THE INDIAN GEM AND JEWELLERY MAGAZINE FEBRUARY 2019

Domestic Council For Gems & Jewellery Launched GJEPC Unveils Parichay Card For Artisans GIA India To Soon Offer Coloured Stone Identification Reports ANUP BOHRA: A Radical Visionary IIGJ Tardeo Launches Innovation & Incubation Centre

DIAMOND-BACKED CRYPTOCURRENCY COIN

FEBRUARY 2019 OR CON? CONTENTS

THE INDIAN GEM AND JEWELLERY MAGAZINE FEBRUARY 2019

Domestic Council For Gems & Jewellery Launched GJEPC Unveils Parichay Card For Artisans GIA India To Soon Offer Coloured Stone Identification Reports ANUP BOHRA: A Radical Visionary IIGJ Tardeo Launches Innovation & February 2019 Incubation Centre

DIAMOND-BACKED CRYPTOCURRENCY COIN

FEBRUARY 2019 OR Publisher IMAGE COURTESY CON? Maneck Davar Features Anna Maccieri Rossi, Italy Managing Editor Shanoo Bijlani Deputy Editor Regan Luis Creative Art Director 30 46 58 Parvez Shaikh GJEPC News Design Corner Industry Insight Senior Graphic Designer GJEPC Presents Anup Bohra: A Radical Dr. Suresh Surana: Riddhi Mehta Pre-Budget Wish List Visionary Interim Budget – Digital Imaging Limited Expectations Sunil Kadam Ninad G. Jadhav Rohit N. Nayak 31 Senior Vice President (Administration & Operations) Bobby Daniel GJEPC News 60 Trade Fair MARKETING GJEPC Welcomes 3% Director – Marketing & Sales IGST Waiver Vicenzaoro Draws Geetu Rai More Global Visitors Mumbai | Sagar Bhiwandkar Peninsula Spenta, Mathuradas Mill Compound, N. M. Joshi Marg, Lower Parel (W), Mumbai - 400 013. 32 Tel: +91 22 2481 1027 Cell: +91 99307 88825 Cover Story 64 Fax: +91 22 2481 1021 Diamond-backed Design Trends New Delhi | Arti Marwah Trends @ Vicenzaoro 1102, 11th Floor, Akashdeep Building, Cryptocurrency: Coin 26/A, Barakhamba Road, New Delhi – 110 001 or Con? 2019 Tel: +91 11 4669 9999 54 Bengaluru | Sandeep Kumar Industry Insight No. 606, 1st Floor, Rear Building, Nirupa Bhatt: GIA India 80 Feet Road, 3rd Cross, 34 india’sTo first Luxury Soon jeweLLery magazine mayOffer-june 2013 Coloured Opp. Koramangala Police Station, Stone Identification Landmark - Behind Boca Grande Restaurant, Bengaluru - 560 095. Reports Tel: +91 80 4161 8966/77 Kolkata | Pulak Ghosh 32/6 Gariahat Road (S), Dhakuria, Ground Floor, Kolkata - 700 031. Tel: +91 33 4073 5025 Email: [email protected] 69 Chennai | Shoba Rebecca Bulletin 8/4, First Floor, Meridian House, Montieth Lane ICRA: Stable Outlook (Behind Westin Park Hotel), Egmore, 40 For India’s Gold Chennai - 600 008 In Focus Tel: +91 44 42188984 Cell: +91 9884055523 Domestic Council For Jewellery Retail Sector Gems & Jewellery Launched 70 Bulletin GJC Elects Anantha 43 56 Padmanaban As In Focus Industry Insight Chairman GJEPC Unveils Mansukh Kothari: Parichay Card, Health Industry Needs To Insurance For Artisans Speak In One Voice 72 Bulletin ABN Amro: Diamonds Regulars Entering Growth & Disruption Phase 14 Editorial 16 International Statistics 75 SPENTA MULTIMEDIA PVT LTD 18 India Statistics Bulletin Peninsula Spenta, Mathuradas Mill Compound, N. M. Joshi IIGJ Tardeo Launches Marg, Lower Parel (W), Mumbai - 400 013. Spectrum Tel: +91-22-2481 1010 Fax: +91-22-2481 1021 20 Innovation & E-mail: [email protected] 76 Brand Watch Incubation Centre Website: www.solitaireinternational.com

Solitaire International, the monthly magazine of The Gem & Jewellery Export Promotion Council, is Printed and Published by Maneck Davar on behalf of Spenta Multimedia Pvt Ltd, Peninsula Spenta, Mathuradas Mill Compound, N. M. Joshi Marg, Lower Parel (W), Mumbai - 400 013. Published from Mumbai at Spenta Multimedia Pvt Ltd, Peninsula Spenta, Mathuradas Mill Compound, N. M. Joshi Marg, Lower Parel (W), Mumbai - 400 013. The views and opinions expressed or implied in Solitaire International are those of the authors and do not necessarily reflect those of Spenta Multimedia Pvt Ltd or The Gem & Jewellery Export Promotion Council. Unsolicited articles and transparencies are sent in at the owner’s risk and the publisher accepts no liability for loss or damage. Material in this publication may not be reproduced, whether in part or in whole, without the written consent of Spenta Multimedia Pvt Ltd or The Gem & Jewellery Export Promotion Council. EDITORIAL

One Body, One Voice

The launch of the Domestic Council for Gems & Jewellery by Suresh Prabhu, the union minister for commerce & industry and civil aviation, is a landmark joint initiative by the government and trade. For the first time ever, the export and domestic segments have come together on one platform to address and fulfil the long-term vision of India becoming “jeweller to the world” and making the industry more organised and unified. This, in turn, will fuel economic growth for the country and generate jobs for millions of people. The Domestic Council will be all-encompassing, and will work to fulfil the aspirations of small and big associations from across the country. The core committee comprises the following members: Chairman, GJEPC; Chairman, All India Gems & Jewellery Domestic Council (GJC); Chairman, India Bullion and Jewellers Association (IBJA); Chairman, Bhartiya Swarnkar Sangh (BSS); and Chairman, Association of Gold Refineries and Mints (AGRM). The Domestic Council will be operational from May 1st this year. Our Cover Story by renowned diamond analyst Pranay Narvekar delves into the complex world of diamond-backed cryptocurrency, and exposes the flaws of this unregulated form of investment. In Design Corner, Anup Bohra, managing director of Jewels Emporium, Jaipur, talks about his pioneering efforts in introducing French enamelling techniques in fine jewellery in India. As we go to press, the 12th edition of IIJS Signature looks set to welcome an estimated 18,000 trade visitors from 325 Indian cities and 55 countries. With gold prices looming around I34,000 per 10g, exhibitors expect to see heavy demand for lightweight jewellery.

Editorial Team Email: [email protected]

14 SOLITAIRE INTERNATIONAL FEBRUARY 2019 INTERNATIONAL STATISTICS

UNITED STATES

(In US$ mn)

Imports 2017 January - October 2017 January - October 2018 % Change

Polished Diamonds 21,668 18,097 21,115 17%

Rough Diamonds, Sorted, Unworked 1,060 738 490 -34%

Polished Precious & Semi-precious Stones 2,252 1,992 1,830 -8%

Jewellery 9,543 7,774 7,557 -3%

Customs Value

Source: U.S. Department of Commerce and the U.S. International Trade Commission

BELGIUM

January - December 2017 January - December 2018 % Change

Ct mn US$ bn Ct mn US$ bn Ct US$

Polished Diamonds Exports 5.0 11.3 4.7 11.4 -5% 0.44%

Polished Diamonds Imports 5.6 11.1 5.7 11.4 2% 3%

Rough Diamonds Exports 127.8 12.6 121.4 12.4 -5% -1%

Rough Diamonds Imports 95.2 10.7 92.7 10.6 -3% -0.43%

Source: The Diamond Office, Antwerp World Diamond Centre (AWDC)

ISRAEL

January - December 2017 January - December 2018 % Change

Ct mn US$ bn Ct mn US$ bn Ct US$

Polished Exports 1.70 4.59 1.75 4.48 3% -2.5%

Polished Imports 1.60 2.92 1.64 3.04 2.4% 4.1%

Rough Exports 6.84 2.22 6.38 2.52 -6.7% 1.1%

Rough Imports 6.11 2.85 5.63 2.65 -7.8% -6.8%

Source: Israel Ministry of Industry, Trade and Labor – Diamonds, Precious Stones and Jewelry Administration

16 SOLITAIRE INTERNATIONAL FEBRUARY 2019 INDIA STATISTICS

Figures in US $ million (Carats in million) Exports of gems and jewellery during April - December 2018 as compared with last year

Items Dec - 2018 Dec - 2017 % Change Apr - Dec 2018 Apr - Dec 2017 % Change Cut & Polished Diamonds 1313.35 1592.14 -17.51 17859.99 17187.51 3.91 (Quantity – Mct) 1.9 2.2 -11.47 22.8 26.2 -12.83 Gold Jewellery 672.34 870.52 -22.77 8771.91 6835.70 28.32 Gold Medallions & Coins 0.00 0.01 -100 258.35 1687.13 -84.69 Coloured Gemstones 18.36 20.31 -9.60 274.73 285.33 -3.71 Silver Jewellery 75.78 220.32 -65.60 578.95 3108.36 -81.37 Pearls 0.07 0.17 -58.82 0.89 1.64 -45.73 Synthetic Stones 17.28 18.12 -4.64 151.70 155.51 -2.45 Costume & Fashion Jewellery 1.70 1.21 40.50 43.03 38.77 10.99 Subtotal 2098.88 2722.79 -22.91 27939.55 29299.95 -4.64 Exports of Rough Diamonds 105.63 117.72 -10.27 929.82 1069.90 -13.09 (Quantity – Mct) 2.3 3.0 -22.64 22.6 27.1 -16.58 Others* 5.43 2.94 84.69 42.50 54.17 -21.54 Gross Exports 2209.94 2843.45 -22.28 28911.87 30424.02 -4.97 Return Consignment Others 27.69 43.87 -36.88 345.70 438.99 -21.25 Return Consignment CPD 501.70 541.29 -7.31 6149.45 5492.30 11.96 Net Exports 1680.55 2258.29 -25.58 22416.72 24492.73 -8.48

Imports of raw materials for gems and jewellery during April - December 2018 as compared with last year

I. Items Dec - 2018 Dec - 2017 % Change Apr - Dec 2018 Apr - Dec 2017 % Change Rough Diamonds (Gross) 1736.79 2175.70 -20.17 12073.00 14093.32 -14.34 (Quantity – Mct) 19.2 20.7 -7.1 126.2 141.2 -10.56 Rough Coloured Gemstones 28.06 122.45 -77.08 304.91 598.49 -49.05 Raw Pearls 0.83 141.51 -99.41 6.05 1036.87 -99.42 Rough Synthetic Stones 22.47 34.25 -34.39 115.14 185.41 -37.90 Gold Bar 458.51 582.18 -21.24 5969.96 3924.65 52.11 Silver Bar 2.69 3.13 -14.06 31.18 46.17 -32.47 Platinum 3.09 4.98 -37.95 43.43 49.47 -12.21 TOTAL – A 2252.44 3064.20 -26.49 18543.67 19934.38 -6.98 II. Imports of Cut & Pol Diamond SEZ (All over India) 36.66 69.71 -47.41 392.64 623.98 -37.07 (Quantity) 0.09 0.14 -35.81 1.1 1.0 12.60 Bonded Ware House 7.60 32.51 -76.62 73.46 194.84 -62.30 (Quantity – Mct) 0.01 0.08 -87.95 0.17 0.5 -69.85 Mumbai (DTA) 66.66 106.46 -37.38 540.03 811.32 -33.44 (Quantity – Mct) 0.2 0.37 -33.69 1.6 3.9 -59.02 Others (DTA) 0.03 0.24 -87.50 0.91 2.83 -67.84 (Quantity – Mct) 0.00 0.00 0.00 0.00 Surat (DTA) 0.62 9.89 -93.73 30.44 115.09 -73.55 (Quantity – Mct) 0.01 0.02 -38.46 0.12 0.2 -44.51 TOTAL – B 111.57 218.81 -49.01 1037.48 1748.06 -40.65 III. Imports of Other Items Gold Jewellery 20.18 21.33 -5.39 230.74 211.44 9.13 Silver Jewellery 4.09 6.58 -37.84 44.85 48.50 -7.53 Coloured Gemstones 46.57 59.02 -21.09 253.74 503.60 -49.61 Synthetic Stones 8.81 8.81 71.79 94.07 -23.68 Pearls 0.59 54.15 -98.91 6.67 1165.55 -99.43 Costume/Fashion Jewellery 0.12 0.10 20 0.97 0.68 42.65 TOTAL – C 80.36 149.99 -46.42 608.76 2023.84 -69.92 GRAND TOTAL (A+B+C) 2444.35 3433.02 -28.80 20189.91 23706.28 -14.83 All figures are provisional. * Others includes Rough Coloured Gemstone, Raw Pearls, Platinum and Silver Bar, etc. 18 SOLITAIRE INTERNATIONAL FEBRUARY 2019 SPECTRUM © FREER / SHUTTERSTOCK.COM Chow Tai Fook Joins De Beers’ Tracr Pilot

racr, the end-to-end diamond meets the needs of all industry Jim Duffy, general manager, Tracr, Tindustry blockchain traceability participants. said: “We’re very excited to have platform being developed by Bruce Cleaver, CEO, De Beers Chow Tai Fook on board and it’s De Beers in collaboration with Group, said: “Chow Tai Fook is one encouraging to see they recognise key industry stakeholders, said of the world’s leading diamond the transformative potential of Tracr that Chow Tai Fook Jewellery jewellery retailers, with great as we work to help increase trust Group has joined the platform’s experience and expertise in the throughout the diamond industry. pilot programme. Asian retail sector. Chow Tai Fook’s Chow Tai Fook’s participation will Chow Tai Fook joins a range focus on providing their customers help to ensure that Tracr meets the of other leading businesses from with full confidence about their needs of all types of businesses in across the diamond value chain purchases makes them an ideal a range of different geographies. in piloting the next generation participant as we continue to develop This is critical to Tracr’s objective asset-tracking platform powered by the Tracr pilot, and we are delighted of establishing traceability, blockchain and artificial intelligence. to welcome them on board.” provenance and authenticity The Chinese jewellery retail giant Kent Wong, managing director, for the diamond industry, which will work with Tracr to support the Chow Tai Fook Jewellery Group, consumers and businesses alike objective of continuing to enhance said: “Authenticity, provenance and have told us is the new standard consumer assurance over a traceability are increasingly important they are looking for.” diamond’s traceability, provenance in the jewellery sector, particularly Tracr is focused on providing and authenticity. for consumers who pursue to know consumers with confidence that Chow Tai Fook’s participation will the jewellery they purchase supports registered diamonds are natural further extend the platform’s reach their values and expectations. We and conflict-free, improving visibility into the Asian diamond sector, in are thrilled to join the pilot led by and trust within the industry and particular in Greater China. This will De Beers Group and are committed enhancing efficiencies across the help accelerate Tracr’s ability to to continuing to be a leader in diamond value chain. In addition, fulfil its mission of working with the uplifting consumer experience Tracr will work to complement and industry to build a digital ledger that and confidence. We believe that support the diamond industry’s spans the entire diamond pipeline, our participation in Tracr will help existing initiatives and regulations helping to ensure the platform ensure we are at the forefront of this to ensure consumer confidence in made by the diamond industry important issue.” diamonds. n

20 SOLITAIRE INTERNATIONAL FEBRUARY 2019 Lakmé Fashion Week & DPA Pick Talent Hunt Winners

iamond Producers Association (DPA) in Dassociation with Lakmé Fashion Week announced the winners of The Real Cut, a platform which will bring together emerging diamond jewellery designers from iconic jewellery brands to define the trends of the future while drawing on their inspiration from natural diamonds. Shazia Motiwala of A.S. Motiwala, Bhavana Jhakia of Om Jewellers, Rupam Singhal of Orra, Akshita Garg of Chiripal Jewellers, C. Raghu of Kirtilals, and Rajeshwary Singh of Senco, emerged as the final winners of the programme. The Real Cut will give these winners an opportunity to showcase their work at Lakmé (From left) Jaspreet Chandok of IMG Reliance, Monica Shah of Fashion Week Summer/Resort 2019 with Jade, brand consultant Nisha JamVal, Richa Singh of DPA and designer labels Rara Avis by Sonal Verma, Rahul Vijay of Elle. Verandah by Anjali Patel Mehta, and Saaksha & Kinni by Saaksha Bhat and Kinnari Kamat. Vijay, luxury brand consultant Nisha JamVwal, and IMG The six winners were handpicked by an Reliance vice president and head of fashion Jaspreet Chandok. esteemed panel of judges from diverse The collaboration that features diamonds with only prêt wear backgrounds of the jewellery and fashion collections will be a first-of-its-kind initiative in the country’s fraternity in Mumbai on January 21st, 2019 at fashion circuit. The programme was open to diamond jewellery Amadeus, NCPA. The jury comprised DPA India designers who associated with leading jewellery brands from managing director Richa Singh, fashion designer across the country and have been in the business or are Monica Shah of Jade, Elle fashion editor Rahul practising their craft for the past three to eight years. The Real

De Beers’ 2018 Diamond Production +6% To 35.29mct

e Beers said rough diamond production for the fourth Dquarter of 2018 increased by 12% to 9.1 million carats. This brought De Beers’ total diamond production for 2018 to 35.29 million carats, a year-on-year increase of 6%, due to a planned production increase at the Orapa mine, although this was in the lower half of the production guidance range of 35 to 36 million carats, it noted. In Botswana (Debswana), Q4 production increased by 15% to 6.3 million carats. De Beers’ full year diamond output in Botswana grew 6% to 24.1 million carats. Orapa’s Q4 production increased by 20% to 3.6 million carats driven by planned favourable grade and higher plant utilisation. Jwaneng’s production increased by 9% following an increase in tonnes treated, De Beers said. The company’s fourth quarter diamond production in Namibia (Namdeb Holdings) increased by 3% to 0.5 million carats, driven by the Mafuta crawler vessel at Debmarine Namibia spending fewer days in port. This was partly offset

© DE BEERS DE © by the land operations following the transition of Elizabeth Bay to care and maintenance, the miner said. De Beers’ annual diamond production in Namibia rose by 11% to 2.0 million carats.

22 SOLITAIRE INTERNATIONAL FEBRUARY 2019 SPECTRUM

Cut saw over 80 applications from talented jewellery designers across the country. The Kashi Jewellers Receives Top designers demonstrated a combination of Exporter Award From UP innovative design and techniques to celebrate diamonds. They also were eloquently elaborate Government on the unique creative ideas and methods employed to conceptualise their original ashi Jewellers won diamond jewellery collection. Kthe Uttar Pradesh Richa Singh said: “Diamonds are an integral government’s No. 1 part of Indian fashion enhancing every look, Exporter Award in the bridal or everyday prêt wear, so it made perfect gems and jewellery sense for us to partner with Lakmé Fashion industry, on January 24th Week, which is the country’s leading fashion and 2019, in Lucknow. The lifestyle platform. I was excited by the diverse award was presented to designs showcased by all the talented emerging Shreyansh Kapoor, vice diamond jewellery designers from across India. president, Kashi Jewellers “I look forward to seeing their trendsetting by the state’s governor winning collections on the runway which will Ram Naik and chief minister Yogi Adityanath. beautifully highlight the fit of everyday wear Established in 1955, Kashi Jewellers has made its presence diamond jewellery with contemporary outfits. felt both nationally and globally. It was one of the first Indian The Real Cut is a disruptive platform which will jewellers to begin exporting internationally back in 1979. It surely provide a starting point for these young currently has retail clients in India, South Africa, the UK, US Turks.” and UAE. Jaspreet Chandok added: “Lakmé Fashion Shreyansh Kapoor said, “We believe our customers have Week is proud to have associated with the DPA had a great contribution in proving time and again that our to launch The Real Cut. We are sure that the tag-line, ‘Happiness is jewellery from Kashi’, is not just a winners are going to work together with the statement, but an emotion that is attached to the brand. I’m fashion designers to create a line which will very thankful to UP government for validating our efforts and reach out to wider audiences.” n honouring us.” n

The mining major’s South African (De Beers as the re-phased allocations of some lower value rough Consolidated Mines) diamond production diamonds from Sight 7 (in September) were realised in increased by 7% to 1.2 million carats in the fourth Sights 9 and 10. quarter as a result of planned higher grade ore For the full year, rough diamond sales volumes were at Venetia. However, its South African diamond 4% lower at 33.7 million carats (31.7 million carats on a output registered a 10% drop to 4.6 million consolidated basis) compared with 35.1 million carats (33.1 carats for the full year 2018. million carats on a consolidated basis) in 2017. The 2018 De Beers’ Canada production increased by sales volumes were also lower than production, driven 5% to 1.0 million carats in the fourth quarter due by lower demand for lower value rough diamonds in the to higher grades at Victor as it reaches the end second half of 2018. of its life. This was partially offset by planned The consolidated average realised price of $171/carat lower grades at Gahcho Kué. The miner’s was 6% higher (2017: $162/carat), due to a lower proportion Canadian diamond output shot up 19% on a of lower value rough diamonds sold in 2018. year-on-year basis to 4.47 million carats. De Beers’ 2019 production guidance is 31 to 33 million De Beers said rough diamond sales volumes carats, subject to trading conditions. The lower production in the fourth quarter totalled 9.9 million carats is driven by the process of exiting from the Venetia open pit (9.3 million carats on a consolidated basis) from with the underground becoming the principal source of ore three sales cycles, compared with 8.2 million from 2023. Associated with this, an increased proportion carats (7.5 million carats on a consolidated basis) of production in 2019 is expected to come from De Beers’ from the same number of sales cycles during joint venture partners, a proportion of which generates the equivalent period in 2017. Fourth quarter a trading margin, which is lower than the mining margin rough sales revenues increased year-on-year generated from own mined production. n

SOLITAIRE INTERNATIONAL FEBRUARY 2019 23 SPECTRUM

GJSCI Ranked Among Top 3 Sector Skill Councils Of India

em & Jewellery Skill Council has to offer to the employers. The • At Ahmedabad hosted Gof India (GJSCI) has been response received from the industry by Jewellery Association rated among the top three has been overwhelming and awaits Ahmedabad (JAA), Gem & Sector Skill Councils (SSCs) on conversion into actual contracts on Jewellery Trade Council of India performance for Apprenticeship for a great scale. (GJTCI) and GJEPC. the year 2018 by the National Skill Under the leadership of its • Kerala received a houseful Development Corporation (NSDC). recently appointed chairman, participation of around 200 GJSCI’s achievements are further Sanjay Kothari, the GJSCI has members at Kerala Gems & noteworthy as it is the only SSC so far conducted the following Jewellery Show (KGJS) with help from the ‘Manufacturing’ category in Apprenticeship Road Shows: from Jewellery Manufacturers the top four SSCs and also the best • In Mumbai exclusively for Association (JMA) and Art of SSC in terms of conversion ratio of members of the gems and Jewellery magazine. openings versus actual contracts. jewellery industry within Seepz • Kolkata again witnessed some To date, the GJSCI’s premises with the help of Seepz enthusiastic participation. Apprenticeship Programme has Gems & Jewellery Manufacturers’ • Jaipur Road Show was held registered 95 establishments, Association (SGJMA). with core committee members created 940 opportunities, • At IIGJ Mumbai which has from various associations in registered 640 candidates, and has also joined this initiative as a Jaipur with the help of Jewellers led to the signing of 590 contracts. basic training provider for the Association, Jaipur. GJSCI has been promoting the apprentices who look forward recently revamped Apprenticeship to joining this industry. GJC was Rajeev Garg, executive director Scheme under the National highly supportive in organising and CEO, GJSCI, said, “GJSCI Apprenticeship Promotion Scheme this event. aims to cover maximum possible (NAPS) to create a skilled workforce • At one of the largest clusters of industry members under NAPS through its continuous efforts, by jewellers in Mumbai in the heart of as the Apprenticeship Act is means of promotional activities Zaveri Bazaar through the Zaveri mandatory as well as highly and by organising Apprenticeship Bazaar Awareness Programme beneficial for all establishments Road Shows across India. These and Apprenticeship Workshop employing 40 or more shows offer a platform to connect with the help of GJEPC, GJC, IBJA, employees or contract workers.” with industry partners and are a Mumbai Wholesale Gold Jewellery He further urged all industry great medium of communicating Association and Shree Mumbadevi partners to register online at the scheme details and benefits it Dagina Bazar Association. apprenticeshipindia.org. n

GJSCI has been promoting the recently revamped Apprenticeship Scheme under the National Apprenticeship Promotion Scheme (NAPS) to create a skilled workforce through its continuous efforts.

24 SOLITAIRE INTERNATIONAL FEBRUARY 2019 SPECTRUM

Sant Unveils ‘Rose of Mozambique’ Gemfields Ruby he Rose of Mozambique, a rare, high- Tquality ruby sold at the Gemfields auction in Singapore to Bangkok’s pre-eminent gem specialist Sant Enterprises, has been cut and polished to reveal its true beauty. Sant’s managing director Santpal Sinchawla has had a lifetime of experience with rubies, working in the family gemstone business since he was just 18. Led by Santpal Sinchawla, the Sant team sealed the deal, fending off many rivals in a tense sealed bid auction, Gemfields said in a statement.

Santpal’s son Anurak Sinchawla (centre), director of sales, on-site as the Rose is being pre-formed.

The Rose of Mozambique rough gemstone weighing 12.24 carats.

“Rubies, unlike diamonds, are not about the carat – they’re valued on the intensity of the The finished Rose of colour and how the stone will present itself Mozambique at 7.67 carats. once it’s cut – and it was clear the Rose had an exceptionally rich colour and fantastic clarity,” The result is a pure, vibrant red stone with crystal clarity explained Santpal Sinchawla, whose family has and rich colour saturation, key in determining the Rose’s been trading rubies since 1963 and who was value. Rubies can command the highest prices of any present at the first ever auction of Gemfields coloured gemstone and, the per-carat prices of fine-quality rough rubies in 2014. rubies have been breaking auction records recently. The To be truly precious, a ruby’s deep red colour Sant team are now searching for the perfect partner to place must blend hue, saturation, and tone perfectly. the stone in an exceptional fine jewellery piece. Post auction, Sant’s team of eight specialists Gemfields first sent gemstones to Singapore auctions worked on the stone to bring out these fires in 2014 and, since then, Mozambique has taken over from within. The delicate slicing, pre-forming, Myanmar as the source of most of the rubies found in the shaping and polishing of a ruby requires a deep Thailand gem markets, the global hub for ruby trading. understanding of the stone to ensure its true “Before Mozambique, very few fine-quality, larger rubies beauty and the fire within are on display. had been discovered,” explained Adrian Banks, Gemfields Sant’s ruby cutters have an artisan’s skill with product and sales director. “Our secondary deposit the steel saws, careful placing of the stone on produces very high-quality rubies, among the best in the the dop stick, critical in ensuring the coarse and world. These gems have travelled along a river bed over fine spinning wheels slice tiny wafers in a way millions of years to this site and so only the best quality ones that enhances the ruby’s final bright facets. In the have survived the motion of water. Since 2014, Gemfields process, the rough 12.24-carat gem was cut and has auctioned some unusually large sizes and exceptional polished into the Rose of Mozambique, which rubies such as Dragon Eye and Rhino rubies – and now the

weighs in at 7.67 carats. Rose of Mozambique.” n ALL IMAGES COURTESY GEMFIELDS

26 SOLITAIRE INTERNATIONAL FEBRUARY 2019 SPECTRUM

Thai Craftsmanship In Focus At February Bangkok Fair

he 63rd edition of the Bangkok Gems and TJewelry Fair (BGJF), which will take place from February 20th to 24th, 2019 at Challenger Hall 1-3, IMPACT Muang Thong Thani, Bangkok, will showcase extraordinary Thai skills in jewellery making, ready to serve a global audience. Thailand’s Department of International Trade Promotion (DITP), organiser of the show, will present Thailand’s “Magic Hands”, a global campaign to highlight the country’s exceptional craftsmanship. “For many decades, Thailand has been well recognised all over the world as a manufacturer of quality jewellery with beautiful designs and intricate craftsmanship. Over the years, stakeholders in the gems and jewellery industry, skills while seeking innovation that will uplift the industry to from craftspeople, designers, manufacturers, new heights. Today, I would rate Thai-made jewellery as one and traders, have constantly developed their of the leading products from the country which has brought much pride and joy to all Thais,” said Banjongjitt Angsusingh, director general, DITP, ministry of commerce, Thailand. The Magic Hands campaign aims to gain international recognition for the Thai gems and jewellery industry, which is the country’s third-highest export earnings. The campaign artworks reiterate strengths of Thailand’s gems and jewellery industry, connecting the spirit of jewellery making to the traditional way of life and advanced skills of making intricate creations. The Bangkok Fair, which is open to the trade and general public, will present a vast selection of gold and silver jewellery, gem-set jewellery and polished precious and semi-precious stones, as well as state-of-the-art manufacturing equipment. n

GIA Research Scientist Offers Seminars On Diamonds In Mumbai

r. Sally Magaña, Gemological Institute of knowledge on DAmerica (GIA) senior research scientist from HPHT and CVD Carlsbad, California, conducted educational laboratory-grown seminars about “Identification and Update on diamonds, their Laboratory-Grown Diamonds” and “The Causes distinguishing of Colour in Natural Fancy-Coloured Diamonds” characteristics and on January 24th, at the Bharat Diamond Bourse identification and (BDB) convention hall in Mumbai. detection methods. Dr. Sally Magaña, GIA research scientist, Dr. Magaña is an expert in diamond physics, “GIA has been on presenting a seminar at the Bharat treatments and laboratory-grown diamonds. the cutting edge of Diamond Bourse. She has authored and co-authored numerous gemmological research for decades. As new gem materials research articles about laboratory-grown and treatments emerge, our research efforts have consistently diamonds, temperature effects on luminescence helped us give the trade the assurance of accurate and centres in natural type IIb diamonds and more. reliable reports with full disclosures,” said Nirupa Bhatt, More than 200 participants gained in-depth managing director of GIA India and Middle East.” n

28 SOLITAIRE INTERNATIONAL FEBRUARY 2019 © AlexLMX / Shutterstock.com GJEPC Presents Pre-Budget Wish List

he Gem & Jewellery Export To enhance global and bilateral “GJEPC seeks introduction of Promotion Council (GJEPC) trade, the GJEPC also urged the job work policy in the gems and Treleased a pre-Budget government to change Income Tax jewellery industry as is the practised wish list listing the various policy regulations enabling foreign mining norm in developed markets. A changes required for the growth of companies to sell rough diamonds similar enabling policy for such a the industry. The GJEPC has sought through the Special Notified Zone. job work model for the diamond government support in ensuring Emphasising its long-pending business needs to be introduced as ease of doing business to help demand for the introduction of a it is available to all other sectors.” exporters to enhance exports in presumptive taxation system for The GJEPC is seeking an 2019-20. diamonds and gemstones in India, exemption from payment of “On behalf of the gem and the GJEPC said, “The introduction of Integrated Goods and Services jewellery industry, the GJEPC seeks presumptive taxation would not only Tax (IGST) on re-import of goods a reduction of import duty on cut increase the ease of doing business exported during overseas and polished diamonds as well as of diamantaires, but also encourage exhibitions/consignments/ on cut and polished gemstones diamantaires from across the world export promotion tours. Such from 7.5% to its earlier level of to start operations in India as against an amendment should be done 2.5%,” GJEPC chairman Pramod other preferred destinations such retrospectively to protect exporters Agrawal said in a statement. as Belgium, UAE and Hong Kong. from harassment, it noted. The Council noted that 5% of A level playing field in India is The Council also called on GST the Free on Board (FOB) value absolutely essential for making India authorities to notify a GST rate of of exports of cut and polished a global hub for gems and jewellery.” 0.25% on input services (at least diamonds in the preceding licensing The GJEPC also requested the job work services and grading and year should be allowed to be government for a segregation of certification services) and extend re-imported duty-free by exporters. ITC HS Codes for rough lab-grown benefit of inverted duty structure to “As part of the comprehensive diamonds and other synthetic stones such services. Gold Policy on the anvil, GJEPC to earmark clear differentiation The GJEPC explained that the seeks reduction of import duty on between natural and lab-grown procedure of appraising exports gold from 10% to 4%. diamonds. and imports of diamonds by

30 SOLITAIRE INTERNATIONAL FEBRUARY 2019 GJEPC NEWS

Customs is subjective in nature, and the tolerance range as per justified and jewellery. “We also urge the has not changed much over the norms adapted by the trade during government to introduce interest last few decades; this, even though their regular business. Such SOP subvention of 5% on export finance exports from the sector have grown also contains Risk Management for the gem and jewellery sector.” manifold, which is creating on- Parameters for evolving a Risk The GJEPC is quite hopeful ground problems for exporters. Management System for doing that resolving above concerns “To solve this problem and based examination and appraising by would pave the way for Indian on a review of trade practices and Customs.” gem and jewellery exporters to international norms, the Council The GJEPC said it was necessary take advantage of the optimistic would request the government to have a conducive banking scenario in the international to adopt Standard Operating environment in terms of relaxing markets and achieve the target of Procedures (SOP) for appraising credit norms for working capital $60 billion in exports for the gem exports and imports, which contains requirements for exporters of gems and jewellery industry by 2022. GJEPC Welcomes 3% IGST Waiver n a major relief, the Union their business operations and global 2. Exports made on consignment Government has accepted competitiveness.” basis (including for foreign Ithe Gem & Jewellery Export Post implementation of the GST exhibitions, export promotion Promotion Council’s (GJEPC’s) regime and 3% IGST on gold, the tours, etc.) demand to grant exemption of industry had requested for the IGST As the goods sent on Integrated Goods and Services exemption on supply of gold by consignment basis for the purpose Tax (IGST) on supply of gold by Nominated Agencies to exporters. of foreign exhibitions, export Nominated Agencies to exporters Thereafter, the Government of India promotion tours is not a supply, of articles of gold. The GST Council vide Notification No. 77/2017-Customs GST should not be levied on goods recently announced that gem and dated 13.10.2017 had exempted exported for such purpose or when jewellery exporters will no longer specified banks and Public Sector re-imported back. have to pay 3% IGST to nominated Units (Nominated Agencies) from GJEPC’s recommendation: agencies (banks) from January 1st, payment of IGST on import of gold Clarification to be issued to provide 2019. but the same had not benefitted the with regard to exemption for Pramod Agrawal, chairman, jewellery exporters as they still had consignment import and export GJEPC, said, “We commend this step to bear the upfront payment of IGST/ of gems and jewellery through undertaken by the government. On GST and the basic import duty to the exhibition/export promotion tours. recommendations of the Council, tune of 10% on procurement of gold the GST Council ruled that it was for the purpose of manufacture and 3. Refund of accumulated tax credit satisfied and it is necessary in public export of jewellery. on account of inverted duty interest to exempt the intra-state structure on input for a certain supply of gold falling in heading 7108 GJEPC is also pursuing key pending period of the First Schedule to the Customs GST Issues Refund claims filed on account Tariff Act, 1975 (51 of 1975), when 1. With respect to the blockage of inverted duty structure being supplied by Nominated Agency of input tax credit (ITC) due to denied, substantial amount has under the scheme for ‘Export inverted duty rate structure. been accumulated which has led to Against Supply by Nominated Effective January 25th 2018, the capital blockage of the diamond/ Agency’. We are also expecting a the GST rate on cut and polished coloured gemstone exporters. similar relief from the government to diamonds and gemstones has been GJEPC’s recommendation: the exporters of articles of silver and reduced from 3% to 0.25%, while GST Necessary instructions be issued to platinum very soon. rate of 5% (job work charges)/18% permit refund of accumulated ITC “The upfront payment of IGST and (others) applies on input services, pertaining to stock of the stated import duty in the form of a bank leading to accumulation of ITC qua products held as on the date of rate guarantee had further led to the domestic supplies. change. huge working capital blockage for GJEPC’s Recommendation: In addition to the above issues, various small and medium jewellery Single GST tax rate regime of GJEPC has also taken up the issue exporters, increased interest cost, 0.25% across the entire value chain pertaining to import of gold on and hassles of compliance to claim for diamonds/coloured gemstones/ consignment basis for manufacture refund, thus consequently impacting semi-precious gemstones. and export of jewellery. n

SOLITAIRE INTERNATIONAL FEBRUARY 2019 31 © SPbPhoto / Shutterstock.com

32 SOLITAIRE INTERNATIONAL FEBRUARY 2019 COVER STORY

DIAMOND-BACKED CRYPTOCURRENCY: COIN OR CON? Diamond-backed financial assets may be an exciting new avenue for investors. But this excitement needs to be tempered with caution given the lack of checks and balances through regulations, says diamond industry analyst PRANAY NARVEKAR.

ver the last This volatility of Bitcoin is few years, the also considered by many to be markets which its primary weakness, as the have attracted the currency is driven purely by most attention demand and supply and does not are those in have an underlying value to it. cryptocurrencies (cryptography- Entrepreneurs saw an opportunity based, decentralised virtual in this and focused their attention currencies) best exemplified by on creating cryptocurrency based its torchbearer, namely Bitcoin. on assets like diamonds, gold, real However, the ride for these currencies (e.g. US Dollar, Japanese assets has been far from smooth. Yen, Chinese Yuan or Euro) oil, Bitcoins went from being valued real estate and even carbon credits! at about $1,000 in the beginning As diamond-backed for 2017 to nearly $18,000 by cryptocurrencies fire up, they January 2018, before falling back would need to source the to below $3,500 in January 2019. diamonds from the real market.

The Reserve Bank of India (RBI) in its circular dated April 6th, 2018, banned entities regulated by the RBI from dealing with or providing services to any individual or business entities dealing with or settling Virtual Currencies. The circular was upheld by the Supreme Court of India. Effectively, this bans banks and money changers from dealing with any individual or company residing in India for transactions related to virtual currencies or setting up a Virtual Currency exchange. This breaks the link between Virtual Currencies and the real world, making it impossible to transact in any product from India.

SOLITAIRE INTERNATIONAL FEBRUARY 2019 33 Diamantaires, who are traders by nature, have been tempted by these developments and it is critical for them to have a greater clarity in how these markets work and what they might want to look for before they decide to take the plunge.

Trust-less Digital Cash

Having a basic, non-technical understanding of how some of the underlying technologies work is necessary to get a better idea of the products. Traditional currencies, like the Indian Rupee or the US Dollar, have long moved from being backed by assets, like gold, and Traditional currencies, are essentially an “I owe you” like the Indian Rupee or (IOU) note being issued by the the US Dollar, have long concerned government. Its value moved from being backed essentially depends on whether by assets, like gold, and you trust the issuer will make are essentially an “I owe good on their promise. The you” (IOU) note being confidence enabled individuals issued by the concerned to freely exchange this cash government. during transactions, without need for further trust. The need for trust becomes more important when this is extended to the digital realm, where mutual trust is required between financial entities like de-centralised with no single issuer banks, credit card companies, and secured using cryptographic clearing service providers, etc. techniques. Hence, this is also for transacting electronically, a trust-less system, wherein which is why these entities are transactions can be made with regulated. Fiat money issued by the currency, even when no party governments, which is stored trusts the other – almost akin to electronically, can also be cash transactions. This cash-like considered as digital currencies. transaction capability also provides Digital currencies which are near anonymity, which further not issued by governments or endeared cryptocurrencies to early regulators are also known as adopters. Cryptocurrencies do not virtual currencies (e.g. loyalty have a central server but are hosted points, in-game currency, etc.). across many computers connected Cryptocurrencies are a kind of to each other or peer-to-peer virtual currency designed to be systems.

34 SOLITAIRE INTERNATIONAL FEBRUARY 2019 COVER STORY

Blockchain driving blocks. Each block is processed forming a chain, which is why this Cryptocurrencies through a cryptographic (i.e. is called a blockchain. encoding) algorithm to generate Transactions are not confirmed Cryptocurrency systems need its unique code, also called hash. until they are written into a to maintain the balance for each The algorithm is also known completed block. The computers account, like that of any electronic as the hashing algorithm. The which collect and combine these wallet or bank account, and for hash of the previous block and new transactions, do the necessary doing the same, they carry a the valid batch of transactions mathematical calculations required copy of the entire ledger of the are passed through the hashing for hashing, and create new blocks, transaction history. The technology algorithm to generate the hash are called blockchain miners. which carries this digital ledger in for the current block. In turn, the The hashing algorithm generates a manner which cannot be changed hash generated for the current a unique value for a given input. or tampered is commonly known block is used for generating the Even making the smallest as the blockchain technology. hash of the next block. Hence change in the input value, will

In blockchains, valid transactions every block is linked to its lead to a totally different hash © She-Hulk / Shutterstock.com are processed in batches, called preceding and following blocks, value. The hashing algorithm

SOLITAIRE INTERNATIONAL FEBRUARY 2019 35 used for a particular blockchain mining, to ensure that the is public, making it extremely blockchain remains de-centralised easy to check if the transactions and everyone has a clear view of in the block generate the hash the entire blockchain landscape. value of the block. If any of the His system required that the transactions have been changed, hash of every new block meets the hash value of the block will not certain criteria. This meant adding match, immediately invalidating additional code to the block, apart that block. This ensures the from the hash of the previous immutability (unchangeable block and the transactions. As the nature) of the transactions written hashing algorithm output cannot into the blockchain. be predicted, this additional code While the above technique has to be determined using a brute ensures that data in the ledger force computation method. cannot be changed, making the By varying the criteria for the system truly de-centralised requires output hash, the difficulty level can two additional pieces. Firstly, be varied in the system, ensuring there need to be multiple copies that blocks are generated at a nearly of the blockchain data to prevent steady pace. There were other manipulation as well as a wide base rules put in place to ensure the of computers mining new blocks. integrity of the blockchain. This Computers called nodes, entire process is then repeated with which hold copies of the entire the new transactions which have blockchain data, check the validity come in, leading to the new block of all transactions before accepting being added. For Bitcoins, a new every new block. They then block is generated roughly every transmit this valid data to other 10 minutes. Based on the hashing nodes. A majority of the nodes methods, mining can be processor in the system need to accept the (and power) intensive, or memory block before it’s accepted into intensive. the blockchain, ensuring that no In short, the system works like individual node can corrupt the in a production system, where the data. Nodes are passive, and do not miners are like machines who are need significant resources. Larger blindly producing goods, while the blockchains have over 10,000 nodes act like the quality control nodes making them more de- mechanism, allowing only the best centralised in nature. blocks to be added to the chain. In his 2008 paper, Bitcoin A system of majority acceptance founder Satoshi Nakamoto, ensures that the system cannot be brought in the concept of gamed by collusion between a few competition into blockchain miners and nodes.

In his 2008 paper, Bitcoin founder Satoshi Nakamoto, brought in the concept of competition into blockchain mining, to ensure that the blockchain remains de-centralised and everyone has a clear view of the entire blockchain landscape.

36 SOLITAIRE INTERNATIONAL FEBRUARY 2019 COVER STORY © AlexLMX / Shutterstock.com

Compared to commodities, where prices fluctuate every second, diamond price movements might seem glacial.

Coins & Tokens programmers can launch a token assets are supposed to provide a in hours, which is why token price stability to the coin, thereby While Bitcoin was the first companies usually have only a few making it more attractive for users. blockchain, latter platforms were technical experts. As we all know, diamonds are able to record and execute even There are currently between an asset in their own right. While smart contracts. Products running 2,000 and 2,500 “coins” which are prices might not have appreciated on their own independent traded. over the last 5-7 years, many users blockchain infrastructure are and financial market participants classified as coins. Tokens on the Asset-backed Coins view stability as a virtue as well. other hand are basically smart Compared to commodities, where contracts which run on another Bitcoins were created to serve as prices fluctuate every second, blockchain platform, without a medium of exchange, however diamond price movements might creating their own infrastructure. demand and supply fluctuations seem glacial. Most asset-backed “coins” are could cause sudden swings in This relative price stability has essentially tokens. prices, with fluctuations up to 10% led to launches of diamond-backed Tokens require minimal in a day having been recorded. coins. There are some interesting programming and are surprisingly This scares potential users. Hence, releases, like one coin creating a easy to create and sell to the public ICOs have seen a slew of asset- diamond listing and sales website through events called as Initial backed coins being launched, (like IDEX or Rapnet) with Coin Offerings (ICOs), though where there are real assets transactions paid in their coins. they actually refer to tokens! Savvy underlying the coins. Underlying One company has even proposed

SOLITAIRE INTERNATIONAL FEBRUARY 2019 37 When analysing a couple of serious diamond-backed ICOs, the structure looks like an asset-backed (diamond) fund.

an ICO based on prices of lab- disclosures which need to be grown diamonds, though they made to investors. In fact, some do not clarify details about the diamond-backed fund products mechanics yet! would have to be sold only to institutional buyers and high net- Old Fund in New Bottle worth individuals, who have the capacity to understand and analyse When analysing a couple of the products. serious diamond-backed ICOs, ICOs can be launched on the the structure looks like an asset- basis of a simple white paper. backed (diamond) fund. The funds Marketing these fund-like promise the usual ability to invest products as coins may allow the in smaller units – ability gained promoters to indulge in regulatory from the overall value appreciation arbitrage and escape detailed by investing in the underlying scrutiny. This greatly increases portfolio of certified diamonds – the chances of hidden costs, and have reputable diamond inadequate disclosures as well as industry participants as partners. mis-selling of the product. As in the past, the primary investor concern is the confidence Show me the Money in the value of the portfolio of diamonds, leading to setting up a When analysing any financial mechanism for regular third-party product, be it a fund or a coin, audits, separate depository holding, understanding the business sealed diamond inventory and the model of the promoter is a facility for investors to redeem good indication of whether it coins by buying diamonds. is sustainable. ICOs are clearly Valuation mechanisms usually trying to cash in on the current have complex-sounding algorithms speculation in cryptocurrency. with artificial intelligence thrown Investors hope to get in early and in for good measure, with a benefit from the appreciation as view to attract buyers for the the usage of the product takes ICO. Everyone in the industry off. Promoters usually allocate a knows that most large diamond significant portion of the coins for companies have had similar pricing themselves. algorithms in place at least for Liquidity is the life-blood of the last 8-10 years, without the any financial product, including artificial intelligence of course! coins. Liquidity gives investors Regular asset-backed funds the confidence that they can and financial products like exit the investment without a diamond futures contracts are heavy penalty, which in turn will highly regulated. Governments sustain the coin infrastructure. have a history of regulating and Hence coins are hesitant to levy monitoring these products, any charges on transactions or for with clear rules which need maintenance of the coins, unlike in to be followed as well as clear asset-backed funds.

38 SOLITAIRE INTERNATIONAL FEBRUARY 2019 COVER STORY

Changes to FATF Recommendations

Money-laundering risk in cryptocurrencies is a known problem, as entities could trade almost anonymously. In October 2018, the Financial Action Task Force (FATF), the world body which is focused on anti-money laundering and countering financing of terrorism, amended their recommendations to include virtual asset service providers (i.e. exchanges, companies launching the currencies, etc.) under the list of entities that are to be regulated. Individual governments who are part of FATF would be expected to make the necessary changes into their respective local laws. Virtual asset service providers like wallets and coin issuers will now need to be licensed/registered and subject to same monitoring and relevant compliance practices followed by other financial institutions like KYC, suspicious transaction reporting, etc. Going forward, anonymity provided by cryptocurrencies, which was treasured by participants of unauthorised markets, will be lost. However, in the long run, this might be for the good as only the persons who are genuine traders or investors in the virtual assets or currencies will remain.

In asset-backed cryptocurrency, At times, even the purchase of transact in coins. The sustainability coins can only be issued against diamonds into these coins is of such a model is debatable and assets. Hence, if no coins can be through associate companies. in the long term would lead to issued to promoters in the ICO, These coins imply that their disenchantment among users of other innovative options, many of prices are at near wholesale level, diamond-backed coins. which are also drawn from funds, however a quick check by the are used. These include charging author indicated prices seemed to Closing Thoughts fees, either for buying the coins be 15-30% above wholesale prices! or on redemption, having a This would not be possible with The diamond industry needs coverage ratio which is less than regulated funds. diamond-backed financial assets coins issued (i.e. the assets held While the reported information in order to successfully channelise is a fraction of the total money on charges is vague, it indicates the latent demand for investment invested in the coin). that coin issuers are incentivised diamonds. However, in their Coins can also have restrictive only to encourage investors to current form, diamond-backed redemption options, including enter and exit (through diamond coins look far too flawed to become only allowing redemption through delivery) the scheme (i.e. the a sustainable and healthy product. delivery of physical diamonds. churn), rather than hold and For a diamantaire or an industry service provider, selling diamonds into these products should be Pranay Narvekar is the CEO of the G&J KYC similar to any other customer, as Information Centre. He is also a partner at long as the payment is in normal Pharos Beam Consulting LLP. He is a leading currencies (though in India expert on demand and supply, strategic, it would be prudent to check financial, and structural problems of the diamond industry. He has over 15 years of consulting whether RBI regulations will experience, and had worked with Rosy Blue allow US Dollar payments from for nearly eight years. Narvekar has completed coin companies). For diamantaires his B.Tech from IIT Bombay and Postgraduate looking to sell their diamonds for Diploma in Management from IIM Lucknow. cryptocurrencies, all one can say is [email protected] Caveat Venditor or seller beware! n

SOLITAIRE INTERNATIONAL FEBRUARY 2019 39 Domestic Council For Gems & Jewellery Launched

(From left) Sanjay Kaka Patil, Dulichand Karel, Mohit Bharatiya, Suresh Prabhu, Rajesh Khosla, Pramod Agrawal and Rupa Dutta at the opening ceremony in Mumbai.

uresh Prabhu, the union Agrawal, convener, national ad-hoc Imitation Jewellery Manufacturers minister for commerce & committee, DCGJ and chairman Association (IJMA), Mumbai; India Sindustry and civil aviation, of the Gem & Jewellery Export Bullion and Jewellers Association inaugurated the Domestic Council Promotion Council (GJEPC); and (IBJA), Mumbai; India Jewellers for Gems & Jewellery (DCGJ) at all the 14 representatives of the ad- Forum (IJF), Amristar; Karnataka a glittering function organised hoc committee. Jewellers Federation, Bangalore; by the Gem & Jewellery Export For the formation of the Odisha Jewellers Association, Promotion Council (GJEPC) in Domestic Council for Gems & Cuttack; Rajkot Gems & Jewellery Mumbai on January 29th. Jewellery, an ad-hoc committee Association, Rajkot; Tamil Nadu Addressing the gathering, the has been formulated comprising Jewellers Federation (TNJF), minister said that the Domestic representatives of following Chennai; and Uttar Pradesh Sarafa Council will solve all the major associations: All India Gems & Association, Kanpur. issues of the sector; and will be Jewellery Domestic Council (GJC), Also present on the occasion operational from May 1st, 2019, Mumbai; Association of Gold were member of parliament on the occasion of Labour Day and Refineries and Mints (AGRM), Sanjay Kaka Patil; Senthil Nathan, Maharashtra Day. Cochin; Bangiya Swarna Shilpi deputy secretary, union ministry Among the dignitaries present Samiti, Kolkata; Bharat Diamond of commerce & industry; Anantha at the launch were commerce Bourse (BDB), Mumbai; Bhartiya Padmanaban, chairman, GJC; secretary Anup Wadhawan; Rupa Swarnkar Sangh (BSS), Jaipur; Gem Dulichand Karel, chairman, BSS; Dutta, economic adviser, ministry & Jewellery Export Promotion Mohit Bharatiya of IBJA; and of commerce & industry; Pramod Council (GJEPC), Mumbai; Rajesh Khosla chairman, AGRM.

40 SOLITAIRE INTERNATIONAL FEBRUARY 2019 IN FOCUS

Today is a historic day as a new chapter opens in India’s 5,000-year-old legacy in gems and jewellery. The launch of the Domestic Council for Gems & Jewellery is a significant step and one amongst a series of several structured reforms undertaken by our Government.

Prabhu said, “Today is a historic market opportunities to create and in the making of a New India, day as a new chapter opens in economic value for the country. he added. India’s 5,000-year-old legacy in The Government will create and Prabhu noted that the gold gems and jewellery. The launch of facilitate and leave it to the industry jewellery export market is huge the Domestic Council for Gems to take it forward.” and its potential needs to be tapped & Jewellery is a significant step On the occasion, the minister adequately. In March-April 2019, and one amongst a series of several also launched a Parichay Card for top 20 global companies will structured reforms undertaken labourers of the gems and jewellery be invited to India so that they by our Government to make sector. themselves can craft a strategy the industry more organised The minister also informed that for buying from India, added the and unified. We have followed the Government will soon come minister. a democratic process and given out with an integrated gold policy. An official from the ministry of representation to the key jewellers, He said that gold has been the commerce & industry said, “The manufacturers, miners and artisan/ cultural face of India since ancient launch of the Domestic Council craftspersons associations from ages and that the need of the hour is the culmination of decades of different geographies and industry is to give more attention to enhance planning right from the days of the segments. The Domestic Council the gold and gold jewellery business. submission of the Sivaraman Report will represent the culture and ethos The sector can provide employment to the recent Niti Aayog report. A of India’s gems, gold and jewellery for skilled workers, contribute to fairly represented Domestic Council business, while addressing global strengthening the Indian economy, can help jewellers and craftsmen/ artisans to represent the key issues and demands to the ministry in a structured manner.” Pramod Agrawal said, “We welcome the Government’s decision to form the Domestic Council for the Indian gems and jewellery sector. This will help to organise our unorganised and small-scale based domestic jewellery industry and help it to scale new heights. As envisaged by the union minister, my efforts as the convener will be to seek consensus in opinion to make this Domestic Council a national body which belongs to all and works to fulfil the aspirations of all small and big associations from across the country. GJEPC is happy to offer all support and guidance in the formation of an inclusive, democratic and self- sustainable council. It is important for the industry to have one voice Suresh Prabhu lighting the ceremonial lamp. one body. The Domestic Council

SOLITAIRE INTERNATIONAL FEBRUARY 2019 41 Suresh Prabhu addressing the gathering.

will help create 3 million more jobs to come up with a strategy for and new artisans/craftsmen in the increasing India’s share of the hand- business.” made jewellery market in a global The idea of a Domestic Council market. In February 2018, the for gems and jewellery was first Niti Aayog panel, in its report on suggested in 2005-06 by the the need for a comprehensive gold Sivaraman Committee that was policy, had also proposed setting up constituted to study the entire of a dedicated Domestic Council for gem and jewellery sector and the gems and jewellery sector. And submitted its report to the union finally, now the Council has been finance ministry. The responsibility launched. was eventually given to union The task ahead comprises framing commerce & industry ministry and the constitution of the Domestic then the Department of Industrial Council as well as its Election Rules Policy and Promotion (DIPP). and other activities. GJEPC would In 2017, Prime Minister offer all the secretarial support in Narendra Modi said that gems and this regard for the incorporation of jewellery was a good example of the Council. All the drafting of the Make in India and wanted jewellers constitutional documents as well as

The idea of a Domestic Council for gems and jewellery was first suggested in 2005-06 by the Sivaraman Committee that was constituted to study the entire gem and jewellery sector and submitted its report to the union finance ministry.

42 SOLITAIRE INTERNATIONAL FEBRUARY 2019 IN FOCUS

the Election Rules of the Domestic “The first priority of the has its own Council that will Council would be completed by Domestic Council should be help jewellers from small to large March 31st, 2019. to uplift the living standards of category represent their concerns The core committee comprises artisans. It is also imperative for and work towards the betterment the following members: Chairman, industry to have one voice across of the industry. The first step of GJEPC; Chairman, GJC; all segments. A Domestic Council Council will be to sit together with Chairman, IBJA; Chairman, BSS; for the gem and jewellery industry key stakeholders of the industry, and Chairman, AGRM. will help tackle key issues faced by including GJC, to chart out the Anantha Padmanaban, chairman, the industry, such as harassment of road map for the next five years. GJC, said, “Today is a historic day jewellers during transit, PAN card The overall business in this sector is for the gems and jewellery industry limit, EMI on jewellery, insurance not witnessing growth; hence short- as the formation of the Domestic for jewellery, bank credit rating for term and long-term revival plans Council was the need of the hour jewellers and many more. Another need to be drafted as a priority. We and it is a very good move by the important priority is to create repose full faith in the performance union ministry of commerce & national level B2C programmes of the Council and GJC will industry. The domestic gems and to attract millennials. We have to actively support and continue to jewellery retail business is around make investments towards brand play a pivotal role of promoting, R4 lakh crore as of 2018 and the building, designing, manufacturing protecting and progressing the gem domestic gems and jewellery sector and customer reassurance. The and jewellery industry.” is going through a challenging Domestic Council will play a The Domestic Council is an situation and all diverse constituents pivotal role in all these aspects.” all-inclusive body and would have to unite for a positive outcome Shaankar Sen, vice chairman, move ahead with the support of all for the betterment of the sector. GJC, added, “The industry finally members of this fraternity. n GJEPC Unveils Parichay Card, Health Insurance For Artisans uresh Prabhu, the union The national launch of Parichay Pramod Agrawal, chairman, minister for commerce & Card will benefit the entire gem GJEPC, said, “The $40 billion Sindustry and civil aviation, and jewellery industry and ensure gem and jewellery industry is launched the Parichay Card for proper authentication for social heavily dependent on the karigars, gem and jewellery sector workers, security purposes. The objective of artisans and craftspersons of artisans and craftspersons in this project is to create a verified, India. Today, India has become a India – an initiative of the Gem well-crafted database of gem and global pioneer in the business of & Jewellery Export Promotion jewellery workers to provide them diamond processing only because Council (GJEPC). better job opportunities, help to find of this extremely talented and GJEPC is already in final financial support from banks and skilled workforce. As a token stages of talks with the union financial institutions, and provide of appreciation and with the ministry of skill development and better health care services through intention to give back to these entrepreneurship (MoSDE) for the specially designed smartcard. precious jewels of the industry, national classification of gem and This card not only gives the the Council has come forward for jewellery sector workers/craftsmen workers a valid proof of their the betterment of these workers.” under Labour Management employment or identity, but also Agrawal added, “The Swasthya Information Systems (LMIS). makes them eligible for various Ratna Scheme received a This segment-wise classification initiatives. Along with the card, phenomenal response and several of workers, craftsmen and artisans GJEPC will also provide an optional GJEPC member companies have will provide additional benefits health insurance cover ‘Swasthya taken this policy for their workers under relevant MoSDE schemes. Kosh’ for all Parichay Card holders. and office staff. Currently, it is in

SOLITAIRE INTERNATIONAL FEBRUARY 2019 43 IN FOCUS

(From left) Rupa Dutta, Sanjay Kaka Patil, Suresh Prabhu, Pramod Agrawal and Anantha Padmanaban unveiling the Parichay Card.

its third year of operations and to Parichay Card holders will be given date it has covered more than 4 lakh a choice to opt for a health insurance lives. It motivated us to do more for policy, assured of R1,00,000 for the industry and hence we launched themselves and their family (spouse the Parichay Card.” and two children) by paying just “We feel proud of the talented 25% cost for the premium. The workforce of over 5 million remaining 75% of the premium will craftspersons, artisans and karigars, be paid through a specially created who are an integral part of the overall fund called Swasthya Kosh. ecosystem of gems and jewellery GJEPC has tied up with the exports. As a token of appreciation Gem and Jewellery National Relief and to support and nurture the Foundation (GJNRF), whereby talent, this is a small initiative from anyone can donate into the fund and the GJEPC,” he noted. the proceeds go towards paying the In 2015, the GJEPC had initiated premiums of the policy. The scheme a Group Mediclaim Scheme, named will also offer an 80G tax benefit to ‘Swasthya Ratna’, to provide health the all the institutions who donate insurance benefit to the entire for this cause. GJEPC has roped in workforce of the gems and jewellery Edelweiss Insurance Brokers, which industry and their family members. already manages the Swasthya Ratna Under the scheme, all GJEPC Scheme along with the Swasthya member companies can enrol Kosh insurance brokers. employees and their families. The The premium for the primary objective of launching this comprehensive health insurance scheme all over India was to help policy is capped at R1,400 for self- identified workers and their families cover and R2,200 for family cover. gain improved access to quality With 75% of the premium being medical care. paid by GJEPC’s Swasthya Kosh, The Council plans to integrate the discounted premiums are just the benefits of the Swasthya Ratna R350 for self and R550 for family policy with the Parichay Card. All cover. n

44 SOLITAIRE INTERNATIONAL FEBRUARY 2019 ANUP BOHRA A RADICAL VISIONARY Anup Bohra, CEO and managing director, Jewels Emporium, Jaipur, is way ahead of his times. A patron of jewellery arts and crafts, his forward- thinking vision has helped him popularise his limited edition collection Masterstrokes globally. He and his team have been pioneers in introducing French enamelling techniques in fine jewellery in India. The sole purpose that keeps his creative and adventurous spirit alive is the desire that India must be recognised not just for its traditions, but for its talent, innovation and artistic excellence. A brave heart, he opts to tread paths that are difficult in order to create Garden in Bloom The stunning necklace something original. Bohra puts it aptly, “If you gets its glow from 53.5 succeed in everything that you are doing, it carats of Mexican fire opals, and 5 carats of orange means that you are attempting things that are sapphires edged as well as embellished with diamonds, far too easy. Thus, I choose paths where failure thus recreating the hues of is inevitable initially, yet if you are persistent sunset. French enamelled, studded stems and leaves and have the courage to stay original, you will complete the necklace that has been named succeed. It isn’t the mind that creates after Hesperis, the Greek goddess of sunset. beautiful work, it’s the soul!” Courtesy: ADORN magazine. Photograph by BY SHANOO BIJLANI Vishesh Verma

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34 india’s first Luxury jeweLLery magazine may-june 2013 DESIGN CORNER

34 india’s first Luxury jeweLLery magazine may-june 2013 The beauty of a jewel is boundlessly enhanced when colour is added to it in the right proportion and combination.

Selene cuff from the Shades of Lotus collection.

Jewels Emporium, Jaipur, has been Colours always bring out evocative a pioneer in introducing the art emotions. The beauty of a jewel of Plique-à-jour and Basse-taille is boundlessly enhanced when enamelling in India. Tell us about the journey. Why did Jewels Emporium colour is added to it in the right bring the French enamelling proportion and combination. techniques into India? And since colours excite both me In 1983, I joined Jewels Emporium and Smriti, exploring enamelling after graduating from the techniques was an obvious choice. Gemological Institute of America Further, we realised that enamel in (GIA) and started assisting my India, especially Jaipur, was only father and grandfather in the being used in the traditional format. business. We were well established Enamelling, or what is termed as in retailing to foreign tourists, but meenakari, is said to have flourished it did not intrigue me enough to under Raja Mansingh of Jaipur, continue doing the same thing day who brought experts from Lahore in and day out. I was doing a lot of to set up karkhanas (workshops) Anup Bohra soul-searching to create an identity to popularise the technique of where I could not only build my Champlevé enamelling. Since company into a brand, but I could then, the technique was being used also take India to the world. on the back of jadau jewellery to After much deliberation enhance its life. The palette was and research, along with my limited to six or seven colours, better half, Smriti, I decided to which were used as solid hues in explore the world of enamelling. flat engraved geometric shapes from

48 SOLITAIRE INTERNATIONAL FEBRUARY 2019 DESIGN CORNER

Hawaiian Hibiscus from the Jekyll & Hyde collection. The Autumn Saga earrings from the Music to My Ears collection.

Islamic tradition, interwoven with We failed many times only to try proudly say that we have pioneered patterns displaying acanthus, birds, again and again. We wanted to French enamelling in India with flowers and animal forms of Hindu break the traditional barriers. reference to its use in contemporary aesthetics. Soon, we experimented and jewellery. We started this journey While studying further about introduced the techniques of in 2001, and today our avant-garde the history of enamel art, we came Plique-à-jour and Basse-taille jewellery brand Masterstrokes is across Art Nouveau jewellery along with Champlevé, bringing known for revolutionising and and we were intrigued by the the colours from the back to the crafting unique pieces of wearable experimentation of that time. It front of the jewel. art, not just in India but in many was a eureka moment for me; it We found single, solid colours other countries too. provided me a direction. One thing lifeless. Hence, we tried and led to another, and soon we started achieved shading of not just dark Please throw light on the techniques understanding, exploring and to light, but also shading of two or for our readers and how difficult appreciating French enamelling more different colours. We live in it is to achieve the finesse in fine jewellery. What are the hurdles that a in our atelier. Brilliant minds a three-dimensional world, then manufacturer or a designer faces, and and the script in place, we were how can enamel be restricted only how long does it take to make a piece ready for laying the foundation to flat surfaces? clad with these enamelling processes? of a new chapter in the history of We conquered our next challenge First let’s understand what fine contemporary jewellery in India; of deploying enamel in contoured jewellery is. Simply put, when a the search for talented craftsmen- forms. The more we explored the well-thought-out design is created cum-artists began, which finally more we achieved and that gave us responsibly, using quality materials, culminated in West Bengal. the impetus to be more adventurous! while adhering to international We then embarked on this Today, we have a palette of standards, the result is a jewel that journey of turmoil and challenges. almost 300 enamel hues and we can speaks excellence.

SOLITAIRE INTERNATIONAL FEBRUARY 2019 49 And how you achieve this take as long as six months to a year! excellence is even simpler! Just It all depends on the intricacy and don’t compromise at any level and details of the design. never stop learning and innovating. When I see a piece of jewellery that We would like to know about the first I made a few years ago with my collection that was enhanced with this technique. How long did it take you to team, we brainstorm to find flaws complete the collection? and demerits and constructively We were making single pieces for proceed in raising our standards of a long time before I had a crazy excellence to a higher level. idea to make a collection inspired Today, owing to this consistent by the mesmerising peacock. creative post-mortem, we have The inspiration was not new, evolved to create tell-tale marvels peacocks have always been used in of fine jewellery and extraordinary Indian jewellery; but that was the wearable art! challenge, to portray the peacock in I assure you, this is a never- a radically different way, yet make Smriti Bohra, ending pursuit of experimenting it appealing for the Indian clientele. Creative Head of Jewels Emporium and going a step ahead each time At that time, we were focussing you create a thing of beauty. Any only on the Indian customer before art, when explored, poses new embarking on our international We brainstorm challenges every day. journey. To top it, I don’t know Referring particularly to French why, but I wanted to create an to find flaws and enamelling, we faced challenges enormous 80-piece collection, demerits and from achieving the right amount which we titled Romance of the of heating, to which colour Peacock! It took some years to constructively combinations looked good, to come up with that number prior to how we can best enamel on the launch. proceed in raising curved surfaces and much more. our standards of It’s not possible to compress my Importantly, how did it fare in the experiences of so many years in Indian market? Where did you first excellence to a just a few words. I could probably introduce the collection? higher level. write a book on it! I had decided to launch the The key is to keep questioning collection at Jaipur Jewellery Show one’s own skills and be your own (JJS) 2006, but I was getting the harshest critic. Further, there is no jitters when we completed 45 specific parameter on how long it pieces in the Peacock collection! takes to create a jewel dressed with This fear led me to start selling French enamel. Some jewels may much in advance than the JJS. The collection did extremely well. In fact, I was able to sell approximately 40 pieces even before I introduced the collection at JJS 2006! We re-launched the collection with new pieces at IIJW 2011.

What gives Champlevé an edge over From the series of other types of enamelling techniques? Alibaba and Forty It’s not the Champlevé, Plique- Thieves, the pendant à-jour or Basse-taille enamelling features four thieves. techniques that have an edge over the others; it’s how you deploy the technique in jewellery that gives it an edge. We used the same old technique, but we tweaked it. From DESIGN CORNER

The grand necklace and earrings set from the Romance of the Peacock collection.

SOLITAIRE INTERNATIONAL FEBRUARY 2019 51 a passive existence we made enamel you develop or adapt art, which a proactive element of the design. we did, there are no manuals for We made it as important as the training; it’s not a technology one gold, diamonds, coloured stones can import just through reading. and the form of the design. We then I had never acquired any enlightened the customer to change professional training on their perception, from buying enamelling. Thus, at Jewels I simply want jewellery for its material value, to Emporium, we continuously had to develop craft buying jewellery for its astonishing to brainstorm, accept challenges, work – the enamel work! find solutions and were busy techniques of Let me put it on record, the perfecting the art. Though, now any kind to a Indian customer was in awe with I can pretty much create a manual our French enamelling works of art! for someone else to train; at that high standard of time we just followed our instincts, excellence whereby How did you get the metal workers came up with our own methods and enamellers to train in this to achieve what we have achieved it is a piece of technique? Or did you import and adapt the art? today. The only disadvantage is distinctive art When I forayed into this journey that it takes a painstakingly long which is appreciated of experimentation, I already had time to reach this level. Yet, it a team of artists who could dream is extremely gratifying! Today, I globally. design, manufacturing experts who have a team of gifted artists who were ready to face challenges, and are involved in the entire process, my better half whose understanding from getting the design on paper of colours was par excellence! to the completion of the jewel. We went all the way to Kolkata But I have not restricted myself to bring the artisans to Jaipur; to this art form. I simply want fortunately they, too, were to develop craft techniques of willing to share our passion and any kind to a high standard of enthusiasm. To develop any art excellence, whereby it is a piece of form, someone must patronise distinctive art which is appreciated it. In olden times, kings were the globally. patrons. Today, someone like us, In 2012, we participated in the one who has the vision beyond just ‘Craft to Jewellery’ project of the making money, must do it. When GJEPC where we incorporated the unique crafts of bamboo and bidri into fine jewellery.

Do you also have elements of enamel in your limited and signed edition Masterstrokes? Every Masterstrokes jewel exhibits one or a combination of French enamelling techniques. It may be Champlevé, Plique-à-jour or Basse-taille. And, inevitably, every Masterstrokes jewel also carries the brand’s registered trademark signature, an ‘M’ with a small diamond (see left). The ‘M’ is very subtly placed, incorporated The floral ring from sensibly in the design of the Masterstrokes bearing Masterpiece, most often on the the signature M. front side of the piece.

52 SOLITAIRE INTERNATIONAL FEBRUARY 2019 DESIGN CORNER

Prie Dieu-Feu Opale collier from the collection, Celebrating Gaudi.

What is your take on plagiarism? will remain ever ecstatic that I Plagiarism has challenged How do you feel when others copy your designs or call themselves the have pioneered enlightening the me and my team to continue pioneers of French enamelling in the Indian jewellery fraternity with evolving further and stay far country? the art of French enamelling, ahead of any competition. It Copying is the biggest form of which otherwise may not have has helped build my brand flattery. It is the best tribute one seen the light of day and would Masterstrokes and enabled it to can pay to a pioneer! have continued to remain a stay on top! Several of our contemporaries beautiful form of an existing art and designers copy our designs, not pursued by the jewellers, Tell us about your philosophy and have learnt to incorporate designers and worksmiths in our towards the brand. French enamelling and some country. My desire is to patronise and even replicate what is our style I will remain ever indebted to promote jewellery-related crafts of incorporating the monogram! all who have copied us in some in India to whatever level I can to Some are audacious enough to form or the other by learning to the best of my abilities and create calling themselves as the pioneers incorporate and adapt the art of wearable art that surpasses its of French enamelling in India! French enamelling in their pieces intrinsic value. I desire to become My gratitude to all such human of jewellery, as it is because of rich by growing wealth for my beings for honouring us and them that this art has gained company and, in turn, for my paying such great respect to what quicker and wider acceptability nation. The word wealth needs to we initiated and created. I take with the Indian consumer, thus be understood in the right spirit pride in being a game changer and making my task much easier. and larger perspective! n

SOLITAIRE INTERNATIONAL FEBRUARY 2019 53 ‘GIA India To Soon Offer Coloured Stone Identification Reports’ In an exclusive interview, Nirupa Bhatt, managing director of GIA India and Middle East, talks about major trends that will play out this year, the potential of AI-based grading, the imminent launch of GIA coloured stone identification reports in India and much more.

For GIA India, what are the key industry, trade shows help us reach out to more advantages of exhibiting at IIJS and more members of the trade and spread Signature? awareness about the Institute’s mission. Over the years, IIJS Signature has Including IIJS Signature, GIA India emerged as an important trade participates in many trade shows across the show to showcase new jewellery country, including in tier-II and tier-III collections. It helps manufacturers, towns, to reach out to small and medium-size wholesalers and retailers stay updated businesses. We also conduct complimentary with new designs and plan their seminars on various topics to share knowledge inventory for the upcoming year. about the important aspects of the industry and Nirupa Bhatt, Managing Director of For GIA India, IIJS Signature help build consumer confidence in the gem and GIA India and Middle East gives the ability to connect with jewellery industry. members of the trade interested in GIA’s diamond grading services What opportunities does the Indian market and our education offerings. present for GIA in the areas of grading and It presents a platform for us to education? connect with diamantaires and The Indian market continues to remain the jewellery manufacturers, wholesalers epicentre for the global gem and jewellery and retailers to understand their industry. Indian manufacturers produce more challenges and understand how GIA can assist. We also get an opportunity to connect with mid- to high-end businesses, for whom the latest knowledge on lab-grown diamonds and treatments will be extremely beneficial.

Are trade shows a core component of GIA’s overall marketing strategy? While GIA’s independent gem identification and grading reports and globally-recognised educational GIA’s continued investment in gem research and programmes are well-known in the development.

54 SOLITAIRE INTERNATIONAL FEBRUARY 2019 INDUSTRY INSIGHT

expand, there is a crucial need for skilled professionals. Similar to B-schools – which ensure there is a decent pool of talented management resources available to businesses – GIA offers a mix of courses in gemmology, jewellery design, merchandising and sales for professionals to scale greater heights in the industry. Ultimately, a trained professional will have a far-reaching impact in earning consumers’ trust and confidence in the gem and jewellery industry.

Do you perceive automated Classroom in GIA India’s Mumbai campus. AI-based diamond grading as a threat or an opportunity? than 85% of the world’s polished of undisclosed laboratory-grown GIA has been involved in diamonds in terms of volume, and diamonds. Laboratory-grown supplementing visual grading I believe GIA India has contributed diamonds give consumers another with instrumentation for several to this growth story. We have also choice, as long as the transaction decades. The first GIA colorimeter helped exporters increase their takes place with full disclosure. developed was in the 1940s and online presence, explore newer GIA is in a great position to help we have continued to add more markets and provide stones 0.18 the industry through our Synthetic instrumentation into the grading carat and up with GIA’s globally- Diamond Grading Reports, the GIA process. As you are aware, we recognised reports. Through Melee Analysis Service and the GIA introduced GIA Facetware® professional gem and jewellery iD100™ diamond testing device. a number of years ago that is education from GIA India, Also, as the Indian jewellery integrated into measurement students gain not just knowledge, industry gets more organised and as scanners that give a predicted GIA but also the conviction to buy and regional and national retail chains cut grade. sell confidently, and also convey the same to consumers.

Describe three major scenarios that will play out in the coming year. One of the trends I see playing out this year is provenance. A growing number of consumers today wish to see the mine-to-market journey of a diamond. GIA is already working with mining companies, diamond manufacturers and retailers to help them tell that story. Another trend I see is the creation of distinct markets for natural and laboratory-grown diamond jewellery. This will help ensure that everyone in the natural diamond supply chain invests GIA India offered complimentary seminars on laboratory-grown diamonds at in screening and identification IIJS Signature 2018.

SOLITAIRE INTERNATIONAL FEBRUARY 2019 55 GIA will continue to add accuracy in every report we issue, and tanzanite – is a market with technology and automation to the offering comprehensive education tremendous potential, we are grading process, but without a deep for students and professionals to already in talks and are hopeful of understanding of the GIA system, succeed in the industry, pioneering getting the necessary permissions automation may lead to more cutting-edge research to identify to start the service. This move, I consistency but not greater accuracy. practical solutions to gemmological believe, will significantly aid the challenges, and advancing growth of coloured stone market As the head of GIA India and development of instruments in India. Middle East, what short-term and to determine the distinctive We also work closely with long-term goals have you set for characteristics of natural, laboratory- national, regional and local yourself? grown and treated gem materials. associations to organise education As a public benefit, non-profit There have been requests from seminars for trade members on institute, GIA’s mission is to the industry to start offering various topics. This helps us share ensure the public trust in gems and coloured stone identification knowledge about important aspects jewellery. We remain committed reports in India. Considering that of the industry, build consumer to the mission by ensuring the India – one of the biggest cutting confidence and ultimately it highest level of integrity and and trading centres for emerald supports the Institute’s mission. n

MANSUKH KOTHARI: Industry Needs To Speak In One Voice MANSUKH KOTHARI, director, Vasupati Jewellers India Pvt. Ltd., and co-convener of the GJEPC’s gold jewellery panel, speaks to Solitaire International about the many benefits of the recently announced Domestic Council for Gems & Jewellery, the need to have generic gold promotions, gold jewellery trends and more.

The World Gold Council seems The Domestic Council for Gems & to have stopped all jewellery Jewellery has been recently launched by promotion activity. Do you commerce minister Suresh Prabhu, and think that industry bodies like the ad hoc committee will be formulated GJEPC and GJC should take on with representatives from various trade this responsibility for generic bodies. Your thoughts. promotion of gold? The commerce minister has said that the new This is the need of the hour! Domestic Council for Gems & Jewellery has Manufacturers, retailers and trade to be put together by May 1st. It is a very Mansukh Kothari bodies should definitely come important platform so that all the primary and forward to work on this much ancillary trade bodies representing karigars, needed initiative. manufacturers, hallmarking centres, bullion

56 SOLITAIRE INTERNATIONAL FEBRUARY 2019 INDUSTRY INSIGHT

banks, and retailers will speak in You have been participating in one voice as representatives of Signature and IIJS since many the industry. years. Are shows like these The more organised we get, vital trading platforms for your the better it will be for the trade business growth? to stem the ongoing attrition of Yes, it is a must to exhibit in craftsmen. Recognising their trade shows of this stature, as it skills, adding value to the craft, motivates us round the year to increasing exports, will, in turn, make high quality, innovative secure their future and the crafts. designs to cater to the ever- It will also attract the young evolving taste of today’s modern generation to this industry. consumer. This year, too, we are anticipating a good response Give us some update about the Jewellery Park in Navi Mumbai. What are the sentiments of the jewellers situated in Zaveri Bazaar about having to shift there? The government has identified the proposed land which will be given to the gems and jewellery industry. Jewellery manufacturers are keen on shifting from all over Mumbai. However, awareness programmes are being conducted Corporation (MIDC) to establish in Zaveri Bazaar and Borivali, the “India Jewellery Park Mumbai” the main hubs of jewellery which will generate employment manufacturing in Mumbai, to for around 1,00,000 workers in explain to karigars about the Maharashtra. benefits of moving to safe and de-congested working conditions How is the gold policy shaping at the show, but we are a little with the latest infrastructure up? From the trade perspective, apprehensive as gold prices have facilities. The GJEPC has signed has the government agreed to shot up. Buying may be less in an MoU with the Maharashtra most of the demands? terms of volumes, but since we Industrial Development The government is working on do our homework well, we are the gold policy, which will be coming up with a variety of announced soon and the same will lightweight ornaments that are benefit the industry for a long time pocket-friendly. However, we to come. are leaving no stone unturned and we are engaged in tapping What are the collections that new markets in India. Every you are introducing this year at year, we have a target list and we Signature? send invitations to new potential Lightweight, fancy and customers in order to expand our contemporary gold jewellery set footprint. with fancy stones and coloured beads. Deviating from our regular Apart from meeting your necklace, choker and pendant sets, regular clients, do you also get we have begun to concentrate on the chance to meet new clients? rings, jhumkis, maang tikas and Yes, we do get to meet old and haathphools. But the slant in all the new clients; I would say the ratio

designs is modern. is 80:20 respectively. n Ltd. Jewellers India Pvt. Jewellery images on this page: courtesy Vasupati

SOLITAIRE INTERNATIONAL FEBRUARY 2019 57 Interim Budget – Limited Expectations

On February 1st, the finance minister of India would be presenting the Interim Budget or Vote on Account for the financial year commencing April 1st, 2019. The key question is that since elections are due in May 2019, what should one expect? Dr. Suresh Surana, a chartered accountant and founder of RSM Astute Consulting Group, explores the possible outcomes.

Can tax reforms be announced in government is at full freedom (i.e. there is an Interim Budget? no binding legal restriction) to introduce any Express legislative prohibition number of policy decisions through the Interim against announcement of major tax Budget. policy changes through an Interim Budget do not exist in India. Past precedents Certain restrictions are imposed by Interim Budgets in the past have marginally way of Model Code of Conduct deviated from the unwritten convention of not (MCC) laid down by the Election initiating major tax reforms in an election year. Commission of India which The Interim Budget of 2004-05 presented by Dr Suresh Surana, Founder, RSM Astute comes into force once the election Jaswant Singh had proposed some changes to the Consulting Group schedule is declared. taxation regime. It had extended the period of The provisions of MCC exemption from long-term capital gains for listed applicable to the party in power equities to three years and likewise extended the (outgoing government) requires fiscal benefits available to new power plants up to that the party in power, whether at 2012 for corporations. Thus, though the interim the centre or in the state or states budget speech of 2004-05 promised reforms in concerned, shall ensure that no direct tax, none of them were actually carried cause is given for any complaint that into effect. The last Interim Budget presented by it has used its official position for the the then finance minister, P. Chidambaram, in purposes of its election campaign the Congress government, had also announced and in particular ministers and marginal changes in excise duty rates and other authorities shall not sanction provided relief from service tax in certain cases. grants/payments out of discretionary However, no changes were proposed on the funds (from the time elections are income tax front. announced by the Commission); It is difficult to insulate the expectations from and (from the time elections are the political scenario. The ruling government announced by the Commission), and the opposition seem set for an intense battle ministers and other authorities shall and uncertain outcome. Therefore, considering not announce any financial grants in the need to extend relief to a vast majority, it any form or promises thereof. can be expected that the Interim Budget of 2019 But, if the Interim Budget is would use the legroom available. presented before the declaration Generally, the outgoing government only of election schedule, the outgoing passes an appropriation bill, also known as Vote

58 SOLITAIRE INTERNATIONAL FEBRUARY 2019 INDUSTRY INSIGHT © pogonici / Shutterstock.com on Account, to meet expenses of the increased for the past three financial Administrative relief administration till the newly elected years despite inflation, which ranges The measures such as expediting government presents a full Budget from 5% to 7% per annum. The income-tax refunds, withdrawal after elections. However, this Budget increase in the basic exemption of departmental appeals below a is expected to be more than a formal limit from the present threshold certain threshold, grant of GST Vote on Account, with some relief of R2,50,000 to R3,00,000 so as to refunds, etc., will go a long way to the taxpayers. A Vote on Account adjust for inflation would provide in improving the taxpayers’ usually deals with the expenditure relief to all individual taxpayers. This sentiments without amounting side of the government’s Budget, could benefit over 5 crore individual/ to any legislative reform. This i.e. only approval for expenses HUF taxpayers. The increase in the would be of great relief for gem during the intervening period till basic exemption limit would benefit and jewellery sector as a part of declaration of general election results the gems and jewellery sector which working capital, which is currently is sought after. However, an Interim employs around 46 lakh people. blocked in the process of claiming Budget deals with both expenditure This shall also result in reduced refunds, would get released and and receipts and as such represents compliance burden on the part of shall, in turn, facilitate more trade a complete set of accounts being employers in this sector. Though in these sectors. very similar to a full Budget. The the increase in basic exemption Interim Budget does not incorporate limit shall benefit the taxpayers, Closing Thoughts estimates for the full year, as the it is estimated that every R10,000 Interim Budgets in the past have incoming government can partially increase of basic exemption limit not come up with major tax policy change or give it a full makeover shall lead to a loss of R2,000 crore to changes as discussed above. Any while presenting the Union Budget the revenue department. amendment in the Income Tax after the declaration of election Act, 1961 can be brought only results. Reduction in cess if the same is passed by both the The rate of health and education houses of Parliament. In view of Expectations cess, which is 4% of the tax at this, it can be said that changes in Increase in the basic IT present, may be removed. This direct tax may not be expected. exemption limit from the would effectively result in reduction One key aspect the markets would present threshold of S2,50,000 to of tax rate from 0.4% to 1.38% be looking for is the fiscal deficit S3,00,000 depending on the tax slab of the which was estimated at 3.3% in The basic exemption limit for taxpayer. This shall provide huge the last budget and given the need individuals and Hindu Undivided relief as cess is applicable to for populist measures, the extent Families (HUFs) has not been all taxpayers. of slippage beyond this level. n

SOLITAIRE INTERNATIONAL FEBRUARY 2019 59 Vicenzaoro Draws More Global Visitors Vicenzaoro January, the first event of the year on IEG’s Jewellery Agenda, closed with over 35,000 visitors at the six-day show and a tangible upsurge in international visitors.

he six-day Vicenzaoro of shows organised directly, January (VOJ) held from announced that this edition of TJanuary 18th to 23rd, 2019, VOJ, which hosts the most famous organised by Italian Exhibition international brands alongside Group (IEG), was inaugurated in the more recent and emerging the presence of the Minister for companies, is totally sold out. Regional Affairs and Autonomies, Managing director, Ugo Erika Stefani, who in her address, Ravanelli, proclaimed the theme stated, “Vicenzaoro brings with of this year’s show: Sustainable it all the territory’s dynamics and Creativity, which is no longer a ability to promote development trend but, fortunately for our planet, and training within the sector.” the direction in which the whole In his greetings, IEG president, sector is decidedly steering towards. Lorenzo Cagnoni, referred to Vicenzaoro January saw Italian Exhibition Group’s role formidable growth in foreign as the leading Italian trade show participation. According to a press DINOS KARALIS player in terms of the number release, over 60% of operators

60 SOLITAIRE INTERNATIONAL FEBRUARY 2019 TRADE FAIR

came from foreign countries. The production areas within Italy. number of buyers from Germany, Now at its 41st edition and Switzerland and Austria registered organised by IEG on the same a + 12% rise, the United Kingdom dates of Vicenzaoro January, walk-ins saw a growth of 11.7%, the T Gold show confirmed its France, 10.5%, and Spain marking international leadership and its a 9.6% jump. Northern Europe role as a representative of Italian also grew by 10.5%. The United technological excellence. Arab Emirates and Saudi Arabia The quality of buyers at registered a strong recovery despite the trade show has been the ongoing issues in regard to the growing, attracted by the taxation of the former, marking a physical and digital Vicenzaoro 24.2% rise in visitors. Russia and business platform, with its Ukraine, fundamental markets, not matchmaking ability. The new only for the Made in Italy gold and #primavicenzaoro project, in jewellery supply chain, but also for collaboration with Confindustria the demand on a global scale, grew Federorafi, attracted selected by 10.4%. The number of buyers buyers from among the most from Kazakhstan was up by 46%. influential in the world for high- Fundamental once more at this end jewellery purchases. edition was the support of the The presence of independent Ministry of Economic Development - designers in the Design Room, as MISE and ICE Agency. Thanks to well as the increasingly successful this collaboration, over 400 buyers trend of the big brands to present were welcomed at Vicenzaoro new collections and a new space January, selected from the main at the trade show, the Fashion markets in addition to over 2,000 Room, a workshop dedicated to buyers managed directly by fashion jewellery, the seminar Italian Exhibition Group (IEG), of the Vicenzaoro observatory, a leader in Italy for holding Trendvision Jewellery + organised trade fairs. Forecasting dedicated to the The recently concluded edition profile of consumers, transformed featured 1,500 brands, 42% of the six days of the event into a which came from 35 countries ‘Trend Show’, an inspiration for ROBERTO COIN and from the most important exhibitors and visitors.

MONICA RICH KOSANN

SOLITAIRE INTERNATIONAL FEBRUARY 2019 61 SICIS

The ICON Community Coin, were enriched by malachite, nacre, diamonds, while Damiani The section ICON Community Fine Jewelry presented precious was dedicated to fine jewellery extensions of the D.Side and brands. The community included Eden collections. The Florentine Italian and international companies brand Anna Maria Cammilli that combined classic design showcased a new exclusive gold and the heritage of artisanal hue, a result of years of research and tradition with avant-garde and experimentation. The colour called contemporary styles, enriching Chocolate Brown is a sophisticated their creations with materials and original shade in strictly 18-karat precious stones of the utmost value. gold, an uncommon colour that The essential but highly further enhances the unique shapes evocative lines of the Petals and the recognizable design of collection by the maestro Roberto Cammilli jewels. Fope, Crivelli, Leo Pizzo, Palmiero, Picchiotti andGiorgio Visconti, to name a few, were among the most anticipated Made in Italy brands.

The Design Room CEDILLE Twelve top independent designers were the life and soul of The Design Room section with participation MAGERIT from the likes of Alessio Boschi and Alessa Jewelry, as well as interesting new entries on the international scene, such as Anna Maccieri Rossi, Lydia Courteille and Sicis. The Melting Arctic ring with a global warming theme, encloses MARIE MAS a miniature story just waiting to be discovered and is a perfect

62 SOLITAIRE INTERNATIONAL FEBRUARY 2019 TRADE FAIR

balance of white gold, diamond, collector, Lydia Courteille, was topaz, precious stones and South ironic and surreal. American walnut: this was the star The Design Room also displayed feature by Alessio Boschi, the ace the necklace medallions by Monica Italian designer. Rich Kosann, the micro and Time, on the other hand, is a nano-mosaics by Ravenna-based priceless luxury to which designer Sicis Jewels created with ancient Anna Maccieri Rossi dedicated fine techniques entrusted to innovative jewellery creations characterised languages, the Bee Goddess Turkish by an automation that makes the jewellery inspired by archaic shapes item a constantly changing lucky and talismans by Tanita Tasarim, talisman, inspired by the designer’s and miniature sculptures from the ALESSIO BOSCHI inherited watch-making profession. Spanish company, Magerit. Other presentations were the numerous meetings and now it creations that “came to life” and Exhibitors’ View is up to us to select who could changed colour by following become our partners. We also body movements thanks to the Exhibitors were satisfied with the saw the potential opening of new ingenious mechanism by French response they received at the fair. international markets where we designer Marie Mas, a new entrant Divyanshu Navlakha, owner of are not yet present, for example, in the jewellery panorama, the Sutra, said, “VOJ has always been Kazakhstan, which would be a really modern geometries by Cedille, the an important meeting point for the interesting market to get into.” innovative jewellery by Vicenza- international jewellery sector. It is Natasha and Julian Tirisi, owners born Mattia Cielo that united a strategic moment for us because, of Tirisi, revealed, “Thanks to the goldsmith craftsmanship with every year, we always meet potential format of the show, buyers have modern industrial design, and new customers. I think that enough time to look at the jewellery the proposals by Eclats Jewels. Vicenzaoro has improved greatly and, exhibitors can explain details Attention to the tiniest details in recent years, and we now see in terms of production, design and and selecting precious stones by many top-quality selected buyers pricing. In this way buyers feel hand and raw materials from every at the show. There was also good more confident. During the show corner of the world characterised attention from the Italian market.” we met three new customers, of designer Alessa Jewelry, while Chiara Carli, creative director, which one was based in Dubai; a the jewellery presented by French Pesavento, observed, “We witnessed high-end store in Palestine, was gemmologist, traveller and huge enthusiasm and we had an unexpected client at the show. Finally, we found a company that was transparent in its dealings and placed a good order.” Andrea Visconti, CEO Giorgio GJEPC’s India Pavilion at Visconti, noted, “The contacts were mainly international from Vicenzaoro Winter 2019 China to Dubai, from South The Gem & Jewellery Export Promotion Council (GJEPC) organised America to Northern Europe, the India Pavilion at the Vicenzaoro January 2019 with 19 exhibitors with a significant increase in the participating in the show. Spread over 355 sq m, the exhibitors German market, which we did not showcased exquisite jewellery collections and loose stones in Hall no. record during previous years. We 3.0 and Hall no. 3.1 respectively. were extremely pleased to have met GJEPC chairman Pramod Agrawal said, “India’s total exports of buyers from the Russian market gems and jewellery to Europe accounted for $3.94 billion in 2018. again, who usually only attend Europe has been an important market for India, and Italy has been an Baselworld or Hong Kong. Also, entry point for Europe, in general, and other EU countries. Vicenzaoro the fact of having invested more offers a perfect platform for our exhibitors to learn and understand heavily in Vicenzaoro this year, and the market here and, also come up with jewellery pieces as per the giving up on Basel, seems to have changing trends. This also provides us the opportunity to enhance our been the right move for us, judging existing trade relationship and create new ones.” from the contacts we made.” n

SOLITAIRE INTERNATIONAL FEBRUARY 2019 63 Trends @VICENZAORO As is the annual ritual, the first trade show of the global calendar year, Vicenzaoro January 2019, throws light on 2019 design directions for the year ahead.

ALUNNO E MARCANTONI FACCO

Slim Fit Jewellery is increasingly getting minimalistic and wiry, especially in the daily wear segment. Tiny, cute motifs add a touch of whimsy to the pieces, a perfect fit for today’s generation. MARCO GERBELLA

MAMAN ET SOPHIE

NOMINATION

64 SOLITAIRE INTERNATIONAL FEBRUARY 2019 DESIGN TRENDS TAMARA COMOLLI

EDDIE MANZARDO

MARIA DE TONI

ANNA MACCIERI ROSSI

ANNA MACCIERI ROSSI

OTTO JEWELS

LUCY G

SOLITAIRE INTERNATIONAL FEBRUARY 2019 65 MAGERIT

S A SPOLKA AKCYJNA

NANIS

OTTO JEWELS

Fab Finishes Gold gets a contemporary makeover every time it gets satiny, grainy, lustrous surface treatments. Here are some samples.

BRUSIDUE

BIZZOTTO

BAUMGARTEN

ANNA MARIA CAMMILLI ANTONINI

66 SOLITAIRE INTERNATIONAL FEBRUARY 2019 DESIGN TRENDS

ANTONINI

SANKET

ROBERTO COIN

NIKOS KOULIS

Only Diamonds! White, sparkling diamonds lend a classic look to any piece. Check out these glittering stunners.

OTTO JEWELS

CHANTECLER

ARTLINEA

SOLITAIRE INTERNATIONAL FEBRUARY 2019 67 BULLETIN

ICRA: Stable Outlook For India’s Gold Jewellery Retail Sector CRA, an investment and credit ratings agency affiliated Ito Moody’s, has issued a stable outlook for the Indian gold jewellery retail industry. Over the medium to long term, the gold jewellery demand growth is projected at 6-7% supported by the cultural underpinnings, evolving lifestyle, growing disposable income, favourable demographic dividend and the growing penetration of organised sector. Following a strong 9% volume growth in fiscal year 2018, gold jewellery demand has been subdued in the current year, ICRA said. Jewellery sales during the Gold Council © World critical festive period of August Zaveri Bazaar, a busy jewellery quarter in Mumbai, India. to November 2018, was relatively sluggish due to various factors like to January, led by festive and quality and inventory quality. elevated gold prices, and floods in marriage seasons. This apart, Tightened credit has affected Kerala. Other factors impacting factors like gold price, inflation, the store expansion plans and demand in the current year include priority of needs, etc. are other key working capital position of fewer auspicious days, and cautious determinants while buying jewellery. industry players, especially the lending by banks to the gems and Consumers time their purchases unorganised ones, it added. jewellery sector, thus curtailing the depending on price levels and While the overall demand store expansion plans of the players. especially when it coincides with has been largely subdued in the “Gold jewellery demand in festive seasons, there is a significant current year, the performance of India varies across rural and urban impact on demand, ICRA noted. organised players (ICRA’s sample markets, right from the type Being a price-sensitive market, set) has been relatively better. of jewellery bought, timing of higher gold prices results in Post currency demonetisation purchases, etc. With around 65% deferment of purchases by and implementation of Goods of population in India living in consumers. Gold prices increased and Services tax (GST), a marked rural areas, favourable farm output by over 6% in the last one year with shift is visible from unorganised in the last two years on the back consequent impact on consumption to organised trade. This apart, of good monsoons has been a demand. This apart, financing assurances on quality, purity, and positive trigger for rural demand, to the gems and jewellery sector the availability of a wider design where jewellery is a traditional has been under increased scrutiny range and rising preference store of wealth. On the other in the last one year following for fashion jewellery further hand, urban demand has gained reporting of fraud by a few lenders supported organised trade. Going traction from rising per capita on exposures to leading diamond forward, ICRA expects these income and demographic jewellers, and on exposures to a regulatory measures to continue dividend,” the study said. couple of gold jewellery retailers in to accelerate the formalisation of Jewellery buying is spread South India. Lending to the sector sector and the market shares of throughout the year with an remains cautious with enhanced organised players are accordingly increased skew towards September due diligence and checks on credit expected to increase. n

SOLITAIRE INTERNATIONAL FEBRUARY 2019 69 GJC Elects Anantha Padmanaban As Chairman

he All India Gem & of steering the national domestic Jewellery Domestic council. We shall work closely TCouncil (GJC), the with the government and take up national apex body of the gem various issues facing the industry. and jewellery industry, has elected In sync with government’s policies, Anantha Padmanaban as chairman my first effort will be to transform and Shaankar Sen as vice chairman and energise jewellers across India for a two-year period. The list of to bring more synergies within the other newly elected directors of indigenous industry. GJC has been uploaded on the “We shall strive to unite the GJC website. entire industry and work towards Padmanaban, managing director achieving GJC’s set goal of ‘One of NAC Jewellers, Chennai, has Industry, One Voice’. GJC will been closely associated with GJC strive to inspire many more since its inception. Over the years, jewellers and their associations he has successfully conceptualised to get more organised so as to Anantha Padmanaban, Chairman, GJC and executed innovative project a unified approach to programmes for the benefit of the policy changes. We also want to industry. He was instrumental in tackle contentious issues such as addressing many burning issues the banking sector’s hesitancy like excise, GST, customs duty, to provide loans to the gem and PMLA, etc., GJC said. jewellery sector.” Padmanaban stated, “I am Shaankar Sen, chairman and grateful to the board and it is an managing director of Senco honour to accept the responsibility Group, Kolkata, is known for his

Shaankar Sen, Vice Chairman, GJC

(From left) Anantha Padmanaban, Vijay Khanna, Shaankar Sen, Avinash Gupta and Nitin Khandelwal on the day of the announcement.

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The GJC committee members felicitating the new chairman and vice chairman. vision to create benchmarks in hallmarking, etc. GJC has initiated gold, silver and fashion jewellery state-of-the-art programmes such that reflects excellence in design as Manthan for sharing expertise and artistry. On his election, and knowledge within industry. the board complimented his Besides, we have organised commitments towards innovation Labham seminars to shed light on and visualising future trends various subject matters related to all these years and expressed day-to-day business practices in confidence that he will continue more than 45 locations.” to work for the benefit of the Among the new committee of industry. administration (COA) members Sen said, “It is my proud elected through e-voting were privilege to work for the growth Mohanlal Jain and S. Abdul Nazar of this pivotal trade organisation from the south, Nilesh Shobhawat and contribute my vision for from the west, and Kamal the development of its member Singhania from the east. Shaankar jewellers across the region. There is Sen – zonal chairman east, Ashish a need for the industry to become Pethe – zonal chairman west, more organised and compliant. Anantha Padmanaban – zonal GJC will continue to create chairman south, Avinash Gupta – better and newer platforms for the COA member, and Madan industry.” Kothari – COA member were Nitin Khandelwal, the departing elected unopposed as there were GJC chairman, said, “I want to no other candidates in their thank the board for bestowing their respective zone/panel. trust in me for the last two years, The entire e-voting election in most of the crucial decisions that process was conducted by an I have taken for GJC. Our priority authorised independent person is to be a friend, philosopher and (chief election authority), and the guide to the jewellers of India, who voting platform was created by a are grappling with diverse issues. digital agency, both appointed by “In the past couple of years, GJC. The voting took place over GJC has worked as custodian of six days, starting from December the gems and jewellery industry 19th to 24th, 2018. The results by taking up the issues with were declared on December 26th, government like GST, PMLA, 2018. n

SOLITAIRE INTERNATIONAL FEBRUARY 2019 71 ABN Amro: Diamonds Entering Growth & Disruption Phase

he diamond industry has case of miners, now even more lab-grown diamond wedding moved from a relatively so than before. This has created a jewellery will be part of the Tstable environment to a lot of uncertainty in the diamond offering. highly uncertain environment, industry. If 2018 was the year that We think that because of according to an ABN Amro lab-grown jewellery diamonds technology and the attractive report. Edited excerpts below: were officially introduced as an margins in this segment, it is In a diamond sector outlook acceptable new product, what will just a matter of time before the report dated January 15th, 2019, 2019 bring? larger stones will also face serious ABN Amro senior precious metals competition from lab-grown & diamonds analyst, Georgette Growth phase for lab-grown diamonds. As a result, it is likely Boele, notes that following the diamonds or even recommended that the launch of De Beers’ lab-grown inventory of natural diamonds diamond jewellery brand last year, We think that 2019 and 2020 decreases, as there is great “2019 and the years ahead will see will be the years that lab-grown uncertainty about the future value lab-grown diamonds for jewellery diamonds take off and move from of natural diamonds. So traders entering the growth phase”. an introduction phase (2018) to a and other buyers will probably This has serious consequences growth phase. Lab-grown diamond hold lower inventories and be for the actors in the diamond producers have been able to less aggressive in buying new industry. Natural diamond buyers produce larger and better-quality diamonds. In addition, jewellery such as retailers, consumers and lab-grown diamonds. Moreover, houses will decide whether they jewellery manufacturers will likely more companies and persons in the will offer lab-grown diamond de-stock and hold less inventory. diamond industry are willing to jewellery pieces or not. If they This will result in lower demand jump on the lab-grown diamond were to offer lab-grown diamond for natural diamonds and weigh on experience. jewellery as well, they would prices. Miners will rethink their For example, New Diamond probably adjust the offering strategy in light of uncertainty Technology LLC – a Russian of natural diamond jewellery about natural diamond demand, company – has announced that it accordingly. As a result, it is likely and questions about the value of has produced a 103.50-carat lab- that demand for natural diamonds a diamond. Lab-grown diamond grown diamond. This is the largest will decline. producers will probably focus on ever lab-grown diamond. technology to become less energy Moreover, Lightbox of Changing strategies dependent, or use more sustainable De Beers plans to sell its lab-grown energy sources, to increase the diamond jewellery not only via Manufacturers will polish both product suite and lower prices for its own website, but through natural and lab-grown diamonds. the lab-grown diamonds used in retail partnerships for online and The polishing of lab-grown jewellery. Consumers will profit in-store sales. diamonds could be somewhat from the wider variety of diamonds In future there will most likely different as the growth-structure at more attractive prices. be a wider variety of colours. differs (flat, cubic or octahedral On May 29th, 2018, De Beers Lightbox and some other lab- growth structures). Most natural launched a laboratory-grown grown diamond (jewellery) diamonds have an octahedral or diamond jewellery brand, Lightbox providers have decided to leave dodecahedral growth structure. Jewellery. This was a shock to the wedding jewellery or engagement An octahedral natural diamond industry. Gem-quality lab-grown rings out of the offering (for now). will be cut in two, resulting in a diamonds threaten the business We think sooner rather than later larger round brilliant diamond

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and a smaller brilliant diamond. If Second, the miners could stop the growth form is cubic there are searching for new mines as the other possibilities to cut and polish high exploration costs will unlikely diamonds. In short, the skill-set of be paid back by future income the polisher will be enhanced in from natural diamonds. this new phase of growth. But if consumers were to The natural diamond miners increasingly opt for the lab-grown will have some possible strategies diamond jewellery this would to brace for the growth of lab- negatively impact demand for grown diamonds. First, they could natural diamonds. Consumers will speed up mining activity to cash probably get a larger and better in on their diamond reserves. In quality stones for their money. a few years from now it is highly As a result, it is likely that natural uncertain if natural diamonds will diamonds will decline in value hold their value as always has been because of lower demand. assumed. Some producers and/ Third, miners could launch lab- or countries have indicated that grown diamonds or team up with they will step up production in the a lab-grown diamond producer. future. We think this will increase the De Beers has announced that it future survival changes of a natural expects output for 2018 to reach diamond miner. 35 to 36 million carats. This is The lab-grown diamond the highest output since 2008. In producers have also a few 2019 there will probably be a fall in strategies to survive in this highly output because of some production uncertain environment: securing challenges but the output for 2020 cheaper and more sustainable and 2021 is expected to surpass the sources of energy; focusing on level of 2018. Moreover, Angola technology could result in lower has signalled that it will double energy and production costs as production. It is unclear if the well as a wider product range; step-up in production has anything improving distribution by building to do with the developments in a sophisticated website and/or lab-grown diamonds. However, partner up with jewellery brands Alrosa has indicated that it will and stores; and offering lab-grown hold back supply in 2019 to avoid diamonds for wedding jewellery at flooding the market. more attractive prices.

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Diamond prices will decline of natural diamonds. If lab-grown diamonds are able to compete We expect lower rough and with the higher quality and larger polished prices for various reasons. stones of natural diamonds, First, natural diamond buyers will this will likely also add pressure scale back their natural diamond on polished and rough natural purchases because they will diamond prices. It is likely that probably like to bring down their the wider acceptance of lab-grown current inventory and keep it diamonds will result in rough and smaller. With the uncertainty about polished diamond prices moving consumer natural diamond demand more in sync because the power and uncertainty over how stable the of the supplies/miners is moving value of natural diamonds is, buyers towards the buyers and competition are likely to be more cautious. is increasing. Second, it is likely that some Last but not least, we also of the natural diamond buyers expect lower prices for lab-grown including retail houses will want diamonds. Higher lab-grown to offer a wider range of diamonds, diamond production and better including natural and lab-grown technology will drive lab-grown diamonds. This will eat into the prices lower. budget of buying natural diamonds. Third, the power of the miners Consumers stand to gain is decreasing because of higher uncertainty. An oligopolistic We are of the view that the market structure as seen in the consumers are the clear winners. diamond industry is not suitable Consumers will be able to buy a for an uncertain environment. diamond at more attractive prices. The industry will probably change But they also have to realise that from an oligopolistic structure to lab-grown diamonds do not hold a structure with more competitors investment value. In addition, and stronger competition. lab-grown diamonds will give Fourth, if consumers are more consumers larger, better quality attracted to lab-grown diamonds stones for more affordable prices. for jewellery, this will also result in Moreover, a range of colours will lower demand for certain groups be more accessible for consumers. n

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IIGJ Tardeo Launches Innovation & Incubation Centre

Chief guest Arun Mehta inaugurating the Innovation & Incubation Centre.

embers of the Gem & Jewellery Export MPromotion Council (GJEPC) and the board of directors of Indian Institute of Gems & Jewellery (IIGJ) gathered with students, faculty and esteemed guests at IIGJ Tardeo in Mumbai on January 21st, to inaugurate the Innovation & Incubation Centre. According to the IIGJ, the centre is being established to (Top) Nirmal Kumar Barmecha, Shishir Nevatia, Arun Mehta, Namita Pandya, Kirit Bhansali, foster a culture of research and Sanjay Kothari and Sanjoy Ghosh at the launch. (Above) Dignitaries and faculty with students. entrepreneurship amongst the student community from any of the Namita Pandya and Shishir Incubation Centre, while IIGJs in the country. One of the Nevatia, GJSCI chairman Sanjay Pandya appreciated the hard main objectives behind setting up Kothari, industry veteran Nirmal work and diligence of all the this centre is to promote innovation Kumar Barmecha, and IIGJ head members for making the centre in jewellery by creating an Sanjoy Ghosh. a dream come true. ecosystem that is conducive for the Monica Jhaveri, HOD, IIGJ Arun Mehta congratulated growth of start-ups in the country. Tardeo, shared an overview of GJEPC and IIGJ for establishing Among those who graced the various jewellery courses conducted the incubation centre in the occasion were chief guest and Rosy at the institute; she also shared city. The event concluded with Blue founder & chairman Arun some of the students’ achievements. an inspirational speech and vote Mehta, IIGJ Mumbai chairman Ghosh spoke about the objectives of thanks delivered by Sanjay Kirit Bhansali, IIGJ directors and vision of the Innovation & Kothari. n

SOLITAIRE INTERNATIONAL FEBRUARY 2019 75 BRAND WATCH

A Cut Above The Rest A’ Star Jewellery, Mumbai, romances the simple and unpretentious baguette diamonds and highlights their creative journey with its new collection at IIJS Signature 2019.

Commonly used as a side or accent stone, the versatility of the baguette diamond shines through as it plays a pivotal role in this inspired collection. As the designs switch from simple, asymmetrical and random formations to seamless illusions of fancy shapes of entrancing floral motifs and peacock silhouettes, you fall in love with this diamond cut.

Created in 18-karat white, yellow and pink gold, the diamond-studded rings, earrings and pendants offer a wide choice of styles and are a perfect fit for not only the wearer’s wardrobe but also her pocket.

76 SOLITAIRE INTERNATIONAL FEBRUARY 2019 Festive Look Recently, Varda Goenka Fine Jewels by Diagold launched the collection titled The Bejeweled Crystals that underscores the purity of diamonds. Crafted in 18-karat gold, the assortment consists of statement earrings, necklaces and bracelets with a dash of colour in the form of emeralds, sapphires and pearls. These jewellery pieces can be playfully mismatched and worn in different ways to upgrade even the simplest outfit.

Diamond Entrees Ratan Jewellers launches a range of mouth-watering, diamond-studded contemporary jewellery. The high- end yet affordable collection consists of glamorous bracelets, necklaces and cocktail rings. The collection also has a sparkling but stylish fare for men that includes cufflinks, tiepins, bands and bracelets.

78 SOLITAIRE INTERNATIONAL FEBRUARY 2019 BRAND WATCH

Soft-hued Beauties Anmol, a couture jewellery retail brand, Mumbai, unveils an eye-pleasing and classy collection of pastel jewellery. Rightly defining the aesthetic of an ‘Anmol bride’, the splendid creations in 22-karat gold are decorated with restrained shades of pink and turquoise enamelling combined with kundan and meenakari work. Play it subtle with these standout necklace sets.

Love Goes Around ORRA Platinum Couples brings to you the Cubism collection consisting of platinum love bands. Patterned with intermingling geometric shapes, each band is a reminder of the beautiful journey with your partner. Defining your precious bond in this rare metal, the love bands are accented with diamonds that add a permanent sparkle to your ties. Priced from H34,000 onwards, the bands are available at ORRA’s 34 stores across 21 cities.

SOLITAIRE INTERNATIONAL FEBRUARY 2019 79 BRAND WATCH

Tasselled Trends RK Jewellers, New Delhi, a leading manufacturer of fancy diamond jewellery presents its latest Fringe Benefits collection bringing alive the beauty of tassels. Sautoirs and earrings in the collection redefine style with motifs inspired by Art Deco aesthetic. Tanzanites, emeralds, sapphires and rubies together with sparkling diamonds add an elegant touch to the collection.

Romantic Rendezvous Jewellery boutique Shobha Shringar Jewellers, Mumbai, offers a new collection dressed up in ravishing rubies, fancy-cut diamonds and pearls to celebrate the season of love. The collection of mesmerizing rings, bangles, bracelets, and necklaces is forged in rose and yellow gold that represent the harmonious union of two souls. Floral- and heart-shaped motifs complement geometric shapes to add a modern slant to the collection. The jewels team well with evening gowns.

80 SOLITAIRE INTERNATIONAL FEBRUARY 2019