India Worlds Diamond

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IndiaWorlds Diamond Jewellry Manufacturing Hub

• Mehul Choksi

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Contents

• India Gems and Jewellery Manufacturing Overview
• India and Russia Partners in Value Chain
• Gitanjali Perspective

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Contents

• India Gems and Jewellery Manufacturing Overview
• Diamond Processing Hub
• Jewellery Manufacturing Hub
• India and Russia Partners in Value Chain
• Gitanjali Perspective

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India is leading markets for global diamonds and
jewellery consumption
Strong sales India has exhibited a 20-25
increase in jewelry sales over the last year
Emerging market Worlds third largest diamond
jewelry market, and growing swiftly (5bn by
2013)
INDIA
Entrenched value proposition Indians buy jewelry
not just as an accessory, but also as an
investment
Margins will improve Lower margins at retail,
compared to the US. Likely to improve over the
next few years
Captive demand 20 thousand tonnes of gold in
store, uses 40 of worlds mined gold year-on-year
Market Potential India has the 2nd largest
population and the largest youth population in
the world
Growing economy One of the fastest growing
economies in the world with 6 growth over the
last decade
Visible shift Demand moving from gold jewelry to
diamond jewelry
and have several factors working in its favor
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India has established itself as worlds largest
diamond processing and sourcing destination
Indias presence in Gems and Jewellery Value Chain
Worlds largest Hub

• Diamond Processing
• By Value 57
• By Carats 80
• By Pieces 90

CPD Exports from India by value and volume
.achieved CAGR of 15.3 8.3 in Value and
Carat respectively
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In 2015, India is expected to retain around 50
share of global diamond processing
Diamond processing share 2015
Diamond processing share Current
will attract miners and suppliers to establish
long term tie-ups
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India is the most economical center for diamond
processing

• Cost of production in India is nearly 1/3rd of
  that in Russia
• The other competitive advantages include
  availability of skilled resources and superior
  infrastructure

Estimated cost of production per carat
major drivers developing infrastructure
emerging captive demand
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Abundance of skilled man power is available in
the country to cater the international and
domestic demand

• India is far reached by any other country in
  terms of availability of skilled manpower for
  diamond processing
• The major drivers are generations of experience
  and capability to develop skills by a worker
• The resources pool scalable to catch-up with
  growing international and captive demand

Estimated number of processor per country
processing capabilities are inherited and
developed by the workers
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Proven manufacturing technology is a competitive
advantage for strengthening Indias position
Technology advancement at various stages of
Diamond Manufacturing
technology development will enable competitive
advantage for India
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Contents

• India Gems and Jewellery Manufacturing Overview
• Diamond Processing Hub
• Jewellery Manufacturing Hub
• India and Russia Partners in Value Chain
• Gitanjali Perspective

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India is establishing as a prominent jewellery
manufacturing base
Product Profile
Comparative analysis of strengths
Critical success factors for Indian Jewellery

• Availability of skilled labour at competitive
  wages
• Growing domestic market
• Increasing acceptance of Indian jewellery in
  overseas markets due to the widely dispersed
  Indian diaspora,
• Investments in modern manufacturing and quality
  systems by players

strengthening its technological capabilities to
gain competitive edge
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With exposure at the upstream, India can leverage
its capabilities to maximize value addition in
downstream

• India has the potential to be one of the largest
  manufacturing out sourcing destination of the
  world and maximize value of diamonds by branding
  and retailing experience
• The future growth of Indian jewelry industry lies
  in finding new markets and in moving upstream
• Opportunity has attracted CPD players to forward
  integrate and move up the value chain. The
  initial advantage of low cost labour was
  supported by investments in manufacturing leading
  to international quality products

Presence across the value chain is must
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Consolidation, Maintaining product integrity and
Branding enables one to generate maximum value
Branding will unlock the maximum potential value
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Contents

• India Gems and Jewellery Manufacturing Overview
• India and Russia Partners in Value Chain
• Presence in Gems and Jewellery Value Chain
• Scope of Cooperation
• Benefits of Cooperation
• Gitanjali Perspective

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Across the value chain, Russia and India should
join hands to leverage their respective
capabilities
Mining
Distribution
Preparation
Retail Sales
Alternative Distribution Direct Sales
USA
Australia
Diamond Trading Company
Japan
South Africa
London
Namibia
Own Production
Germany
New York
Tel Aviv
Angola
France
Partnership
Botswana
Marketing
Sales
Sorting Valuation
Others
Antwerp
Europe
Congo
India
Contract Purchase
UK
Others
Russia
Rest of Europe
Canada
Rest of World
Stockpile
synergies can be further explored between the
two countries
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Across the value chain, Russia and India should
join hands to leverage their respective
capabilities
Mining
Distribution
Preparation
Retail Sales
Alternative Distribution Direct Sales
USA
Australia
Russia Worlds leading Mining 20 of world's
rough supply World's fourth largest gold
producer 50 of global palladium supply 22 of
global platinum production
Diamond Trading Company
Japan
South Africa
London
Namibia
Own Production
Germany
New York
Tel Aviv
Angola
France
Partnership
Botswana
Marketing
Sales
Sorting Valuation
Others
Antwerp
Europe
Congo

• India Worlds largest hub for diamond processing
• By Value57
• By Carats80
• By Pieces 90
• Largest consumer of Gold in the world 2nd largest
  producer of gold Jewellery

India
Contract Purchase
UK
Others
Russia
Rest of Europe
Canada
Rest of World
Stockpile
synergies can be further explored between the
two countries
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Across the value chain, Russia and India should
join hands to leverage their respective
capabilities
Mining
Distribution
Preparation
Retail Sales
Alternative Distribution Direct Sales
USA
Australia
Diamond Trading Company
Japan
South Africa
London
Namibia
Own Production
Germany
New York
Tel Aviv
Angola
France
Partnership
Botswana
Marketing
Sales
Sorting Valuation
Others
Antwerp
Europe
Congo
India
Contract Purchase
Benefits India Reliable and consistent source
for rough supply Russia Direct access to world
largest diamond processing hub
UK
Others
Russia
Rest of Europe
Canada
Rest of World
Stockpile
synergies can be further explored between the
two countries
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Contents

• India Gems and Jewellery Manufacturing Overview
• India and Russia Partners in Value Chain
• Gitanjali Perspective
• Evolution and spread across the value chain
• Presence across the globe

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Gitanjali an Indian Jewelry Pioneer

• Established in 1966, Gitanjali started as diamond
  trading and polishing house
• Graduating from the diamond trading the company
  set-up its own jewelry manufacturing units
• In 1994, Gitanjali launched Indias first diamond
  jewelry brand - Gili
• Expanded into jewelry retail by launching first
  stand alone store in India
• From 2000 to 2006, introduced major brands like
  Nakshtra, Asmi, Ddamas, Sangini
• Increased international footprint by
  acquiring/opening stores in leading jewelry
  markets like USA, Japan, China and Middle East
  and upgraded them by aggressive branding

Our strategy is to Sell every diamond as a dream
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Gitanjali Spread across global stage
137 Samuels and Rogers stand alone stores
50 Giantti doors
8 stand alone stores 50 in-store boutiques
110 Vérité doors
400 stand alone stores 2500 in-store boutiques
by selling every diamond as a dream
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Thank You