think the I am looking forward to working with GIA in industry should adopt to reach greater heights? an advisory/consulting role and focus on the GIA NB: The manufacturing competency of Indian Diamond Origin Report. Backed by scientific gem and jewellery industry is recognised globally matching of polished and rough diamond, the and has potential to be the single-point sourcing Diamond Origin Report service enables retailers centre for retailers. Indian jewellery to tell the story of where diamonds come from manufacturers should focus on quality, and the socio-economic impact it has on the productivity and design. 

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GJEPC NEWS

GJEPC MEMBERS MAY APPROACH BANKS FOR BENEFITS FOR EXPORT CREDIT Member-exporters are advised to approach their banks directly to seek benefits following changes in provisions related to packing credit and extension of repayment time introduced by the RBI

Banks can extend the period of realization of export proceeds up to six months from the date of export, subject to certain RBI stipulations.’

he Gem & Jewellery Export that time the impact of Covid-19 was and repatriation of export proceeds for Promotion Council (GJEPC) mainly limited to Hong Kong and exports from SEZs, EOUs, Status Thas advised all its member- China, which account for about one- Holder Exporters and certain others; exporters to approach their banks third of India’s exports. Since then, and of 15 months from the date of directly and seek benefits arising from the virus is reported to have spread to shipment of goods in the case of certain changes in provisions related more than 100 countries across the goods exported to a warehouse to packing credit and extension of globe. established outside India. time for repayment that have been GJEPC said that after it had further Additionally, AD Category-I banks recently introduced by the RBI. discussions with the Ministry of have been permitted to extend the These changes in the Master Commerce & Industry (MoC&I) and period of realization of export Direction - Export of Goods & Ministry of Finance (MoF) about the proceeds beyond the stipulated period Services 2016, issued by RBI, have impact on the trade, the government of realization from the date of export, been announced by the central bank has introduced some changes in terms up to a period of six months, under in the context of disruptions to of Packing Credit and Extension of certain conditions as stipulated by business due to the current Time for realisation of export RBI. The Council has stressed that all Covid-19 pandemic. proceeds for delays arising due to the reporting of exports should be done It may be recalled that the GJEPC impact of Covid-19 on the business. under the EDPMS and has asked had last month requested the Some key highlights include trade members-exporters to make use government for certain relaxations in seeking permissions for delays in of above provisions and approach the time limits for repayment of export shipment under packing credit; banks directly so as to streamline credit due to then anticipated delays granting of period of nine months business activity in the current in realisation of export proceeds. At from the date of export for realization situation.

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GEM AND JEWELLERY EXPORTS April-February 2020 (US$ million) EXPORT DATA

CUT & POLISHED DIAMONDS PLAIN GOLD JEWELLERY SILVER JEWELLERY

Apr 2018-Feb 2019 Apr 2019-Feb 2020 Apr 2018-Feb 2019 Apr 2019-Feb 2020 Apr 2018-Feb 2019 Apr 2019-Feb 2020

21,953.46 17,699.40 7,798.99 8,207.22 764.70 1,459.39

 19.38  5.23  90.84

STUDDED GOLD JEWELLERY COLOURED GEMSTONES IMITATION JEWELLERY

Apr 2018-Feb 2019 Apr 2019-Feb 2020 Apr 2018-Feb 2019 Apr 2019-Feb 2020 Apr 2018-Feb 2019 Apr 2019-Feb 2020

2921.08 3205.02 369.23 307.25 61.21 55.92

 9.72  16.79  8.64

PLATINUM JEWELLERY OTHERS GROSS EXPORTS

Apr 2018-Feb 2019 Apr 2019-Feb 2020 Apr 2018-Feb 2019 Apr 2019-Feb 2020 Apr 2018-Feb 2019 Apr 2019-Feb 2020

8.43 9.69 2119.57 2292.89 36,192.03 33,629.99

 14.95  8.18  7.08

Source: GJEPC Database  Figures for April 2019 to February 2020 are provisional and subject to revision  Data does not include exports/imports figures pertaining to FPO-Jaipur for May 2015 to Feb 2020. Others include Gold Medallion, Rough Diamonds, Pearls, Synthetic stones, etc.

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TAKING A SHINE TO THE MIDDLE EAST

As buying preferences evolve, customers in the Middle East are gravitating DEMAND MAPPING away from heavy jewellery towards contemporary and minimalistic designs, which can be worn more than once. Traditional gold and diamond jewellery still has a market, albeit for occasions like weddings or festivals By VINITA BHATIA

hen his company participated in the terms of business, it might witness budget cuts. Gems and Jewellery Export Promotion The reasons are varied - the geo-political issues WCouncil’s annual (GJEPC) IIJS that currently envelop the region, fluctuating gold Signature 2020 exhibition this February, Mahesh prices, changing buyer preferences for more Seth of Mumbai’s SK Seth Jewellers was unsure lightweight designs, and yes, the fallout of the what to expect. The Indian industry had been Covid-19 outbreak. suffering in the aftermath of volatile gold rates and the Budget had not been particularly encouraging. A VITAL MARKET However, he was pleasantly surprised with the The gems and jewellery industry plays a vital role response to the event, especially to his company’s in a country’s economy especially India’s’ as it is wedding jewellery collection, Vivah Muhurtham. one of the largest exporters and contributes a major He bagged orders from a couple of UAE clients chunk to its total foreign reserves. In the absence of for these handmade bridal sets, which were a transcontinental export break-up for the Middle available in lightweight and heavy varieties. East region, Sharma elaborated, “India’s overall net In fact, bridal jewellery has always been a big exports rose from $15.66 billion in FY2004-05 to draw for buyers in the entire Middle East market, $32.71 billion in FY 2017-19, growing at a 5.83% not just the UAE, who regularly participate in CAGR during this period.” IIJS Signature. Rohan Sharma, managing director The Middle East has always been among the of RK Jewellers, South Extension 2 predicted top consumers of Indian gems and jewellery that while this category will continue to sustain in products. Interestingly, one of the reasons why

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people invest in gold here is not gradual shift to everyday wear merely due to traditional practices, jewellery in the region. “People are but also considering the volatility in unwilling to invest in heavy the region. This habit is especially jewellery, except on occasions such prevalent among the large number as weddings or festivals. Customers of expats spread throughout GCC. are looking for unique and Bhavesh Triveni, an analyst contemporary designs, which are explained, “Whenever the markets minimalistic and can be worn more are headed in an inflationary than once,” she noted. direction, people prefer to invest in Sharma seconded this surmise, gold, which they consider as a “After India, the Middle East is the valuable physical asset, rather than only other market that has an currency. This is because they worry appetite for jewellery. They have a that the latter might devalue without tradition of wearing heavy jewellery notice. Gold, on the other hand, has on weddings and also gifting long-term asset value.” jewellery to each other on special Fortunately, these customers have occasions. That is what makes it a a plethora of brands to buy from in much more lucrative market than the Middle East, which is also home the rest of Asia.” to several indigenous brands, Customised creations are also including Joyalukkas, Malabar Gold becoming quite popular among Emeralds, amethyst and tourmaline are embedded & Diamonds and Kalyan Jewellers. customers. Qatar’s Haya Jewellery, in this signature gold ring by Donna Hourani. Of course, one can’t forget that this which has been dealing in gold, region is the world’s best known diamonds and pearls for over two destination for uber luxury names decades offers many made-to-order personal touch has become very like Damas Jewellery, Tiffany, and custom designs. Turkey’s Verda popular among her clientele. She Chopard, Bulgari, Harry Winston, Alaton also designs interesting creates limited collections annually Pandora, David Yurman, etc. custom-made pieces with natural and especially focuses on jewellery This is in addition to regional stones that she collects during her pieces based on birthstones or family brands like the Mouawad Group, travels across the world. Moreover, heirlooms, which can be handed Ali Bin Ali Luxury Group, Dusoul for some clients, she designs pieces down generations as keepsakes. by Dhamani, etc., and local ateliers. that match their personality. Some prominent ones include Lebanese designer Donna FUSION STYLES Bahrain’s Aisha Jewellers, Al Hourani, who has owns a brand India shares many parallels with the Mahmood Pearls and Ramzana under her name, said that this Middle East - be it cuisine, culture Jewellers; Saudi Arabia’s Nadine or a sense of communal Jewellery, Charmaleena Fine togetherness. This affinity is Jewellery and Bin Matar Gold, reflected in the jewellery trends Jewellery and Diamonds; Qatar’s prevalent in the latter region. Sky Jewellery, Ghada Al Buainain, For starters, traditional Middle Amiri Gems and Al Fardan Eastern ladies, especially from the Jewellery, as well as Al Zain local populace, favour heavy gold Jewellery that is spread out across and diamond jewellery, which they GCC in Bahrain, Qatar, and UAE. can showcase as a symbol of their According to Leshna Shah, family’s prosperity. They especially creative director and founder of like to flaunt it on special occasions Irasva, while the Middle East like weddings, family functions or Lebanese jeweller Donna Hourani recycles and remains a lucrative market in terms customises old jewellery pieces as keepsakes for during festivals, much like their of luxury jewellery there has been a generations to come. Asian counterparts.

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This is where brands like Malabar with meenakari details for Mother’s Sometimes clients choose their stones Gold & Diamonds are best placed to day, this year. based on their metaphysical fulfill their needs. The company has Narendra Zaveri, a jeweller in properties,” she added. a wide collection of designs in gold Dubai’s old Hamdan Street said that Narendra Zaveri has seen a and diamond jewellery from Italy, 22-karat gold jewellery and diamond continuous uptake for gold bridal Turkey, Bahrain and India in its jewellery have emerged as the jewellery among the Indian diaspora, branded jewellery segment. This popular choice among Asian buyers. albeit with more delicate work. “Till includes ‘Era’ uncut diamond “Europeans customers are keener on a few years ago, many brides would jewellery, ‘Ethnix’ handcrafted 18-karat gold jewellery with opt for heavy, traditional gold designer jewellery, ‘Divine’ Indian contemporary designs. Even the jewellery, probably due to traditional heritage jewellery, ‘Mine’ diamonds younger crowd is going for these reasons. However, the younger unlimited and ‘Precia’ gem trendier designs instead of heavy generation is keen to explore jewellery. patterns,” he added. options with diamonds and real However, for regular wear, natural gemstones like emeralds, customers in the Middle East seek THE WELL-ADORNED BRIDE rubies and blue sapphire,” he contemporary designs, which are Another similarity that the Middle elaborated. East shares with India is extravagant wedding celebrations. And in events According to TechSci Research, like these, bridal jewellery take pride UAE’s gems and jewellery market of place. In most Indian families, stood at $8.4 billion in 2018 and is weddings are occasions when projected to grow at a CAGR of spending on jewellery is never around 8%, to cross $13 billion by curtailed. In the Middle East, it is 2024. This growth is expected to be increased to the point of driven by rising disposable income, extravagance! changing consumer lifestyle, When it comes to what appeals to growing e-commerce and organized Malabar Gold & Diamonds has a wide collection of retail channels, coupled with brides, Sharma of RK Jewellers, branded jewellery designs from Italy, Turkey, innovative and premium product South Extension 2 stated that it Bahrain and India. launches by leading jewellery varies from one lady to another. players in the UAE. “However, most brides are very CHILD’S PLAY quality conscious and prefer D Another interesting market Flawless diamonds. One bride may emerging in the region is for minimalistic yet individualistic. go for a 1-carat diamond, whereas children. Spotting an opportunity in Joyalukkas’ Zenina 22-karat gold the other would go for a 10ct. But this space, companies like Qatar’s collection is inspired by Turkish none of them would compromise on Sky Jewellery, have a special range designs to meet this need. Similarly, quality. Also, this year, gemstones, called ‘Glyde’ that targets children Qatar’s Amiri Gems offers fusion especially tanzanites and rubies, will with tiny jewellery pieces. These creations like its ‘Panjshir Ring’. do well,” he added. bear pretty animal, flower and Inspired by Kabul’s Panjshir Valley, Lebanese jewellery designer Donna musical motifs embedded with tiny it has emeralds from this region, Hourani has noticed that most of her diamonds with a well-rounded edge which are renowned for their clients have been re-designing and re- to avoid hurting their skin. coveted green hues. Its ‘Miniature setting their old solitaires. “Many Malabar Gold & Diamonds, too, Demi Mogra Ear Jacket’, available in have a budget and prefer to use other has its ‘Starlet’ kids’ jewellery range blue tanzanite, yellow aquamarine or types of stones instead of diamonds. for ages one to 10 years. This pink tourmaline, is based on the Some favour a bigger coloured stone includes everything from earrings to famous Indian flower. Bahrain’s than a smaller diamond, for instance. bracelets and rings to pendants and Devji jewellery store recently People also like the idea of having a features funky shapes to suit the unveiled a collection of Arab- unique and different wedding ring as target audience’s taste. The oriental necklace and earring set opposed to your traditional kind. ornaments are crafted in meenakari

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Gulf region. Regional brands like Bahrain’s Devji Diamonds are trying to retain their customers with buy- back schemes, which are popular among the expat community. However, with devastation that Covid-19 has wrecked on economies globally, many jewellers are expecting further slowdown in the business. Sharma said, “We expected demand to go up by the second half of this year. However, Qatar’s Sky Jewellery’s ‘Glyde’ range of gold ornaments is aimed at children. It has tiny jewellery pieces with we are now looking at a negative playful motifs. growth. For the next two years, also the growth is not going to be great.” designs with a bright appeal, which countries, which affected jewellery Leshna Shah is more optimistic. also make for great gifting options. sales as well. “It is essential to focus on a When it comes to gifting, Even the annual Dubai Shopping sustainable business model, apart weddings, birthdays and Festival (DSF) was not spared from from technological innovations. anniversaries have been the bedrock this business debility. Dubai, often Brands also need to focus on the for the jewellery business. However, called the City of Gold with an drastically changing consumer Leshna Shah has increasingly found entire souk dedicated to trading of demands. Companies need to invest that customers are now focusing on the yellow metal, hosts a month- in projects that can ensure a long- self-care and self-gifting as a practice long shopping festival. This event term supply of goods to the of wellness and mindfulness. She has made it a popular shopping market.” added that brands are increasingly destination among tourists, who visit As the market evolves and changing their messaging to it to buy jewellery at affordable customer buying preferences convince people to buy for prices. change with trends like ecommerce themselves by creating more According to Chandu Siroya, gaining ground, it is likely that personalized jewellery to express vice-chairman, Dubai Gold & consumers in the Middle East will one’s personality. Minimalistic Jewellery Group, the rising gold gravitate away from larger and designs are gaining momentum as price coupled with geo-political higher-priced jewellery to chunky and heavy jewellery takes a issues led to a dip in jewellery sales minimalistic designs with unique back seat. midway during DSF this year. There design cuts. They are also likely to was a decline in footfalls from be on the lookout for pieces that 2020’S SHAKY START TO traditional buyers from Asian offer them better value for their CONTINUE countries like India, Pakistan, investment, which might lead to This year began on a rocky note for Bangladesh as well as other GCC the emergence of multi-purpose most jewellery companies with countries, who are heavy shoppers jewellery. This is especially with weakening consumer buying during this event. Fortunately, the the younger generation clued into sentiment and rising gold prices. It is impressive prizes offered during the social media platforms, where they expected that it will take some time campaign helped boost sales, which can exchange ideas and photos of for the demand for luxury products reflected in encouraging total overall jewellery that they can flaunt daily, to pick up in the region. business, he added. rather than letting it languish in The political uncertainty in the Damas, a leading Dubai retailer, their closet - only to be paraded on entire GCC region, especially the is banking on the power of 22-karat, special occasions.  Iran-US tension, added to the and over the coming few months, it business woes in the region. will unveil new 22-karat retail Tourism saw a dip in various concepts throughout UAE and the

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FLEUR & NOËLLE’S HEARTS BEAT FOR INDIA The annual ritual ‘Design Inspirations’, a seminar organised by the Gem & Jewellery Export Promotion Council (GJEPC) in association with trend forecaster Paola De Luca of

The Futurist Ltd., was held on the last day of IIJS Signature on February 16, 2020. A galaxy DESIGN INSPIRATIONS of speakers from various fields shared their experiences with the audience, giving them insightful directions whilst promoting an exchange of cross-disciplinary thinking. Here’s the first article in the Design Inspirations series based on the session dedicated to ‘Heritage and Values’. Meet Fleur Damman-van Gelder and Noëlle Viguurs, the two sisters who run the Van Gelder Indian Jewellery (VGIJ) in the Netherlands, which was founded by their mother, Bernadette van Gelder-van der Ven in 1980. VGIJ is a leading international dealer, specialising in traditional Indian jewellery. The sisters got hooked to the unique aesthetics of Indian jewellery and two decades later, they took charge of VGIJ. Even as they embraced the new world, they have not lost their grip on the company’s core business. India was, and remains, the focus of their collections, and last year, they relaunched the ‘Heritage’ and ‘Contemporary’ collection, which includes four lines - Colors, Jali, Jodha Bai and Chandra - all inspired by the country that is close to their heart. By SHANOO BIJLANI

Colin Shah, vice chairman, GJEPC and Shreyas More, Green Charcoal Project with Fleur Damman and Noëlle Viguurs of Van Gelder Jewellery.

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keynote address at the ‘Heritage and Values’ session on the last day of IIJS Signature 2020. “The first time my mother travelled to India with my father, she felt like it was a homecoming. She was completely in love with the country, the people, their kindness and especially, the jewellery. India is a nation, but for us, it is a continent. Every culture, and the tradition in each and every corner of the country is different. It intrigues us so much that we want to know more,” she stated. Bernadette’s entrepreneurial nature drew her to India a couple of times a year, and she A small gold jhumar chabkka began collecting heritage head ornament shows the open- worked top kundan set with jewellery pieces to understand foiled white sapphires and rock them. Noëlle said that this crystal on blue foil (jadat) in an comprehensive study intricate pattern of flowers, a crescent moon and sun symbol, n act of providence led prompted her to specialise in Indian flanked by two peacocks. Netherlands-based Bernadette van jewellery, adding, “If you want to achieve Suspended from the top is an elaborate fringe of gold collets, AGelder-van der Ven to dive deeper success, you need a bit of luck and my kundan-set with white sapphires, into Indian jewellery. The country’s mother had that luck. She was at the right sides decorated with red and green enamel, suspended pearls culture, history, mythology and artistry place at the right time. She also met the and turquoise glass beads. fascinated her so much that she went on to right people who guided her.” The reverse of the jhumar is decorated with Safed Chalwan specialise in Indian heritage jewellery. enamel, red and green on a Soon, Van Gelder Indian Jewellery (VGIJ) THE FAMILY JEWELS white base in a crescent moon, grew into a leading international dealer, Growing up, Noëlle and Fleur, too, flower and bird design, echoing the frontal design. The jhumar displaying its products at top galleries, became acquainted with the history of or chabkka is a traditional museums and shows such as the TEFAF. Indian jewellery, courtesy Bernadette’s Muslim wedding ornament worn by women on the left side of the Her daughter, Noëlle, recalled enthusiasm. “Every time she would return head. It is not an ornament that Bernadette’s tryst with India during her from India, we little kids would get to see is to be worn daily.

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DESIGN INSPIRATIONS

of Indian jewellery in the on the backburner for a while. But Netherlands, while remaining close overcoming this challenge, she to country’s tradition. They wanted emerged stronger and actually to make these collections feasible started sketching designs. through designs. Talking about those trying times, Additionally, they wanted their Fleur said, “During this difficult designs to carry a detailed history time, I encountered a void that I with scientific specifications. So, in wanted to explore and see what it 2012, the sisters extended their brings me to. I wanted to go beyond research methods with a complete to the acquired knowledge about and factual scientific review by Indian jewellery that we grew up 18-karat gold ear pendants from the Colors commissioning an independent with. The void gave me a distance to collection bear an oval top with a suspended stem. precious metal and gemmological look from further than I could have The gold oval bead halfway down the stem and a gold oval bead at the end are decorated with research report. They collaborated ever imagined and visualise the delicate white enamel in a wave like linear pattern. with Dr JC Zwaan of The outlines. And with the beautiful Netherlands Gemological miniscule images that I used to see unique jewellery and learn how to under the microscope in the lab handle them; how to wear them; made me discover the origin of learn about their quality; the meena quality, intricacy of designs, gems work and so on. It was a gift for us! and their amazing flaws, and what Hence, it was a logical and natural makes something so special. This decision to join the company once helped me embrace the new we grew up,” Noëlle added. perspective to create the various The two sisters, who have an Arts collections.” background and spent years studying This resulted in the relaunch of in Italy and France, joined VGIJ in the ‘Heritage’ and ‘Contemporary’ 2000 to become torchbearers of collections. The former is VGIJ’s their mother’s legacy. However, backbone, and defines the best kind both were clear that they did not of sustainable luxury, which should want to replicate what Bernadette be re-worn all the time. Fleur The spherical 18-karat gold ear pendants from did, but add their individualistic the Colors collection feature an oval top with a signature to the designs over time. suspended stem, terminating with a spherical white agate oval bead. The gold stem is “Initially, we did what Bernadette decorated with three delicate rims of white had left behind, which itself was enamel in a linear pattern. challenging. We displayed Indian jewellery at international art fairs Laboratory Leiden. like TEFAF and various art and Today, every item in their exhibition events. Although the collection is accompanied by a full shows were successful, we later art history and an independent explored avenues to exhibit the gemmological scientific account, collections through different gold report, as well as its wear and collaborations. We curated museum tear information. “We take our exhibitions and teamed with fashion responsibility and reputation with designers and also started our own regard to our company, collection contemporary jewellery collection,” and clients very seriously.” A pair of white gold Jodha Bai ear pendants, topped Noëlle recollected. with a suspended tapered stem decorated with As second generation REVISITING TRADITION delicate filigree, twisted wire and engraved linear patterns. The blunt bottom is carved with a stylised businesspersons, the duo felt the In 2007, Fleur met with a serious floral motif. The earrings are enhanced with blue urge to express their interpretation accident, which put the pair’s plans and green enamel.

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DESIGN INSPIRATIONS

Heritage baju band, 1980.

the view but filters light through it influence. We will launch two more on the floor, regulates temperature collections later in the year,” Fleur by allowing air to come into the noted. room in a compressed way. We Sharing a few words of advice for wanted to lend that flowy and designers wanting to make a mark flexible feel to the collection,” for themselves, she suggested, explained Fleur. “Make jewellery that is meaningful for you. Ask yourself, ‘What do I BEJEWELLED BEAUTY want to bring to the table?’ Your The ‘Jodha Bai’ collection, named design represents who you are. Obverse and reverse view of enamelled after one of Mughal emperor Materialise your vision, and come Champakali necklace from the Heritage collection. Akbar’s favourite wives, is again back to the same question again and inspired by her palatial quarters in again: ‘Why did you want to be a commented, “We look for Fatehpur Sikri. The ornate designer in the first place?’ museum-quality pieces, which are enamelled collection is an ode to the And if designers want to make collectibles.” They also have a formidable queen. inroads into foreign markets, it is workshop in Amsterdam, where the important to use the power of company restores old jewellery with styling - to envision the blending of original elements. Western and Eastern aesthetics, she The challenge in creating the said. ‘Contemporary’ range lay in infusing VGIJ continues to build bridges the same credence into it as the between international clients and ‘Heritage’ collection. “We had to India. And their glorious journey take care that the designs had continues.  multiple aspects - including tactile appeal. Above all, it had to be an The 18-karat gold latticed (Jali) cuff showcases intelligent, well-thought-through, open and cupped circular elements of varying size. The interior of the each cupped shape has a balanced design.” high polished, mirror-like finish, while the rest of The ‘Colors’ collection was the bangle has a matte finish. inspired by colours seen on the Indian streets - the colourful saris, Rajasthan evokes stories of the belles carrying water pots gracefully strength of Rajput warriors and with a flowing sense of femininity. rolling expanses of deserts. These The ‘Jaali’ (trellised) series was elements are reflected in the influenced by the screens of ‘Chandra’ collection, which has A pair of flexible 18-karat yellow gold Jali Fatehpur Sikri palace’s architecture, solid and strong designs in silver or earrings features five hexagonal linked pendants, which are crafted with matte knife-edge outline which have a linear geometric visual white gold jewellery. “Silver is and inside, high polished round trellis, creating a language. represented by the moon and gold geometrically latticed decor. The version with the gemstone ruby, are the stones randomly set as a “We incorporated rigid patterns by the sun, and the combination reference to damaged, coloured glass in Mughal in the line. The Jaali not only shields symbolises the male and female palaces.

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COVID-19 SLAMS THE BRAKES ON

DIAMOND INDUSTRY GLOBALLY INTELLIGENCE

The Bonas Market Report for February-March 2020 points out that global retail has seen a very significant slowdown, which is likely to worsen following lockdowns in several parts of the world

he optimism that January heralded was Indian diamond industry in many ways. There short-lived as global retail has seen a very has been a serious net change in cashflow. Tsignificant slowdown in the subsequent Nobody had expected or prepared for such a months. Covid-19 brought China to a standstill strong brake to be applied to consumer demand during one of its main selling seasons, and in the Far East. This has directly impacted continues to keep stores shut. inventory levels and cashflow positions. Whilst the US has not been affected till the Cashflow from other investments has also dried Bonas Market Report for February-March 2020 up. Banks are again selectively tightening lending, was drawn up, reordering has been lacklustre in which is creating further stress on companies. the first couple of months despite a decent Confidence has been severely shaken. season. Europe is also feeling the effects due to Manufacturing has slowed and demand is the drop-off in Chinese tourists. And things have depressed. No one knows when this will be over, steadily gone south from there, as the threat from and the concern is that we haven’t seen the worst Covid-19 has only increased globally. yet. This has had an obvious impact on sales from Moreover, competition amongst the mid-stream. Polished prices have softened manufacturers is so fierce that when there is an quickly and stocks are beginning to build again. order for goods, the terms are not in their favour. Confidence has been severely shaken. Major Worries are also re-surfacing about who is miners had to take decisive action in 2019, and financially strong enough to do business with. De they are starting to do so again. Beers boxes that had been in demand for The hope is that the virus disappears as quickly manufacturing in December and January are now as it arrived, and that the return to normality is being sold on the market at discounts, as there is swift. But at this stage, no one really can foresee little confidence to hold those goods. Most how long the current situation will last. factories are reducing their manufacturing levels to match the reduced demand. BUSINESS CONFIDENCE DIPS IN INDIA Even trading is very slow in India due to the The current business slowdown has impacted the loss of confidence because of the coronavirus, a

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depreciating rupee and pressure on of polished will be coming off the levels and/or has not fully kicked in polished prices. wheels soon and will distort the yet, as per European Commission. There is some demand for US- market further. There are While the year started in a better driven retail and polished prices are expectations that some large mood, all European markets have holding in that area. Well-made companies may yet again face now been seriously affected by fancy goods in 1.5ct+ are also liquidity issues, potentially resulting concerns about the spreading performing well. But demand for in distress sales. Covid-19 virus. Italy, Europe’s Chinese goods has all but stopped. Polished trading plunged in biggest diamond market, has been A few players have dropped their recent weeks. Business has dropped described as ‘dead’. Last week two polished prices by 2-3% and are anywhere between 10-50%. No key fairs, Baselworld and Watches selling small businesses to those that one knows how long the & Wonders Geneva (formerly Salon can pay cash. coronavirus crisis will last, how far International de la Haute India is experiencing a huge slow it will spread and what impact it Horlogerie (SIHH)), decided to down as liquidity dries up. Retail will have on consumer luxury overall has decelerated. For Indian spending. While many hope to see jewellers, gold prices have gone up a V-shaped recovery at some point US INDICATORS but demand at these prices is (soon), there is a general belief that reduced. As the rupee devalues, the polished market won’t see a  Consumer Confidence diamonds get 2-5% more pick-up until second half of the + 0.3 pts expensive. year. Feedback on sales is spotty; some  Employment Trends DEFICIENT DESIRE FOR buyers are still ordering as they have Index ROUGH IN ANTWERP ongoing jewellery production lines, + 1.29% As with other diamond centres, while others have slowed down or  Leading Economic Antwerp is not immune to the even stopped completely. Sourcing Index virus outbreak. The mood on the is price point focused and polished + 0.8% market has worsened since January activity is concentrated on areas 2020, with many believing that the such as 1-2ct commercial goods  Measure of CEO situation has deteriorated beyond and selective clean smalls. Several Confidence that seen last year or even in 2008. brands (especially those with high + 9.0 pts It is likely that this could continue exposure to Chinese consumers) for another few months. As a result, have indicated that they will be the appetite for rough has slowed buying (much) less, going forward. cancel their shows. As this is the dramatically. main gathering for brands to collect De Beers did not make any price THE RETAILING LANDSCAPE orders from their retailer partners, it changes. But it did offer flexibility The consumer confidence indicator goes without saying that this will by allowing people to defer boxes in the Euro area was confirmed at - impact and complicate their sales that predominantly produce goods 6.60 points in February, the highest and forecasts. for the Far East. This move was reading since last September, thanks Coming to the US, the welcomed and applauded by many. to households’ brighter Conference Board Consumer However, there are other expectations in respect of the Confidence Index improved challenges, such as lack of flexibility general economic situation. It slightly in February, following an in smaller sizes. As a result, some outstripped slightly more upbeat increase in January. The Index now boxes got refused on top of the appraisals of their past and future stands at 130.7, up from 130.4 in deferrals. financial situation, as well as their January. “Consumer confidence Whilst December and January intentions to make major improved slightly in February, were good months for Antwerp, purchases. It seems that the threat following an increase in January. that has now drastically changed. of the coronavirus has not affected Consumers’ assessment of current Many fear that significant quantities the European consumer confidence conditions was less favourable in

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HOW COMPANIES PERFORMED IN ANTWERP  Market premiums on De Beers boxes came down by a substantial margin, with many boxes trading below cost

 Alrosa did not make any noticeable changes to their pricing in February. Many believe they sold over $300m. The fact that Alrosa sold earlier in the month is likely to Consumer confidence indicator in the Euro Area was confirmed at -6.60 points in February thanks to have helped them achieve this. households’ brighter expectations in respect of the general economic situation. Premiums also fell for Alrosa boxes February, however consumers were and 61% in Hong Kong and  Catoca did adjust to the more optimistic about the short- Macao; down 50% and 57% market and reportedly goods term outlook (combination of respectively, in gem-set jewellery. were sold slightly cheaper than the month before income, business and labour market The report also stated that 70%  Dominion sold a few goods on conditions). This, coupled with of CTF’s POS in mainland China the Antwerp market. Prices solid employment growth, should resumed operations and 64% in were quite stable compared to be enough to continue to support Hong Kong and Macao. The slow last month

spending and economic growth in sell-through over that period means  Rio Tinto generally kept prices the near term,” according to The inventory levels with all retailers are flat for both Diavik and Argyle, Conference Board. higher than usual, and that will however some diamond Watches of Switzerland Group limit their appetite to buy new companies believe that Argyle goods were actually slightly announced that sales at Mayors for product. more expensive than last its third financial quarter, which A survey of 28 CEOs and month includes the Christmas period, were CFOs-conducted by Altagamma,  Diavik volumes were about up 9% on a like-for-like basis. an association of Italian luxury 20% lower and are expected However it is believed that most of companies, in conjunction with to be 10-15% below last year’s this was driven by demand for Boston Consulting Group and levels for the rest of 2020. watches. investment firm Bernstein- Argyle also sold small volumes Macy’s announced that estimated the industry could lose  ODC recently concluded its sale, which saw prices down comparable store sales for the €30bn to €40bn in sales this year, substantially.With an average fourth quarter were down 0.5%, for an estimated total sale of price anywhere between 7 to but its destination business, which €309bn in 2020. The consequence 10% lower, this gives a picture includes fine jewellery, rose 4.3%. would be a roughly 15% drop in as to the situation on the Most retail shops in Hong Kong earnings for the industry, meaning a market are open but have no business, loss of about €10bn. whereas stores in mainland China The main concern is business in were closed and are gradually China, where sales are plummeting opening again, depending on the due to widespread store closures to other parts of the world. area in which they are located. and shoppers hunkering down in That said, many analysts believe Chow Tai Fook recently published their homes. The survey estimates economic activity will normalize an activity report for the first two as many as 10 to 15 million from Q2 onwards, partly helped by months of the year that shows that products originally destined for the frontloading of monetary and on a same store sales basis, volumes China could go unsold, forcing fiscal stimulus, and a relaxation of were down 52% in mainland China companies to redirect those items regulation. 

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GIVING THE MSME MSME DIARY SEGMENT A BIG BOOST

GJEPC organised a series of seminars for MSME jewellers and karigars in association with local trade bodies and industry experts. Together, they shared their perspectives on how these traders could elevate their business potential

At Satara, GJEPC organised the seminar along with the Satara Saraf Association.

n its endeavour to promote the MSME of Cluster Development Scheme, Lean sector, the Gem and Jewellery Export Manufacturing Competitiveness Scheme IPromotion Council (GJEPC) has been and Technology upgradation scheme for regularly organizing MSME seminars, machinery where exporters can receive a workshops and camps across the country. loan of up to INR 1 crore with a subsidy TOPICS DISCUSSED AT Taking this initiative forward, it held of 15% and interest subvention scheme. THE SEMINARS MSME events in Bhopal, Indore, Ujjain, GJEPC's MSME assistant manager, 1. Role of MSME-DI in Satara, Mumbai, and Ratnagiri. Mrunali Elle, provided an overview of export facilitation Eminent speakers from various trade several government schemes for the and development of and government organizations were invited segment. She briefed attendees about DIC, MSMEs to participate and make the seminar more NSIC, SIDBI, Udyog Aadhar registration 2. GJEPC initiatives for informative at each of these cities. During as well as banking rocedures and the sector the seminars, Mithilesh Pandey, director documentation required for the same. 3. Banking and Membership, GJEPC spoke about the While talking about benefits of technology financing Council’s various initiatives, including upgradation scheme, she also described 4. Hallmarking membership, Micro Membership, Parichay MSME schemes available for machinery 5. GST Card, Swasthya Kosh, Swasthya Ratna, loans, exhibition and infrastructure related 6. ECGC Jewellery Park, Common Facility Center benefits. She updated new entrepreneurs (CFC), Cluster Development, IIJS about the eligibility and procedures to avail 7. New business opportunities for Premiere, Signature exhibition, Buyer these loans and also touched upon the jewellers using IT Seller Meets, Mobile App and Help desk. importance of having good infrastructure and online platforms He briefed the attendees about the benefits through CFC. 

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GJEPC’S GTL SIGNS CERTIFICATION PROGRAMME ON GROUND MOU WITH eBAY FOR SELLERS

Within a span of a month, the testing under this MoU has already crossed the 1000 mark.

he Gem & Jewellery including disclosure of presence popular products across our 180 Export Promotion or absence of treatments on million global buyers. To build TCouncil’s (GJEPC) Gem gemstones, as per existing trust and saliency for Indian Testing Laboratory (GTL) Jaipur criteria. This strategic initiative jewellery sellers and enhance and eBay signed a MoU in enhances consumer trust and their business, we are partnering January 2020. Under this credibility in the global markets with GJEPC to enable eBay agreement, GJEPC-GTL will and also helps to promote brand India Seller’s certify gemstones offer certification services to eBay India internationally through sold on our marketplace. The sellers for a nominal fee. This credible certification. It will help GTL certification ensures that arrangement will facilitate sellers sellers on eBay to build customer global customers are assured of on the ecommerce platform to confidence as well as assist in the best quality of gemstones obtain authentic reports from increasing sales of Indian which are ‘Made in India’.” GTL Jaipur before their handcrafted gemstones and allied This MoU is expected to gemstones are delivered to buyers jewellery in overseas markets. result in reports being issued for located in various geographies This is a significant step in taking an additional 20,000 gemstones outside India. Indian gemstone craftsmanship annually, helping brand India At present, many of these and designs to international reach an equivalent number of sellers are unable to afford markets in 2020, and we expect consumers globally. Indian certification fees for commercial many more ecommerce gemstone sellers will definitely grade goods that are commonly platforms to sign similar gain an edge over other global sold on ecommerce websites, agreements with GTL Jaipur.” sellers, since no gemmological including eBay. Hence, these Vidmay Naini, eBay’s laboratory with world-class gemstones are sold without any country head added, “We have advanced laboratory set-up validated reports, or are backed more than 15,000 MSMEs and issues reports at such a nominal by reports from ill-equipped artisans exporting across 195 fee of `250. Within a span of a laboratories, or in worst countries using the eBay global month, the testing under this scenarios, even fake reports! The marketplace platform. Indian MoU has already crossed the lowered certification fee is likely jewellery is amongst the most 1000 mark.  to encourage sellers to provide reports from a reputed lab even for commercial grade gemstones.

A GLOCAL PUSH Addressing the audience during the signing ceremony, Pramod Kumar Agrawal, chairman, GJEPC, said, “This agreement will facilitate all types of gemstones to be certified, Pramod Agrawal, Chairman, GJEPC addressing the audience at the MoU signing ceremony

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A GLIMPSE AT REGIONAL ACTIVITIES

GJEPC organized technical and strategic dialogues for members in various cities

he Gem & Jewellery Export Association. Jaya Acharya, chairman seminar on e-SANCHIT on Promotion Council of Karnataka Jewellers Federation February 26, 2020 to inform T(GJEPC), Surat jointly with was the special guest at the event. member exporters that customs has RSM Astute organized a seminar to The Surat Regional Office of introduced Single Window Interface analyse the Union Budget 2020 on GJEPC hosted an Open House- for facilitating Trade (SWIFT) as February 3, 2020. Keynote speaker, Cum-Awareness Programme on part of ease of doing business for Nirav Jogani, vice chairman, RSM e-SANCHIT with Customs, Surat seamless processing of import and Astute Consultech, gave a brief on February 18, 2020. The Deputy export clearances. One component structure of India’s macro economy commissioner of Customs, Surat of SWIFT is e-SANCHIT. This and fund flow. A detailed Hira Bourse, Dr Prasad Varwantkar, system allows a trader to submit all presentation covered macro- provided guidance on e-SANCHIT supporting documents for clearance economic data, prominent themes of and encouraged members to follow of consignments electronically, budget 2020, direct and indirect tax the process mandated by the making the entire process paperless. proposals. department. He added that the Every exporter is required to register GJEPC’s Chennai office department would work towards on ICEGATE to carry on the trade organized Export Awareness reducing the time taken to clear process smoothly. Babu Lal Meena, meeting at Udupi on February 5, shipments. He stressed the need for deputy commissioner, CBIC was 2020. The chief guest was Nagaraj companies to follow best practices in invited to demonstrate how the Acharya, president Udupi Jewellers foreign trade to avoid problems in registration can be done and Association, along with Girish Shet, this process. uploading of documents on the secretary of Udupi Jewellers GJEPC’s Delhi office organised a system.

Discussing and discussed key banking issues of wherein Anuj Sahai with his member exporters in northern compliance team from Axis Bank Fiscal Matters region. Around 20 members interacted with member exporters. attended the session. They discussed the key banking An interactive session was issues in detail with 20 members ith an objective to organized on January 10, 2020 who attended the session.  address various critical Wbanking and financial issues being faced by our member exporters and to resolve the same at the earliest and to provide the much-needed financial respite, the Regional Office-Delhi organised three interactive sessions with three leading banks. Senior banks officials, along with their compliance, made a presentation and also promised to resolve queries of exporters. An interactive session was organized on January 6, 2020 An interactive session was organized on January 29, 2020 wherein Inder Mohan Uberoi with his compliance wherein Pankaj Singh, regional team from Kotak Mahindra Bank interacted with member exporters to discuss the key banking issues in head, ICICI made the presentation detail. Around 20 members had attended the session.

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POSITIVE VIBES AT IIJS EVENTS SIGNATURE 2020

All segments of the Indian gem and jewellery supply chain - from raw material suppliers to jewellery manufacturers, designers, wholesalers, exporters and retailers - participated wholeheartedly in IIJS Signature 2020. The show also witnessed an influx of international buyers seeking alternatives amid changing international trade equations and China’s position as the epicentre of the coronavirus outbreak by REGAN LUIS and SHANOO BIJLANI

IJS Signature 2020 spread a palpable wave of One of the show’s most-talked-about new optimism among the trade, with most aisles features was the Jewellery Startup Zone in Hall 6 Iabuzz with frenzied trading activity over the that promoted 16 budding designers and 16 four-day period from February 13 to 16, 2020. women entrepreneurs. This novel concept won Although the footfalls, at more than 15,000, were unanimous praise from visitors and participants moderate to above average, exhibitors were alike. thrilled about the high percentage of genuine The 13th edition of IIJS Signature and the 7th buyers who attended the show, resulting in a edition of India Gem & Jewellery Machinery higher conversion rate. Expo (IGJME) commenced the year’s first buying IIJS Signature 2020 hosted more than 700 opportunity for the domestic and global trade. exhibitors and 1,300 booths, spanning an area of The show was inaugurated by Subhash Desai, over 45,000 sq m. at the Bombay Exhibition Maharashtra’s Minister of Industries and Mining, Centre, Mumbai. along with the Gems & Jewellery Export

(From left) Shailesh Sangani, member, National Exhibitions Sub-Committee, GJEPC; Sanjay Kothari, chairman, GJSCI; Richa Singh, MD, Diamond Producers Association; Pramod Kumar Agrawal, chairman, GJEPC; Colin Shah, vice chairman, GJEPC; Sabyasachi Ray, executive director, GJEPC; and Mansukh Kothari, co-convener, exhibitions and COA member, GJEPC at the inauguration of IIJS Signature 2020 and IGJME 2020.

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(From left) Milan Chokshi, convener, Promotion, Marketing & Business Development, GJEPC, with some of Design Inspirations speakers, including filmmaker Rishabh Anupam Sahay; Narendra Kumar of Amazon Fashion; Thomas Lazzarini of Farfetch; and Ash Allibhai of ASBO magazine.

Promotion Council’s (GJEPC) chairman, Pramod spanning every stage of the supply chain - from Agrawal; GJEPC vice chairman, Colin Shah; raw material suppliers to manufacturers, GJEPC convener, National Exhibitions Sub- designers, wholesalers and retailers - participated Committee, Mansukh Kothari; GJEPC co- wholeheartedly with energy and enthusiasm. We convener National Exhibitions Sub-Committee, witnessed an influx of international buyers who Kirit Bhansali; GJEPC convener Gold Jewellery are looking for alternatives considering the Panel, K Srinivasan; GJEPC executive director, emerging international trade equations and Sabyasachi Ray; GJEPC National Exhibitions China’s current situation.” sub-committee member, Shailesh Sangani; He added, “We have been pursuing our GJEPC former vice chairman and Committee of government constantly with few concerns that Administration (COA) member Russell Mehta; require immediate attention like reduction in and GJEPC Western Regional chairman, Ashok import duty on precious metals Gajera, amongst others. gold/silver/platinum from 12.5% to 4%; Addressing the inaugural session, Pramod reduction of import duty on cut and polished Agrawal said, “IIJS Signature is now seen as an diamonds and gemstones from 7.5% to 2.5%; integral part of an Indian jeweller’s business cycle. amendment in taxation laws enabling sale of Despite business and environment headwinds, rough diamonds in the special notified zone people from India’s gem and jewellery exports (SNZ), Mumbai. This is very important to give a

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GJSCI, GJEPC SIGN MOU FOR DATA SHARING The GJEPC and Gem & Jewellery Skill Council of India (GJSCI) signed a Memorandum of Understanding (MoU) for the mutual sharing of data of craftspersons. GJSCI’s CEO Rajeev Garg said,“The GJEPC has collected the Parichay Card data and we run the Recognition of Prior Learning (RPL) initiative and both of these activities address the craftspersons. So, the MoU is about exchanging this data so that both bodies can have a wider reach, and eventually we want to include it in the Labour Management Information Systems (LMIS), as it will help us collate genuine, verified data.”

level playing field to our traders in exports business.” jewellery, said the show had been the global market.” Commenting on the feedback he great. “We are meeting lots of Colin Shah added, “Despite received, Mansukh Kothari noted, potential buyers. The networking various challenges like coronavirus “The overall enthusiasm of buyers event last night was brilliant as it and global slowdown, we had a was high. The Startup Zone got a gave us an opportunity to connect decent attendance of over 15,000 good response and the industry with international buyers. Serious participants at the IIJS Signature appreciated the initiative. I got to buyers had come to this show and 2020. We anticipate that globally, hear from exhibitors that there were we are seeing good movement of the second half of the year will be only serious buyers at this show, goods between `15,000 and better than the first half and hence, which was a good thing. We also `2,50,000.” business will scale up going forward. witnessed demand for light to First-time exhibitor at the India Buyers have shown interest and have medium weight jewellery.” Gem & Jewellery Machinery Expo pre-booked orders at the IIJS LESS IS MORE (IGJME), Vijay Parekh, managing Signature, which is a healthy sign for Hardik Shah of BR Designs, which director of Rishikesh Electromatic, the Indian diamond and jewellery specialises in high-end diamond exclaimed that his experience at the

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show had been “beautiful!” “We bridal sets between 40 grams and have already sold four of stocking 300 grams.” mesh and gope chain machines by A’Star marketing executive Saket the second day. After this positive Shah said that 95% of the buyers he experience, we are keen to exhibit met were regular customers. “The in the August IIJS Premiere show.” show is pretty decent, but we are Mehul Dhinoja, director of sales not seeing too many new buyers. and marketing, CVM, which We are getting queries from pan- specialises in antique rose-cut India and earrings, rings and diamond jewellery, said that while pendants below `50,000 are in good footfalls on the first day were demand,” he said. moderate, he was hopeful of a bigger Siddharthaa Sawansukha, director crowd on the weekend. “We are of Sawansukha Jewellers, Kolkata, seeing more corporate buyers at this found that people at the show were show and would be happier if we get placing orders hesitantly. “Jewellery more inquiries from single-store below INR 2 lakh is popular. Jaipur Jewels by Vaibhav Dhadda owners. There is decent demand for Buyers these days are opting for

GJSCI LAUNCHES ‘UNLEASHING JEWELLERY MANUFACTURING EXCELLENCE’ BOOK During the inauguration function on the first day, the Gem & Jewellery Skill Council of India’s (GJSCI) chairman, Sanjay Kothari and GJSCI’s CEO, Rajeev Garg, along with GJEPC officials, released a book titled ‘Unleashing Jewellery Manufacturing Excellence’.It is a compilation of the 20 papers presented during the inaugural India Jewellery Excellence Symposium (IJES) that was adapted on the lines of the Santa Fe Symposium.

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Subhash Desai (sixth from left), minister for Industries & Mining, Maharashtra, and Pramod Agrawal (centre), chairman, GJEPC, inaugurated the 13th edition of IIJS Signature and the 7th edition of India Gem & Jewellery Machinery Expo (IGJME) on 13 February 2020. Joining them are (from left) Sanjay Kala, member, national exhibitions committee, GJEPC; K Srinivasan, convener, GJEPC; Mahendra K Tayal, regional chairman - South, GJEPC; Mansukh Kothari, convener, National exhibitions sub-committee, GJEPC; Kirit Bhansali, co-convener exhibitions sub-committee, GJEPC; Sabyasachi Ray, executive director, GJEPC; Shailesh Sangani, member, national exhibitions sub-committee, GJEPC; Russell Mehta, former VC and COA member, GJEPC; Ashok Gajera, regional chairman, GJEPC; and Prakash Pincha, regional chairman - East, GJEPC.

classic, minimal and youth-oriented manufacturing process. This has designs. They are coming to the several benefits including raising show well prepared and are accuracy levels, which is essential for conducting extensive research ensuring uniformity when fulfilling between themselves before attending large international orders.” trade shows.” Abhishek Sand, co-founder and TIME TO CONNECT WITH director of Savio Jewellery said he NEW BUYERS was not concerned by the low foot Mumbai-based Anand Shah was traffic at IIJS Signature because the happy to meet new buyers from show had a 100% conversion rate many regions across the country, for him, as against a 15-20% while regular customers kept conversion rate at IIJS Premiere. coming as well. He noted that “India is benefitting from factors trends are changing and customers such as the US-China trade war and are opting for light weight jewellery more recently the coronavirus - not above 125 grams - with good outbreak, which has led many designs. “The price of gold did companies in the US to divert their impact the demand. Currently, the orders to India. Another reason for markets across India are sluggish due India doing well is that our product to this factor,” he noted. finish has improved significantly as Sanjay Jain, proprietor, Manoj many Indian manufacturers are Ornaments, felt that the show lived introducing CAD/CAM into their Anand Shah up to his expectations. Apart from

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regular buyers, he got to meet few jewellery, but with an eye on new buyers from the northern maintaining price points.” Zundaa region. His firm exports jewellery got a good amount of orders for its GJSCI PROMOTES across the globe, and saw demand bracelets, a product line that is sold INDIA’S HERITAGE for gem-studded, designer jewellery off the shelves quite quickly. CRAFTS - TEMPLE, from some international buyers. It BIDRI AND FILIGREE introduced a collection of opal, VOLATILITY HAS HIT BUYER The Craft Pavilion in Hall 6 mother-of-pearl, and some other PREFERENCES promoted three traditional Indian jewellery crafts - new concepts - all lightweight lines Kulthiaa Jewel of Kolkata got bridal temple, bidri and filigree, with with affordable price points. orders but with specific price points live demonstrations by The response was great for this in mind. “This time we focussed on artisans at the booth. GJSCI year’s show, according to Viral settings that gave an expansive look CEO Rajeev Garg told Kothari, partner, Kosha Fine Jewels. with the usage of rounds and fancy- Solitaire,“Apart from promoting these crafts, we He notes that IIJS Signature has cut diamonds and carved or massive are also documenting crafts always been a serious buyer-seller colour stones with changeable like tarakashi. We have show. “Lightweight and daily wear options,” noted Anand Kulthiaa, already prepared designer jewellery, which most adding, “Overall, the industry has qualification packs so that millennials aspire for, did well. We been reeling under the after-effects the training material is ready. launched lightweight ring-cum- of volatile gold rates and the budget. We are doing the same for hupri payal, whose artisans pendant pieces and two-in-one. were brought to the previous The trend of lightweight designer show.There is a National Skill jewellery is only getting stronger.” Development Corporation- Amish Kothari, CEO, approved (NSDC) Rosentiques Fine Jewellery, qualification pack, so anybody can start training revealed, “The show has been using those documents. growing in strength year-on-year. Next, we will document bidri. Though buyers from the northern The aim is to preserve the region were less in numbers, we had knowledge of these crafts for good meetings with our existing posterity because right now buyers and some new customers as they are only being passed down the generations by well.” Since the manufacturer word of mouth or through specialises in couture and bridal on-the-job training.The Bhavesh Jewellers collections, it received decent orders authenticity of these crafts from across India. This time, has to be retained, because Rosentiques presented a special Compared to last year, the demand their USP is that it is all 100% handmade. Already, range of tanzanite-infused earrings did drop in terms of the amount of people have started using under its sub-brand Amolya. gold used. Buyers are looking for cast components for temple Toshiba Jariwala of Mumbai’s jewellery that have considerably jewellery, which is part Zundaa revealed that the show was lesser usage of gold and yet look casting and part handmade; below average for them as footfalls grand. Like the international market, that is a business reality. One were less than expected. “However, a lot of buyers have also found very heartening thing to note is that all the three crafts we were able to attract new buyers, interest in different purity, namely, have drawn qualified people and we got enquiries from two very 14-karat gold.” such as graduates and even big visitors - one from the west and This point was seconded by chemical engineers, which is another from the south. There is a Naman Kala of Kalajee Jewellery, a promising sign and it sharp shift from high ticket items to Jaipur. “Due to the high gold rates, demonstrates that they are coming back to jewellery low-ticket tags - clients are we are seeing a marked shift to 14- profession.” definitely looking for jewellery with karat jewellery from retailers who fancy-cut diamonds in designer had never strayed from 18-karat gold

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Jewellery Startup Zone in Hall 6.

and wouldn’t mind splurging on time.” Designer jewellery pieces products that are unique in terms of ranging from `1 lakh to ` 3 lakh every element involved in jewellery were sought after, and bridal sets making. Down south, gold is given between `8 and `25 lakh were a lot of importance, particularly booked. However, mid-ticket items traditional jewellery. At this time, had no takers. Tara’s collections the industry is feeling the heat of were replete with rose cuts, surging gold rates and a tough diamonds and gemstones such as economic scenario. With increasing tanzanite, morganite, opal, and technology and better innovations, I chalcedony. “Jewellery business is at an all-time low,” says Chheda, “as a result of the high gold rate. However, there is demand for daily BR Designs and couture segment. This is a phase we have to ride through with in so many years,” observed Kala. He added that his company was seeing a rising demand in tier-2 and Kulthiaa Jewel tier-3 cities also such as Ambala, Karnal, Dhanbad, Kota, Sri am optimistic about our industry’s Ganganagar, Bareily, Hardoi and growth and definitely see it many others.” bouncing back in all its glory.” Kulthiaa stated that the western Milan Chheda of Tara Fine and southern Indian regions have a Jewelry, Mumbai, too, got buyers strong liking for diamond and gold from the southern and western jewellery, respectively. “In western regions. “We had serious buyers, India, consumers are experimental though the footfalls were less this Savio Jewellery

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Vaibhav Dhadda, creative head VISITOR VOICE and founder, Jaipur Jewels, “In terms of sales January was better as we saw the gold prices stabilising in December. But in January again we witnessed volatility in gold prices; therefore, buyers were deferring their purchases in February. Considering all factors affecting the current global economic environment, I feel India is still the Sangam Chains best bet as the love for jewellery both as investment and adornment will remain forever.” equanimity. I am sure everything Dhadda received good response at will be back to normal soon, or the show and met a few new buyers perhaps the new normal.” LINDSEY STRAUGHTON, from South India and Maharashtra, INDUSTRYAMBASSADOR, apart from the old customers. The ROOM FOR ALL THE NATIONAL atmosphere at Signature is more Viral Kothari believes that the ASSOCIATION OF relaxed, and we get the time to JEWELLERS, UK: current market is conducive for interact with our clients, he says. Our journey at the India organised retailers as well as International Jewellery Show “That’s a good time to do the manufacturers. “With the (IIJS) Signature has been one implementation of GST, the of fascination, wonderment and jewellery trade is getting formalised, excitement at all the and I welcome the change.” collaborative possibilities between the UK jewellery According to Sawasukha, rising industry and the Indian gold prices have dented demand. jewellery industry.What we “The steady climb of gold prices has found amazing and exciting been affecting the trade adversely. was the marriage between The entire industry was hoping traditional handcraftsmanship and cutting-edge engineering there would be a slash in the import technology and how that has duty and GST in the 2020 Budget been fused together to create from the present rate of 12.5% and an exciting and innovative 3% respectively. The slash would future. have brought much-needed relief to The National Association of the sector. Having said that, I Jewellers has over 2,000 members who represent the A Star Jewellery believe that with time and proper entire supply chain, from stone government policies, the market can dealers and designers to revive as gold is seen as an retailers. We are the trade body groundwork ahead of IIJS Premiere. investment among Indians. The for the UK jewellery and Buyers want to be wowed all the jewellery market, fortunately, has silversmithing industry. Some time, and this time we presented a UK retailers attended the show stayed strong in both the eastern and collection of one-of-a-kind cameo and industry consultant Helen southern parts of India. I am happy Dimmick also joined us. I plan jewellery and daily wear cameo to observe that the Bengali karigari to bring around a dozen buyers jewellery at the show.” of the eastern region is finding its to the Jaipur show in April as it Sunil Datwani of Gehna felt that long due appreciation globally. And is especially designed to cater markets such as Punjab, Madhya I am hopeful that the future is bright for the export market. Pradesh and Hyderabad may offer for all of us.” potential to grow. “We met

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potential buyers from northern big platform like IIJS Signature. India, who opted for trendy designs. They were happy to interact with Lately, among them, there is a B2B buyers from across India, which curiosity about modernity in was a new experience for most of jewellery which was missing earlier. them as, as earlier they had dealt So this is an exciting avenue to only with end consumers. explore.” The Startup Zone, which was In terms of demand, Datwani fashioned on the lines of the Skill noted: “At the wholesale level we India, Stand Up India and Start-up haven’t felt any impact yet. At the India initiatives launched by the retail level, the confidence of the Government of India, gave customer could do with a little exhibitors an idea about the needs of boost. The jewellery industry has serious buyers. They were all ready faced many challenges in the last few to participate in the coming year if years, and I feel challenges only given a chance, and informed that make you stronger! The enthusiasm they would now be better prepared amongst buyers at the show is a to meet the B2B customers next heart-warming factor. time. “The current market scenario is Designer Rosily Paul said she had encouraging. This year there are a Kosha Fine Jewellery nothing but gratitude for the lot of auspicious days, and no matter organiser, GJEPC, for providing this how modern we get, I think platform to emerging entrepreneurs. jewellery will always retain its status “This is an ideal place for that it enjoys.” experimentation where we can test Archana Jain, creative head, fresh concepts and ideas. I hope this Swastik Jewellers, Mumbai, stated initiative continues in the future as that despite lesser number of well.” footfalls, the conversion of queries Kapila Bhutta of Joolrie Fusion was good - thanks to the presence of said she was extremely thrilled about genuine buyers at the show. Jain the opportunity to exhibit at the received most buyers from major Startup Zone. “I’m absolutely chain stores based in South India. Gehna Jewellers certain that this is a tremendous The new collection of mangalsturas opportunity, but it will take time to and ‘men’s sutras’ received a lot of bear fruit.” attention from retailers. Lightweight An exuberant Gitanjali Sahijwaala jewellery with a lesser component of of Lotus Ssutra said that the Startup gold was on top of the charts. Zone was a wonderful networking “Demand for gold jewellery has platform as she got to meet people been definitely affected due to the from across India. “It is a great place high cost of the yellow metal, and for up-and-coming designers to get going forward the I can see that tier good exposure.” 2 and 3 cities are still investing in The Startup Zone is genius, said precious jewellery as compared to an excited Shweta Aarsaria. “This is metros.” a great initiative. Even though the footfalls may be light, for me this STARTUP ZONE - SUPER HIT initiative is all about connection, not Exhibitors at the Startup Zone selling. I hope the stall allocation is section expressed their gratitude for done earlier next time as it would be the opportunity given to them at a Wondercuts of great help for people like me who

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Savio Jewellery

are from out of town.” co-founder and product head, NLP Design Inspirations were Ash Allibhai, Bots; Vedanarayanan Vedantham, international fashion & content ON THE SIDELINES SME business head, Razorpay; director, ASBO Magazine; Narendra On February 15, 2020 the GJEPC Sowmya Iyer, founder and CEO, Kumar, creative director, Amazon presented the first ever Business Dvio Digital; Aditya Bhat, head, Jio Fashion; Thomas Lazzarini, private Studios; Bollywood actress, Aditi client personal shopper at Farfetch; Govitrikar and TV actress, Tridha Shreyas More, interior designer, Choudhury. Green Charcoal Project; Fleur The daylong Design Inspirations Damman and Noëlle Viguurs, co- seminar on the last day of IIJS founder, Van Gelder Indian Jewellery; Signature was conducted by Saikat Mitra, creative director, Van jewellery trend forecaster, Paola De Heusen and VP design at Aditya Birla Luca. The core themes of Design Fashion and Retail; Akash Das, Inspirations 2020 were Social creative director at MeWeStudioX. Culture (The era of volatility), The speakers shared with the gathered Sustainable (Being planet sensitive trade members their insights, and conscious), Heritage (Looking perspectives and knowledge gleaned deeper into authenticity) and, from their diverse backgrounds.  Design (Envisioning the ideals of tomorrow). Among the eminent speakers at

Zundaa

Knowledge Forum, in association with EconomicTimes.com, which discussed the importance of modern-day information technology and tools like Robotics, Artificial Intelligence, Digital Marketing, Importance of Social Media and Impact of Influencers, etc. The Forum had eminent speakers Tara Fine like Raghunath Subramanian, Jewellery chairman UI Path; Animesh Samuel,

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FOR YOUR EARS ONLY

Earrings are a staple in every woman’s treasure box. From jhumkis, shoulder- dusters and single earrings to ear-climbers and more, this versatile category has seen varied manifestations in the recent past. At IIJS Signature 2020, we spotted some notable ear studs-large, sophisticated, classic, colour-infused, folkloric and futuristic. Here’s what caught our eye!

A’Star Jewellery

Jaipur Jewels by Vaibhav Dhadda

Jewels of Jaipur

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Kalajee Jewellery

Savio Jewellery

Wondercuts

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ARTISAN AWARDS 2020: TOASTING THE WINNERS

Pulsating emotions, collective celebrations and sighs, glamorous celebrities and above all, an avant-garde star of the global jewellery world, legendary British designer Stephen Webster, who gave away The Artisan Awards. This was the culmination of the extravaganza organised by the Gem & Jewellery Export Promotion Council (GJEPC) at Four Seasons Hotel, Mumbai, on 12 February 2020

Winners seen with the GJEPC dignataries and chief guest Stephen Webster

eeming with celebrities, designers in this industry. Among important because they challenge international guests and the dignitaries who graced the you to push yourself creatively, to Tmedia, and top industry occasion were GJEPC’s Chairman, push your own boundaries. India is leaders, there couldn’t have been a Pramod Agrawal; GJEPC vice steeped in tradition and India has more fitting finish to The Artisan chairman, Colin Shah, GIA India & influenced nearly all jewellery Awards, India’s highest honour in Middle East’s MD, Nirupa Bhatt, designers. I congratulate all the jewellery design, which was and GJEPC convener of the winners of The Artisan Awards presented by the Gem & Jewellery Promotion, Marketing and Business presented by GJEPC and can say we Export Promotion Council (GJEPC) Development (PMBD) sub- have seen some great pieces.” and powered by the Gemological committee, Milan Chokshi. Institute of America (GIA). The Speaking at the event, British CREATIONS THAT AWED winners held up their trophies in the jewellery designer Stephen Webster The Artisan Jewellery Design spotlight before an august audience, said, “For a piece of jewellery, Awards 2020 invited talented who cheered them on. materials are everything. Materials designers from across the country to This distinction of winning an and craft form the basis, but the take up the challenge and create Artisan Award will go a long way in element of design pushes things extraordinary pieces of jewellery their journey to fulfil their dreams as further. Design competitions are based on the core theme of

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‘Architectural Gems’. Architecture SECOND RUNNER-UP and jewellery share similar tenets of Monu Jain Gupta ART DECO function and design; both follow key Monu Jain Gupta principles of durability, utility and beauty, and that’s what the finalists proved with their ground-breaking creations. The theme was further subdivided into three periods: Art Deco, Islamic Arabesque and Neo Futurism, to celebrate three key periods from different architectural FIRST RUNNER-UP eras. Participants were asked to Arif Hossain A’Star Jewellery WINNER submit their sketches choosing from Harjas Kaur any one of three categories listed: A’Star Jewellery Art Deco, which focuses on streamlined geometric symmetry; amongst various initiatives that Islamic Arabesque, which pertains to GJEPC has undertaken is The FINALISTS rhythmic linear patterns interspersed Artisan Awards. In its third year, we Ashishkumar Doshi with swirling foliage motifs; and have fairly good representation from Oopal Diamonds Neo Futurism, which suspends old India and abroad. Through this notions of function and possibility platform, we tapped talent that not Budoor Albudoor with dynamic forms and lines. only has the vision to create designs La Marquise Diamonds, Dubai In his address, Pramod Agrawal that push the boundaries of Hema Harika Chandana said, “India has an extremely creativity but also imbibe factors that talented pool of jewellery designers. give jewellery a 360-degree touch to Imaginarium, India The Artisan Awards is a one-of-its- be accessible to the end user.” Juhee Bolakhe kind initiative of the GJEPC to Milan Chokshi said, “The kind of Vummidi Bangaru Jewellers felicitate the best talent in jewellery designs we saw through this process design. The objective of organising have been truly amazing. The Saurabh Jhaveri Artisan Awards is to encourage and eminent jury had a real tough task in Tiara Silver motivate our students and designers selecting the finalists and winners. to reach their full potential and make And the support that the Shruti Sharma it big in this industry. I congratulate manufacturers gave these young KP Sanghvi all the designers who crafted such designers was heartening to see. This beautiful designs and the year’s theme ‘Architectural Gems’ manufacturers who brought these has been devised to inspire designers Sushma Sawant, Meenal Chokshi, designs to life. Looking at these to use a nonlinear approach to create creative director at Moksh Jewellery, exquisite jewellery pieces, I can say jewellery, inspired by three distinct and Vikram Singh, the creative head that the future of this industry is in eras of architecture. I congratulate all of Walking Tree, who narrowed the safe hands.” 625 participants for their inspiring selection down to around 300 Commenting on the Artisan interpretations of the theme.” finalists. Awards, Colin Shah noted, “India’s The Artisan Awards 2020 had a The second round of judging was craftsmen are amongst the best in stringent judging process that conducted by an eminent jury the world when it comes to product encompassed three rounds. The first consisting of architect and interior engineering. At GJEPC, it is our round involved scrutinising 625 designer Ashiesh Shah, fashion sincere effort to nurture the design sketches that were evaluated on designer Rimzim Dadu, fashion talent, provide platforms to showcase technical grounds. The first panel of photographer Jatin Kampani and their potential to the world. One judges included IIGJ senior faculty jewellery expert Richa Goyal Sikri,

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FIRST RUNNER-UP NEO-FUTURISM Kosha Shah Anand Shah FINALISTS Archangel Caszo Reliance Jewels

Ashishkumar Doshi Oopal Diamonds

Juhee Bolakhe Vummidi Bangaru Jewellers WINNER Mitali Kikani SECOND RUNNER-UP Namrata Bhardwaj Jinal Patel H. Ajoomal Fine Jewellery A’Star Jewellery Reliance Jewels Saayli Dhongade Diagold Creation

Anant Jain Mukti Gold

ISLAMIC ARABESQUE FINALISTS WINNER Koushik Mondal Bhagyashree Vaidya Tanvirkumar & Company Tanvirkumar & Company

Jaydeb Dolui Tribhuvandas Bhimji Zaveri

Pratiksha Gandle Reliance Jewels

Rakesh Bakuly Kiran Gems

Saloni Kaushik Titan Company Ltd. SECOND RUNNER-UP Sonali Sheth Tanaya Agarwal Sphere FIRST RUNNER-UP Imaginarium India Ketki Ambardekar Jewel Goldi

along with high-end jewellers asked to manufacture the pieces, drawn from across the arts and crafts Pavan Anand of Dagmar Jewellery which were vetted by the third world. The winners were adjudged and Abhishek Haritwal of panel of judges. by Aparna Badlani, co-founder at Symetree, who whittled the The third and final round of Atosa; Ambika Anand, fashion number down further to 27 judging took place at Soho House in consultant and TV anchor; Neha finalists. The designers were then Mumbai with a distinguished jury Dani, fine jewellery designer; Anna

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Shakti Jewellers-Winner Anand Shah- Winner Anand Shah -Winner Manak Jewellers-Winner Gold Jewellery Cocktail Rings Couture Cuffs Daily Diamond Wear

Sanskriti Jewels-Winner CGS Jewellery

Martin, board president and executive committee member of GIA; Nirupa Bhatt of GIA India and Middle East; and Smriti Bohra, Ira Jewels-Winner Silver Jewellery creative director at Jewels Emporium. Birdhichand Ghanshyamdas – Kothari Couture Diamond Jewellery of BEST PRODUCT INVENTORY AT SPECIAL EXHIBITOR Savaab.  IIJS SIGNATURE 2020 CATEGORY Couture Cuffs The Artisan Awards included a Anand Shah Jewels special award category of Best Cocktail Rings Product Inventory exclusively for IIJS Signature 2020 exhibitors. Anand Shah Jewels Participants were asked to email Silver Jewellery photographs of their finished Ira Jewels products in any two of the following categories: Couture Daily Wear Diamond Jewellery Cuffs, Cocktail Rings, Silver Manak Jewellers Jewellery, Daily Wear Diamond Jewellery, Coloured Gemstone Coloured Gemstone Jewellery jewellery, Couture Diamond Sanskriti Jewels Jewellery, Gold Jewellery, and Couture Diamond Jewellery Kundan Meena Jewellery. The finalists were narrowed Birdhichand Ghanshyamdas down by IIGJ faculty member Gold Jewellery Sushma Sawant and jewellery Shakti Jewellers designer, Hetal Vakil. The winners were then picked by Ishu Datwani Kundan Meena Jewellery Sparsh Jewellers-Winner Kundan Meena of Anmol Jewellers and Apurva Category Sparsh Jewellers

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AI’S POTENTIAL TO HELP BUSINESSES GROW

AI can free customer service executives from routine support requests so that they can focus on complex tasks. Similarly, with its self-learning capability, it can resolve service issues before they arise, which could lower customer abandonment. These are few examples of the critical role it can play in any business environment

nnovation is the only way to stay relevant in contemporary times. Hence, at the 13th Iedition of IIJS Signature 2020, GJEPC organised a Business Knowledge Forum powered by Economictimes.com. This platform offered valuable insights into emerging technologies in the digital world and highlighted how jewellers could use these to their advantage. Amongst the many experts at the Business Knowledge Forum was Animesh Samuel, co- founder of Light Information Systems and NLP Robots, who spoke on the theme ‘Reinvent with Artificial Intelligence (AI) and Machine Learning’. Here are excerpts from his presentation at the event:

EMERGENCE OF AI During the Industrial Revolution, people transferred their physical powers to machines. This was followed by transference of computation powers where machines were taught to process information for faster results. Later, they were programmed to manage various repetitive jobs, so that they could achieve within minutes what humans would take days to do. Today, mankind is on the verge of technological breakthrough. Now that machines have taken care of physical, computational and automation attributes, it only lacked the ability to think. With AI, this absence has been fulfilled. To understand how AI does this, let’s take the example of a single document and then extrapolate it to one lakh documents. A user can tag each document as either an invoice, receipt or certificate. This is called training data for the machine’s neural networks. So when a fresh document is added to its system, the machine will automatically tag it as either invoice, receipt or

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According to the International Data Corporation (IDC) Worldwide Semiannual Cognitive Artificial Intelligence Systems Spending Guide, global spending on cognitive and AI systems is expected to continue its trajectory of robust growth as businesses invest in projects that utilise these capabilities. According to the research agency, spending on cognitive and AI systems will reach $77.6 billion in 2022, more than three times the $24.0 billion forecast for 2018.

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certificate, after assessing certain parameters, without human intervention.

A BRIEF HISTORY OF AI Contrary to popular notion, AI isn’t a new concept. It has been spoken about since the 1950s. Back then conversations revolved By 2020, 80% of all around cybernetics and early neural customers will be networks, Turing’s Test, Game AI, handled without a human agent, freeing Symbolic reasoning and the Logic this manpower for Theorist, though momentum was lost after more critical work. AI, 1956. From 1974 interest reawakened in chatbots and reasoning as search and natural language. automated self-service The period from 1980 to 1987 saw the Colin Shah, vice chairman, GJEPC felicitates Animesh technologies free up rise of expert systems, the knowledge Samuel, co-founder, NLP Bots and Light Information Systems call centre from revolution and a revival of connectionism, routine tier-one before funding for these projects tapered support requests so off. The last decade of the century decision. More importantly, there are no they can focus on witnessed a lot more research on deep formulae that apply to AI. complex tasks. learning, Big Data and AI behind the Currently, this concept is taken a lot Additionally, resolving scenes. more seriously. One of the reasons is customer service issues before they AI requires lots of data to operate. It because increasing computational and arise could might not always be perfect but it will self- computing prowess is readily available. The significantly lower learn to avoid repeating mistakes. It also second is collaboration; today, more customer requires tons of computational power to numbers of industries and companies are abandonment. access various algorithms and take the right collaborating across continents. When

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these two elements are brought together, it means disruption is occurring at a phenomenal pace.

PUSHING THE FRONTIERS OF COLLABORATION When Star Trek series burst on TV screens in 1966, the thought that people could communicate with each other across long distances using portable devices seemed fantastical. Today, though, we can freely video chat with anyone across the world. This unimaginable feat underlines that change is occurring at a fast clip. ANIMESH SAMUEL So, why is this happening now? The An alumni of St John the Baptist High School and Pune’s rapid adoption of AI-powered applications Fergusson College, Animesh Samuel completed his Bachelors in ais because of varied reasons. Firstly, 2.5 Mechanical Engineering from Kolhapur’s Shivaji University in quintillion bytes of data is created daily, of 1999. He was always inclined towards technology from a young age and when he was just 25, he became CEO of Compulink which 80% is unstructured. This is India. A couple of years later, he joined Pune’s KAPS International especially in enterprises, which have LLC as Partner, where he offered corporate training, functional systems like ERP, CRM, HRMS, etc. consulting and counselling to several leading corporations Identifying, classifying and then utilising including Infosys and Cognizant Technology Solutions. this data for appropriate reasons is humanly In 2012, he co-founded Light Information Systems with an objective to transform man-machine interactions in the future by impossible. However, AI can do it faster using AI and natural language processing. Its enterprise product, with better outcomes. NLPBots automates conversations and processes in the areas of Additionally, availability of better HR (employee engagement or hiring automation, etc.), customer hardware with faster chips for graphics care, marketing assist, reseller/partner management, technical processing units (GPUs) and tensor support, lead generation, user validation processes, etc. processing units (TPUs) is no longer a challenge. Secondly, there is constant innovation in algorithms that iteratively learn to enhance data that helps AI better and found the driver pounded his car five predict outcomes. Thirdly, the times in the past year! proliferation of apps, systems and AI With the introduction of a 5G network, solutions has led to lowering of costs and machines will be able to communicate with improved savings for enterprises that are each other faster. In the gems and jewellery keen to deploy this technology. This, in industry especially this will have several turn, is encouraging them to create more ramifications. For example, with 3D use cases for AI-based solutions. printing in the backdrop, manufacturers can use AI for making customised products REIMAGINE EVERYTHING at a faster pace. AI has changed everything, compelling Homosapiens have been around for enterprises to reimagine everything. For approximately 5,00,000 years. And after all instance, in the future when self-driving these years, renowned physicist Stephen cars will become the norm, AI will take Hawking noted that with AI, mankind is at decisions for the driver. It will also know the cusp of a revolution in its evolution. that it will have to steer clear from the This shows the kind of revolution that AI driver ahead of vehicle. The reason? It has can herald in the world, across various accessed his insurance records in real time aspects, be it business or welfare. 

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EDUCATING PEOPLE, BUILDING INDIA THE REAL GEMS KANTILAL CHHOTALAL Partners MR ASHISH KANTILAL MEHTA, MR MILAN RAJNIKANT MEHTA, MR PARTHIV MEHTA, MR AKSHAR MILAN MEHTA

The Trust runs Kalayatan, where students are trained in song, dance, music and drama.

he best way to give back to the society is A COMMUNITY INITIATIVE by investing in its future’. That is the Over the years, diamantaire families from Tmotto Ashish Kantilal Mehta and his Palanpur supported Late Kantilal Chhotalal three partners - Milan Rajnikant Mehta, Parthiv Mehta’s philanthropic efforts by extending Mehta and Akshar Milan Mehta - live by. It has financial support and help in running the held them in good stead while managing the Vidyamandir Trust. One family that has been affairs of the Vidyamandir Trust. closely involved with the Trust since inception is This well-known education Trust, located in Rosy Blue and presently its chairman, Russell Gujarat’s Banaskantha district was started in 1948 Arunbhai Mehta, heads Vidyamandir Trust. by Late Kantilal Chhotalal Mehta. A diamantaire The charitable body currently runs English and from Palanpur city, his main aim was to provide Gujarati medium schools from the kindergarten quality education to the youth and an economic level to higher secondary. Since the 1970s, it has impetus to the Banaskantha district, which was operated its own teachers’ training colleges for declared a backward region by the government. pre-primary, primary and secondary school levels, He established Kantilal Chhotalal as a diamond as well as a special college for teaching differently- solitaire manufacturing unit in Mumbai in 1941. abled students. Today, it manages over 135 Today, the company is in the business of trading educational across 14 campuses with a team of cut and polished diamonds as well as 250 teachers catering to around 5,800 students. manufacturing and trading of jewellery, catering One innovation by Vidyamandir Trust is an to a diversified clientele in the domestic and education programme for children of rural schools overseas markets. lacking basic infrastructure like a library and

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science lab. Its mobile lab and library differently-abled, including visually new technologies and teaching reaches around 5,000 students in 52 impaired, hearing impaired, techniques. For example, it first schools in as many villages. orthopaedically handicapped and introduced computers to the Promising students from these mentally challenged students. students in the 1980s and soon after, institutions are provided special Founded in 1963, it is the only incorporated it into the regular coaching at classes conducted by establishment of its kind in Gujarat syllabus. Vidyamandir teachers every Sunday and education is provided absolutely It has also been encouraging its in regular classrooms and labs at its free to students. students to pursue medical careers. Palanpur schools. Mamtamandir provides vocational About 20% of its students from the The Trust also has facilities like a training to help the students become higher secondary section opt for state-of-the-art English language lab, self-reliant and a part of the social medical careers choosing the separate labs of physics, chemistry mainstream. It is also a pioneer in country’s leading medical colleges, and biology, a library with over the concept of integrated education and with many of its alumni building 30,000 books, a 600-seater air- where visually impaired students successful careers in different conditioned auditorium and a study alongside normal students in professions. Due to the number of landscaped garden spread over 12 the same classroom. This method, students opting for medicine, acres. pioneered by Vidyamandir in 1969, Palanpur has become the hub for was later accepted by educationists medical tourism with people from PROMOTING SELF-RELIANCE all over India. surrounding areas, including the A special feature of the campus is The Trust has been at the bordering state of Rajasthan, coming Mamtamandir, an institute for the forefront of change by introducing here to avail quality medical service.

GOING BEYOND BOOKS In addition to a regular curriculum, all Vidyamandir Trust schools place plenty of emphasis on extracurricular activities for a student’s overall personality development. They are encouraged to participate in sports, drawing and essay competitions. Several of them have won laurels at the district and state levels in these fields, bringing honour to their teachers and institutions. The sports academy of the Trust offers training under expert coaches in 15 different disciplines and many students are selected to represent the district and state in national and state level competitions. The Trust, furthermore, runs Kalayatan, where students are trained in song, dance, music and drama. They get an opportunity to perform at functions held by the Trust and at competitions organized by the government and private Mamtamandir provides vocational training to help the students become self-reliant and a part of the social cultural organizations.  mainstream.

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FOCUSING ON PRIMARY ISSUES MAHENDRA BROTHERS EXPORTS PVT. LTD. MR SAUNAK J PARIKH, Director

Mahendra Brothers have been directly involved in providing free education and hostel facilities to the students of Mamta Mandir Residential School.

stablished in 1960, Mahendra CONTRIBUTING TOWARDS charitable hospitals. The principal Brothers has become central SOCIETY’S HEALTH NEEDS amongst them is ‘BA’ Smt. Lilaben Eplayers in India’s diamond In 1983, Mahendra Brothers Chimanlal Parikh Cancer Centre, a business. A manufacturing established Parikh Foundation with radiotherapy and cancer care centre Sightholder of the Diamond Trading an objective to create and manage established in Gujarat’s Navsari Company since 1969, amongst the structured CSR programmes. The district in 2011. It is implemented first in the country, it has been, and company’s family members are under the state government’s public still is, a one-stop destination for actively involved as trustees and run it private partnership scheme. diamonds. With a wide array of professionally. The Foundation The facility has state-of-the-art diamonds ranging from round, focuses on four primary areas, namely equipment along with futuristic princess, marquise, taper and healthcare, animal care, education as technology. It conducts cancer baguettes in qualities from 300 per well as relief and rehabilitation. awareness programmes on a regular carat to 2 carats in VVS to I3 Besides contributing for many basis and provides cancer detection clarities, it remains a preferred healthcare needs across India, Parikh and therapy at extremely subsidized partner for clients across the world. Foundation has helped build some rates.

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THE REAL GEMS

Growing over the years, ‘BA’ Close to 20 caretakers visit earthquake, Parikh Foundation built Smt. Lilaben Chimanlal Parikh villages in Navsari’s surrounding houses in Gujarat’s Morbi region Cancer Centre currently has pre- areas to conduct medical camps on a besides doing community work and post-operative facility for cancer regular basis and provide medical along with others associations. 80 care. This includes radiation, facilities to domestic and abandoned houses were built in Ram Nagar mammography, CT scan, x-ray and animals. Animal welfare awareness along with a community hall for 100 chemotherapy. programmes are held periodically people. The Foundation also created Its recognition as a Central and medical camps are scheduled ‘Leela Gram’ and built 80 houses government’s Ayushman Bharat between November and February. and another community hall for center has come as a boon for School children are invited and about 100 people there. women in the area. Regular cancer lessons on environment, Jeevdaya awareness programmes are and kindness towards animals are TEACHING FOR conducted in villages, and women imparted. EMPOWERMENT forums are engaged for early Since the early 1990s, Mahendra detection and preventive care of SPEARHEADING RELIEF & Brothers has been directly involved breast cancer within 100km area of REHABILITATION WORKS in providing free education and Navsari. Parikh Foundation has been at the hostel facilities to the students of forefront of relief and rehabilitation Mamta Mandir Residential School, CARING FOR ANIMALS of people affected by natural managed by Manav Kalyan Trust. Established in 1994, Mahavir Vishwa calamities like earthquakes, floods This is an institute for the deaf and Kalyan Trust is a shelter home and cyclones across India. The mute and other differently abled spread over 6 lakh square feet for Foundation’s work includes children in Navsari. deserted animals and ailing birds rebuilding of homes, schools, roads The school educates children near Navsari. Around 1,100 to 1,200 and other infrastructure facilities for from nursery till class X, enriching small and big animals are sheltered those affected directly and indirectly their experience through a host of and looked after here with consistent by the calamities. extra-curricular activities. An medical check-up and treatment. During the 2001 Bhuj estimated 1,500 students have graduated from Mamta Mandir since the early 1990s and more than 700 are currently enrolled. Parikh Foundation is also a major contributor to many educational institutions, and has done a great deal of work for deaf and mute students in Gujarat. To have skilled workforce for the gems and jewellery industry, Parikh Foundation, together with GJEPC, set up the Indian Institute of Gems & Jewellery (IIGJ), also known as Bagmal Laxmichand Parikh Campus in Mumbai. Since 2003, the institute has provided more than 4,000 skilled workforce to the industry. Mahendra Brothers tries to add value to any initiative it takes up so that over a period of time it has a ‘BA’ Smt Lilaben Chimanlal Parikh Cancer Centre is one of its kind radiotherapy and cancer care centre in wider reach and benefits a larger Navsari, Gujarat. section of society around the facility.

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ROYAL ASSCHER’S PRESIDENT RETIRES AFTER 50 YEARS GLOBAL UPDATES Following patriarch Edward Asscher’s retirement, his daughter, Lita, and son, Mike Asscher, will take manage the business as co-presidents.

globe’s continents. patented diamond cuts, which are With Mike and Lita coming on now part of our family tradition. I board as the family’s sixth want to thank Edward for all he has generation, Royal Asscher began to done for Royal Asscher. I look focus on the manufacturing of fancy forward to continuing to work cut diamonds, investing in closely with Lita in leading our innovative technology, which led to company, serving our expanding the patenting of four proprietary client base and delivering strong diamond cuts based on popular growth for our retailers across the existing shapes. globe.” Talking about his five decade Outside of the family business, long journey, Edward said, “It was a Edward is a passionate campaigner pleasure and an honour to work for an ethical responsible diamond with three generations of Asschers - industry that respects human and my father, my late brother, Joop, environmental rights. He held board and two of my three children. Our positions across numerous charities dward Asscher, president of industry has had its challenges in and industry bodies and served as Netherlands’ Royal Asscher many aspects, but ethical standards, president of the World Diamond EDiamond Company has transparency, innovation, and Council (WDC) from 2014 to 2016, retired after managing the family professionalism have become the beginning another two-year term in diamond dynasty for 50 years. Upon norm and will keep the industry as June of this year. As an NGO, the his departure, Edward’s daughter beautiful as the product itself. I now WDC represents the complete Lita, and son Mike Asscher will leave, with confidence that the diamond supply pipeline, from serve as the firm’s co-presidents. future of Royal Asscher is in the mining to retail, in the Kimberley Edward joined the family business able hands of the next generation!” Process (KP). With Asscher’s focus in 1970 after completing his Talking about her father, Lita on human rights, he will promote academic studies. He apprenticed added, “He is an amazing example, further changes in the global with his father and uncle, working and has instilled us with a drive and diamond supply chain. alongside some of the finest passion for the diamond business. Other illustrious positions that diamond craftsmen in the industry, His work ethics, his command of Edward held in the past included making him the fifth generation complexities, his devotion and focus president of the International family member to join the dynasty. have been exemplary at the Diamond Manufacturers Association 10 years later, he stepped into his company. His achievements and (IDMA), president of the father’s shoes as company president. energy will always resonate International Diamond Council, During 36 years, his brother Joop, throughout Royal Asscher.” president of the Liberal Party in and he worked cohesively, before Her brother, Mike Asscher, Amsterdam. He also served as a the former passed away in 2006. added, “Working alongside my senator for the Liberal Party in the Upon taking the company’s helm, father has been an incredible Dutch parliament from 2007 to Edward expanded Royal Asscher’s experience. He has been a mentor, 2011 and received a knighthood for reach in the international market, friend, and business partner for over his social and ethical work and was creating a presence and developing 21 years. Together we have created consequently named an Officer in strategic partnerships, on all of the some of the world’s most beautiful the Order of Oranje-Nassau. 

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GLOBAL UPDATES

NEWLY DISCOVERED MINERAL NAMED AFTER GIA GOVERNOR, DR BARBARA DUTROW Dutrowite, the newest species of tourmaline, was discovered in the Apuan Alps of Italy’s Tuscany region.

utrowite, a newly achievements,” said Susan Jacques, discovered mineral species GIA president and CEO. “Barbara is Dof the tourmaline group, is a significant contributor to our the namesake of GIA governor Board given her research and Barbara L. Dutrow, Ph.D. scientific expertise, as well as her Discovered in the Apuan Alps of focus on the student experience Tuscany, Italy, this unique mineral - from her higher education now recognized by the International background.” Mineralogical Association - is Six GIA contributors have been formed from the compression and honoured through the years with heating of a volcanic rock called minerals named after them for their rhyolite. outstanding work. This began more Researchers from Austria, Italy than four decades ago with former and Sweden who discovered GIA president Richard T. Liddicoat dutrowite named the mineral after who was honoured with liddicoatite,

Dutrow in recognition of her many Dutrowite was named after GIA governor Barbara L. a species of tourmaline; rossmanite, contributions to mineral sciences Dutrow in recognition of her contributions to another tourmaline species, was and crystal chemistry, and mineral sciences and crystal chemistry, especially named after former GIA governor her comprehensive research into tourmaline. particularly for her well-known and Dr. George R. Rossman; the comprehensive research into magnetic mineral known as valleyite tourmaline and its embedded modeling and visualization for more was named after GIA governor geologic information. Of the 34 than 25 years. She has authored and Dr. John Valley; G. Robert tourmaline species, dutrowite is the coauthored many publications, Crowningshield, a pioneering first species named after a woman. including her textbook “Manual of researcher at GIA, was honoured “Gems, and especially minerals, Mineral Science,” a worldwide with crowningshieldite; and in have been my life’s passion. It is standard and reference for the study 2019, johnkoivulaite was named tremendously gratifying to receive of minerals now in its 23rd edition. after GIA researcher John Koivula. this honour,” said Dutrow. Dutrow earned her master’s degree The members of the GIA Board “Discoveries such as this show us and Ph.D. in geological sciences of Governors are innovators and that there is still much to learn about from Southern Methodist leaders in their fields. They have our earth and its many minerals and University, TX. She joined the GIA high-level experience in diverse the geologic information they Board of Governors in November professions, industries and academic contain.” 2016. disciplines. Their role is to direct the Dutrow is the Gerald Cire and Sample of dutrowite (brown) and strategy of the Institute to ensure Lena Grand Williams Alumni dravite (blue) tourmalines in meta- that the consumer protection Professor in the Department of rhyolite from Italy (From Biagiona mission and vision of GIA are Geology and Geophysics at et al. 2019). reflected in all decisions; that the Louisiana State University (LSU). “On behalf of the Institute, we reputation of GIA is preserved and Her teaching and research have congratulate Barbara on this continues to grow globally; and that focused on mineralogy, petrology, exceptional honour and recognition the financial goals of the Institute are geochemistry, and computational of her many contributions and met. 

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GLOBAL UPDATES

PANDORA WITHDRAWS 2020 FINANCIAL GUIDANCE FOLLOWING COVID-19

Announced on February 4, 2020, the financial guidance excluded any impact from Covid-19, and the jewellery giant said it is no longer meaningful

ewellery company, Pandora, has withdrawn its financial guidance Jfor 2020, stating it is “no longer meaningful” amid the impact coronavirus is having on business. The company stated that the recent Covid- 19 escalation has had a negative impact on the global economy, affecting jewellery firms like Pandora. The decline in tourism and most other funding availability, Pandora has a Denmark-based company designs, markets are now indirectly impacted strong financial position to manage manufactures and markets hand- through a general dampening of through this downturn period. finished jewellery, which is sold in consumer sentiment. In the markets To preserve a strong balance sheet over 100 countries through 7,400 affected by lockdowns and other under these extraordinary points of sale, including more than governmental measures, revenue is circumstances, Pandora has decided 2,700 concept stores. expected to be negligible while these not to buy back any further treasury While financial performance was circumstances prevail. The company shares under the authorisation given strong in January and February, with said that the timing and pattern of at the 2020 Annual General particularly good development the return to normalised business is Meeting. It expects to initiate a online and total like-for-like, obviously subject to uncertainty and programme when the situation excluding China, is better than the outside its control. improves, subject to the capital full-year financial guidance, the It added that it is actively structure policy of having net Covid-19 escalation has led to a managing cost levels, including interest bearing debt including material weakness in sales across media, rent and other store costs, to committed leases of 0.5-1.5 times markets. ensure an appropriate balance EBITDA excluding restructuring It added that in China, like-for- between protecting profits while costs. like has been between -70% and continuing to drive revenue from its While continually monitoring the -80% since late January 2020. online store and build on the pandemic’s development, the Revenue is currently slightly underlying momentum of the brand. jewellery company said that its improving, but a return to normal Despite the headwind caused by primary focus was the well-being of demand will expectedly take time Covid-19, profitability is expected employees and ensuring safe and is outside Pandora’s control. to continue to be strong in Q1 environments for customers. The European markets, and Italy in 2020. The profitable and cash Guidelines set by local authorities particular, have been visibly generative business model means will be followed, and the company impacted since late February. that Pandora can absorb several has temporarily closed stores and Italy generated solid positive like- months of suppressed traffic and still offices as advised. Pandora’s for-like in January and February, be profitable and cash generative for manufacturing facilities in Thailand while trading in March has now the full year. Combined with a continues to run with stable supplies almost come to a complete halt. conservative capital structure policy, and currently without notable Australia is impacted due to a light funding covenants and healthy impact from the situation. 

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