APRIL 2015 | VOL 14 ISSUE 4 INDIA ` 250 | INTERNATIONAL: US$ 15
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High expectations for Akshaya Tritiya season
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40
editor’s
Vol 14 Issue 04 | APRIL 2015
note
F
ocusing on the huge potential of jewellery watches, our cover story throws light on the gaining popularity of jewellery watches amongst the fashion conscious customers, making it the'ripe time' for the niche sector. Passion for jewellery watches has always been nurtured by the affluent stratum of Indian consumers. From diamond to gold and silver, these watches are loved in all forms. But the buzz generated about jewellery watches is disproportionately high as compared to its market size and growth in India. Apart from the international luxury watch brands, only a handful of Indian manufacturers and select retailers have recognized the potential of this niche segment. According to Technopak’s luxury report for 2013-14, the watches and jewellery segments represent the largest and fastest growing segments within the luxury goods space. The mandatory PAN card norm has emerged as a major barrier for the jewellery fraternity. The trade bodies across the country have already announced their dissatisfaction on the issue and the severe consequences to be faced in the jewellery trade business due to this move, with few also going for a strike for the cause. Industry sources also claim that the move will also lead to contraction in the industry and resulting in job losses. Nearly 14 crore PAN cards have been issued so far, implying that potentially a staggering 90 per cent of the population would be unable to buy jewellery as many would not have a PAN or fall within the tax payers bracket. . Coloured diamonds is the new alternative to white diamonds. Currently, fancy coloured diamonds are
The Art of Jewellery
hailed as the most exciting segment of the diamond industry. The natural coloured diamond category has become much more active in recent years, with consumers searching for an alternative to white diamonds. The industry has welcomed Gold Monetisation Scheme (GMS) that has been devised to limit the need to import gold. Various estimates conclude that India possesses over 22,000 tons of household gold and even if a small percentage of it comes into circulation, problems related to the sourcing of gold will be solved to a large extent. While the thought process is on the right track, the scheme has all the makings of remaining a non-starter, unless great care is given to the detailing on the execution front. AOJ Team brings to you a reality check on the prevailing condition of the Gold Souk Group and reasons behind its fall. What we found was depressing. More than 90 percent of shutters were down in Jaipur Gold Souk and though things were better in Gurgaon mall but major diversion in shop mix like Spas, gyms, carpet shops, etc, taking away the premium positioning. With many promises not fulfilled it will be a herculean effort for the Gold Souk promoters to revive these malls and win back the confidence of the jewellers and to bring them back to the souk, which is very crucial to make these malls viable. The million dollar question is whether it will happen? Only time will tell!
Sumesh Wadhera Publisher & Chief Editor sumesh@aojmedia.com
/sumesh.wadhera
@WSumesh
Vol 14 Issue 04 | April 2015 The Art of Jewellery
YOURRESPONSE W
Letters can be mailed to: The Editor: The Art of Jewellery, Regd. office: No. 2818, 6th Cross, 19th Main, HAL 2nd Stage, Bangalore-560 008, or send via email to: editor@aojmedia.com
Your cover story on "CSR in the jewellery industry" was an interesting read. The industry is currently presented with many threats, most notably in the treatment of artisans and the transparency and traceability of its supply chain. Through CSR initiatives the industry can build a new culture and a new way of conducting its businesses that will focus on long term benefits rather than short term gain. Anand Rao Director Onsaz Jewellery Creations, Jaipur
It's nice to see that the gem and jewellery industry is actively taking part in CSR activities. Traditionally, CSR has been associated with the big companies and firms. The purpose of CSR is to bring the benefits to a more understandable level. Even at the grass roots of our industry we do collectively have the capacity to demand more effective standards and governance. B. Shivakumar Owner NSB Jewellery, Madurai
MARCH 2015 | VOL 14 ISSUE 3 INDIA ` 250 | INTERNATIONAL: US$ 15
Dear Readers!
e invite readers to share their views and opinions on any aspect of the gem & jewellery sector. Comments on The Art of Jewellery magazine and suggestions for improvements are equally welcome. Letters should carry the writer’s name, address and contact number.
CSR will bring positive change
42
Thank you for highlighting the CSR activities of the jewellery industry through your cover story. If all the stakeholders of the industry work closer together with common purpose through adopting the principles of CSR and therefore exerting greater demands for compliance on the supply chain, then consider how much healthier the domestic jewellery markets would be. Deepak Soni Proprietor Navdeep Jewellers Pvt Ltd, New Delhi
The time has really come for retailers, distributors and manufacturers to join up the dots on what our industry needs to be socially, financially compliant and ethically aware. Bhavesh Ranpura Owner Samrat Jewellers, Rajkot
Today consumers are taking interest in supply chain transparency and responsible production processes of jewellery manufacturing. Focus on CSR initiatives will generate consumer trust and thus they can
InnovatIon galore at SIgnature
GSI breaks new grounds in Botswana
CSR in the JewelleryIndustry
Budget A big disappointment
AOJ crowned with ABCI award
be encouraged to invest more of their disposable income in the purchase of jewellery. Yogesh Soni Proprietor Dhanshree Jewellers, Raipur
Scrap Pan Card requirement for gold buying The requirement of Pan Card would discourage thousands of buyers from buying Jewellery since many of them may not have Pan Card particularly people who are in rural areas of India. Sachin Magar Proprietor New Surya Jewellers, Nashik
Quoting Pan Card number for jewellery purchase will affect the business. Instead of putting restriction on the trade, the government should come up with more trade friendly policies where industries can develop and grow to build the economy. Sanjay Karande Owner Karande Jewellers, Nagpur Continued on Page 44
Vol 14 Issue 04 | April 2015 The Art of Jewellery
YOURRESPONSE Ninety per cent of the jewellery buyers are women or house-wives. These women save money and after saving a significant amount go to buy jewellery. However, these women do not have any Pan Card. Kishor Parmar
Istanbul Jewellery Show was great The Exhibition was very excellent; especially the machinery sector. This type of machinery sector will be very useful for Indian jewellers to get better finishing. Prashanth Shet
Owner, B.D.K. Jewellers, Kolhapur
Managing Partner, S.L. Shet Jewellers, Mangalore
44
Buzz Social
on
media /aojmagazine D.d. Karel FB post
March 27
A heart rending poem by a Goldsmith Artisan, courtesy Art of Jewellery March, 2015 issue. Thank you AOJ for touching upon the lives of those poor fellows, living under veiled labyrinths of the Golden Glamour. Like • Comment • Share
As of last year, there are more than 140 million Pan Cards issued in India. It is not justifiable to ask for a Pan Card to approximately 89 per cent of the population who do not possess one.
At Istanbul we got the international exposure. In India we usually opt for bridal jewellery or antique jewellery but at Istanbul, we came across so may new designs and techniques . Rajendra Chordia
Anand Agarwal
Director ,Swarn Sarita Gems Ltd., Mumbai
Owner, Shree Yash Jewellers Hyderabad
The strict rule of mention of Pan Card on any transaction over Rs 1 lakh is discriminating the rural populace from buying jewellery.
Turkish Jewellery is very different and innovative. Istanbul jewellery show is very good platform for Europe, Russia, and Middle East countries.
Gaurav Jain
Umashankar
Owner, Mahavir Ashok Jewellers, Raipur
Managing Partner, Akshaya Jewellers Pvt. Ltd. Coimbatore
corrigendum In our March 2015 issue by oversight, the incorrect image of GSI lab was published in the Careers Section under IGI story. We deeply regret for the error. - Editor
Dear Subscriber, Inform us about your change of address at:
subscribe@aojmedia.com
English Translation of Bengali Poem Can you see the shine of the gold? Can you feel my pain? Being a human, I am no human. My pain is not understood by anyone. My parents want me to earn well. My wife wants me to spend my time with her. My children want my love. My society wants my participation. People in my trade want to take away what I desire. Does someone like to know how I live? Does someone like to know what I earn? I am known as Goldsmith. Still I live a dark life. Can a three hours sleep be called a sleep. Where do I sleep? Outside toilets or in the narrow passages, where bedbugs suck my blood out. How do I get my food? Just as it is offered to cattle. I have a bucket of water for my bath, is it sufficient?
Contents
Publisher & Chief Editor Sumesh Wadhera Editor
april 2015 | Vol 14 issue 04
APRIL 2015 | VOL 14 ISSUE 4 INDIA ` 250 | INTERNATIONAL: US$ 15
Shashi Wadhera Asst. Editor
100
Divya Vijayan Suchithra Pillai Sr. Reporters
Praveer Sinha Nitin Konde Creative Director
High expectations for Akshaya Tritiya season
Ranganatha T J Dilin Divan
Phani Girish Regional Managers - Sales & Marketing
Vinod Kaul (South) Mukesh Kamal (North) Manish D Bahua (West) Sr. Marketing Executives
Vishal Maruti Dolas (West)
Editorial
50
Quote Unquote
54
Reports & Updates A summary of reports and updates on key policy and other developments in the gem & Jewellery industry within India and abroad.
Vijo M Jose - Bangalore Subscription & Circulation
Ravi Kumar V - Bangalore Vinod H Bhamare - Mumbai Devesh Kumar Rajput - Jaipur Hareesh T G Production Head
84
Venkatesh Prakash C G Web Designer
Vipul U Gargatte AOJ Media Pvt. Ltd.
DIAMONDS
40
Manager - Subscription & Circulation
Manager - Accounts & Finance
Coloured
TIME RIPE FOR JEWELLERY WATCHES
Sr. Graphic Designer
Chief Operating Officer
GROWS OVER PAN MADE MANDATORY
GOLD SOUK
Roopesh M V
Business and Operations
PROTEST
RISE & FALL OF
Cover Picture Courtesy: Ethos watches, New Delhi
Special Correspondent
92
REGD. office AOJ House, No. 2818, 6th Cross, 19th Main, HAL 2nd Stage, Bangalore-560 008 Ph: +91-80-25201687, 88, 89 Email: info@aojmedia.com
Jewel Buzz
A section that keeps you abreast of the latest launches of branded jewellery across India.
Cover Story
time Ripe for JewelleRY watches 42
Your Response A section where readers share their views and opinions on any aspect of the gem & jewellery sector.
70
Events
82
At a Glance
110
Special Report
112
Protest grows over new PAN norm; Jewellers worried about negative impact on trade
Exclusive Story Rise & fall of Gold Souk
Kerala Budget
Jewellery industry gearing up for Akshaya Tritiya
116
Mumbai office 45, Jamna Building, 3rd Floor, 292, L.T. Marg, Opp. St. Xavier’s High School, Mumbai - 400 002 Ph: +91-22-2203 7639 / 2207 1467 Email: mumbai@aojmedia.com JAIPUR office No. 76, 3rd Floor, Gold Souk Near Jhawar Circle, Jagat Pura Road, Jaipur - 302012 Ph: +91-141-2725205 Email: jaipur@aojmedia.com Kerala office TC/18/1652, St. Louis Commercial Building Church Circle, Thrissur - 680001. Ph: +91 487-2428425 Email: kerala@aojmedia.com
96
Krizz B2B Launch Krizz launches 1st B2B showroom in Chennai; 40 more stores in the offering
www.artofjewellery.com An ISO 9001:2008 Certified Company
46 The Art of Jewellery | Vol 14 Issue 04 | april 2015
Gold Monetisation Scheme An opportunity to reduce gold imports
138
Trade Show Preview JCK Las Vegas 2015
World's largest jewellery show to have over 2500 exhibitors
122
Know Your Wholesaler
140
Vicenzaoro Dubai 2015
142
Trade Show Review
Solanki Jewellers
First edition to debut with promising opportunities
Dominant player in hand-made Antique jewellery
126 130
Taxing Matters
FAQs on Taxes and Related Issues
40th edition of Turkey show concludes; a visual treat with new trends
Careers & skill development
144
Baselworld 2015
146
Trends in Town
148
Events Calendar
Commencement ceremony of GIA Graduates IIGJ Mumbai holds its 8th convocation ceremony
132
Istanbul Jewelry Show
InFocus IBJA: Setting new milestones of success
Inspite of low visitor turnout; Show concludes on a positive note
Amrapali unleashes its latest 'Tribal Jewellery' collection
A handy reference on global gem & jewellery shows, fairs and exhibitions.
134
1st AGM of KJF held in Davangere
152
Price Trends
155
Industry Tidbits
A monthly overview of gold and silver price movements across major Indian bullion markets, plus performance of key stocks in the G & J sector.
APRIL 2015 | VOL 14 ISSUE 4
159
News
164
Special Report
APRIL 2015 | VOL 14 ISSUE 4 INDIA ` 250 | INTERNATIONAL: US$ 15 FEBRUARY 2015 | VOL 14 ISSUE 2 INDIA ` 250 | INTERNATIONAL: US$ 15
Emerald sets Guinness World Record for longest gold chain
AUGUST 2014 | VOL 13 ISSUE 08 INDIA ` 250 | INTERNATIONAL: US$ 15
41st GJEPC Awards
Celebrating excellence
PROTEST
RISE & FALL OF
GROWS OVER PAN MADE MANDATORY
GOLD SOUK Signature 2015 Another successful edition in the offering
Impact of on Jewellery
GST
Skill Development
New mantra for success
High expectations for Akshaya Tritiya season
Coloured DIAMONDS
TIME RIPE FOR JEWELLERY WATCHES
IIJS SIgnalS revIval of Jewellery market
Coloured diamonds The new alternative to white diamonds
Ban on
golD SavIngS SchemeS: InDuStry StreSSeD
2 Edition of nd
IIBS
A Mega BULLION SUMMIT
Exciting subscription offers await you Turn to page 72
Cover Picture Courtesy: Joyalukkas
168
Market Wrap
Diamond Talk is an exclusive section that offers a mix of news, opinions, analyses and in-depth reports on the diamond industry and trade. In this issue:
Owned and Published by AOJ Media Pvt. Ltd. ‘AOJ House’, No. 2818, 19th Main, Off HAL Airport Road, Bangalore - 560 008. Ph: +91 - 80 - 25201687, 88, 89.
E-mail: info@aojmedia.com and Printed at Vishwakala Printers, No.28, 4th Cross, 2nd Stage, Industrial Suburb, Yeshwanthpur, Bangalore - 560022, INDIA. All rights reserved. No part of this publication may be reproduced, stored or transmitted in any form without prior consent. Registered with the registrar of newspapers for India under no. Kareng/2002/6284
48 The Art of Jewellery | Vol 14 Issue 04 | april 2015
50
Quote
Vol 14 Issue 04 | april 2015
unquote
The Art of Jewellery
“IBJA has inducted 60 new members on the board from various stake holders of jewellery trade: bullion, banking, retail and more. This expansion makes IBJA as most widely represented jewellery trade body in India.”
“Too much money goes to the mining companies who deny profits to distributors and retailers. At the end of the day, rough diamond prices must come down to a profitable level.” Martin Rapaport Chairman, Rapaport Group
“Indian consumers prefer to touch and feel the jewellery before buying, but the change in consumer behaviour will happen quite fast with increasing demand for online jewellery.”
Mohit Kamboj President, IBJA
Mehul Choksi
CMD, Gitanjali Group
“The fundamental driver of gold demand in India is the cultural affinity towards gold coupled with a rich native wisdom about the economics of gold in a household portfolio.” Somasundaram PR
MD (India),World Gold Council “We wanted the Govt to have an upper limit for the quantum of gold that can be subjected for voluntary disclosure. At this point the Govt is very firm that there will be no voluntary disclosure as part of the gold monetisation scheme.” Pankaj Parekh Vice Chairman, GJEPC
“If the country manages to tap even 1% of the over 22,000 tons of household gold stocks, gold imports would be significantly contained.”
Rajesh Khosla MD, MMTC-PAMP
52
Quote
Vol 14 Issue 04 | april 2015
unquote
The Art of Jewellery
“India is a very important market and we have Indian customers throughout the world. Cartier, that has been the jeweller of Indian royalty in the past.”
“Dubai will provide Vicenzaoro Dubai the most sort after entry channel to Italian and international Jewellery community. ”
Laurent Gaborit
Regional MD, Cartier
Ahmed Sultan Bin Sulayem
“Kalyan Jewellers will bring the finest shopping experience to cater to the distinct demands of jewellery connoisseurs in its new flagship store in Chennai, spread across 40,000 sq ft with more than 5 lakh designs.”
Executive Chairman, DMCC
Ramesh Kalyanaraman Executive Director, Kalyan Jewellers
“In any case, smuggling of gold is on the higher side. The risk to the Balance of Payment situation was also not much since the Current Account Deficit is well within control, hence the govt should cut import duty on gold.” D S Rawat
“GJF presently is in discussion with the Govt. for the issue related to the requirement of PAN. This problem has disappointed all the jewellers across the country.”
“We decided to invest in PM’s ‘GIFT’ project as we see a huge potential for jewellery companies in the commodity sector to avail of cost effective operations that will aid us in our expansion plans in India”
Ashok Minawala
Firoz Merchant
Secretary General, Assocham
Ex- Chairman, GJF
Founder and Chairman, Pure Gold Jewellers
54
reports &updates
Vol 14 Issue 04 | april 2015
National
The Art of Jewellery
Pure Gold Jewellers to invest $25 million in PM’s GIFT project
Gold bonds to carry nominal interest rate of 1-2%
A
T
top Indian jewellery retailer will invest $25 million in Prime Minister NarendraModi's ambitious Gujarat International Finance Tec-City project which aims to create the first global financial hub in India. Pure Gold Jewellers, which claims to be the only World Diamond Mark (WDM) certified company in the Gulf Cooperation Council (GCC) and India will invest in various projects of GIFT City. It has 125 stores across 12 countries. According to Firoz Merchant, Founder and Chairman of Pure Gold Jewellers, an investment friendly tax regime like the GIFT opens endless possibilities for India's economy and the cost of transaction for businesses like ours will be more affordable.
he sovereign gold bonds promised by finance minister ArunJaitley in the recent Budget speech will be made attractive to savers with the twin benefits of a likely price appreciation of the metal and a nominal interest rate of 1-2 per cent. As per an internal estimate of the finance ministry, anything between Rs 20,000 crore and Rs 40,000 crore could be mobilised annually as financial savings through this new instrument. The mobilisation will correspondingly reduce the purchase of physical gold and, hence, imports of the yellow metal that almost singularly pushed up the country's current account deficit to an uncomfortable 4.7 per cent of GDP in FY13. Giving a peep into the likely structure of the sovereign gold bonds, a finance ministry source said these instruments, carrying a fixed rate of interest, would be redeemable in cash at the price of gold at the time of redemption.
Gold deposit scheme can attract Rs 1 lakh crore: SBI research
India is emerging as an important market for platinum
escribing the proposed gold deposit scheme as 'game changer', the SBI's economic research department has said it will help attract at least Rs. 1 lakh crore in deposits on the precious metal. "The proposed introduction of a gold deposit scheme is a big positive and conservative estimates show that the monetary value of gold deposits mobilized may be at least Rs 1 trillion," it said in note. It will be a 'game changer' by incentivizing the banks to hold a part of the deposits as part of the mandatory cash reserve ratio or the statutory reserve ratio.
D
India is emerging as an important market for platinum, with the use spreading in both jewellery and industrial use. Trevor Raymond, director of research at the World Platinum Investment Council (WPIC), said, "India is becoming an increasingly important market for platinum jewellery, one of the two largest sections of platinum demand, comprising 38 per cent of total demand in 2014. Platinum jewellery demand in India rose by an estimated 35 koz (a koz is 1,000 ounces) to 175 koz (5.45 tons) during 2014 and we expect this growth trend to continue into 2015."
This may free up resources for productive or lending purposes, it said. The conservative estimates show even at a 30 per cent strike rate, the monetary value of gold deposits mobilized may be as much as Rs 3 lakh crore, it said.
Jewellery demand for platinum is largely for designing, Of late, though, platinum jewellery is becoming trendy. India’s platinum jewellery demand for 2015 is expected to go up 15 per cent to 200 koz.
56
reports &updates
Vol 14 Issue 04 | april 2015
National
The Art of Jewellery
Cabinet is likely to take up the proposal of mandatory hallmarking
RBI retracts its gold import policy: Allows banks to import gold
T
T
"The amendments to the Bureau of Indian Standards (BIS) Act, 1986, will be taken up soon so that the revised Bill can be tabled in the Budget session" the official said. "Currently, hallmarking the jewellery is a voluntary exercise. However, once the bill is passed, the BIS will work on giving a unique identification number for every gold and silver jewellery bought and sold and the IT backbone for this system is being prepared and should be ready soon", the official added.
The quick reversal has worried some official quarters, since it means imports will stay high the estimate is 90 tons for this month. February's import was estimated to be 52 tons, with many having held back as they expected a cut in the tariff on gold. Since this import duty cut didn't happen in the Union Budget of end-February, and jewellers were running out of stock, March imports have surged.
Gold import duty cut likely this year: WGC
UP Govt setting up a gems and jewellery centre in Meerut
T
T
The Indian government confounded widespread speculation for drop of 2-4 per cent points in the duty, which has stood at 10 per cent since August 2013 it was raised three times that year from the initial four per cent.
In a review meeting of the state-level export promotion council here, Uttar Pradesh Chief Secretary Alok Ranjan directed the officials to speed up the work on the project, so that the gems and jewellery centre is ready for inauguration in the first week of April. Under the ASIDE scheme, so far 118 projects in the state had been approved, while 72 projects worth over Rs 880 crore are underway.
he Cabinet is likely to take up the proposal of mandatory hallmarking of precious metals like gold and silver. An official source told that the Bureau of Indian Standards (BIS) Act is being amended to enable recall of products which don't conform to standards while at the same time ordering the manufacturers to compensate the consumers for sub-standard products.
he Indian government may yet cut the 10-per cent import duty on gold this year despite choosing not to do so in this year's budget as many market observers had expected, Somasundaram PR, the World Gold Council's managing director in India, said. "They have not cut it because they said let us evolve, let us pass a few bills but 10 per cent is still a lot of money," he told. "When push comes to shove, it will be reduced but they will wait for certain other things but, as I see it, things are moving in the right direction."
he Reserve Bank of India (RBI) had a quick change of regarding gold import for jewellers. It informed banks that they could not import gold as a consignment for outright sale to jewellers. But soon after the announcement RBI took a back step on its call which meant a restoration of the position allowing banks to import gold on a consignment basis and also provide gold loans to jewellers.
he Uttar Pradesh government is setting up a gems and jewellery centre in Meerut, to boost exports and trade in precious stones and metals.The centre is being set up at an investment of over Rs 5.26 crore, under the Assistance to States for Development of Export Infrastructure and Allied Activities (ASIDE) scheme of the central government.
58
reports &updates
Vol 14 Issue 04 | april 2015
National
The Art of Jewellery
Bullion traders feel impact of unseasonal rains
Nine-kg gold seized at Hyderabad airport
nseasonal rain isn't only impacting crops in several states but is also bad news for bullion traders, who rely on crop output. A good rabi crop increases rural demand for gold. While the demand outlook for March is good, it could go down in the quarter beginning April. Sudheesh Nambiath, senior analyst at GFMS, said, "Rabi yields are going to be key regarding second quarter (April-June) demand. Currently, there is a high level of uncertainty due to rains ahead of the harvest. Jewellers watching this event closely will be cautious on their inventory build-up for April-May." In the past couple of weeks, unseasonal rain and wind has affected several crops, including oilseeds, wheat, mango and cumin.
U
D
Kalyan Jewellers lines up for Rs 800 cr for expansion
Jewellers to pitch on growing e-commerce market
T
I
o increase its reach, Kerala-based Kalyan Jewellers has firmed up plans to spend Rs 750-800 crore to set up 22 new stores in the next fiscal, of which nine will be in the Gulf region. The jeweller has also renewed endorsement contracts with Bollywood celebrities Amitabh Bachchan and Aishwarya Rai Bachchan. The actors will be brand ambassadors for Kalyan Jewellers till FY17. Jewellery consumption in the Indian market is increasing and we want to leverage that growth. We are entering Chennai market for the first time and it is a big jewellery market. We are also entering Kolkata market as eastern region is showing good growth," the company's chairman and managing director TS Kalyanaraman told.
irectorate of Revenue Intelligence has seized 9 kgs gold, worth Rs 2.39 crore, from an aircraft which landed at Rajiv Gandhi international airport from Delhi at Shamshabad, Hyderabad. Based on a specific intelligence, the DRI officers thwarted the attempt to smuggle gold into the country when they made a seizure of unclaimed gold weighing 9 kgs last night from a private aircraft arriving from Delhi to Hyderabad, said DRI's Hyderabad Zonal unit additional director M K Singh. This aircraft was earlier on an international run from Dubai to Ahmedabad, he said. On rummaging the aircraft about 9 kgs of gold were found concealed behind the push back cushion of two seats of the aircraft. The entire quantity of seized gold is valued at Rs 2.39 crore, the senior DRI official said.
n India, where buying gold traditionally means a trip to the trusted family jeweller, a growing e-commerce market forecast at US $22 billion in three years is starting to challenge all conventional wisdom.
Gitanjali Gems Ltd, India's biggest diamond and gold jewellery retailer, expects online sales to account for much as 20 per cent of its sales in two to three years from about one per cent now. The growth potential convinced Ratan Tata, former chairman of the Tata Group, to invest in Bangalore-based online jewellery store BlueStone last year. Jewellers are tying-up with Amazon.com Inc., Flipkart Online Services Pvt. and Ebay Inc. after the government last year eased import curbs on gold bars and coins.
Revival of the golden age...
42, C, Gujari Bazar, Kolhapur - 416 012. (Maharashtra) T : 0231-3059797, 2546637 Email : hfjewellers@gmail.com Website : www.hfjewellers.com
For any trade enquiries contact no. : + 91 9545909090.
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Manufacturers & Wholesalers In Gold & Silver Jewellery
60
reports &updates
Vol 14 Issue 04 | april 2015
National
The Art of Jewellery
Global glitter eludes India’s luxury jewellers
ABN Amro Bank NV re-enters India predominantly
I
E
ndian jewellers possess the wherewithal to take their brands global and break into the super luxury segment. Why then are Gitanjali, TBZ or Ganjam not in the Cartier, Tiffany or Louis Vuitton league?
"Indian jewellers have huge potential to create global luxury brands. Their intricate 'hand-eye crafted' jeweller makes them unique. Many of them can make it global, but the efforts in this regard have been pathetic," says Harish Bijoor, brand expert and CEO, Harish Bijoor Consults.
uropean banking outfit ABN Amro Bank is reentering India to set up shop for predominantly financing Gem and Jewellery industry. The Reserve Bank of India (RBI) had received an application from ABN AMRO Bank NV to set up banking presence in India. Banking regulator has given inprinciple nod for establishing wholly-owned subsidiary in India. The Gem and Jewellery Export Promotion Council (GJEPC) had represented to the government to grant a banking licence to ABN Amro Bank, which is one of the largest financiers to the diamond industry. The Bank is globally involved in offering financial services to the diamond and jewellery industry through its arm.
Cartier looking for expansion in India
Gudi Padwa jewellery sales shine high
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India is very important market and we have Indian customers throughout the world. Right now, however, the market is still at early stages of development," said Laurent Gaborit, regional managing director for Middle East, India and Africa. But given the population, wealth and success stories, there is a lot of potential, he told. Cartier, that has been the jeweller of Indian royalty in the past, currently has one boutique in the country, in New Delhi, and also sells watches through multibrand outlets. "We are considering opportunities to open one more boutique," Gaborit said.
Gudi Padwa is mainly celebrated by the people in Maharashtra welcoming their new year. Few of the jewellers in the state asserted that the sales have been very good for them. According to Samir Sagar, director of Manubhai Jewellers, Mumbai, "This year, Gudi Padwa sales surprised us. The festival brought many customers to the store and the footfalls were above average. Sales have seen a steady growth this season and we have had a healthy 10-15 per cent jump in sale of gold jewellery compared with last year. The market for gold buying is currently slow but Gudi Padwa has added the required glitter."
Brand experts and industry players blame it on the inability of Indian jewellers to break out of the family business mould and adapt to international management and marketing standards.
uxury jewellery and watchmaker Cartier is considering a second boutique in India and is looking for the right business model to make the most of the huge future potential in the country, a top official said.
gadi in South and Gudi Padwa in Maharashtra is usually known as a good season for jewellery sales. Though Gudi Padwa reaped in good response, the sales did not pick up like yesteryears for Ugadi.
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Muthoot forays into buying of used gold jewellery business
Bluestone in talks to raise $25mn; Expects turnover to triple in year
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This company has now started setting up 'fulfillment centres' in the name of 'Muthoot Gold Point' across the country for this purpose, Keyur Shah, Chief Executive Officer, Muthoot Exim Precious Metals said. "In the next two years, we are looking to increase the number of such centres (Muthoot Gold Point) to twenty. We have launched the first centre three months back at Coimbatore in Tamil Nadu," Shah told. More 'Muthoot Gold Point' outlets will be rolled out-one each at Delhi (Karol Bagh) and Chennai (T Nagar) - in the coming weeks, he said.
Other than its three main investors, Accel Partners, Saama Capital and Kalaari Capital; the fledgling firm, has attracted strategic investments from none other than Ratan Tata himself and serial entrepreneur Ganesh Krishnan. Gaurav Singh Kushwaha, founder and CEO, BlueStone.com says "We will be profitable by 2017-2018 despite our continued investments in growing our business. Ours is not an inventory-led business model, we make and deliver after we receive orders from customers unlike offline jewellery stores that store large inventory. "
uthoot Exim Precious Metals - part of the Muthoot Pappachan Group - has forayed into the business of buying of scrap gold from individuals, promising more transparency in the entire pricing process.
fter raising over US $15 million in two rounds of funding since its inception in 2011, online jewellery store, BlueStone.com is in talks to raise US $25 million, double its headcount of 200 and grow its current turnover of Rs. 100 crore by three times, over the next 12 months.
Gold purchases during AkshayaTritiya to be expensive
Gold smuggling on rise: DRI seizes over 160 kg
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In addition, consumers are also worried over the submission of PAN details on purchases over Rs 1 lakh worth of gold though the government is yet to come out with the notification. Talking to ET, Ishu Datwani, founder, Anmol Jewellers, said: "The Saudi ArabiaYemen crisis and the weakening of rupee against dollar will have a cascading effect on gold prices. The yellow metal may become precious during Akshaya Tritiya."
DRI is the intelligence wing of the indirect tax body, the Central Board of Excise and Customs. The agency seized 88 kg of gold in Siliguri, which was being brought in from Myanmar. A consignment from a Gulf country with 57 kg gold was seized at the Delhi Airport, while two seizures were made in Tamil Nadu. "One consignment of seven kg and another consignment of 8 kg were being smuggled through the sea route via the East Coast to the Southern State," a DRI official said, adding that both consignments originated in Sri Lanka.
old purchases during this Akshaya Tritiya may turn out to be expensive for India. Saudi Arabia's strike on Yemen has already pushed up gold prices by Rs 700 per 10 gm in the past one week, and jewellers fear that if tension escalates in the Middle East, prices may jump further.
he Indian appetite for gold shows no signs of slowing. Even as legal imports of the precious metal are on the rise, the Directorate General of Intelligence (DRI) has seized around 161 kg of gold in a short span of time (four days).
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Venezuela to monetize US$ 1.5 bn of gold held as international reserves
Russia gold production expected to rise by 3 % in 2015
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enezuela central bank is in talks with Wall Street banks to create a gold swap that would allow it to monetize some US$1.5 bn of the metal held as international reserves, according to government sources familiar with the operation. The move would help the government of President Nicolas Maduro to boost its hard currency position as the OPEC nation struggles with soaring consumer prices, chronic product shortages and a shrinking economy caused by low oil prices. Under the swap, the central bank would provide 1.4 million troy ounces in exchange for cash, said a central bank source. The ongoing talks involve at least two institutions, Bank of America and Credit Suisse, the source told. The banks and Venezuela's central bank did not immediately respond to requests for comment.
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World biggest gold miners faced negative cash flow in final quarter
LBMA gold price successfully launched
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ccording to precious metals analysis consultancy, Metals Focus, the world's top gold miners had moved into a combined Negative Cash Flow (NCF) position during the final quarter of last year. This is after three consecutive quarters where they had recorded positive Free Cash Flow (FCF) that is after taking into account all elements of costs including capital expenditures. For several years, Mineweb ran a campaign to push the gold mining sector to report FCF figures (South Africa's Gold Fields was probably the only tier 1 gold miner at the time which did) but eventually most have come round to so doing helped by the relatively new reporting metric of All In Sustaining Costs (AISC), to which most big gold miners now subscribe, which gets close to reporting the FCF figure.
ussia 2015 gold production is likely to rise by 3 percent in annual terms to 298 tons, Sergei Kashuba, head of Russia's Gold Producers Union, claimed. While a slump in the rouble since early 2014 has made many investors wary of starting new investment projects, Russian gold miners are benefiting from a decline in their dollar-denominated costs, Kashuba said. "Companies are targeting a production growth of 2-3 percent for 2015 compared with last year," the head of the Union added. According to the Finance Ministry, Russia produced 288 tons of gold in 2014, including 232 tonnes of mined output, 17.9 tonnes of gold as a byproduct of other metals and 38.9 tonnes of gold refined from scrap.
he London Bullion Market Association (LBMA) is the international trade association that represents the wholesale over-the-counter market for gold and silver bullion. The LBMA undertakes many activities on behalf of its members, including the setting of good delivery and refining standards, the organization of conferences and other events, and serving as a point of contact for the regulatory authorities. The first LBMA Gold Price settled at US$1,171.75. ICE Benchmark Administration (IBA) administers the LBMA Gold Price. They provide the auction platform, methodology as well as overall independent administration and governance for the LBMA Gold Price. It holds the intellectual property rights. The London Gold Fix pricing mechanism has been replaced by a new electronic LBMA price-discovery process from Friday, 20th March 2015.
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SGE to start fixing gold price denominated in yuan
Gold recycling to face headwinds in 2015: WGC
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he Shanghai Gold Exchange will try to start offering the renminbi-denominated gold-fixing price this year, as an alternative to the dollar-denominated gold-fixing in London, a top bourse official said. SGE head Xu Luode said that the bourse has been researching the pros and cons of the yuan-denominated gold-fixing price, and will strive to launch it by the end of this year as market conditions have laid 'foundations' for the new price-fixing. Currently global gold prices are decided by the centuryold London fix, which has been under scrutiny because of alleged price-manipulation and will soon be replaced by a new mechanism involving more participants. Analysts said the move, if successful, will help popularize global use of the renminbi, which has already become world's fifth most-used settlement currency.
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Last Ever London PM Gold Fix Set at US$1166
Industry shrinkage increased dramatically in US: JBT
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ondon's final PM Gold Fix was set at US$1166 per ounce, ending a process running formally twice each day since 1919 with a 15-year break during and after WWII. After nearly a century, the traditional practice of fixing gold prices got replaced with the new electronic London Bullion Market Association (LBMA) gold price. The market's new benchmark, the LBMA gold price, will be repeating the core process, providing continuation for commercial contracts and valuations around the world, using an online platform with fully auditable order entries and strict regulatory oversight by independent administrator, ICE Benchmarks Administration (IBA). Owned by the London Bullion Market Association (LBMA), the new price point will be freely distributed until the third quarter of 2015, when IBA expects to publish its fee schedule.
old recycling is expected to face continued headwinds this year, according to the latest research from the World Gold Council (WGC). Last week the WGC, in collaboration with the Boston Consulting Group, released an extensive report related to the gold recycling industry, which between 1995 and 2014 equaled about one third of the total global supply. Alistair Hewitt, head of market intelligence at the WGC, said that through their research, they were able to see how recycling has helped balance the gold market over the years. The research broke the recycling industry into two components; the first being high-valued recycling of jewellery, while the latter consisted of other items and industrial recycling, which recovers gold from waste electronic equipment like iPhones.
ndustry consolidation saw huge jumps in 2014, as business closings skyrocketed 32 percent, with all sectors of the business taking a hit. According to Jewelers Board of Trade (JBT), jewellery business discontinuances in the United States reached 973 in 2014, versus 739 the prior year. That number includes companies that ceased operations, were merged or sold, or filed for bankruptcy. The number of companies that ceased operations also jumped 32 per cent, to 770. The JBT reports that 612 retailers called it a day in last year, a 29.4 per cent increase over the prior year. The number of wholesale companies packing it in rose 11.7 per cent, to 86, and manufacturer closings soared a whopping 118 per cent, to 72. The year also saw 170 sales or mergers, up 48 per cent from the past year. ”
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Platinum market deficit seen shrinking to 235,000 oz in 2015: WPIC
Varda Shine joins as independent non-executive director Lonmin Plc
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he platinum market is expected to be in deficit of 235,000 ounces this year, a report by the World Platinum Investment Council (WPIC) estimated down 66 per cent from 2014 levels, on stronger mining and recycling supply growth.
Above-ground stocks of the metal that have prevented prices from benefiting from a tight market are forecast to have declined 20 per cent in 2014 and are expected to drop a further 8 per cent this year. Platinum prices fell 12 per cent in 2014 and are now at their lowest since 2009 around US$1,140 an ounce, despite heading for a fourth straight annual deficit. Industry-funded WPIC, which commissioned the report from the consultancy SFA (Oxford), estimated aboveground platinum inventories, excluding exchange-traded funds, metal held by exchanges, and industry working inventories, at 2.53 million ounces at the year-end.
arda Shine, the former CEO of the De Beers Trading Company, was appointed as an independent non-executive director of Lonmin Plc, a platinum metals group miner. The 51-year-old Shine left De Beers in February 2014. Shine took her position on Lonmin's board before the end of February 2015. Her appointment was part of a broader shake-up in the London-based miner's management team and board. In the past few weeks, Lonmin's chief operating office, Johan Viljoen and two non-executive board members resigned or retired from the company. Shine is not the only executive on Lonmin's board to have previously worked for Anglo American. Lonmin's CEO, Ben Magara, stepped into his current position after serving 26 years with Anglo American, primarily in South Africa.
Turkish gold imports continue to fall in February
US jewellery price index falls 3% in February
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urkey imported just 2.1 tonnes of gold in February, according to the data from the Turkish bourse, down from 2.26 tonnes in January and the lowest inflow in seven months although it was up slightly from just 1.2 tonnes in the same month in 2014. At an average of 181 tonnes per year over the past 10 years, Turkey is the world’s fourth-largest consumer of gold, the World Gold Council said. Early in February, Metals Focus said that the key driver of the drop in January's figure was a surge in jewellery scrap supply in Turkey. Domestic refiners were working at full capacity, causing local premiums to move to a discount over the price on international markets, it also said. Simultaneously, investment demand was reportedly weaker, reflected in a sharp fall in January's coin production to 2.4 tonnes.
he US Consumer Price Index (CPI) for jewellery dropped 3.4 per cent year on year to 165.6 points in February, which was the lowest reading for the month since 2010. Comparatively, the CPI for watches rose 1.4 per cent to 124.18 points in February, which resulted in a new index high for the month.
Gold prices in February softened as the dollar rose against world currencies, leaving the metal about 8 per cent lower than one year earlier. Platinum, on the other hand, remained under tremendous pressure, falling about 18 per cent in February compared with 12 months ago. Silver plunged 15 per cent. The CPI for all consumable product categories in February was basically unchanged from one year ago at 234.72 points.
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Kolears launch India's first concept jewellery
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olears launched India's first concept jewellery with its unique artwork of various colors incorporated in jewellery studded with Swarovski Zirconia. In a unique exhibition happening at Sahara Star from 20th -22nd February, 2015,Kolears displayed the innovative 22K jewellery collection studded with Swarovski Zirconia. Kolears brought in the revolution in jewellery industry by introducing the technology that enables customers to personalize the jewellery piece with a picture of your choice. The Most peculiar characteristic of Kolears is, it depicts portraits on any kind of ornament as per the
desire which allows a wider range for the customer. The exhibition was headed
by Rajendra Jain, managing director, Swarovski Gemstones, India and Snehal Ambekar, mayor of Mumbai. The show witnessed the presence of various dignitaries from the industry.
Raj Jewellers launches jewellery studded with 88 Facets swarovski zirconia
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aj Jewellers has introduced a new technology and innovation for traditional gold jewellery called 'Magical & Dancing Gold Zirconia Jewellery'. This is the first time that this type of technology has been used in India for jewellery designing. Each gold Jewellery design is a
masterpiece that combines technical and innovative excellence . Raj Jewellers is a leading Gold CZ Jewellery manufacturer based in Mumbai, under the brand name 'REET' since 2000. With professional management, expert
craftsman, creative designers and qualified experienced staff that offers high quality and innovative gold Jewellery through their vast distribution network across India. They manufacture exclusive Gold CZ Jewellery and every time strive to deliver new products and designs to the market.
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Parineeti Chopra launches 'Stylori' an online jewellery store of NAC Jewellers
Anandha Ramanujam and Parineeti Chopra donating 10,00,000 rupees to Kranti
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o cater to the discerning fashion and style of the modern Indian women, NAC Jewellers has introduced 'Stylori' – an online jewellery store for everyday fashion jewellery. In a gala event held at Hotel Trident on March 25, 2015 the online jewellery portal was officially launched by actress Parineeti Chopra in the presence of Ananth Padmanabhan director, NAC Jewellers. The online store will house jewellery collection ranging from daily wear such as rings, earrings, pendants, bracelets, bangles and
"We are confident that each jewellery piece from Stylori will make them into fashionistas as they have a wide range of jewellery to choose from, at affordable prices." Anandha Ramanujam CEO, Stylori
nose pins to more occasion related exclusive designs at an affordable price. Jewellery buyers can find contemporary jewellery crafted from certified metals and gemstones for every outfit and at affordable price starting from Rs 3000.
"The collection is very simple, it's very me. I am extremely pleased to unveil the brand."
Commenting on the launch, Anandha Ramanujam, CEO, 'Stylori' said, "We understand that jewellery is an integral part of every modern Indian woman, who prefers to wear the latest trends and designs. we are very excited to launch Stylori, which is a one-stop online shopping experience for the fashion conscious women and who love to dress up. We are confident that each jewellery piece from Stylori will make them into fashionistas as they have a wide range of jewellery to choose from, at affordable prices."
It also allows consumers to customise the jewellery according to their taste and preferences.
Stylori has been designed to encourage easy and convenient browsing, catering to all jewellery requirements under one roof.
Parineeti Chopra
At the launch, Parineeti Chopra said, "The brand represents the new age women, celebrating independence. Stylori aims to fulfill every woman's innate need of self-expression through what she wears. I love the contemporary and feminine look that is clearly evocative of strength and grace." Apart from everyday jewellery, the online store also offers gold coins, an exclusive collection of solitaire jewellery and solitaire diamonds starting at less than .50 cent and goes up to 5 carat.
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NAC Jewellers is a raging hit at the Oscars
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his year, NAC Jewellers from Chennai had their 'Oscar moment' when Hollywood star, Chloe Grace of 'If I stay' fame, selected a sparkling diamond ear cuff to complete her look for the Oscars. Crafted for Forever mark by NAC Jewellers, this scintillating ornament claimed the attention of this young star amongst hundreds
of other accessories that were on display at the Oscars. She handpicked this as a bold foil for her pretty floral dress.The ear cuff has an asymmetrical elegance and is studded with sparkling pear-shaped diamonds with a large heart-shaped diamond at the base of the ornament. "This is a proud moment for NAC Jewellers, and we are happy to have contributed to the looks of this young star. The entire ensemble of Oscar Jewels will soon be on display at our store. We will also be unveiling a new range of diamond jewellery inspired by our designs sent to the Oscars," commented AnanthaPadmanabhan, MD, NAC Jewellers.
Shilpi Jewellers Pvt Ltd enters platinum jewellery segment
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umbai-based Shilpi Jewellers Pvt Ltd, a prominent wholesaler of gold and diamond jewellery, has entered the platinum jewellery segment. The company has launched its new platinum collection that includes pendant sets, rings, couple bands, bracelets, chains and bangles. Each piece in the collection highlights the texture and glory of platinum. The company has also launched new designs in its Eva collection – made of 18 carat gold the collection is manufactured
by Emerald Jewel Industry India Ltd. On the occasion, the company has also announced its association with Platinum Guild of India (PGI). Commenting on its association with PGI, Pramod Mehta, director, Shilpi Jewellers says that, "Platinum Guild of India happens to be the most respected organization as far as platinum jewellery in India is concerned. Our association with PGI will strengthen our market position in the platinum jewellery segment. Platinum as a metal is distinctive and has a refined charm that both men and women prefer when it comes to jewellery. It is a growing market, very niche, very urban and from the last many years platinum jewellery sales have shown steady growth. The platinum collection includes a wide variety of rings, chains and bracelets and we are very positive about the growth in this segment."
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Aarya 24kt (I) pvt ltd launches its first exclusive Store in North America
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arya 24kt has opened its first flagship showroom 'RegalaThe Perfect Gift' in North America. The showroom was inaugurated by Malaika Arora Khan and she was accompanied by MPP Vic Dhillon, councillor Jeff Bowman and other officials. Aarya 24kt, a pure gold foil collection possesses an outstanding product line and product quality, built on an intense passion for innovation & visionary thinking. Right from the image
of customers' sacred belief to the creation of a masterpiece, gold works wonders. Aarya 24kt product range comes in five major themes: Aastha, Zevar, Flowers Forever Collection, Club Collection and Home Decor. Since its inception in 2009, Aarya 24kt has grown
expodentially with more than 50 outlets all over India. Aarya 24kt also holds an Exclusive Silver Plated Brand Called 'Da Plataa'. Da Plataa is a brand par excellence,it is a pure silver plated product line where every piece shares sensibility of beauty and style
Narayan Jewellers celebrates its 75th anniversary
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arayan Jewellers, a Vadodara based company founded in 1940 celebrated its completion of 75 years of retailing in Gujarat. Over the last seven and a half
decades, the jeweller has created a rich legacy of purity and trust, respected by customers across India and the world. Forevermark partnered in this milestone through
a special anniversary celebration that was graced by actresses Aditi Rao Hydari and Shazahn Padamsee by showcasing designed diamond jewellery by Narayan Jewellers crafted in stunning Forevermark diamonds which was sent exclusively for the Oscar's. Speaking on the ocassion, Ketan Chokshi,owner, said, "We are elated to have completed 75 successful years of retail at Narayan Jewellers. We look back at the years that have gone by with a feeling of joy and pride and thank our esteemed customers for their longstanding support that has brought us this far."
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Mirari opens a new boutique at DLF Emporio, Delhi
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irari, the contemporary jewellery brand launched its flagship boutique at Delhi's luxury stop, DLF Emporio. The boutique displays the latest collections from Mirari namely 'Love knots', 'Amore', 'Era of Elephant', 'Amala'and 'Plush Plume' amongst other pieces and signature collections like 'Under The Stars', 'Peacock Perfection', 'Wedding Wows', 'Secrets of Spring', 'Memoirs of Maharani' and more synonymous with the brand. Inspired from architecture of the international
luxury standards, the interiors highlight a wooden finish in teak and is elegant and luxurious, in line with the brand's signature style, creating a refined ambience. The jewellery is displayed in its own unique enclosures and results in each piece gaining prominence on their marvelous innovation and charm. Commenting at the launch, Mira Gulati, founder and principle designer, Mirari, said, "The DLF Emporio venture is my step to reach out to the aficionados of luxury jewellery and give my patrons in New Delhi an easy gateway to reach us."
Joyalukkas opens another showroom in Saudi Arabia
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oyalukkas has opened a new jewellery showroom in Saudi Arabia. The new store in Lulu Hypermarket was inaugurated by Yusuff Ali M.A, MD, Lulu International Group and Prince Saud Bin Abdullah Bin Abdul Aziz in the presence of Bader bin Mohammed Al-Qtaishan, Governer of Jubail, John Paul Joy Alukkas,
executive director, Joyalukkas Group, Sonia John Paul, director, Joyalukkas Group, Antony Jos, director, Joyalukkas Group, Sattam Abdulaziz Al Omairy, director, Joyalukkas Saudi Arabia, many local dignitaries and VIPs also attended the grand opening ceremony. The showroom features the widest range of collections in gold, diamond,
precious stone, platinum and pearl. "We have opened in Jubail so that jewellery lovers here get a world of never before seen choice in jewellery. We have created an array of exquisite and ethnic choices to make the jewellery shopping a great experience for people here," said Joy Alukkas, Chairman and Managing Director, Joyalukkas Group. 
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Ileana D'Cruz and singer Kanika Kapoor dazzled in jewellery by Ghanasingh Be True
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ollywood actress Ileana D'Cruz and singer Kanika Kapoor bedazzled the ramp of Lakme
Fashion Week Summer Resort in jewellery by Ghanasingh Be True for designer Anushree Reddy. Ileana flaunted with with a magnificent uncut diamond necklace encrusted in gold with green meenakari work with a south sea pearl drop, completed by the traditional earrings crafted in a modern combination of zambian emeralds and south sea pearl encrusted in gold. Singer KanikaKapoor was seen with chandelier diamond earrings teamed with a contemporary haathphoolencusted with rose cut diamonds and zambian emeralds on a bed of fresh water pearls. The
intricate jewellery designs with fine detailing complimented her ensemble.
Ambaji Jewellers introduces Pachchi work with zirconia
Anmol Jewellers celebrates its 29th anniversary
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mbaji jewellers Hyderabad has crafted Pachchi work with zircon stones to replicate Pachchi work with flat diamonds. The collection has the same feel and aura as the real flat diamonds at around 95 per cent low cost of gems. It reduces the price enormously so that customers canfulfil their desire of high quality jewellery at a low cost. It needs zero maintenance and the specialty of the collection is that it doesn't become black over the time. These articles are mixed with nakshi work to give antique look.
o mark their 29th anniversary celebration Anmol Jewellers unveils a 'Sparkling Champagne Bucket Challenge'. Every customer who visits Anmol Jewellers during this period gets a chance to pull the ribbon and win up to 100 per cent discount on making charges of gold & diamond jewellery and get fabulous gifts with every purchase The 'Sparkling Champagne Bucket Challenge' will be hosted at Anmol Jewellers stores in Mumbai & Delhi. The Champagne Diamond Jewellery comprises of exquisite earrings, ear cuffs, rings, cuffs & palmcuffs to allure the lovers of fine diamond jewellery.
kerala
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Kerala budget 2015: Jewellers disappointed over new tax regime for gold trade
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midst unprecedented incidents, K M Mani, Finance Minister of Kerala presented the Budget for the financial year 2015-16 on March 13, 2015. According to the jewellery fraternity of the state, the budget came as a major disappointment for the gold trade. In the budget speech, the FM proposed change in the tax regime for gold, according to which, the tax levied on gold purchased from agencies notified by Director of General of Foreign Trade (DGFT) and those authorized by RBI for import of gold would remain as 1 per cent while the tax levied on gold purchased from private agencies would be hiked to five per cent. The government is expecting to reap additional revenue of Rs 15 crore through this measure. The All Kerala Gold and Silver Merchants Association (AKGSMA) expressed their concern over the issue claiming that the move will definitely harm the business of medium and small traders.
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“The Kerala state budget has added further pain to the jewellery industry. With the state Govt raising the VAT to 5% on gold jewellery purchases from small dealers other than RBI and DGFT members will impact the small jewellers.” Kuriappan K Erinjery, State President, JMA, Kerala
"The move by the Govt would definitely affect the business of small time traders, who completely rely on buying gold from private agencies instead of those notified by the Govt, from whom only bulk quantity is available for purchase," said Justin Palathara, president, All Kerala Gold and Silver Merchants Association (AKGSMA).
Exclusive branded watch
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Azva Bridal Gold Jewellery Latest collection of AZVA focuses on reinventing bridal showstoppers, chokers, necklaces, seven row haars, bead malas, haslis and hand cuffs to give a very contemporary appeal to the modern Indian bride.
Varuna D Jani presents the petite bijou collection Varuna D Jani has introduced a new collection of elfin chic, casual and everyday luxe jewellery collection – Petite Bijou. Complete with geometrical bracelets, studded and hooped earrings, and feminine rings.
Celebrate summer with Jaipur Jewels The collection includes stand out pieces that are classic yet glamorous in style. Collection is creatively worked out design combinations of contemporary earrings and floral shaped rings in 18k gold/white gold combined with precious and semi-precious stones.
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Emerald Affair by Sonal's Bijoux The latest collection of Sonal's Bijoux Emerald Affair, features classic and contemporary designs comprising spectacular diamond silhouettes with emeralds. It includes earpieces and cocktail rings which are crafted in white gold and studded with emeralds and diamonds.
Jewelsify.com launches gold and diamond bangle collection Jewelsify.com introduces new designs to welcome the spring summer collection. The collection is a matched series of glamorous bangles. The designs are for the stylish, down to earth and meant for glamorous women of today.
Kirtilals reveals its Versatile Collection The renowned brand Kirtilals launched the all new versatile collection as part of the Glow and Go Line. This new collection gives emphasis on the design elements and multi -functionality of the jewellery that would match any outfit or style.
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Vol 14 Issue 04 | april 2015 The Art of Jewellery
Natural beauties by Velvetcase.com Velvetcase.com launches the whimsical nature inspired range of jewellery. Crafted in diamonds, emeralds and rubies, the nature inspired range of jewellery is a perfect combination of sophistication and traditional allure at its best.
Shine bright like a diamond with Notandas The beautiful jewellery range includes pendants, bracelets, rings & earrings in diamonds & white gold. The collection with its contemporary designs reflects the confident persona of a woman.
The Summer Nuptial Adornments by Mirari The new Summer Adornment collection is all about the intricate light summer jewellery crafted with the finest components ideal to the Indian weddings. The design masterminds at Mirari have created this invincible range with the perfect shaped light weighed precious stones and coloured diamonds.
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exclusive story
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Rise & fall of Gold Souk AOJ Team brings you a reality check on the prevailing condition of the Gold Souks. What we found was depressing. Many shutters were down with few of them don't even having any signboards on them.
S
ouk is an Arabic word. It refers to a traditional marketplace. Like what you call a ‘mandi’ in Hindi. Dubai, internationally cosmopolitan and free-traders’ paradise, has given it a connotation. India, being the world’s largest gold consumer has always been inspired by the flourishing gold souks in Dubai. Perhaps that is what played on the mind of Surender Gupta, chairman, Gold Souk Group, when he embarked on a mission to open a network of souks across India. “100 cities 100 souks” is how evocatively he had expressed his goal.
The first Gold Souk was launched in Gurgaon, Delhi NCR in 2004, one of the up scaling suburbs of Delhi. The residents of Delhi would often go all the way to Gurgaon just to spend time in the large format malls there. The retailers were enthusiastically investing in and switching to “Modern Retail”, a euphemism for the malls. Surender Gupta was already riding the real estate boom of 2004-05. He then decided to add to it another engine, of promoting specialized retailing in jewellery. He was convinced that the Gold Souk was an idea whose time had come. And he decided to take a plunge.
exclusive story
Gold Souk promoters were not from the jewellery trade but that did not deter them. They hired G S Pillai, formerly with World Gold Council, Delhi, to bridge the familiarity-gap with the market they were was planning to enter. There was a plot of land in the galloping Gurgaon, Delhi NCR, to build upon. And there were enough eager jewellers, willing to be persuaded. Not just from the Delhi NCR itself, but even more so from the outside, who were keen to find a foothold in the Gurgaon, to get a share of this lucrative market. All factors were egging Gold Souk towards envisaging a very ambitious model of business. And how ambitious could ambitious be! Looking back, it clearly shows the way Gold Souk mind worked. Jewellery trade, obviously, involves highly valuable stock-in-trade. An average jeweller has to keep an inventory of tens of crores in the showroom. A space that carries such a valuable stock, he must have thought, is no ordinary space. The rentals and real estate prices were positioned at a very high premium and the average rentals of the nearby malls were no reference point at all. For a mall, that is nowhere close to a main shopping area, much out of the way from any high street, surrounded by residential development, standing solitary, high
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"We tried very hard to make the Gold Souk concept a success in India but it needs deep pockets, huge investments and patience. Lack of participation from organized jewellery players and investors has jeopardized the project."
Surender Gupta Chairman, Gold Souk Group rentals were much beyond even the fantasy of most of the jewellers. Obviously, it wasn’t sustainable. Or else, all other Gold Souks envisioned would have been a great success.
The largest space in the Gold Souk, Gurgaon, was not with a jewellery store, it was with a restaurant. The second biggest space in the mall was with a gymnasium. To be fair, the gym called itself Goldz Gym. As we enter the grand lobby, plies of carpets greet us, spread out right outside a shut showroom (Gaja Jewellers). As we met a prospective shopper on the way, we were surprised to hear that he was coming from a spa instead.
The Gold Souk management has already evacuated their investments many times over. Initial sales and the huge leasing contracts have given them handsome returns to build a veritable empire. Never mind if the jewellers or investors have got their returns or met with their objectives. However, Gold Souk was set to replicate the Gurgaon model in over 100 cities across the country. The next was Jaipur, Ludhiana, Chennai and Kochi, where the proposed souks were twice as large as the one at Gurgaon, while being named as Gold Souk Grande.
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What a waste! Jaipur Gold Souk: From a jewellery mall to a ghost mall.
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amed Gold Souk Grande, Jaipur, it was launched in 2004 and was supposed to be delivered by 2007. Promotions like Hollywood nights with exotic belly-dancers were unleashed on the unsuspecting jewellers of Jaipur. Those who were eye-witnesses recall that the invited prospective jewellers fell over each other to write the cheques to book space for their respective businesses. The possession to the shops was delivered 3 years, behind the schedule, in 2010. The ground zero, Gold Souk Grande, Jaipur, is indeed a big failure though the glass and granite edifice is indeed grand. The escalators are there but only occasionally functional. Some lifts too run but the only human presence is of some ageing guards with their world-war vintage rifles! Virtually none of the 400 odd ‘shops’ are functional. The false ceiling at multiple places is peeling off. There are gaping holes in the flooring. The place is unkempt. Layers of dust and pigeon-droppings greet you everywhere. Second floor has some activity. There are two offices of publications that lend some life to an otherwise dead place.
"Last year we took over the maintenance of Gold Souk Jaipur, but we are hardly getting any maintenance charges from the shop owners. If this trend continues, we will be forced to discontinue all the facilities and amenities in this mall." Ajay Saigal, Senior VP, Delhi 6 Developers Pvt Ltd
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"I am among the dozen odd Jaipur based jewellers who have invested in Gold Souk. We had high expectations from this mall but now we are totally disappointed as 90 per cent of the mall is unoccupied."
Vimal Surana Chairman, Surana Jewellers, Jaipur We went ahead and met Vivek Kala, partner, Kalajee Jewellers, a leading diamond jewellery retailer of Jaipur. He was an enthusiastic investor in the Gold Souk dream. Against all odds, he opened his showroom there and spent over Rs 50 lakhs on the interiors alone, of his showroom. After 11 months of perseverance, he couldn’t go beyond an average sale of Rs 1 lakh per month. Vivek Kala has quietly shut his shop. He blames it on the unkept promises by the promoters. It is now a herculean effort for the Gold Souk promoters to revive the Jaipur Gold Souk Grande and win back the confidence of the jewellers and to bring them back to the souk thereby trying to make the entire project viable. But the million dollar question is whether it will happen!
"We were promised that all the big brands from across the country will be present in the Gold Souk, Jaipur but none came. Even the big promotions promised to bring customers never materialized."
Vivek Kala Partner, Kalajee Jewellers, Jaipur
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Events
Vol 14 Issue 04 | april 2015 The Art of Jewellery
Krizz launches 1st B2B showroom in Chennai; 40 more stores in the offering
Speaking exclusively to AOJ, Bupesh Jain, CMD, Krizz said, “"Our vision is to bring about a paradigm shift in the way jewellery is manufactured and B2B sales are done in India and globally. Especially in India, the objective is to make it an organised industry with technology and innovation like any other industry. This showroom is completely first of its kind and it is equipped with the latest technology. With this expansion, we are aiming to achieve a target of Rs 10, 000 crore in next three years."
Joy Alukkas, Chairman, Joyalukkas Group inaugurating the Krizz B2B jewellery showroom, along with K. Shivram, Director, World Gold Council and Bupesh Jain, CMD, Krizz
B
eating conventional trends of sales, and for a direct contact with the jewellery retailers, Krizz has opened the first B2B jewellery showroom in Chennai on 15th April, 2015 where jewellery retailers can at their convenience, visit and check the jewellery before placing the order. This flagship B2B showroom was inaugurated by Joy Alukkas, Chairman, Joyalukkas Group and K Shivram, Director, World Gold Council. Spread over 3500 sq.ft, the showroom in Bose Road, Chennai will house over 350kgs worth of jewellery to choose from, adding over 4000 new designs every month. With an investment of 980 crores, the company plans to setup 40 B2B showrooms, 37 in India and one each in Dubai, Singapore and Malaysia in 2015-17. Last year, the company achieved a turnover of Rs 1700 crore. This year, they expect to grow to Rs 3800 crore turnover and in 2016- 17, Rs 6000 crore.
Krizz management team at the Press Meet Contd on Page 98
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Events
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A dazzling event to celebrate the launch of Krizz B2B Showroom
Krizz Jewellery Manufacturer had organised a dazzling event to celebrate the launch of its first B2B Showroom at ITC Grand Maratha, Chennai. The ceremony was well attended by the renowned players of jewellery industry from all over India. Present were Joy Alukkas, Chairman, Joyalukkas Group, K Shivram, Director, World Gold Council, Princeson Jose, MD, Prince Jewellery, Jayantilal J Challani, President, MJDMA, Ramesh Thangamayil, MD, Thangamayil Jewellery, Ashok Jain, Director, Shree Lakshmi Jewellery, Paul Alukkas, MD, Paul Alukkas, Sumesh Wadhera, MD, The Art of Jewellery among others. To add a glitter to the ceremony, a mega fashion show was organized and free iPads were distributed
to eminent retailers to download new Krizz application for placing the order. Krizz, a unit of Kanishk Gold Private Ltd., has a vast portfolio of products in casting jewellery among its range which features rings, bracelets, pendants, earrings and necklaces each intricately designed and crafted and created from the finest of materials. Krizz has introduced high crafted technology casting with light weight Jewellery. With latest ultra-modern technology and machinery imported from Italy, Turkey, USA, Germany and Japan. Having employed over 900 people at the manufacturing facility, it currently handles over 3000 crores worth of jewellery every year.
DIAMOND JEWELLERY MANUFACTURERS AND WHOLE SALERS
Office : 518, 2nd Floor, Ambika Building, Avenue Road, Bangalore-560 002 Ph: +91 80 22351317 . Email: nahardiamond@gmail.com
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coverstory
time Ripe
for JewelleRY
watches
Jewellery watches have gained popularity in the past few years amongst the fashion conscious customers. But the buzz generated about jewellery watches is disproportionately high as compared to its market size and growth in India. Apart from the international luxury watch brands, only a handful of Indian manufacturers and select retailers have recognised the potential of this niche segment. AOJ's Praveer Sinha with inputs from Nitin Konde explores the untapped potential, latest trends, market scenario and future for jewellery watches in India.
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assion for jewellery watches has always been nurtured by the affluent stratum of Indian consumers. From diamond to gold and silver, these watches are loved in all forms. However, even today there are only a few jewellery watch makers across India. Hence, consumers get their fill of jewellery watches through international brands, thereby allowing them to dominate the Indian market. If the World Watch Report 2014 is something to go by, India is among the top 20 market for luxury watches
Market Snapshot
Total watch market size in India
Rs 4,200 Cr Growth rate for the Indian watch market
10-15%
across the globe wherein over 60 international brands are catering to the high-end watch market in India with huge marketing and retailing investments. Swiss watch makers like Tissot, Omega, Rolex, Longines are offering numerous options to the Indian consumers. These brands have shops in main Indian cities with an efficient and well-organised after sale service. According to the report, the consumer interest in luxury watches grew from 3.03 per cent in 2013 to 12.05 per cent in 2014. This implies that the reluctant Indian jewellery makers have made way for
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coverstory international brands to flourish here hands down. "Small and medium enterprise owners, typically in cities without access to jewellery watch retailers, are increasingly turning to the internet to purchase one. It is hightime for the jewellery retailers to think beyond jewellery and introduce other products such as watches in their portfolio. This way, they will be able to offer something different from
Market Snapshot
Premium and luxury watch market
Rs 1,000 crore Growth rate of luxury watches
25-30 %
others. Right now, everyone is competing in the same product category and hence, losing out on the opportunities in other segments. Another downside to this is that the international players gobble the sizeable piece of this market while we are stuck to our traditional notion," shares Tejas Soni, CEO, KT Lifestyle Pvt Ltd, Mumbai.
Issues and trends Aishwarya Rai Bachchan brand ambassador of Longines India
Unlike the international market, where both jewellery and watch
"Today, we have customers, who buy three or four jewellery watches as a collection. Five or seven years ago, buying a Rs 25,000 watch was not very frequent. But today, this is a price point where impulse purchase is quite common. We get about 30-35 per cent of our sales volume and value via watch sales." Rajiv Popley Director, Popley Group
businesses are operated by retail jewellers, in India watch business is considered as a separate entity. Though in the past few years, some of India's top jewellery retailers have started to build a separate watch segment in their stores, traditional jewellery retailers have yet to follow suit. "Watch manufacturing process is an altogether different ball game for traditional Indian jewellers who are used to working with simple tools and a handful of karigars. Along with designing skill-sets, it also requires technical know-how and sophisticated infrastructure to create time pieces that last for generations. That's also one of the reasons why Indian jewellery players have shyed
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"I had tough-time convincing consumers that jewellery watches can also exist in India. For them, a jewellery watch was just about a gold strap around a regular dial. They could not think about technology, aesthetics and luxury, being packaged under-one-roof.
Tejas Soni CEO, KT Lifestyle Pvt Ltd away from entering this segment. But the mindset is the real culprit behind Indian jewellers' poor show here. They cannot imagine jewellery and watch businesses as one, just like our western and European counterparts," explains Ashok Minawala, managing director, Danabhai Jewellers, Mumbai, who is one of the early entrants into luxury watch retailing in India. In
1999, he founded Pallazzio a multibrand store for jewellery, watches and accessories.
Dominance of global brands The reluctant jewellers are not alone to be blamed for this. It has been deeply ingrained into our system that watches are not jewellery pieces since Independence of India. The first Indian Government had stopped the import of luxury goods into India, post 1947. That's why Indian industries did not have the opportunity to learn the craft and technology to manufacture luxury watches. However, on the other side of the world, watches were evolving through various phases and were made with great refinement and in eclectic designs. Their watches had taken the shape of an exquisite jewel piece. But as we had missed on these evolutionary phases until the liberalisation in 90s, jewellery and watches remained as two different segments for us.
Market Snapshot
Male watch buyers accounts for around 65% of total sale, whereas females represent the remaining 35% of total sales. Around 60,000 Swiss luxury watches are sold in India every year
According to trade experts, a prominent reason behind the success of international watch brands is that they spend a huge amount on brand promotion and marketing. These two elements which play an important role in the luxury business are widely missing in the Indian jewellery watch business.
"Until we do not understand the engineering involved in watch manufacturing we cannot understand the watch business and international players will keep ruling in all the categories including the jewellery watches,"
Ashok Minawala MD, Danabhai Jewellers. Continued on Page 104
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say is, the durability factor involved in a jewellery watch, can upgrade a regular watch buyer to this jewellery watch segment," he elaborates.
Jewellery watches are here to stay
Hritik Roshan brand ambassador Rado India
It's India time In an industry dominated by global brands, investing in an independent jewellery watch making enterprise is nothing but a gamble. Tejas Soni of KT Lifestyle Pvt Ltd not only played this gamble but also emerged winner. His portfolio boasts avant-garde jewellery watch brands 'Timond', 'Juno Moneta' and 'Herros' that are now stocked by retailers in dozens of major Indian cities. However, his journey was not a walk in the park. He explains, "Customers who are aware of luxury watches would pay exorbitant prices for international brands rather than opting for an Indian. While I was figuring out the reasons behind their ridiculous pricing, I realised that the luxury watches do not have an appeal only among HNIs; if sold at a competitive price, the market can expand in a big way," Tejas Soni.
Shah Rukh Khan brand ambassador Tag Heuer India
He claims to have seen a marked change in consumer behaviour since the advent of jewellery watches in the market. "Jewellery watches made in India are within reach as well as durable. One of my customers, who would settle for regular steel or a brass watch, took me by surprise when he invested in a gold watch worth Rs 35,000. He explained to me his point of view that it is wise to invest three times the price of regular watches just once than to spend every year on them. All I mean to
According to Technopak's luxury report for 2013-14, the watches and jewellery segments represent the largest and fastest growing segments within the luxury goods space. Valued at approximately Rs 1,000 crore, the premium and luxury
"The watch segment is growing, specially the premium watches which has created a niche among Indians. Currently, people are getting very brand freak and they opt for a branded watch more than any other.
Pratap Kamath MD, Abaran Timeless Jewellery Â
watch market makes up nearly a third of the Rs 2,750 crore luxury products market. And it's growing at over 20 per cent y-o-y, which is much faster than the 10 15 per cent of the Rs 4,200-crore watch market and is also more than the 15 per cent at which the overall luxury market is growing.
Lisa Haydon brand ambassador of Carl F. Bucherer
The premium jewellery watches are the latest trend flaunted by men today. Earlier, men use to Continued on Page 106
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"Watches come in different categories and almost all international brands have a clear position as to where they belong. However, in India these segments are not yet distinguished by marketers. Here most of the sales are in the fashion segment. But despite of being a lucrative segment for women, jewellery watches record lower sales because of the lack of knowledge among the jewellery retailers."
"The popularity of women's luxury watches is growing at a faster rate as compared to that of men's category; however, for men luxury watches are a style statement and manufacturers are very much focused and emphasized on offering the same. As compared to jewellery, women's luxury Jewellery watches are seeing a very good growth as they serve both purposes of wearing jewellery as well as a high end time piece, hence, female buyers does dominate the jewellery watch segment," he stresses.
Also the mindset is that everything sold from their store should have a buyback guarantee of a minimum 10 to 15 per cent of the original price. What makes the matter worse, is that majority of them are not even aware of the watch business," he adds.
Biren Vaidya, Managing Director, Rose Group wear bracelet, kadas etc. but now they don't like to have this armory on their hand. Now, they prefer a dazzling time machine more," says Pratap Kamath. Recently, Abaran has associated with the Swiss luxury watchmaker Rolex in Bangalore and thus become the only jeweller in Karnataka and second jeweller in south India to be the official dealer of Rolex watches. Sharing his views on the target consumers, Vikram Shah of C Mahendra says that,
Karan Johar brand ambassador Timond
Good times ahead
According to Rajiv Popley, retailers need to change their mindset then this segment will see a drastic transformation. "Retailers will have to firstly realise that jewellery or for that matter a watch is not an investment, but a lifestyle products. They should position their offerings accordingly. May be then, a watch will look a perfect fit in a jewellery store.
Most of the major players agree that with the increase in the number of retail shops and growing understanding of different watch brands, the market for jewellery watches is set to show strong growth in India. "With the professional designer hoping in, this jewellery watch segment is all set to get on to the new horizon. Now, we have jewellery watches exhibitions in our country which is a clear sign that indicates the popularity of these precious machines. Moreover, most of the men are opting for jewellery watches, which is a very good sign and in the coming years, definitely one will see the change in the jewellery watch segment," indicates Pratap Kamath of Abaran Jewellers.  
Huma Qureshi with her Dior watch
Continued on Page 108
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SMArtwatches threat or an opportunity As the technological giant Apple decides to enter into the luxury watch segment with its 'Smartwatch', many of the old players have raised their eyebrows. Though the market experts feel that this new move by the company will not affect the business of the renowned brands, Apple's entry will certainly give a new shape to the luxury watch industry. Aoj's Nitin Konde drills in to find out the pulse of the industry on 'Smartwatches'
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n 2014, Apple had announced that it will be soon launching its smartwatch which will take the luxury watch segment to a new horizon. Its customers will be equipped with a multipurpose device which not only shows time but performs other activities as well. This new move has certainly created a buzz in the market and renowned brands such as TAG Heuer has already announced that its team of experts is working on the smartwatch programme and they will come up with a smartwatch soon. Walking on the same line, Swatch Group in early February has
also nodded its head and announced that the company will reveal its smartwatch soon.
Luxury watches will have the upper hand Apple's introductory smartwatch will certainly give a smart option to the watch lovers. Apart from giving a smart option, it also attracts the jewellery watch admirers with its luxury Apple Watch Edition, made with 18 K gold or rose gold and a sapphire a sapphire crystal face. According to the industry sources, Apple was on
"I feel that Apple's smartwatch will not affect the business of big players. But this new introduction will definitely bring some interesting innovations in the luxury watch segment. Ketan Dhruv Managing Director Bangalore Refineries
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"I don't see Apple selling watches in jewellery stores. I bought an iPad on Amazon, so I see these watches at Best Buy and Amazon." Cory Berry Manager and chief technical officer Bernard Watch track to produce approximately 5 million watches for its first quarterly release. Of those, half would be the lowest-tier Apple Watch Sport, another third would be the mid tier Apple Watch, and an estimated 850,000 pieces will be its Apple Watch Edition. Sharing his views on Apple's smart time machine, Ketan Dhruv says, "There are few drawbacks that the smartwatch has which will put it out of the race. Firstly, in case of the luxury watches, they are a better investment as healthy amount of money can be fetched while reselling it but for the Apple's introduction smartwatch will certainly going to give a smart option to the watch lovers. Apart from giving a smart option, it also attracts the jewellery watch admirers with its luxury Apple Watch Edition,
"I do not see smartwatches posing a threat to classic segment of luxury timepieces. Smartwatches represent the cutting edge technology, while the mechanical watches embody the traditional craft of watchmaking, which has evolved over centuries." Sascha Moeri CEO, Carl F. Bucherer smartwatch you don't have that option. The moment you purchase it, its value starts depreciating as it is an electronic device and it keeps coming up with updated version same as cellphone. So, they can be called trendy and can define person's fashion statement for the time but it cannot go on for a long run. Secondly, mechanics of luxury watches has the upper hand over the smartwatch, one need to charge the smartwatch on daily basis but luxury watches have various
mechanics which can make them run continuously over the ages. Thirdly, since it is a smartwatch connected to the cell phone, it is prone to have problems like cell phones, replacement of battery over a time, hanging up, system upgrade etc. "
Reaching out to the customers Apple has its own strategy and planning when it comes to reaching out to its customers. The company will be selling its smartwatches through its own channel which also means that the customer will not see a smartwatch alongside with Swiss timeless pieces. Commenting on the marketing strategy of smartwatch, Paul Erdhart, MD, North America, Maurice Lacroix says, "If I were Apple, I would take full advantage of my pre-establishment, fully immersive, company owned environment to sell products that would otherwise require an additional business worth of employees to provide support. I don't see the Apple watch being sold alongside many traditional watch brands." 
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special report
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Jewellery industry gearing up for Akshaya Tritiya
The auspicious Akshaya Tritiya, the festival earmarked for buying gold, will be celebrated on 21st April, 2015. The Tritiya Tithi begins from 19:02 hours (20th April, 2015) and ends on 17:05 hours (21st April).
T
he Indian jewellery industry is gearing up for the Akshaya Tritiya sale, with many jewellers reportedly seeking to replenish their inventories ahead of the auspicious date. Akshaya Tritiya, also known as AkhaTeej, is a holy day for Hindus and Jains.
The word ‘Akshaya’ means the never diminishing in Sanskrit and the day is believed to bring good luck and success. This year too, the jewellery industry has huge sales expectations from the festival. In 2014, gold sales surged 10-20 per cent during Akshaya Tritiya and the industry is expecting the same or even much better in 2015. The festival is welcomed with positive energy and enthusiasm, especially in South India, which is also considered as the hub of
“Retailers have increased their inventory significantly for the Akshaya Tritiya. With gold rates being stable, sales are expected to be better than last year.”
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gold jewellery consumption. Most customers generally buy gold and silver coins during the festival. Since Akshaya thrithya usually falls in tandem with the wedding season most of the sales that break price parameters comes from wedding driven jewellery purchases. Apart
from discounts on making or labour charges and discounts on diamond jewellery, some jewellers introduce new schemes just three to five days ahead of Akshaya Tritiya. In another move to allure the customers, some jewellers also come up with a scheme in which customers are offered to
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book their jewellery beforehand with a down payment. They can take delivery on Akshaya Tritiya by paying a price which is either of the booking day price or the spot price, whichever is lower.
Akshaya Tritiya Expectations "We are expecting the sales to pick up in the month of April, considering the Akshaya Tritiya festival. As of now the sales are a bit down but it will surely pick up and we are foreseeing a good feedback this year for the festival." – Nikhil Parekh, Proprietor, Hasmukh Parekh Jewellers, Kolkata
"We are yet to take a call on schemes on offers for Akhsaya Tritiya. We will definitely come up with special offers on gold, platinum, silver and diamond jewellery. Seeing the recent change in demand from heavy jewellery to light jewellery, we have already equipped our inventory with a huge collection of light weight jewellery. Compared to last year, this year too we are expecting healthy sales." – N Ananth Padmanabhan, MD, NAC Jewellers, Chennai
"Akshaya Tritiya sales will depend on the gold price . We are coming up with good offers and schemes which will definitely allure the customers. Last year, we have received a fabulous response from our customers and we are expecting the same this year too." – Princeson Jose, MD, Prince Jewellery, Chennai
"Akshaya Tritiya sales will be very good. The reason for it is since three to four months the business has gone down and this festival will certainly fume in new energy in the jewellery business. Another reason for high expectation is the prices of gold, which had declined and this will attract more customers." – Pratap Kamat, MD, Abaran Jewellers, Bangalore "We are expecting healthy footfall for Akshaya Tritiya. Since the gold prices are down, we have received few advance bookings for Akshaya Tritiyta and we are hoping for good sales. Last year, we received a tremendous response from the customers and we are looking forward for this year. Basically, now days, people prefer light weight jewellery more than heavy ornaments so, we are concentrating on providing the customer what they like." – Ramesh Davanam, CEO, Davanam Jewellers, Bangalore
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Protest grows over new PAN norm; Jewellers worried about negative impact on trade
The Budget 2015 was below the expectations of the jewellery fraternity and the PAN card to be made mandatory for any transaction-sale or purchase-above Rs 1 lakh came as a severe blow to the industry. The trade bodies across the country have expressed their concern and disappointment over the norm with many associations going for a complete strike. AOJ Team addresses the gravity of the crisis, consequences, uproar, and industry concerns over the future of the jewellery trade.
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n order to disincentive the use of cash, the Govt had announced the furnishing of PAN details for any transaction-sale or purchase-above Rs 1 lakh in its Budget 2015. This move is posed as a major barrier in the jewellery trade as most of its purchases fall in this limit. It is estimated that more than 80 per cent of the country's population do not have PAN card and especially in rural India, most of them are unaware of the same. The implementation of this rule is expected to create huge confusion among the customers and thereby adversely affecting the jewellery business in a major way. According to jewellers, the finance minister's move is difficult to adhere to. Instead of ideally curbing black money, it will on the contrary, promote it.
My customers don’t have a PAN card; Looks like I have to find a new profession
"We have discussed our concerns and the consequences the jewellers will face with the PAN being mandatory with the FM. The meeting was very cordial and we are expecting positive results."
Haresh Soni Chairman, GJF
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“The administrative hassles to get the PAN card and the KYC of the customer especially when jewellery as an item is bought are tough, as it is usually a family purchase for the wedding or other special occasion. Gold jewellery trade in India is going through a rough patch and measures like this will add to it.”
I don’t have a PAN card; Better I buy jewellery from Dubai
President, IBJA
Trade bodies meet FM
Industry concerns
With most of the people not having a PAN card especially people residing in rural areas like the farmers, almost most of them, buying gold would become a tough option. "More than 80 per cent of the country's population does not have the PAN card and there are only 14 crore cards issued as per last count. It is absurd to say that people without PAN card are the source of black money. The domestic jewellery industry is worth Rs 2.50 lakh crore. Of this,
The domestic sales of jewellery is estimated at Rs 2,50,000 crore a year, of which rural sales comprise 70 per cent. And, most rural households and farmers do not possess a PAN card. the rural market accounts for Rs 1.75 lakh crore. For NRIs and agriculturists without PAN card, the Government has a provision for them to fill up form 60 and 61, but such forms would scare away customers, especially in rural areas," says Ashok Minawala, director, All India Gems and Jewellery Trade Federation (GJF).
Mohit Kamboj
Jewellers across the country have expressed their disappointment over the PAN issue. If the proposed rule gets implemented, even a minimum purchase of gold of 35-40 grams would require the customer to furnish the PAN details, thereby adding burden to both the customers and the jewellers.
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“It is absurd to say that people without PAN card are the source of black money For NRIs and agriculturists without PAN card, the Government has a provision for them to fill up form 60 and 61, but such forms would scare away customers, especially in rural areas.”
Ashok Minawala Director, GJF
Addressing the concerns of the jewellers, leading trade bodies have submitted memorandums to the Finance Ministry to exempt the jewellery sector from this new rule. The All India Gems and Jewellery Trade Federation (GJF) led by Haresh Soni, chairman, met Arun Jaitley, the Finance Minister on March 30, 2015 to discuss on the issue of PAN card requirement for any purchase above 1 lakh. The GJF delegation discussed the implications of the issue in detail with the FM for 25 minutes. Following which, FM assured that positive measures will be taken considering the consequences that will be faced by the jewellers over this issue. The India Bullion and Jewellers Association (IBJA) led by its president Mohit Kamboj also met the Finance Ministry officials in Delhi on March 18, 2015. The representation was made
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GJF delegation led by its chairman Haresh Soni met Arun Jaitley, FM over PAN mandatory. The other Directors of GJF like Ashok Minawala, Bachhraj Bamalwa, Nitin Kadam were also present.
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KJF Chairman, Jaya Acharya and Balram Acharya presented a memorandum to the Union Law Minister Sadananda Gowda requesting roll back of mandatory PAN rule.
to the Govt regarding the negative impact of the new norm to make Nearly 14 crore PAN PAN card mandatory for all the cards have been sales and purchases above Rs issued so far, implying that 1 lakh. "I have met the finance potentially a staggering 90 ministry and explained the per cent of the population administrative difficulties in would be unable to buy implementing mandatory PAN jewellery as many would not requirement for sales above Rs 1 have a PAN or fall within the lakh. IBJA is expecting suitable tax payers bracket. relaxation in this regard. The gold jewellery trade in India is going through a rough patch and further norms like this will hinder the business. The industry will not go on a strike and have flashpoint with the Govt, we are foreseeing a positive response," says Mohit Kamboj, president, IBJA. Apart from the national trade bodies, even on the regional level, the associations are taking a step ahead to make their voices heard. The Karnataka Jewellers Federation (KJF), chairman, Jaya Acharya and Balram Acharya met Union Law Minister Sadhananda Gowda, and handed over a memorandum requesting cancellation of mandatory PAN provision for the purchase of one lakh and above. 
View J O A The mandatory PAN card rule is going counterproductive and also generating black money into the financial system of the country. Consumers will not be comfortable to share PAN card and it will make the jewellery trade take a step back. The Govt should come up with other mechanisms to tackle the issue of black money, which will not hurt the retail business of the jewellery sector.
Jewellers strike in Delhi, Lucknow and Bengal on PAN issue The Bullion and Jewellers Association (Kucha Mahajani), Delhi and Karol Bagh Jewellers Association, Delhi went for a two day strike on March 25 and 26, 2015, protesting against the government’s move. All the leading retailers and bullion dealers under the association observed a complete strike supporting the cause. Similar protests were also reported in other parts of the country like Lucknow, Mumbai and Bengal.
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Gold Monetisation Scheme
An opportunity to reduce gold imports
The budget 2015 announced some far-sighted propositions for the gem and jewellery industry and Gold Monetisation is one of them. The industry has whole-heartedly accepted the Gold Monetisation Scheme (GMS) that has been devised to limit the need to import gold. While the thought process is on the right track, the scheme has all the makings of remaining a nonstarter, unless great care is given to the detailing on the execution front. AOJ's Praveer Sinha collates views and suggestions of the industry experts to understand the feasibility of this scheme as well as how it will favour the business.
D
espite introducing a variety of measures to reduce the current account deficit, India's appetite for gold has increased. Gross domestic data released by the government shows that India has imported 945 tonnes of gold in 2014-15, which is 48 per cent higher than the 201314 level. Moreover, the restrictions to lower the gold imports in the country (higher import duties, 80:20 rule for imports and restrictions on
gold related lending) have led to the entry of unaccounted gold through illegal channels. Considering India's fondness for gold and the expanding market for gold jewellery, demand of the yellow metal will be on the rise. Taking note of the situation, industry bodies have been searching for alternate ways to meet the increasing demand of gold. One of the major points of
debate among various stakeholders of the industry is why not to use the gold which is lying idle with Indian households, which is neither traded nor monetised. Various estimates conclude that India possesses over 22,000 tons of household gold and even if a small percentage of it comes into circulation, problems related to the sourcing of gold will be solved.
special report
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"GMS could help reduce import burden by 30 per cent or by 250 to 300 tonnes in two years. India imports about 97 per cent of its annual gold demand. This is a drain on its forex reserves and is a key reason why the rupee value falls. On the other hand, there is 22,000 tons of gold that is unproductively stashed away in household lockers. The scheme intends to circulate this stashed gold in the economy by pulling it out of domestic safes and lending it to those who need it. This will save the country billions of dollars of gold imports annually," says Prithviraj Kothari, managing director of RiddiSiddhi Bullions Ltd and Vice-President of India Bullion and Jewellers Association Ltd(IBJA).
How GMS will work? Although the Budget document does not talk about the implementation of the scheme at length, it is expected to work similarly to bank accounts. "A gold account will have to be opened with the bank by the retail customer. The gold can then be deposited for a maximum tenure of three years and the rate of interest will be tentative depending upon the prevailing
The scheme intends to circulate this stashed gold in the economy by pulling it out of domestic safes and lending it to those who need it. This will save the country billions of dollars of gold imports annually. Prithviraj Kothari MD, RiddiSiddhi Bullions Ltd & VP IBJA
interest scenario. When mature, the interest is paid not in rupees but in gold and the investor has more gold in the account. Banks can lend this gold to jewellers or deposit it with the Reserve Bank of India (RBI), that will free rupee liquidity which in turn will have an impact on the earnings," explains Rajesh Khosla, managing director, MMTC-PAMP India.
and verifying etc. and third is the deployment which includes cost and risk management. For refining, we have state of the art refinery and purity verification centers now. So sourcing becomes the major issue here. Almost 60-75 per cent of the existing gold is at the bottom end of the pyramid and that mass needs to be aware about the scheme," he points out.
Highlighting the key aspects Venkatesh, of GMS, Rajan managing director and head of the bullion business of the Bank of Nova Scotia (India) says that, "Essentially, there are three verticals to any monetisation scheme; one, sourcing is the most important aspect of it, two, refining, assaying
He goes on to add, "In terms of investment demand, there must be around 3000-4000 tons lying with people. So we have to think how to collect a large portion of the investment demand while simultaneously creating awareness at the grassroot level. There are costs associated with it like- refining cost, storage and transportation cost, holding cost, funding cost etc. along with the duty risk fact of it. Finally, the return that we can provide will incentivise a depositor."
A gold account will have to be opened with the bank by the retail customer. The gold can then be deposited for a maximum tenure of three years and the rate of interest will be tentative depending upon the prevailing interest scenario. Rajesh Khosla MD, MMTC-PAMP India
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Learning from the past The Govt had introduced the Gold Deposit Scheme (GDS) in 1999 to mobilise the 'under-the-pillow' gold available in the country. However, the scheme failed to attain even the conservative target of 100 tons. Continued on Page 118
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How GMS is different from GDS Gold Monetisation
Gold Deposit
Minimum quantity – 50 gms
Minimum quantity – 500 gms
All approved Bank, NBFC, refineries and jewellers as collection centre
Only State Bank of India as collection centre
Tenure 3, 5,and 7 years
3 and 5 years
Interest Rate 3 years – 0.75 per cent
3 years – 0.75 per cent
5 years – 1 per cent
5 years – 1 per cent
7 years – 1.5 per cent Interest to be paid only in Metal form or in equivalent Rupee
Interest calculated on Metal but paid is Rupees
To be made tradable on Commodity Exchange or Stock Exchange
Not tradable on any exchange
Source –India Bullion &Jewellers Association
Commenting on what should be the structure of the new scheme, Bhargava N Vaidya of B N Vaidya Associates, Mumbai says that, "India had monetisation scheme in the past but it was not worked. The issue stems from the fact that while the scheme was started in 1999, there has been very little appetite on part of banks. The major reasons behind this were sourcing, purity verification, assaying, refining etc. and then associated cost and the problem of deploying. So if you want to incentivise the banks, you have to take away the above burden out of them," he adds. "The earlier scheme of 1998-99 had been a non-starter as it required a
minimum of 500 gm of gold to be deposited and mainly addressed temple trusts. While the earlier scheme had managed to mop up 18-20 tonnes of gold in 15 years, the new gold monetisation scheme, which also covers retail buyers, can garner 100 tonnes in calendar year 2016," predicts Rajesh Khosla.
How to make GMS successful? Indian households have a natural affinity for gold and getting them to part with it will not be easy. Experts believe that if the new gold monetisation scheme has to meet with greater success then its features need to be made less restrictive.
According to Sanjeev Agarwal, CEO Gitanjali Exports and core committee member FICCI Gem & Jewellery Forum, GMS should be investor friendly to become successful, "Not too many questions should be raised when the person deposits gold into the scheme. If bars and coins are also accepted under the gold monetisation scheme and no questions are raised about source of these bars and coins - it could be gift at wedding or inherited by the family over generations and the source of that is not possible - at least 200-300 tonnes can come Continued on Page 120
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Gold as an engine of growth According to PR Somasundaram, managing director, World Gold Council (India), the objective of monetising the nation's gold stock is to support economic growth. 'The monetisation scheme will drive orderly recycling and enhance transparency, benefiting millions of households and the macro economy as it has the potential to translate gold savings into economic investments, he adds. Sharing similar views on economic prosperity through channelising household gold, Hasmukh Parekh of Hasmukh Parekh Jewellers, Kolkata says that, Stocks of gold jewellery represent enormous personal wealth. However, this
The success of this scheme will also depend on the interest the government is willing to provide on these deposits. If this is not attractive – the scheme may not have the desired effect. After all, it’s hard to part with gold which won’t come back to the owner in its original form and does not earn you a reasonable interest either. Rajan Venkatesh MD, Bullion ScotiaMocatta India
wealth is only notional because it doesn't contribute to growth. The monetisation scheme can attract deposits worth Rs 1 lakh crore. This gold will be converted into cash in the form of interest. Gold owners can then use it for
Collection Centre Approved Bankers
Approved NBFC
Approved Refineries
Approved Refineries Collection Centre
Approved Jewellers
RBI Mint
BIS
Bullion Dealing Bank
Approved Nominated Agencies
As proposed by
Manufacturers / Jewellers / Exporters through Metal Gold Scheme
spending and banks for productive lending. Moreover, this scheme can add 2 per cent to the Gross Domestic Product (GDP), he adds. Another factor that can attract gold depositors towards the scheme is by providing a substantial interest rate on the deposits. According to him, the interest offered must be high enough to attract investors. "Numerous gold deposit schemes have been launched by the government in the past, but they have not attracted much deposit because the returns on them were a paltry 1-2 per cent. If investors can earn 8-9 per cent on their fixed deposits in banks, they will not be satisfied with a 1-2 per cent return on their gold deposits," he adds. Quite obviously, the most important stakeholder is the gold depositor and it is essential that customer interests hould be central to designing and marketing of Gold Monetisation Scheme as ultimately it is the trust that drives the popularity of any financial product.
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knowyour
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Wholesaler
The Art of Jewellery
Solanki Jewellers
Dominant player in handmade Antique jewellery Mumbai-based Solanki Jewellers have been in the forefront of providing excellent quality with impeccable design elements attached to each jewellery piece. AOJ’s Praveer Sinha takes you through their long and exciting journey in the sphere of jewellery making
A
t a time when India is emerging as a world leader in the supply of high-quality jewellery, Mumbaibased Solanki Jewellers is wellpositioned to be a part of this ascent by offering the best of what India has – quality, consistency and reliability. Sakalchand Solanki founded Solanki Jewellers in 1982. From a small setup in the iconic Zaveri Bazaar, he entered into jewellery business and in a short span of time the company achieved several milestones in the domestic market. Today, the company is recognized as a renowned name in the jewellery manufacturing and wholesale industry and caters to the jewellery requirements of India's leading jewellery brands and major retailers. Two generations into the business, family values are the pillars in running day-to-day operations, which ensures trust, honesty of each and every client. Upholding these values, the company today has scaled newer heights under the astute leadership of its directors Pradeep Solanki and Mehul Solanki. Creative concepts, innovative designs combined with product quality and
high brand awareness gives complete customer satisfaction and provides an edge to the company in terms brand value and trust.
A statement of originality Design exclusivity, quality and finish of its products is what makes Solanki jewellers unique. The company is widely-known for its finest quality, handmade Antique jewellery and Kolkatta jewellery. Entire range of jewellery offered by the company has been carefully and intricately designed keeping in mind the latest trends. The jewellery products are not mass produced and no two designs are similar looking. Each jewellery piece has a tag of exclusivity. Their product portfolio has captured the attention of top
"We are a premier company because we constantly and continuously strive to improve our product offerings and our processes." Pradeep Solanki, Director, Solanki Jewellers
retailers in Maharashtra, Gujarat, Kerala, Karnataka, Andhra Pradesh, Tamil Nadu and other major states in India. "We are a premier company because we constantly and continuously strive to improve our product offerings and our processes. We achieve our objectives by investing in our people, our processes and technology," says Pradeep Solanki, director, Solanki Jewellers. Continued on Page 124
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Wholesaler
Expertise in Antique jewellery Being trend-setters in the area of Antique jewellery, the company's expertise in the field comes in handy when competing against other players for a spot at the top. Over a short period of just four years, the company has attained complete mastery on Antique jewellery and has transformed this jewellery craft segment which had been until then confined within conventional ideas by broadening the boundaries of art. Today, Solanki Jewellers lead in this jewellery category by offering one-of-akind jewellery pieces
The Art of Jewellery
"We continuously d evelop and innovate by giving our employees the tools and the training that enable them to contribute in the company's success." Mehul Solanki, Director, Solanki Jewellers
to its clientele.
Strong promotion through trade shows Solanki Jewellers have been using jewellery trade
shows as a powerful promotional tool for gaining exposure and new business opportunities. The company has been presenting its jewellery offerings at two of India's foremost trade shows - the 'India International Jewellery Show' and 'Signature', since the last many years. This year, the company is participating at Vicenzaoro Dubai – a B2B luxury jewellery trade show starting from April 23 to 26, 2015 at Dubai World Trade Centre. "Participating in Vicenzaoro Dubai will provide us the most effective route to market our products internationally. We are excited to be a part of this great show and hope that we will be able to leave a lasting impression on the visitors through our jewellery creations," says Pradeep Solanki.
What's next! Solanki Jewellers is all set to display its strength in the international market. Strong promotional plans through participation in the top international trade shows are already in place to elevate the brand name in the global market. "Strategically, the company will be focusing on exploring newer markets and develop product range that would be globally acceptable," concludes Pradeep Solanki.
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taxing
matters matters
Vol 14 Issue 04 | April 2015 The Art of Jewellery
FAQs on Taxes & Related
Issues
Dr. Suresh Surana, founder, RSM Astute Consulting Group, answers readers' queries on various issues pertaining to taxes that need to be paid by the jewellers. Readers are encouraged to send in their questions and receive clarifications through this column.   My prospective father-in-law wishes to
  Last month, I sold gold jewellery worth
gift me diamond jewellery. One of my friends told me that gift received from father in law is exempt from tax. Kindly advice.
Rs 7 lakh which I had purchased 6 years ago. I do not wish to reinvest money in bonds. Kindly guide me about the payment of capital gain tax. I have other negligible income.
As per Section 56(2) (vii) of the Income Tax Act, jewellery received by an Individual as a gift is taxable in the hands of individual if the fair market value of jewellery exceeds Rs 50,000. However, the same is exempt from tax, if gift is received from a relative. The definition of relative includes the relation of father-inlaw and daughter-in-law and thus gift shall be exempt. In your case, at present the relationship of father-inlaw and daughter-in-law is not in existence at present, thus it would be taxable. Please note that gift received by an individual on the occasion of her marriage is exempt from tax.
The capital gain on jewellery held for more than 36 months is treated as Long Term Capital Gain ('LTCG') and the same is taxable at the rate of 20 per cent plus applicable surcharge and education cess. You shall avail the indexation benefit in respect of the cost of jewellery. The cost inflation index for the year FY 1415 is 1024. Further, if your total income as reduced by LTCG is below your basic exemption limit then you can claim the slab benefit. In such case, the LTCG shall be reduced by the amount by which total income so Continued on Page 128
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taxing matters
reduced falls short of your basic exemption limit and the balance shall be taxable at the 20 per cent plus applicable surcharge and education cess.
Vol 14 Issue 04 | April 2015 The Art of Jewellery
you will required to do the adjustment as mentioned above. However, it is proposed in the Finance Bill 2015 that Wealth tax shall be abolished from financial year 2015-16 onwards.
We are a private limited
company engaged in the business of jewellery manufacturing. During FY 2013-14 we paid tax as per Minimum Alternative Tax (MAT) of Rs 1.5 lakh as MAT was higher than the tax computed as per normal provision. Can we claim MAT credit of Rs 1.5 lakh in the next year? MAT credit entitlement of earlier years can be set-off in the future years in which you are required to pay tax as per normal provision (i.e. tax under normal provision is higher than 18.5 per cent of the book profits). MAT credit is allowed to be carry forward for a period of 10 years. In the year in which normal tax becomes payable, the difference between the normal tax and the tax computed under MAT for that year is available for set off against the normal tax payable and the balance MAT credit available, if any, is allowed to be carried forward. Thus, you will be eligible to claim MAT credit in the next year provided you are liable to pay tax under the normal provisions of the Income Tax Act in the next year.
I obtained registered valuer's certificate
for valuation of jewellery in FY 13-14. During the current year I have sold some jewellery. Do I need to obtain a fresh valuation certificate for the purpose of filing wealth tax return for FY 14-15? As per the Wealth Tax Rules, in case of values of jewellery exceeding Rs 5 lakh, return is to be supported by a report of a registered valuer in Form O-8. As per the Circular No. 646, taxpayer is required to obtain the valuation report for one year and the same can also be used in subsequent four years subject to certain adjustments such as changes in value of jewellery, purchase and sale of jewellery in the subsequent year. Thus, you will not be required to obtain fresh valuation report ,however,
We are a partnership firm
engaged in manufacture of gold jewellery. We paid an advance of Rs 3 lakh as token money against purchase of a flat and later on due to certain default on our part the deal got cancelled and the seller had forfeited the advance money. Whether we can claim this loss against our business income? Please note that when payment is made for the purpose of acquiring a capital asset and the amount is forfeited by the seller, then it will not be considered as revenue expenditure, eligible for deduction under section 37(1) of the Income Tax Act.
We are a private limited company engaged
in the business of manufacturing of gems & Jewellery. We could not file the return of income for FY 2013-14 on due date. My question is that whether we will be eligible to carry forward the depreciation loss or not? Section 80 prohibits carry forward of business loss, if the return is not filed within due date of filing the return of income. However, depreciation loss is governed by the provisions of section 32(2) of the Income Tax Act. Thus, it is clear that depreciation loss does not come within the purview of section 80. As a result, deprecation loss can be carried forward even if return of income is filed after the due date.
Courtesy: RSM Astute Group (www.astuteconsulting.com) Kindly email your queries to taxqueries@astuteconsulting.com Dr. Suresh Surana is a practicing Chartered Accountant and specializes in International Taxation and Corporate Advisory services to multinational corporations besides Indian corporate houses. He can be contacted on : taxqueries@astuteconsulting.com
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career
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skill development
The Art of Jewellery
Commencement ceremony of GIA Graduates
A
nother dynamic batch of students from Gemological Institute of Amercia (GIA –India) received their diplomas at the commencement ceremony held at the institute's campus in Mumbai. The 'graduate gemologist' is a 26 weeks course that gives a comprehensive knowledge of diamonds and coloured stones,
which would help the students to succeed in the global gem and jewellery business. Speaking at the occasion, Nirupa Bhatt, managing director, India and the Middle East, GIA, said that, "To enter the industry, one should look at the bigger picture and think at the macro level, to maintain
the high standards of ethics and integrity in their personal and professional lives as these values would help them achieve their goals in the gem and jewellery industry." Manoj Singhania, director of education, India and the Middle East, GIA and Deepa Srinivasa, instructor, GIA, who were also present, congratulated the students and wished them success in their future endeavours. The course helps the students to gain both technical expertise and practical skills to evaluate diamonds by the GIA 4Cs (Colour, Clarity, Cut, and Carat Weight) and the GIA International Diamond Grading System', and to identify and evaluate common and unusual gemstones.
IIGJ Mumbai holds its 8th convocation ceremony
I
ndian Institute of Gems & Jewellery (IIGJ) Mumbai, a project of the Gems & Jewellery Export Promotion Council (GJEPC), held the convocation of its eighth batch of diploma in Jewellery Design & Manufacture Technology on March 20, 2015 at the IIGJ Mumbai campus. Prabir Chatterjee, director, Mirrar Jewels graced the occasion as the chief guest at the ceremony. He presented the diplomas to the fourteen graduates and shared a few insights of his experience and guiding the students into the professional world of today. "Being a part of the industry, I appreciate IIGJ's efforts to provide quality training and relevant skills to aspiring professionals in India. Skilled and qualified workforce is the need of the hour and IIGJ's initiatives will benefit the entire Indian gem and jewellery industry," he said. The convocation ceremony was attended by Vasant Mehta, chairman, IIGJ, Seema Shah, Head IIGJ-Mumbai and Namita Pandya, convener, IIGJ-Tardeo.
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In focus
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IBJA: Scaling new heights of success The India Bullion and Jewellers Association (IBJA) is all set to receive the 'Domestic National Council' status for GJ sector that will enable it to represent the industry with the Central Government on policy issues.
I
n the last few years, the India Bullion and Jewellers Association (IBJA) has scaled newer heights by embracing the best practices to solve the issues faced by the bullion trade and industry. For its efforts, the Association may get recognition as 'National Council' from the Ministry of Commerce. Recently, the Prime Minister's Office sent a recommendation to the Ministry of Commerce to consider IBJA's recognition as 'National Council' and involve the Association in decision making processes with regard to gold. Mohit Kamboj, President IBJA, said that the Association had made representation to the Prime
Minister for the National Council recognition and the PM Office had written a letter to the Ministry of Trade and Commerce on February 25 recommending that it accord the status on IBJA. “After getting the National Council status, all gold traders in the country need to get associated with the Association and put in joint effort for development of the industry.”
Mohit Kamboj President, IBJA
IBJA is a body of over 1,000 bullion dealers including importers, banks, NBFCs and distributors, who accumulatively import gold worth around Rs 300,000 crore annually in India. Bullion dealers currently raise their concerns only through jewellers. 'National Council status will help IBJA to raise industry issues directly with the government and get them resolved. The Reserve Bank of India (RBI) has already recognized IBJA. The Association started in 1948 as Bombay Bullion Association was rechristened as IBJA to include members from across the country and various segment of the industry. Headquartered in Mumbai, the Association has five broad regions covering North, South, East, West and central. Surendra Mehta, secretary, IBJA, said after getting the National Council status, all gold traders in the country need to get associated with the Association and put in joint effort for development of the industry.
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In focus
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IBJA meets Maharashtra CM; Discusses key industry issues
I
BJA delegation led by president, Mohit Kamboj, met chief minister of Maharashtra Devendra Fadnavis to review compulsory use of electronic weighing scale form 1/4/15, CM has instructed concerned minister to review the matter. Also handed over a book on current issues of gold industry with regard to VAT on gold export to be removed, and Octroi to be abolished & matter related to Maharashtra Gold industry issues, CM had a closer look at the same and agreed to resolve this soon.
The delegation also discussed with Devendra Fadnavis for allotment of 500 acre of land for 'IBJA Knowledge City', this will be the 1st biggest manufacturing hub in India. CM has in principal approved the same and issued instructions to MIDC to work on it . Allotment of Land and office space for Research & Development Centre at BKC, Mumbai was also discussed. CM has in principally approved the same and issued instruction to MMRDA to do the needful
Quarterly board meeting charts new vision
T
he India Bullion and Jewellers Association (IBJA) recently organised its quarterly board meeting at Hotel Trident, Nariman Point, Mumbai on March 28, 2015. The meeting discussed various prime issues faced by the industry and many positive decisions were taken during the meeting. A new and vibrant vision for the industry and innovative strategies were also discussed during the meeting.
During the meeting it was discussed that, 'Premium Gold Membership' to retailers across the country, formation of 'World SIlver Council' and representing the mandatory PAN card issue with the prime minister.
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In focus
Vol 14 Issue 04 | april 2015 The Art of Jewellery
1st AGM of Karnataka Jewellers Federation (KJF) held in Davangere
1
JEWELLERS
(
NA AR
TE
Sumesh Wadhera in his address spoke on the burning issue of PAN Card which has been introduced in the budget He said "The new PAN Card norm will affect the jewellers badly as only 10% - 12% of population in the country has PAN Card and in rural areas its even lower. Jewellery trade should come forward and join hands to collectively talk to Govt and get this norm rolled back as it is a big road block to the jewellery trade." The event also witnessed the honoring of Shankar N Vittalkar and RD Badarinath by the federation for sponsoring and hosting the two day event.  
ATION
TA K A S TA
all 30 districts and now we have decided to focus on membership drive for 200 odd taluks in the state. We have addressed many issues in last 2 years, which include uniform gold rate in the state and lobbying with Govt to Keep VAT at 1% which is lowest in the state." He thanked all board of directors for the support extended and taking KJF to new heights in short span of time.
D ER FE
st Annual General Body Meeting of Karnataka Jewellers Federation and the 7th State conference was held on 28th and 29th March, 2015, which was hosted by Davangree Jewellers Association. The event was inaugurated by Adv H V Ramadas and Jaya Acharya, Chairman KJF. Other dignities present were Shankar N Vittalkar, President, Davangere Jewellers Association, Sunil Pothdar, Vice Chairman, KJF, Sumesh Wadhera, Chairman Advisory Board among others. Various education programmes and issues & hurdles faced by the trade were discussed. The event was well attended by over 200 jewellers from all over Karnataka. Speaking at the occasion Jaya Acharya said, "We have received 100% membership from
R)
K BANGALORE
The Classy Collection Of Jewellery Boxes Specially Made For your Exquisite Jewellery Range KorpBiz Pvt. Ltd.: A- 104, Kailash Industrial Complex, Hiranandani Link Road, Park Site, Powai, Mumbai 400 076 Tel: 022-25190250 Email: admin@korpbiz.com
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Events
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Surya Golds unveils the novel gold jewellery creations made with Swarovski Zirconia on her sensational melodies and Parvathi Omanakuttan – Miss India World and upcoming bollywood actress walking the ramp as a Showstopper for the event. The show was attended by the top renowned jewellers, retailers, celebrities; gems and jewellery fraternity from all over India making the event a grand success.
From L to R Naresh Shoor, Rajendra Jain, Ramesh Shoor, and Sudesh Shoor
S
urya Golds in association with Swarovski organised an elegant and dazzling Cat-walk event to showcase the company's exclusive jewellery creations made with Swarovski Zirconia recently at the Hotel ShangriLa, Connaught Place, New Delhi. The event highlighted a scintillating fashion show that was uniquely conceived and featured bollywood celebrity singer Shibani Kashyap performing
Womens' Jewelry Association (WJA) hosts Meet & Greet event in Mumbai
A
premier business networking organization, Womens' Jewelry Association (WJA) organized a 'Meet & Greet' event at Trident Hotel, BKC, Mumbai on April 10. The meet focused on fruitful interaction with Anna Martin, past president of WJA. Currently, she is senior vice president at Gemological Institute of America (GIA), based in New York. During the meet, Anna discussed on the role
of women in the industry and how they can contribute effectively to its growth and development. Womens' Jewellery Association's India Chapter (WJAIC) was formally launched in 2010 with Nirupa Bhatt, MD of GIAIndia and Middle East being the founding president. "It was great to have WJA past president Anna Martin in Mumbai to meet WJA India chapter members. Anna shared her experiences and words of wisdom during the meet," said Nirupa Bhatt.
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Vol 14 Issue 04 | April 2015
preview
The Art of Jewellery
JCK Las Vegas 2015
World's largest jewellery show to have over 2500 exhibitors
J
CK Las Vegas, world's biggest jewellery show is all set to kick start from May 29-June 1, 2015 at Mandalay Bay Resort and Casino, Las Vegas, USA. Enhancing the event to a larger and effective platform, the show this year will have well structured curated neighbourhoods with each having its own identifying icons. Six additional lounges are also been added to the show floor. Organized by Reed Exhibitions, the show attracts the latest domestic and international designers and most sought after trends are showcased in a secure environment. The event combines a With over 2,500 exhibitors from 22 countries grouped into nearly 20 significant product areas, the show offers an enhanced platform with curated neighbourhoods and better buying experience this year.
plethora of networking events and complimentary education sessions with the industry's broadest selection of finished jewellery,
gems and timepieces. The show mainly covers a wide range of product profile that includes fine jewellery products ranging from platinum to gold, diamonds, etc. The JCK Match program has been improved which will help in making new connections and building relationships with new vendors during and after the event .JCK Talks, the revolutionized education program will bring forward thinking
speakers a day before the show opens, with the focus theme of the talks being 'Redesigning Retail'.
The Art of Jewellery is leading a delegation of 30-35 buyers from India to the show this year. This is one of the largest delegations so far of leading retailers and manufacturers. The Art of Jewellery has been organizing such delegations since past few years, providing a perfect exposure for the Indian retailers/ manufacturers.
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Vol 14 Issue 04 | April 2015
preview
The Art of Jewellery
Vicenzaoro Dubai 2015
First edition to debut with promising opportunities
V
icenzaoro Dubai, one of the promising platforms for the jewellery business community is all set to debut from April 23- 26, 2015. Jointly organized by Fiera di Vicenza and the Dubai World Trade Centre (DWTC), the show is a new concept in the gold jewellery sector. Expanding the institutional network, the show will have Dubai Multi Commodity Centre (DMCC), Dubai Gold and Jewellery Group (DGJG) and L'Azurde as strategic partners.
Visitors and buyers from Saudi Arabia, India, Pakistan, Bangkok, Hong Kong and many others countries are expected to attend this first b2b event of the Gulf area and meet the best companies inside those four communities. The show will have exquisite collection from leading exhibitors of Italy, UAE, Thailand, USA, India, Antwerp, Greece, Hong Kong, Korea, Turkey, etc.
The first B2B event of the Gulf area will have delegates from four visiting international markets with 15 country pavilions, and 700 exhibitors from 40 countries categorically located in four specific sections.
The event will host 15 country pavilions and 700 exhibitors from 40 countries that will showcase global brands, precious stones and diamonds as well as the latest technologies in packaging and supply. This show will present an innovative exhibition format by selecting key players of the jewellery production subdivided into four highly identifiable communities, which perfectly match with the market positioning and the product range needs of specific buyers' profile. The communities include global brands and about J, fine jewellery and national pavilions, gemstone and diamonds and packaging and supply.
Dubai being one of the most important markets, the strategic location of the debut event is expected to be a catalyst in the growth of jewellery business on a global level.
The inaugural show of Vicenzaoro Dubai aims to support the future of the jewellery industry through promoting social and networking opportunities, conferences, seminars, one-on-one meetings, and workshops. The show is designed to serve the established and emerging economies throughout the Middle East and tap into the vast luxury market potential in Southeast Asia and Central and Eastern Europe.  
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Vol 14 Issue 04 | april 2015
review
The Art of Jewellery
Istanbul Jewelry Show
40th edition of Turkey show concludes; a visual treat with new trends
I
stanbul Jewelry Show (IJS), a comprehensive marketplace for international jewellery community and professionals, concluded on a high note with better footfalls and robust business. The four day
The trade show was excellent; especially the machinery section was very good. This type of machinery will be very useful for Indian jewellery to get the better finishing. The jewellery designs at the show were more of European style which is not much of Indian taste. However, the diamond jewellery collection was a treat to watch. Prashanth Shet, Managing Partner, S L Shet Jewellers, Mangalore.
event held from March 12-15, 2015 at the Istanbul Exhibition Center featured more than 1,250 local and international exhibitors from more than 25 countries. Organized by UBM Rotaforte, and sponsored by Türk Ekonomi Bankası (TEB), the show exhibited worldwide jewellery at one stop in its 30th year anniversary. The show witnessed latest collections of gold, diamond, pearl and silver jewellery from leading jewellery manufacturers and also had various sections on loose stones, fine watches, and jewellery manufacturing tools and equipment. The ever growing number of participants and attendants
accompanied with the value added trade show services has created a unique business environment at the show. According to Umashankar, managing partner, Akshaya Jewellers Pvt Ltd, Coimbatore, "The Istanbul jewelry show is a very good platform for Europe, Russia, and Middle East countries. We get to see a wide range of collections at the venue. The Turkish jewellery exhibited was very different and innovative with most of the designs being machine made." Even representatives from Swarnsarita Gems Ltd, Mumbai, who visited the show, also claimed the event to be a visual treat featuring international trends in jewellery.
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Vol 14 Issue 04 | april 2015
review
The Art of Jewellery
Baselworld 2015
Inspite of low visitor turnout; Show concludes on a positive note
B
aselworld 2015, the global trendsetting event for the watch and jewellery industry, concluded on 26th March, 2015 on a positive note after eight intensive and memorable days. In a grand ceremony befitting the most important event for the world's watch and jewellery industry, Baselworld 2015 was officially opened by Swiss Federal Councillor Johann SchneiderAmmann on 19th March, 2015. Organizers of Baselworld stated that the number of buyers at the show declined 3 percent compared
with 2014. Still, overall attendance was at 150,000, with participants arriving from more than 100 countries. During the eight-day-long event, 1,500 jewellery and watch brands unveiled new innovations and creations. Baselworld goes beyond the world of watches and jewellery as it is also the leading global event for diamonds, gemstones and pearl merchants. The best players and dealers from around the world participate in Baselworld
because of the immense audience it attracts among which are the biggest customers from all markets. Reflecting on this year's edition of Baselworld, François ThiÊbaud, president of the Swiss Exhibitors' Committee, said "Baselworld is universally acknowledged as the premier event for the global watch and jewellery industry. What makes it exceptional is that Baselworld is the only show that fully reflects the excellence of the industry by uniting everyone from the smallest to the largest brands representing every sector; and it offers each of these a prestigious platform to present themselves in the best light." 
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Trends
Vol 14 Issue 04 | april 2015
IN Town
The Art of Jewellery
Amrapali unleashes its latest 'Tribal Jewellery' collection
A
mrapali has revealed its latest collection of tribal jewellery . Tribal jewellery in India is quite rich. Each tribe has kept its unique style of jewellery intact even now. The original format of jewellery design has been preserved by ethnic tribal. The unrefined look of their jewellery is something that attracts people most. With the goal of reviving India's ancient art of jewellery on a global scale, the company began by exploring the most remote and rural parts of India and authentic and awe inspiring jewellery traditions therein. The brand encapsulates the vibrant culture and rich heritage of India. Taking design cues from its roots, the Amrapali collections are all handcrafted, drawing inspiration from classical Indian art, Mughal and tribal jewellery. Amrapali fuses the influences of east and west.
"Amrapali applies methods used by ancient craftsmen, designers and silversmiths to its products, absorbing and combining the many rich traditions of India."  Rajiv Arora,
Founder, Amrapali Jewels, Jaipur
Wear Wear Your Your Loved Loved Ones Ones Finger Finger Print Print as as a a Ring Ring tel : 0422- 3929277 tel : 0422- 3929277 E: info@kasikiran.com Ph : +91 9443063055 www. kasikiran.com E: info@kasikiran.com Ph : +91 9443063055 www. kasikiran.com No.42,West Lokamanya Street, R.S.Puram, Coimbatore - 641002. TamilNadu, India No.42,West Lokamanya Street, R.S.Puram, Coimbatore - 641002. TamilNadu, India
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exhibitions
calendar
Domestic
Vol 14 Issue 04 | April 2015 The Art of Jewellery
Jewellery Wonder (JW) May 9-11, 2015, Pragati Maidan, New Delhi
Jewellery Market 2810/20, 2nd Floor,BeadonPura, Karol Bagh, New Delhi-110005 , Tel: +91 11 45032676 Email: Jewellerymkt@gmail.com | Web : www.jewellerywonder.net
Jaipur Gems & Jewellery Machinery Show June 19-21, 2015, Jaipur Exhibition & Convention Centre, Jaipur
Indore Infoline Pvt. Ltd. Info House, 246, Greater Brijeshwari, Opp. Sch. No. 140, Indore 452016, Tel: +91 731-4093000 Email: iyp_ind@yahoo.co.in | Web : www.indiajewelleryexhibition.com 1st Edition
India International Jewellery Show (IIJS) August 6-10, 2015, Bombay Convention & Exhibition Centre, Goregaon, Mumbai
Gem and Jewellery Export Promotion Council (GJEPC) Office No. AW 1010, Tower A, G Block, Bharat Diamond Bourse, Next to ICICI Bank, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051, Tel: +91 22 2654 4600 Email: iijs@gjepcindia.com | Web: www.iijs.org
Jewellers Association Show (JAS) August 21-24, 2015, JECC, Jaipur
Jewellers Association, Jaipur Jewellers Association, 252, Johari Bazar, Jaipur-302003, Tel: +91 141 2563829, 4034112 Email: info@jasjaipur.com | Web : www.jasjaipur.com
India International Fashion Jewellery& Accessories Show (IIFJAS) September 8-11, 2015, Bombay Exhibition Centre, Mumbai
Radiant Expositions Ltd. 9th India International Fashion Jewellery & Accessories Show
105, Stanley Regency, Beverly Park, Near Cinemax Theatre, Mira Road (East), Mumbai- 401107, Tel: +91 22 6464 5500 Email: abhishek@radiantevents.in | Web : www.iifjs.com
Jewellery Wonder (JW) September 13-15, 2015, Pragati Maidan, New Delhi
Jewellery Market 2810/20, 2nd Floor,BeadonPura, Karol Bagh, New Delhi - 110005, Tel: +91 011 45032676 Email: jmbm@jewellerymkt.com | Web : www.jewellerywonder.net
Jaipur Jewellery Show (JJS) December 19-22, 2015, Jaipur Exhibition & Convention Center (JECC)
Jaipur Jewellery Show Gold Souk, TF-01, Third Floor, Jagatpura Road, Jawahar Circle, Jaipur - 302017, Tel: +91 141 2725648 Email: info@jaipurjewelleryshow.org | Web : www.jaipurjewelleryshow.org
Vol 14 Issue 04 | april 2015
International
exhibitions calendar
The Art of Jewellery
149
April 12-13, 2015
May 7-10, 2015
Atlantis The Palm, Dubai
Tan Binh Exhibition & Convention Centre (T.B.E.C.C.), Vietnam
Dubai Precious Metal Metals Conference Foretell Business Solutions Email: register@dpmc.ae Web: www.dpmc.ae
International Jewelry + Watch Vietnam
World Trade Fair (International) Limited Email: sales@wtf.com.hk Web: www.vietnamjewelryshow.com
April 18-20, 2015
May 13-15, 2015
Chicago's Navy Pier, Chicago
Kobe International Exhibition Hall, Japan
American Gem Trade Association
Reed Exhibition Japan Ltd.
Email: info@smartjewelryshow.com Website: smartjewelryshow.com
Email: ijk-eng@reedexpo.co.jp Web: www.ijk-fair.jp
April 18-21, 2015
May 16-19, 2015
Arezzo Fiere e Congressi s.r.l. Via Spallanzani, Italy
Colombo, Sri Lanka
The SMART Jewellery Show
Oroarezzo
International Jewellery Kobe
ICA Congress
Arezzo Fiere e Congressi S.r.l.
International Colored Gemstone Association
Email:vicepresidente@arezzofiere.it Web: www.arezzofiere.it
Email: ishan@simplyifly.com Web: www.congress.gemstone.org
April 20-25, 2015
May 29- June 1, 2015
13th International Gold & Jewelry Exhibition
JCK Las Vegas
Mandalay Bay Resort & Casino
International Fairs Ground, Kuwait
Reed Exhibitions
Kuwait International Fair
Email: inquiry@jck.reedexpo.com Web: www.lasvegas.jckonline.com
Email:info@kif.net Web: http://www.kif.net/
April 23-26, 2015
June 17-18, 2015
Dubai World Trade Centre, Dubai
Saatchi Gallery, London
DV Global Link
i2i Events
Email: exhibitor@vicenzaorodubai.com Web: www.vicenzaorodubai.com
Email: Exhibitor.help@i2iassist.com Web: www.jewelleryandwatchlondon.com
May 4-6, 2015
June 18-21, 2015
Sheraton da Bahia Hotel, Salvador
Diamond Island Convention & Exhibition Centre, Cambodia
VICENZAORO Dubai
CIBJO Congress Instituto Brasileiro de Gemas e Metais Preciosos (IBGM) Email: communications_1@cibjo.org Web: www.cibjo.org
Jewellery & Watch London
Cambodia Gems & Jewellery Fair
Ministry of Commerce (MOC), Kingdom of Cambodia Email: sales@wtf.com.hk Web: www.cambodiatradefair.org
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exhibitions
calendar
International
June 24-27, 2015
Machinery, Equipment, Technology & Supplies for Jewellery and Watch Industry- METS Kowloonbay International Trade & Exhibition Centre, Hong Kong
Hong Kong Jewellery& Jade Manufacturers Association
Vol 14 Issue 04 | April 2015 The Art of Jewellery
September 28-30, 2015
International Jewellery Tokyo Autumn World Import Mart, Tokyo
Reed Exhibition Japan Ltd. Email: ijt-eng@reedexpo.co.jp Web: http://www.ijt.jp/en/autumn/
Email: exhibition@mets.hk Web: www.mets.hk July 2-5, 2015
October 25-27, 2015
Marina Bay Sands Expo and Convention Centre, Singapore
Javits Convention Center, NYC
Messe Basel Fair Authority
Email: jany@experient-inc.com Web: www.ja-newyork.com
Singapore international jewellery expo
Email: nupurs@eigroup.in Web: www.sije.com.sg/
JA Special Delivery New York JA New York
July 26-28, 2015
October 15-18, 2015
Javits Convention Center, NYC
Istanbul Expo Centre
JA New York Summer
40th Istanbul Jewelry Show
JA New York
UBM
Email: jany@experient-inc.com Web: www.ja-newyork.com
Email: info.india@ubm.com Web: http://october.istanbuljewelryshow.com/ en/Page/12/home.aspx
August 6-9, 2015
October 6-10, 2015
International Jewelry + Watch Vietnam
39th MidEast Watch & Jewellery Show
Tan Binh Exhibition & Convention Centre (T.B.E.C.C.), Vietnam
Expo Centre Sharjah, UAE
World Trade Fair (International) Limited
Email: amjed@expo-centre.ae Website: www.mideastjewellery.com
Email: sales@wtf.com.hk Web: www.vietnamjewelryshow.com
Expo Centre Sharjah
August 21-24, 2015
October 30- November 01, 2015
KLCC - Kuala Lumpur Convention Centre
Munich Trade Fair Center, Munich
Elite Expo Sdn. Bhd.
Munich Trade Fair Center
Email: exhibition@elite.com.my Web: www.elite.com.my
Email: besucherservice@munichshow.com Web: https://munichshow.com
Malaysia International Jewellery Fair
Gemworld Munich
September 6-9, 2015
November 7-9, 2015
National Exhibition Centre, Birmingham
Vicenza fair ground, Italy
Autumn Fair International
Palakissvicenza, Fall
i2i Events Group
VJ Magazine
Email: Exhibitor.help@i2iassist.com Web: www.autumnfair.com
Email: a.scattolin@palakisstore.com Web: www.palakisstore.com
Although every possible care has been taken to print the event details correctly, no claim will be entertained for changes / cancellations in dates or venue by the organizers. For detailed information regarding Fairs / Shows concerned organizers may be contacted. - Editor.
price
152
trends
The Art of Jewellery | Vol 14 Issue 04 | april 2015
P. C. Jeweller
& The Art of Jewellery Presents
Gold and Silver Price Trends 22 Carat Gold/10 gm
Stock Price Movement - Gem & Jewellery Sector Company
SILVER/1kg
DATE B’lore Chennai DELHI Mumbai 01st March 2532 2532 2527 2526 02nd March 2541 2539 2533 2532 03rd March 2521 2519 2515 2516 04th March 2519 2516 2511 2512 05th March 2519 2516 2511 2512 2514 2515 06th March 2521 2520 07th March 2497 2492 2488 2490 08th March 2497 2492 2488 2490 09th March 2497 2492 2488 2490 10th March 2460 2456 2450 2452 2455 2456 11th March 2466 2465 12th March 2450 2450 2446 2448 13th March 2450 2450 2446 2448 14th March 2472 2470 2465 2468 15th March 2472 2470 2465 2468 16th March 2464 2463 2455 2458 17th March 2454 2450 2446 2448 18th March 2444 2441 2438 2436 19th March 2466 2466 2458 2460 20th March 2466 2466 2458 2460 21st March 2493 2491 2486 2488 22nd March 2493 2491 2486 2488 23rd March 2493 2491 2486 2488 24th March 2480 2476 2472 2470 25th March 2495 2492 2488 2488 26th March 2522 2518 2512 2510 27th March 2544 2542 2522 2532 28th March 2514 2514 2510 2512 29th March 2514 2514 2510 2512 30th March 2506 2505 2501 2502
B’lore Chennai DELHI Mumbai 37158 37210 37084 37088 37382 37415 37354 37336 36716 36700 36680 36684 36498 36505 36486 36492 36498 38540 38516 38511 36436 36385 36334 36322 35960 35965 35940 35944 35960 35965 35940 35944 35960 35965 35940 35944 35558 35540 35522 35530 35703 35660 35578 35585 35438 35365 35578 35585 35438 35365 35348 35372 35674 35675 35632 35644 35674 35675 35632 35644 35598 35600 35554 35582 35462 35420 35428 35444 35260 35245 35216 35228 35894 35845 35810 35822 35894 35845 35810 35822 36958 36930 36832 36848 36958 36930 36832 36848 36958 36930 36832 36848 37856 37920 37824 37838 38264 38210 38146 38154 38464 38532 38328 38336 39068 39100 39066 39072 38356 38210 38148 38118 38356 38210 38148 38118 38268 38195 38128 38134
Asian Star Company Limited Classic Diamonds (India) Limited
Share Price (Rs) mar 02
mar30 Gain/Loss
907.00 1190.00 + 283.00 2.04
1.76
– 0.28
C Mahendra Exports Limited
11.77
9.10
– 2.67
Deccan Gold Limited
32.50
30.75
– 1.75
1.87
1.44
– 0.43
Goldiam International Limited
26.00
23.05
– 2.95
Golkunda Diamonds & Jewellery Limited
18.00
20.40
+ 2.40
Gitanjali Gems Limited
50.75
41.30
– 9.45
8.18
7.40
– 0.78
PC Jeweller Limited
264.00
314.05
+ 50.05
Rajesh Exports Limited
167.00
197.50
+ 30.50
Renaissance Jewellery Ltd.
80.00
73.00
– 7.00
Shree Ganesh Jewellery House Ltd
22.45
14.65
– 7.80
Shrenuj & Company Limited
48.35
46.65
– 1.70
Shirpur Gold Refinery Limited
73.90
64.05
– 9.85
Swarnasarita Gems Ltd.
32.50
29.45
– 3.05
Tara Jewels Ltd
75.55
55.55
– 20.00
Goenka Diamonds & Jewels
Narbada Gems and Jewellery Limited
Thangamayil Jewellery Ltd.
219.30
200.00
– 19.30
Titan Company Limited
412.10
391.25
– 20.85
Tribhovandas Bhimji Zaveri Limited
– 21.35
166.45
145.10
Vaishnavi Gold Limited
1.87
1.21
– 0.66
Vaibhav Global Limited
822.05
800.35
– 21.70
0.58
0.41
– 0.17
Gold BeES
2464.90 2407.00
– 57.90
Kotak Gold ETF
2458.00 2432.00
– 26.00
Quantum Gold ETF
1250.00 1230.00
– 20.00
UTI Gold ETF
2441.00 2421.70
– 19.30
Winsome Diamonds and Jewellery Limited
Gold ETFs
Graphic representation of gold & silver price movement in Mumbai bullion market 39,000
Silver Price in Rs.
38,000 37,000
Disclaimer: The prices of precious metals have been collated from multiple sources. In no event shall the magazine or its employees have any liability for any losses incurred in connection with the decision made or action taken by any party in reliance upon the information provided in this material.
25,000
Gold Price in Rs.
24,000 24,500 01
02
03
04
05
06
07
09
14
15
16
17
18
20
21
22
23
24
27
28
29
30
To get your daily Stock Price Movement, subscribe to our E-news.
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154
the source
Vol 14 Issue 04 | APRIL 2015 The Art of Jewellery
M a n u f a c t u r e r / W h o l e saler/Exporter/Retailers Daulath Krishna Jewellers Silver Palace #146, 1st floor, KHB Colony, 5th Cross , 5th Block, Koramangala, Bangalore – 560 095, Ph: +91-80-2550 7888/444 Mob : +91- 94488 03334 E: daulathkrishnajewellers@gmail.com Dealers in 916 kdm, Jewellery, Gems, Diamonds & Silver items. Join our monthly saving schemes.
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InduSTRY TIDBITS
Vol 14 Issue 04 | april 2015 The Art of Jewellery
155
Growth of Branded / Vs Unbranded Jewellery –Globally 10
13
19
90
87
81
2003
2005
2007
19
81
2009
20
30 to 40
80
60 to 70
2011
2020 Estimated
Branded Source: Expert interviews; McKinsey Analysis
Get Your Daily dose of Jewellery News
Unbranded
Obitury
www.artofjewellery.com
Shri. M Raghunath Shet (16/07/1947 - 07/04/2015)
Shri. M Raghunath Shet President of S.K. District Swarna Vyapari Sangha, Mangalore and Managing Partner, S.L.Shet Jewellers & Diamonds, Mangalore.
THE DIAMOND MARKET
NEWS
Vol 14 Issue 04 | april 2015
DIAMONDTALK
The Art of Jewellery
Diamond jewellery demand picks up
D
iamonds are forever. But in India they are for everyone too! At least, this is
what the sales figures of diamond jewellery in this traditional gold consuming country show. Diamond jewellery sales in the country have soared from just about US $750 million six years ago to US $8.49 billion in 2014. The sales have been pushed by gold prices skyrocketing
and polished diamond prices reducing in the last six years. According to De Beers report, India now accounts for 13 per cent of the global jewellery sales, just behind China (15 per cent) and the US (40 per cent), which have been the traditional diamond markets since many years. The global jewellery sale is pegged at US $81 billion per annum. Mehul Choksi, chairman and managing director of Gitanjali Group, "Indians have developed a big appetite for diamond jewellery. The middle-class too is lapping up this jewellery fast. Many retailers are also making affordable jewellery for all the segments of consumers."
‘Perfect’ diamond to be exhibited in Dubai A rare 100-carat diamond will travel to Dubai for a preview before the jewel goes under the hammer in New York next month, where predictions suggest it could fetch up to US $25 million (Dh92m). It is one of just five diamonds over 100 carats and of comparable quality to have been offered at auction, according to auctioneers Sotheby's. Diamonds of this exceptional quality are incredibly rare and are considered 'perfect', the auction house said. The original weighed more than 200 carats and had been mined by De Beers in southern Africa. The current owner of the diamond spent more than a year studying,
cutting and polishing the rough diamond before delivering the stone to the auction house.
"The colour is whiter than white, it is free of any internal imperfections and so transparent that I can only compare it to a pool of icy water," said Gary Schuler, head of Sotheby's jewellery department in New York.
159
IN BRIEF Diamond demand weakens; exporters experience difficulty
I
ndia diamond exports are expected to remain flat at best this fiscal year as a weak rouble and low oil prices softened
demand from the key markets of Russia and the Middle East. Industry executives don't expect the situation to improve before June, by when they foresee a shortage. "The sentiment is not yet positive," Vipul Shah, chairman of the Gem & Jewellery Export Promotion Council, told. Between April 2014 and January 2015 - the first ten months of the current fiscal - exports of cutand-polished diamonds dropped by 4.52 per cent from a year ago, to 286.76 lakh carats. This trend isn't going to change drastically in February and March. "Exports are likely to remain flat," said Shah. Amid this, polished diamond prices remained under pressure in February. Diamond trade in India is facing a liquidity crisis as well.
160
NEWS
Vol 14 Issue 04 | april 2015
DIAMONDTALK
The Art of Jewellery
Forevermark sales reach US $750M
T
he Forevermark diamond brand confirmed that it experienced strong growth in
2014 with the retail value of sales topping out around US $750 million, according to Stephen Lussier, Forevermark's CEO. In addition, Forevermark's store presence increased 20 per cent year on year to 1,542 locations. Demand for the branded diamonds was strong in the US and increasingly higher in India and China due to
an emerging middle class. Lussier said, "Consumer preference for branded diamonds and diamond jewellery is set to continue to increase in 2015. As Forevermark's distinctive brand proposition addresses confidence issues on quality and integrity, and provides the assurance that today's consumers are demanding from their high-value purchases, we are well positioned to succeed as a leading force in the category."
olished diamond prices remained under pressure in February. Sentiment improved ahead of the Hong Kong International Diamond, Gem and Pearl Show taking place from March 2 to 6 but trading volume was low and liquidity tight in the manufacturing centers. Buyers lacked confidence to make large inventory purchases and limited their buying to fill existing orders. The RapNet Diamond Index (RAPI) for 1-carat laboratorygraded diamonds rose one per cent in February. RAPI for 0.30-carat diamonds declined 1.3 per cent, while RAPI for 0.50-carat diamonds fell 1.4 per cent. RAPI for 3-carat diamonds dropped by 0.5 per cent during the month.
GIA & De Beers to speak on synthetic diamonds
T
he Gemological Institute of America (GIA) and De Beers Technologies UK will host a panel of speakers on the topic of
Forevermark's licensee program expanded in Turkey during the year and just since the launch in May, the brand is now available in 42 stores through an exclusive partnership with Zen Diamond. 
Polished diamond prices decline in February
P
IN BRIEF
Geopolitical added to
the
developments uncertainty.
Russian and Middle East demand slumped along with the ruble and oil prices. Chinese demand for large diamonds also weakened due to the government's campaign against corruption and conspicuous consumption. Diamantaires looked to the US for support where there was good demand for SI-I2 clarity diamonds. 
synthetic diamonds during GIA GemFest Basel 2015 on March 22 at the Congress Center Basel in Switzerland. Tom Moses, the executive vice president and chief laboratory and research officer for GIA, will moderate the discussion with Dr. Simon Lawson, the head of technologies UK for De Beers and Dr. Wuyi Wang, the director of research and development for GIA. The event is free and will begin at 5 p.m. in the Montreal Auditorium, with a reception to follow. The technology for creating synthetic diamond has improved significantly over the past decade and, as a result, gemquality synthetic diamonds have appeared in greater quantities and received wider media exposure. 
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NEWS
Vol 14 Issue 04 | april 2015
DIAMONDTALK
The Art of Jewellery
Rapaport to auction 98,000 Carats diamonds
R
apaport Auctions, the leading recycler of diamonds in the world, will be opening its melee auction in Hong Kong on March
2 with over 98,000 carats of diamonds. The auction consists of recycled and finely assorted premium-quality diamond parcels in all shapes, qualities and sizes sourced from thousands of retailers, pawnshops and refineries from around the world. Viewing is taking place at the Asia World-Expo in Hong Kong from March 2 to 5. The wide variety of merchandise offered and the
opportunity for buyers to purchase such large quantities of diamonds has generated strong buyer interest. Viewing is by appointment only and limited spaces are available. "We are excited to be auctioning a record quantity of diamonds and providing our suppliers with a unique opportunity to sell their diamonds at one of the largest jewellery shows of the year. While there has been a slight uptick in market activity after a weak third and fourth quarter, all eyes are on the Hong Kong show as it will play a determining role for the trend in the second quarter," said Ezi Rapaport, the director of global trading at Rapaport Group.
Polished diamond prices continue fall
L
ike in 2014, the polished diamond prices have continued to show negative growth in the first two months of 2015. At a time when diamond manufacturers and traders in the world's largest diamondcutting and polishing centre here are passing through a tough phase, diamond prices fell between 0.5 per cent and 1.4 per cent in February due to softening of demand across the world. According to Rapaport group, polished diamonds continued to decline in February despite ‘improved sentiment’ ahead of
the Hong Kong International Diamond, Gem and Pearl Show. Rapaport said geopolitical developments, including a slump in demand in Russia, West Asia and China, added to the uncertainty. It added that during the month, diamantaires looked to the United States for support where there was good demand for diamonds. In 2014, the polished diamond prices had declined by 8.1 per cent throughout the year. Jewellery sales during the Chinese New Year Spring Festival were mixed with soft demand for high-end products and steady sales of "commercialquality" diamond jewellery.
IN BRIEF Diamond companies to set up consumer promotion body Executives from eight of the largest diamond mining companies met recently to explore the establishment of an
association that will promote diamonds as a consumer product. De Beers, Rio Tinto, Grib Diamonds, Petra Diamonds and Dominion Diamond Corporation confirmed their participation in the meeting, which took place at Rio Tinto's corporate headquarters in London. ALROSA, Gem Diamonds and Lucara Diamond Corp., were also said to be in attendance but had not responded to Rapaport News by press time. In a prepared statement, the companies confirmed that, “Preliminary discussions have been held between a number of producers to explore the potential remit and scope of an industry association for diamonds that would seek to better understand, address and protect the needs of diamond consumers.
NEWS
Vol 14 Issue 04 | april 2015
DIAMONDTALK
The Art of Jewellery
WFDB executive committee takes a firm stand
T
he World Federation of Diamond Bourses (WFDB) completed a two-day meeting of the executive committee and AsiaPacific presidents' summit in Shanghai, having addressed a range of "crucial issues affecting the global diamond industry," according to WFDB's president, Ernie Blom. "The executive committee meeting and Asia-Pacific presidents" summit once again proved its worth in providing a setting for comprehensive discussions on all the critical issues of the day that are affecting our members," said Blom. "The executive meeting
adopted a very firm stand on the issue of global grading standards. We will have zero tolerance for flagrant abuse of grading standards." Additional topics included declining profitability for the WFDB members due to high rough prices and falling polished prices, as well as the decrease in bank credit to the trade and the need to boost consumer demand for stones. Attendees praised the World Diamond Mark (WDM) for promoting generic diamond marketing. The program has recently launched a new website and it will add Chinese language and WeChat, the Chinese version of Facebook, shortly. 
Antwerp diamond industry to explore Brazil
A
fter the Antwerp diamond industry made it a priority in recent years to conquer the Asian market, in 2015 it will target its offensive on Latin America. Brazil, in particular, has many opportunities with regards to diamond production. Accompanied by secretary of state for foreign trade, Peter De Crem, from March 12 through 17, the Antwerp World Diamond Centre (AWDC) will travel to Brazil for the first time. Brazil currently ranks 17th among diamond producing countries but it is loaded with potential. Geologists have mapped the Brazilian landscape in recent
years, discovering some 50 potential diamond mines. "There are two reasons why these mines have not been exploited," said Ari Epstein, the CEO of the AWDC. "On the one hand, the Brazilians do not know how they have to set up commercial exploitation of mines; on the other hand, they do not know how they have to implement the strict regulations and controls that apply to the diamond industry." In the context of Crem's trade mission, the AWDC is organizing a seminar about the Kimberley Process regulations, which are the guarantee that diamonds are traded legally. 
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IN BRIEF US polished diamonds imports falls 3per cent in January
U
S polished diamond imports fell 3.2 per cent year on year to US $1.827 billion in January. The average price dropped 7 per cent
to US $1,727 per carat, which was the lowest level since September 2013. Polished diamond exports rose 3.3 per cent to US $1,379 billion, leaving net imports down 19 per cent to US $447 million. Rough diamond trading was greatly diminished during January. Rough imports fell 73.6 per cent year on year to US $14 million and rough exports were off by 78.9 per cent at US $12 million, leaving net imports of just US $2 million compared with a US $4 million deficit one year ago. The net diamond account in January, which revealed the difference between net imports and net exports, fell 18.1 per cent to US $449 million. 
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Special report
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DIAMONDTALK
The Art of Jewellery
Coloured diamonds
The new alternative to white diamonds F
ancy coloured diamonds are hailed as the most exciting segment of the diamond industry. The natural coloured diamond category has become much more active in recent years, with consumers searching for an alternative to white diamonds. More people understand the importance and rarity of fancy colour diamonds in the context of their beauty, as well as their investment value. In fact, among the highest priced jewels at an auction in 2014 were vivid blue diamonds, with the 9.75 carat 'Zoe Diamond' selling in November at Sotheby's New York for over US$ 32 million (US$ 3.3 million per carat), setting a new
world auction record for highest total price for a blue diamond and highest price per carat for any diamond. From the world's top auctioneers to Academy Awards, fancy coloured diamonds in dazzling jewels are what you remember, like Catherine Zeta Jones at the 2013 Oscars wearing bold mosaic style
earrings by Lorraine Schwartz set with over 200 carats of earth tone natural diamonds worth more than US$ 1 million. Or, Heidi Kulm at last year's Golden Globes in black diamond jewellery, including a million dollar 200 carat black diamond necklace a la Schwartz. Noting that coloured diamonds have the aura and symbolism of 'diamonds' with the unusual appeal of coming in so many different colours.
Capturing Attention Thirty years ago you couldn't give away a coloured diamond, especially yellows and browns, some coloured diamond dealers quip.
Special report
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DIAMONDTALK
The Art of Jewellery
"High flying auction results and the media publicity surrounding celebrities receiving and showing off coloured diamond have created a huge increase in the desire for these remarkable stones," says Alex Bassalian, partner in Bass Premier, London, UK. Auction houses are doing a great job of promoting fancy colour diamonds, getting people talking about and interested in them. "They don't do
it for us; they do it for themselves," says Leibish Polnauer, president of Leibish & Co., Ramat Gan, Israel. "A gorgeous green or blue diamond on an auction catalog cover, now that's something to get excited about!" 2014 was good as a year for recordsetting rare coloured diamonds, with notables including: an 8.41 –carat flawless fancy vivid pink diamond (US$ 17.7 million); 100.09 carat Graff vivid yellow, the largest
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yellow, cut precious stone in the world (US$ 16.3million); and a 1.56 carat Argyle 'red Phoenix (US$ 2 million). "Yellow, pink, blue, orange and red are the five colours we have seen at the auction level of interest, recognized by the market place, which have grown more than in prior years," says Bruno Scarselli, NBS Diamonds, New York City. “Less than 1 per cent of all commercial diamonds being produced we refer to as coloured. Far less are available
"The beauty of coloured diamonds is that all colours hold a unique and different appeal. Coloured diamonds give jewellers more creative play in designs and stronger margins with little to no price comparison" Leibish Polnauer, President,
Leibish & Co., Ramat Gan, Israel
in the vivid hues, and an even smaller per cent surpass 1 carat, so when something exciting headlines an auction its important, certainly on the investment market." In the last five years, fancy colour diamonds have become better known and sought after within the general public in comparison to the last decade. "This is influenced by increasing publicity of the red carpet and what stars are wearing. Who can forget Jennifer Lopez's 6 carat pink diamond ring," reminds Danny Frifeld, Red Diam Ltd., Ramat Gan, Israel. "Yellow diamonds, too, are a red carpet favourite, and other
colours are now in the spotlight like grey, black and brown. We live in a more fashion forward, glamourous world." Polnauer adds that high profile jewellers like Graff also create a lot of attention for fancy colour diamonds.
The intensity of the colour is one of the most important factors in determining the value of a natural coloured diamond, which typically increases with the intensity of the most prominent colour within the stone.
Beauty of colour
The beauty of coloured diamonds is that all colours hold a unique and different appeal, tells Polnauer, who notes that fancy colours cater to almost all price points. Coloured diamonds give jewellers more creative play in designs and stronger margins with little to no price comparison. "Jewellers should not just focus on larger statement
Diamonds exist in nature in almost every colour. Natural coloured diamonds vary from the faintest shade of pastel pink, brown or yellow to the most deep, vivid shade of blue, green or orange-with colours like red, purple, blue, green and black being extremely rare.
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DIAMONDTALK
pieces in colour, but also include more affordable coloured diamond jewellery to capture new, younger buyers," says Polnauer. This special niche category offers jewellers many ways to up their value proposition by incorporating natural coloured diamonds in their lines, says Bassalian. "Coloured diamonds inspire jewellers to make special jewellery that people want to buy, that lends themselves to individual detailing and has personalized meaning." Over the last five years, there are more mainstream designs incorporating natural coloured diamonds, which indicates that a
The Art of Jewellery
much wider audience has accepted coloured diamonds as an option. "More jewellers are designing multicolour and multi-shape diamond pieces like tutti-frutti style, fun, great to wear all day, every day," says Scarselli. "Lifestyle trends have become more casual."
"Though coloured diamonds have existed since diamonds were discovered, about 3000 years ago in India, its only in the last 20 years that their beauty has become an object of desire for the consumer market," Alan Bronstein
Polnauer, who notes that 50 per cent of his customers are privates and 50 per cent jewellers, says there are much smaller transactions happening, like half eternity band with pink and white diamonds for US$ 2500 retail; or an 11 stone mixed colour diamond band for US$ 1000 retail. He also cites that more people are buying coloured diamonds online- from 20 points to
Vice President, Natural Coloured Diamond Association (NCDIA)
20 carats. "We are making important transactions online-like a flawless yellow diamond ring for a 25th anniversary. We never talked to the buyer, it was all done online." He believes this sales channel will be even more important in the near future, as online sales have grown 15 per cent overall in three years. The most popular colours on the market currently are yellow, pink and champagne, in that order. "Demand is particularly strong for fine, clean yellow diamonds," shares Bassalian. "We see strength in classic fashion jewellery in yellow diamonds for earrings, rings,
Special report
Vol 14 Issue 04 | april 2015
DIAMONDTALK
The Art of Jewellery
Pink diamonds are becoming even more sought after as people begin to see them as an investment due to the scarcity of the fine quality stones in sizes over half a carat, increasing global demand, and the imminent end of supply from the Argyle mine, producer of more than 90 per cent of the world's natural pink diamonds, shares Gino DiGeso, NCDIA director.
pendants and some necklace and bracelet layouts. While coloured diamonds have become more popular in bridal, white diamonds are still number one, especially for first time brides, although more brides are adding yellow diamonds accents to their rings. I wouldn't say that bridal is the biggest category for coloured diamond demand at that moment." Scarselli sees continued interest in big sizes of fancy yellow between 7 and 20 carats, and 5 to 25 carats in intense to vivid yellow, noting the great value they present. "Yellow diamonds are the most undervalued of the coloured diamonds, lagging pinks and blues in price per carat. A 1 carat vivid yellow diamond is US$ 30,000 a carat compared to a 1 carat vivid pink at US$ 850,000 a carat, or a 1 carat vivid blue for millions." While he acknowledges that there are far fewer pinks and blues than yellows, he reminds us that yellow is still rare when one in every 1000 carats mined possess colour. "Yellow has far to go to climb the value ladder."
Colour is the most stable market in the diamond business, reports Frifeld, who says that even in years of hardship and substantial liquidity problems, colour diamonds sustained their value. In the last decade, the price per carat of colour diamonds has more than doubled, says Polnauer, while pink in particular has tripled. As for the champagne to brown colours, DiGeso hails them as the ideal entry level products in this category. "Brown diamonds come in a variety of shades from subtle champagnes to rich cognacs, and at lower price points opening up natural coloured diamonds to more jewellery makers, retailers and consumers."
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Thomas Hainschwang, GGTL Laboratories, Balzers, Liechtenstein advises jewellers shopping for coloured diamonds, especially parcels of melee, to be proactive in checking for synthetics. "The biggest issue we see with fancy colour diamonds in the lab has been with melee, especially with vivid yellow diamonds. I haven't seen a single parcel that did not contain some synthetics. It can range from 1 per cent to 35 per cent synthetic, but on average its 1 per cent to 2 per cent. If
Fancy color diamonds the next big thing in engagement rings because it's rare, precious and uniquely beautiful. Shweta Pathak Aakarshan Jewellery Boutique
you want to be sure, you need to go to the lab, especially for big jewellery manufacturers." Jewellers in the market for natural coloured diamonds should work with dealers they trust, says Frifeld, noting that it's such a specific market so there's a smaller base of manufacturers, who deal in coloured stones. Moreover, buy stones accompanied by an independent lab report to ensure that the origin of the colour is 'natural'.  
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USA
The Art of Jewellery
US- Diamond Dealers concerned about current price levels
P
olished diamond dealers expressed concern about current price levels which are going down. Suppliers are trying to hold their prices firm to avoid making a loss since their costs remain high. New York dealers feel they're being squeezed within the trade as they note Indian suppliers are more willing to lower prices. There is steady demand for triple EX diamonds and stable demand for piquĂŠ goods. Jewellery retail sales are stable but quiet with no major holidays to boost demand. Jewellers are focused on their bridal lines, while engagement ring sales are stable ahead of the spring and summer season. Dealers are exercising caution in New York due to uncertainty in the global market. However, some suspect that it is easing slightly since reduced manufacturing has lowered the volume of polished goods that are available and enabled dealers to sell off weaker inventory. While
Belgium
confidence is lagging, there is stable demand for 1-carat, G-M, SI-I2 diamonds, while ovals are selling well among fancy shapes. Jewellery retail sales are stable although consumers continue to shift toward lower price points.
Belgium exhibitors disappointed with the Hong Kong show
S
entiment is weak as polished prices continue to soften. Dealers returned from the Hong Kong show disappointed in their sales and reported that there was weak Far East demand for 1-carat and larger, VS+ diamonds that typically sold well there in previous years. There was stable demand for below 1-carat, J-M, SI-I2 goods at the show. In Antwerp, there is stable demand for dossiers and nice-make SI goods. Dealers note that profit margins have thinned as rough prices have not dropped to the same extent as polished prices. Manufacturers have indicated that it's better to buy polished than rough. In addition, fewer polished goods are entering the market following cutbacks in polished production by manufacturers during the past few months.
Mr. Sonu 09821726497
Mr. Chetan 09987174062
S.S. JEWELLERY Specialize in Pineapple Jewellery & Machine Bangles Brands AU Finja, Zar, DBS
74/A, Sheikh Memon Street, 2nd Floor, Opp. Hotel Bhagat Tarachand, Zaveri Bazar, Mumbai - 400 002. Tel.: 022-22423072 / 32954079 E-mail : ssjewellery92@gmail.com
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China
The Art of Jewellery
Chinese demand for polished diamond to improve
P
olished trading is quiet although there is some expectation that Chinese demand will improve. Diamantaires feel that the recent Hong Kong show was too soon after the festival to attract Chinese buyers. Some dealers expect that retailers may need to replenish inventory soon, particularly since gem-set jewellery sales were reportedly positive during the festival. Trading is cautious and sentiment is relatively weak. Polished trading is slow and sales at the recent show reflected weak conditions in the Far East diamond market. There is steady demand for round, pointersize, H-L, SI diamonds and good demand for triple EX goods, which continue to garner a steady premium
over non-triple EX diamonds. More manufacturers are setting loose diamonds in jewellery to make better profit margins from the finished product.
Israel
Manufacturers are preferring polished diamond than rough
P
olished trading in Israel in March was stable, with steady demand from the US market. Rough trading was stable, although rough prices remained high relative to polished prices. Since liquidity was tight some manufacturers preferred to buy polished than to manufacture new rough. The Hong Kong show, from
March 2 – 6, included 115 Israeli companies in the national pavilion, with 30 other companies exhibiting throughout the show. Israeli traders who returned from the show reported that although business was down from last year, trading at the show met their expectations and boosted confidence. Asian demand for SI-clarity stones was good, while high-end fancy shapes were less in demand. Later in the month expectations rose that the three Basel shows, running from March 19 - 26, would result in higher demand for big stones and better-quality fancy shapes. Although the Israel Diamond Institute did not open a national pavilion at any of the shows, there were dozens of Israeli diamond companies exhibiting at all three shows: BaselWorld, the Rapaport Diamond Show and JGFEurope in Freiburg, Germany, just outside of Basel.
RMC Gems India Ltd.
RMC Gems India Ltd.
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Vol 14 Issue 04 | april 2015
INDEX
Advertiser
The Art of Jewellery
Page No.
Advertiser
Page No.
Abhishek Zaveri, Ahmedabad.......................................................35
Nahar Diamonds, Bangalore..........................................................99
Alankar International Pvt Ltd, Mumbai.......................................27
Nishka Jewel Designer, Bangalore.................................................22
Anmol Jewellers, Bangalore.........................................................131
Onex Juwells, Coimbatore..............................................................85
Anmolswarn (I) Pvt. Ltd., Bangalore............................................24
Padmavati Exports, Surat ..............................................................23
Ambaji Jewellers, Hyderabad �������������������������������������������������������� 13
Padmavati Jewellers Pvt Ltd, Mumbai .........................................12
B. N. Jewellers, Mumbai.................................................................47
Parth Diamond, Mumbai ............................................................158
Bhagwati Jewellers, New Delhi.....................(Special Insert) 38/39
Payal Gold, Mumbai ���������������������������������������������������������������������� 89
Bhindi Manufacturers, Rajkot.......................................................97
Preciosa A. S, Czech Republic.......................................................21
BVC Logistics, Mumbai................................................................153
Professional Engineering Works, Mumbai...............................143
Challani Jewellery Mart, Chennai.................................................73
Pruthvi Diamond Creation, Ahmedabad.....................................10
Chain N Chains, Mumbai.........................................................8 & 9
Pure Platinum Jewellery Pvt Ltd, Mumbai..................................43
Chain House, New Delhi.......................................................90 & 91
Purple Silver Jewellery, Bangalore...............................................127
Derewala Industries Ltd., Jaipur................................ 83, 115 & 129
R P Ornaments, Rajkot...................................................................29
Divine Solitaires, Mumbai.....................(DT Back Cover) 158/159
R. K. Jewels, Mumbai......................................................................28
Emerald Jewel Industry India Ltd, Coimbatore .........................61
R. M. Jewellery, Bangalore.........................................................6 & 7
Euro Cubic, Jaipur............................................................................. 3
Raj Jewellers, Mumbai ...................................................................16
Geet Jewels, Ahmedabad................................................................33
Rapnet, Mumbai............................................................................157
GIA India Lab Pvt Ltd., Mumbai ............(Back Inside Cover) 175
Rashminbhai Shantilal Zinzuwadia, Ahmedabad......................19
Gemological Science International, Mumbai ...........................161
RMC Gems India Ltd., Jaipur......................................................171
Goyam Gold, Bangalore.................................................................20
Rose Jewellers, Mumbai..................................................................14
Harshwardhan Gems Pvt. Ltd., Kolkata.......................................36
SAP Jewels, Hyderabad ���������������������������������������������������������������� 119
Heritage Pointe Pvt Ltd, Ahemedabad.........................................32
S S Jewellery, Mumbai...................................................................169
H.F. Jewellers, Kolhapur ���������������������������������������������������������������� 59
S.K. Seth Co. Jewellers, Mumbai...................................................65
Hsin Yi Co Ltd, Thailand.............................(Inside Front Cover) 2
S.K. Seth Jewellers, Mumbai..........................................................37
Imaginarium, Mumbai.................................................................121
Sangam Jewels N Gold LLP, Mumbai...........................................34
Jaipur Association Show, Jaipur �������������������������������������������������� 156
Shanti S. Seth Jewellers, Mumbai .................................................75
Jaipur Jewellery Show, Jaipur ������������������������������������������������������ 151
Shilpa Life Style, Rajkot............................................ 51, 53, 55 & 57
Jewel Ace India Pvt.Ltd, Jaipur ...................................................125
Shilpi Jewellers Pvt Ltd, Mumbai..................................................31
K.D. Zaveri & Co. Mumbai ...........................................................87
Shree Raj Jewellers, Secunderabad..............................................107
Kasi Kiran Diamonds, Coimbatore.............................................147
Sha Ratanchand Dilipkumar Oswal, Kolhapur ..........................81
Korpbiz Pvt Ltd, Mumbai.............................................................135
Shringar House of Mangalsutra, Mumbai................................... 11
KT Inc (Juno Moneta), Mumbai ������������������������������������������������ 139
Swarovski Gems, Mumbai......................... 105 & (Back cover) 176
KT Inc (Herros), Mumbai ����������������������������������������������������������� 141
Solanki Jewellers, Mumbai ............................................................49
L Gopal & Sons Jewellers, Kolkata................................................67
Soni Shailesh Nanalal, Ahmedabad..............................................63
Laxmi Diamonds, Bangalore.........................................................79
Sovan Jewellers, Bangalore...........................................................123
Laxmi Jewellery Exports Pvt Ltd., Ahmedabad .........................69
Sri Venketeshwara Jewellers, Chennai........................................137
Laxmi Jewellery, Chennai...............................................................41
Suman Silver, Bangalore ���������������������������������������������������������������� 30
Manak Jewellers (P) Ltd., Mumbai................................................39
Sunil Jewellers, Mumbai ���������������������������������������������������������������� 77
Manikchand Jewellers, Guwahati................................................145
Swaranmandir Jewel Designer Pvt. Ltd., Tumkur.......................15
Mehta Gold Pvt Ltd., Bangalore....................................................25
Swarnsarita Gems Limited., Mumbai.........................................173
M. Mehta and Sons, Mumbai �������������������������������������������������������� 71
Tare Gold Creations, Mumbai.......................................................38
Mirella India, Mumbai .................................................................174
Trident Corporation, Mumbai..................................................4 & 5
Mukti Gold Pvt Ltd, Mumbai........................................................17
Veekay Diamonds, Mumbai...........................................................18
NAC Jewellery, Chennai ���������������������������������������������������������������� 45 Disclaimer: This advertisements Index is aimed at helping readers locate the advertisements easily and not part of advertising contract. This should not be read as ranking or any other kind of prioritising. No allowance will be made for errors of spellings or other mistakes, even though proper care has been taken.