mines to market by MINES TO MARKET

EDITOR’S PAGE

Should India Ban Jewellery Import from Thailand?

ewellery imports in India from Thailand at a concessional rate have come under jeopardy as the Indian government is actively considering banning the import for the so called ‘misuse’ of the incentive by some Indian traders under bi-lateral Free Trade Agreement (FTA) between the two countries. At present government of India has suspended the imports at the recommendation of its Commerce Ministry till the retroactive check is conducted by the Thai side. India and Thailand have signed a bi-lateral trade pact for establishing an IndiaThailand Free Trade Agreement (FTA) on October 9, 2003. The FTA has a provision of an Early Harvest Scheme which covers certain items for concessional trade including gold jewellery. Thailand is also a part of ASEAN-India Agreement on Trade in Goods signed on August 13, 2009 under which gold jewellery is included for concessional trade. As per provisions of the FTA with Thailand, gold jewellery attracts only 1% of import duty from Thailand as compared to 10% from other countries. Indian government has come across some reports that many traders convert gold into jewellery in Thailand and then import them to India to escape the 4% duty on normal gold imports. Recently, imports of jewellery from Thailand were growing as they allow net margins to traders. Reports reveal that traders also melt the imported jewellery into plain gold to take benefit of the 3% difference in duty. As a result, total gold jewellery import into India from the three major countries viz Thailand, Italy and Dubai was estimated at 4 billion USD (Rs 21,760 crore) in the first nine months of 2012-13 as against 400 million USD in the same period last year. Although no jewellery import figures were reported by government agencies, traders here have estimate that over 50% of the total gold jewellery imports to India with an approximate value of INR 12,000 crore have come through Thailand. Former Chairman of India’s Gem & Jewellery Export Promotion Council (GJEPC) Mr. Sanjay Kothari says, “Although gold jewellery is imported to India from other countries also but imports of the same from Thailand have seen multi-fold rise so far in this year which have affected the Indian jewellery manufacturing industry badly. So to protect the interests of our jewellery industry, we have recommended our government either to treat Thailand at par with other countries which attract 10% import duty or ban jewellery imports from Thailand.” Meanwhile, the Indian government is also actively thinking to revise the guidelines for Special Economic Zones (SEZs) under which export-oriented units get substantial tax rebate for jewellery exports. A major chunk of gold jewellery imports come through SEZs, which is very difficult to bring to notice, say industry sources. But Mr. Somchai Phornchidark, President of Gem Jewellery and Precious Metal Confederation of Thailand and President of Thai Gem and Jewellery Traders Association is hopeful of a favourable outcome. He says “There are now big changes taking place in global gem and jewellery markets. The two giants – India and China – are opening up. The huge consumer demand for jewellery in these two countries is attracting high volumes of imports, and Thailand is working hard to serve those two markets. India and Thailand are presently negotiating a full Free Trade Agreement (FTA), of which gems and jewellery are a strong component. We are expecting a constructive of the negotiations.” It is sad to note here that some Indian traders are taking ‘undue advantage’ of the FTA provisions to achieve their ulterior motive of making huge profit. Instead of tightening the loop-holes left in the agreement in cooperation with the Thai government or punishing the culprits, the Indian government is considering banning the facility of concessional imports from Thailand. The government should think twice before taking any ‘absurd or un-imaginary’ step as it may undo the original spirit of the FTA and harm interests of the Indian jewellery industry.

Prashant Rathod Email: editor@minestomarket.net

Mines To Market / Mar-April’2013

SHORT NEWS

ALROSA Sell 51% in Timir to EVRAZ

LROSA and EVRAZ signed an agreement to sell the diamond miner’s controlling stake in OAO Timir, a mining and metallurgical integrated works, to EVRAZ. ALROSA broke the news in a press release received by Rough&Polished.

President of ALROSA, said.

roads, power lines.

Timir owns licenses for four iron ore deposits (Tayozhnoye, Desovskoye, Tarynnahskoye and Gorkitskoye) in South Yakutia with a total resource base of 3.5 billion tons of iron ore in the A + B + C1 categories.

When Timir will get into top gear, it will generate about 11,000 new jobs in the area, of which Tayozhnoye will account for about 4,000 jobs.

The first stage of the Timir Project involves the development of the Tayozhnoye Iron Ore Field with a resource base of 341 million tonnes of iron ore (in the A + B + C1 categories) containing 38-40% of iron. Tayozhnoye is expected to reach production capacity of 15 million tons of ore per year. Investments in the first stage of the Timir Project are estimated at $ 1.8 billion by 2018. Tayozhnoye is located 150 km from Neryungri, one of the industrial centers in South Yakutia, near the existing infrastructure - railways,

ALROSA is the world’s largest producer of diamonds by carat. In 2011, the company produced 34.6 million carats of rough diamonds, while ALROSA Group’s sales reached $ 4.454 billion. It is estimated that ALROSA will produce about 34.4 million carats and earn $ 4.5 billion in revenues in 2012. EVRAZ plc is a vertically integrated steel and mining company focused on coal and iron ore, as well as on producing and selling steel products. EVRAZ has assets in Russia, Ukraine, the United States, Canada, the Czech Republic, Italy and South Africa.

Diamond Demand to Double Supply in 10 Years The transaction amounts to RUB 4.95 billion (about $ 160 million) to be paid in several tranches. After the transaction is completed EVRAZ will hold a 51% interest in Timir, while ALROSA will have 49% minus 1 share, the latter to be held by Vnesheconombank. The transaction was approved by the Supervisory Board of ALROSA in September 2012. “The Timir Project has obtained a strategic investor represented by EVRAZ, which has extensive experience in the mining and processing of iron ore. The emergence of such a partner as EVRAZ will boost the Timir Mining and Metallurgical Integrated Works. For its part, ALROSA will continue to participate in this project and in particular invest in the development of the deposits in accordance with its share in the capital,” Fyodor Andreev, Mines To Market / Mar-April’2013

diamond industry analyst has made a game-changing prediction: within ten years, global demand for diamonds will far outstrip supply. Speaking on future trends for rough and polished diamonds recently, Belgian diamond company co-owner Henry Krohmal told a crowd assembled by Russian jewellery house Korloff in Saint Petersburg that international demand for diamonds will more than double supply in only a decade.

that few new diamond deposits are being reported, and those at are, in Russia, are of industrial-grade stones, not jewelry-grade gems. For its part, diamond giant De Beers believes that if there is another large diamond mine to be discovered, it will be found in the southern African nation of Angola, according to Rough and Polished.

Krohmal foresees global demand for rough diamonds passing the $20 billion mark, though he doubts the world’s annual supply of rough diamonds will surpass $9 billion in total. He noted

SHORT NEWS

TBZ opens Showroom in Gandhidham

ndian jewellery retailer TribhovandasBhimjiZaveri Ltd (TBZ) recently opened a 2,170square-feet showroom on Tagore Road in Gandhidham. The newly opened TBZ-The Original exclusive showroom is the brand’s 26th retail shop in the country. TBZ officials welcomed guests at the opening ceremony which included MinalBhanushali, president of Gandhidham Municipal Corporation. ShrikantZaveri, chairman and managing director of TBZ, said: “TBZ-The Original is maintaining the momentum of its retail expansion across key markets in Gujarat as we have recently opened several new

showrooms in Rajkot, Vadodara, Vapi, Bhavnagar and now Gandhidham.” Zaveri continued: “The city has a largely cosmopolitan population due to the migration of people from various parts [of the country] for employment. We are confident that the tradition-respecting, arts and culture loving communities of Gandhidham and the adjoining areas in the Kutch region will warmly welcome TBZ’s legendary values of trust, tradition, craftsmanship and creativity in jewellery design.” The opening of the new shop is well timed for the pre-wedding buying season in India. The showroom

displays a wide collection of bridal jewellery and the newly launched “Dohra detachable jewellery” which features items that can be worn in different ways on different occasions. Special introductory discounts will be offered on diamond and gold jewellery, the company said in a press release.

GJEPC Conducts Banking Symposium to Build Synergy with Financial Sector

ost of bankers who attended the seminar on “Emerging trends in financing of Indian diamond and jewellery sector” organized by the Gems &Jewellery Export Promotion Council (GJEPC) stressed upon the need to expand exposure in diamond jewellery sector while at the same time following prudent risk management norms.

year. Overall negative growth in gems and jewellery exports have narrowed down to just 1.9 per cent in the first 11 months of the current financial year.

Vipul Shah, Chairman of the Gems &Jewellery Export Promotion Council, said that jewellery exports have started moving up, albeit gradually, with 2.9 per cent growth witnessed in February this

With the Basel III norm coming into play effective from April 1, 2013 require more of reserve capital for doing same size of business. This means cost of borrowing will go up. At the same time, however, banks will have to look at the clients with stricter due diligence, focus more on corporatization and their external and internal investment grade ratings, said ShyamalAcharya, Deputy Managing Director of State Bank of India, India’s largest public sector lender. GJEPC, affirmed participants that the industry has started moving up on recovering sentiment in global economies. Although, euro zone economies continue to remain under pressure, the recovery in the US and Asian zone gives a positive indication for gems and jewellery sector growth going forward. Mines To Market / Mar-April’2013

SHORT NEWS

Pakistan’s Jewellery Exports Surge 138% in 8 Months

xports of gems and jewellery in the country has witnessed sharp increase of 16.99 percent and 138.73 percent respectively during first eight months of current financial year against the same period of last year. The jewellery exports during the period under review were recorded at $1.21 billion while during last year, the exports stood at $506.3 million.

The gems exports stood at $2.74 million during July-February 2012-13 against the exports of $2.343 million during July-February 2011-12. According to data of Pakistan Bureau of Statistics (PBS), the jewellery exports of the country on month on month basis decreased by 48.07 percent and increased by 72.22 percent during February 2013 when compared February 202 and January 2013 respectively.The jewellery exports

decreased from $147.969 million in February 2012 to $$76.841 million in February 2013. The gems export during the month decreased by 54.67 percent and 32.4 percent as compared to February 2012 and January 2013 respectively. The gems exports increased from $0.428 million and $0.287 million in February 2013 and January 2013 to $0.194 million in February 2013.

KP Chair to Attend WDC Annual Meeting in Tel Aviv

mbassador Welile Nhlapo, the Chair of the Kimberley Process, has confirmed that he will attend as a guest of honor the Ninth Annual Meeting of the World Diamond Council, which will take place in Tel Aviv, Israel, May 5 and 6, 2013. He will address the Plenary Session. Ambassador Nhlapo, who assumed the post of KP Chair at the beginning of 2013, earlier served as South African Ambassador to Washington, D.C. He has also served as National Security Special Adviser to South African President Jacob Zuma, and as South Africa’s Special Representative to the Great Lakes countries, including Burundi, Uganda, Tanzania, Democratic Republic of Congo and Rwanda. Also confirming his attendance at the WDC Annual Meeting is Tung-Lai Margue, Director, Head of the Service for Foreign Policy Instruments of the European Commission, which is the EU body that oversees Kimberley Process compliance in the European Union. Mr. Margue also will address the Plenary Session. The WDC Annual Meeting, which will gather together leaders of the diamond and jewelry industries from around the world, as well as representatives of government and civil society, is the official forum for the General Assembly of the WDC. The host of the meeting will be the Israel Diamond Institute Group of Mines To Market / Mar-April’2013

Companies. The first day of the Annual Meeting, May 5, will include a WDC board meeting and a get-together reception in the evening. The second day, May 6, will include the WDC Plenary Session, and it will conclude with a gala dinner.

NGTC, GAC to Host ICA Congress in China

he ICA 2013 Congress is receiving more major industry supporters. The National Gem & Jewelry Testing Centre (NGTC) and the Gem & Jewelry Association of China (GAC) will host the ICA Congress from May 12 to 16, along with the Department of Commerce of Hunan Province and Changsha Municipal People’s Government. The news was confirmed in a meeting with all parties held in Beijing, China on March 29. NGTC and GAC are the two most important official bodies of gem and

jewelry trade in China. Their full support of ICA at Changsha continues a long history of cooperation in promoting colored gemstone in China. GAC is bringing its extensive media platforms such as “GAC News” and “China Gems” magazine to the congress. NGTC will invite famous scholars and specialist in the industry as congress speakers to discuss the current colored gemstone market potential and trends in China. In addition, they will also invite major Chinese gemological testing centers and laboratories as well as prominent business communities to attend the congress and the show. The ICA Biennale Congress will carry the theme “Sourcing Countries and China Market” and the Changsha Show marks the last day. The long term goal of the ICA 2013 Congress is to build a “green-channel” and explore the business potential of China and the global market.

SHORT NEWS

Updated Client Lists of De Beers, Rio Tinto

e Beers and Rio Tinto have updated their client lists for the current year on their respective websites.

sightholders for the contract year that began on April 1, bringing the total to 82 sightholders. The new sightholders listed on the website are Indian companies Asian Star Company, H. Dipak, HVK International, and KP Sanghvi& Sons, and Hong Kongbased Wing Wang Company Limited.

2013, from 13 in the prior year, as reflected on the companyâ&#x20AC;&#x2122;s website.

De Beers announced in March that it added five companies to its list of

Similarly, Rio Tinto increased the number of select diamantaires to 17 in

The following is the updated lists from the two companies.

De Beers Sightholder List 2012-2015

34. H Dipak (India) 35. Henri Polak (USA) 36. Hvk International Private Limited (India) 37. IGC Group LTD (Belgium) 38. Jasani (India) 39. Jewelex India Private Limited (India) 40. Julius Klein Diamonds LLC (USA) 41. K Girdharlal International Limited (India) 42. KARP Impex Ltd. (India) 43. KGK Diamonds (I) Private Limited (India) 44. Kiran Gems Private Limited (India) 45. KP Sanghvi& Sons (India) 46. Kristall Production Corporation OAO (Russian Federation) 47. L. M. Van Moppes& Sons Ltd (United Kingdom) 48. Laurelton Diamonds (Belgium) 49. Laxmi Diamond Pvt Ltd (India) 50. Lazare Kaplan International Inc. (USA) 51. Leo Schachter International LTD (Israel) 52. Lieber& Solow Ltd. (USA) 53. M Suresh Company Private Limited (India) 54. Mahendra Brothers Exports Private Limited (India) 55. Mohit Diamonds Private Limited (India) 56. MOTIGANZ Diamond Group (Israel) 57. Niru Diamonds Israel (1987) Ltd. (Israel) 58. Pluczenik Diamond Company NV (Belgium) 59. Premier Gem (Group) (USA) 60. Richold SA (Switzerland) 61. Rosy Blue (India) Pvt. Ltd. (Belgium) 62. Rosy Blue (NV) Business Alliance (Belgium) 63. S. Vinodkumar Diamonds Pvt. Ltd (India) 64. Safdico (Mauritius) 65. SaharAtid Diamonds Ltd. (Israel) 66. Schachter and Namdar (Pty) Ltd

(South Africa) 67. Shairu Gems (India) 68. Sheetal Manufacturing Company PVT LTD (India) 69. Shree Ramkrishna Export (India) 70. Shrenuj& Company Limited (India) 71. Star Diamond Group (SDG) BV (Belgium) 72. Stuller, Inc. (USA) 73. Suashish Diamonds Ltd. (India) 74. Tache Company NV (Belgium) 75. Tasaki & Co Ltd. (Japan) 76. Trau Bros (Belgium) 77. Venus Jewel (India) 78. Vijay Diamond FZE (UAE) 79. Wing Hang Company Limited (Hong Kong) 80. Yerushalmi Bros. Diamonds Ltd (Israel) 81. Yoshfe Diamonds International Ltd. (Israel) 82. Yosi Glick Diamonds (2003) Ltd. (Israel)

1 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33.

A. Dalumi Diamonds (Israel) Almod Diamonds Ltd. (USA) AMC NV (Belgium) Ankit Gems Private Limited (India) Arjav Diamonds NV (Belgium) Asian Star Company Limited (India) Bhavani Gems (India) Blue Star Diamonds Pvt. Ltd. (India) Chow Sang SangJewellery Company Limited (Hong Kong) Chow Tai FookJewelleryCo.Ltd. (Hong Kong) Crossworks Manufacturing Ltd. (Canada) Dali Diamond Co. (Belgium) DDM Arabov Group (Israel) De Toledo Diamonds Ltd (Israel) Dharmanandan Diamonds Pvt Ltd (India) Diacor International Ltd. (Switzerland) Diamanthandel A Spirab.v.b.a (Belgium) Dianco (Belgium) Diarough NV (Belgium) Digico Holdings Ltd. (Hong Kong) Dilipkumar V. Lakhi (India) Dimexon International Holding BV (India) E.F.D. Ltd. (Israel) Eloquence Corporation dba MWI ELOQUENCE (USA) Eurostar Diamonds International S.A. (Belgium) Exelco (Belgium) EZ Diamonds (Israel) Fruchter Gad Diamonds Ltd.(Israel) Gitanjali Gems Ltd. (India) Gold Star Diamond Private Limited (India) Hard Stone Processing (Pty) Ltd (Namibia) Hari Krishna Exports Pvt. Ltd. (India) Hasenfeld-Stein Inc. (New York)

Rio Tinto Select Diamantaires of 2013 1. Crossworks Manufacturing Ltd. (Vancouver) 2. CTF Diamond Trading Company Ltd (Hong Kong) 3. Diambel N.V. (Antwerp) 4. Dianco B.V.B.A. (Antwerp) 5. Diarough N.V. (Antwerp) 6. Dimexon Diamonds Ltd. (Mumbai) 7. E. Schreiber, Inc. (New York) 8. Gemmata N.V. (Antwerp) 9. Hari Krishna Exports Pvt Ltd (Mumbai) 10. IDH Diamonds N.V. (Antwerp) 11. Interjewel Pvt. Ltd. (Mumbai) 12. KP Sanghvi& Sons (Mumbai) 13. L&N Diamonds Ltd. (Ramat Gan) 14. Laurelton Diamonds (Antwerp) 15. Sheetal Group Mumbai (Antwerp) 16. Signet Direct Diamond Sourcing Ltd (Ohio) 17. Venus Jewel (Mumbai) lit

Mines To Market / Mar-Aprilâ&#x20AC;&#x2122;2013

SHORT NEWS

Retail diamond market strong worldwide

ong-term trends for the diamond retail market look good, said Oliver Chen, a senior retail stock analyst for USbased Citigroup Investment Research in an interview with Bloomberg TV (video below). Chen said 80% of US brides-to-be wear diamonds and for those getting married a second time it’s about 60%. In China, about 30% of brides wear diamonds. Global demand is increasing, he said. China is an increasingly important market owing to its growing middle class and makes it No. 2 in the world after the US. The world retail diamond market is worth about $160 billion total, with the US spending $60 billion and China $30 billion. The market is relatively competitive in engagement rings, Chen said. For example, Tiffany & Co. has good margins at about 20%. The luxury market is more insulated as wealthy

buyers can still afford it. Although Citigroup gives it a neutral rating at the moment, Chen said he likes retailer Signet Jewelers Ltd. over the longer term. It’s the No. 1 market share leader, has different treated brands - Kay Jewelers, Jared, H. Samuel, Ernest Jones - and can afford to run huge $100-million marketing campaigns. Another company that looks good is Zale Corp which offers the designer Vera Wang collection as well as a coloured diamond collection. Gemstones of different hues are a nice trend and opportunity. The fashion/jewellery intersection is good for business because a diamond may be bought every season. Dominion Diamond is another stock Chen likes because it’s one of the only pure play ways to buy a publicly

traded company. Chen also noted that it takes about 10 years to find a mine and extract from it, and there are very few mines coming online. There’s about a 3% to 4% growth rate in mines versus 10% growth of demand. Additionally, there is a lot of scarcity since diamond stockpiles have been worked through at DeBeers.

MMTC logs Rs 15,000 crore sales turnover in gold jewellery in FY13

inerals and Metals Trading Corp (MMTC) today said it achieved a sales turnover of Rs 15,000 crore in gold jewellery in FY’13 and is eyeing the turnover of Rs 35,000 crore in financial year 201314. “MMTC achieved sales turnover in gold jewellery at Rs 15,000 crore in FY’13. We have set the target of Rs 35,000 crore for fiscal 2014", MMTC

“MMTC achieved sales turnover in gold jewellery at Rs 15,000 crore in FY’13. We have set the target of Rs 35,000 crore for fiscal 2014" Chief General Manager Ashish Majumadar told reporters here. He was addressing the media ahead of Ugadi festival that marks beginning of new year in Andhra Pradesh and Karnataka. Majumdar said MMTC clocked sales turnover of Rs 1,000 crore alone from the sale of jewellery at various exhibitions across the country. He said the company would hold “ Festival of Gold” in collaboration with Muthoot Finance at

Mines To Market / Mar-April’2013

Visakhapatnam from April 10 to April 14, wherein over one lakh designs of the finest jewellery from several states will be showcased. Majumdar said the festival will be aa one-stop shop for people to make purchases on the occasion of Ugadi. MMTC, which holds the gold exhibition in Delhi twice a year, has popularised the event by taking it to various cities including Mumbai, Goa, Kolkata, Bangalore, besides MMTC’s 22 showrooms. Majumdar said MMTC was planning to increase the number of its outlets to 100 by 2013-14. “These outlets will market MMTC manufactured precious metals products including medallions and bars”, he added.

SHORT NEWS

Coloured gemstones to be tracked and certified

he International Colored Gemstone Association (ICA), the United Nations Interregional Crime and Justice Research Institute (Unicri) and the Vienna International Justice Institute (VIJI) have joined forces to develop an initiative aimed at tackling the illegal movement and trade of coloured gemstones. The parties, which established the project at a Unicri meeting, in Turin, Italy, this week, would formulate and establish a mechanism to track and certify coloured gemstones from the country of origin. The system, which would be based on, besides others, the environmental, social and governance performance along the supply and value chains of producers, would enhance the transparency of the distribution chain. “In the present context, tracking

gemstones from their geographical origin with a realistic approach is an opportunity for the public sector, the gems and jewellery industry, and civil society to address social, technical and environmental issues, as well as illicit and criminal practices threatening our sector,” ICA president Wilson Yuen said. The high value and easy portability of gemstones, as well as the “extremely fragmented” nature of the industry, provided lucrative opportunities for illegal activities, he added. The global coloured gemstone industry is valued at $10-billion to $12billion a year and about 80% of these

gemstones are produced by small-scale informal mining operations. Participants in the initiative would include public and private sector representatives from Brazil, Colombia, Kenya, South Africa, France, Mozambique, China, Switzerland, Sri Lanka, Russia, Canada, Austria, Belgium and Tanzania.

Meeting AWDC with Stornoway Regarding the ‘Renard Project’ with Stornoway, the company in charge of this project. Stornoway prefers the Antwerp market to trade their goods. Kris Peeters, Minister President of Flanders: “ We hope to obtain solid trade relationships and a positive outcome for both parties.”

ris Peeters, minister president of Flanders, and Ari Epstein, CEO of AWDC, discussed the possibilities regarding the first diamond mine in Quebec, Canada,

Stornoway, a listed company of which the Government of Quebec is the main shareholder, obtained all the necessary permits to start with project “Renard”. First production is scheduled for July 2015. The mine is located 850 km North of Quebec and is estimated to provide 2 million carats on average yearly, over the next decade. Because the expected quality of the diamonds is very high, the estimated yearly revenue would approach approximately 328 million USD.

Ari Epstein, CEO Antwerp World Diamond Centre: “The exploration of the first diamond mine is an important step forward for Quebec. The highest level of professionalism is vital for the outcome of this project. Antwerp can bow on 550 years of diamond heritage, a wealth of expertise and no less than 1800 registered diamond companies. Antwerp can also ensure the best possible return for the Québec diamonds.” Diamonds from the Canadian Ekati Mine and the Diavik Mine are already commercialized in Antwerp for many years. 80 percent of all rough diamonds worldwide and 50 percent of all polished diamonds worldwide were traded through Antwerp. The turnover of the Antwerp diamond industry equaled 51,9 billion dollars in 2012. Mines To Market / Mar-April’2013

SHORT NEWS

UBM and MJDMA to Organize B2C Show in Chennai

BM India’s jewellery portfolio of shows added a business-to-consumer (B2C) event ‘’I Love Jewellery’’ to be scheduled in October, a week before Diwali, and cater to jewelers of Chennai and surrounding cities. With the timing before the festive season, the B2C event will focus on high-end jewelry, watches and other products. UBM anticipates the show will attract more than 200 exhibitors and between 20,000 and 30,000 visitors. Jayantilal J. Challani, the president of

the Madras Jewellers and Diamond Merchant’s Association (MJDMA), said, “The idea behind B2C is to benefit the end-users by making available all varieties and latest design under one roof at an affordable price. Chennai will become the hub of B2C jewelry exhibition as it is for the Gem &Jewellery India International Exhibition.” KrantiNagvekar, the group director of UBM India, added, “It is indeed a great opportunity for the residents of Chennai to come, see and be a part of

HRD Antwerp Appoints Serge Couvreuras New General Manager understand the fundamentals of HRD Antwerp and it is my ambition to further build on its core values – technology, objectivity and ethics – both on a national and international level”, explains Serge Couvreur. During his six years in office, Georges Brys developed HRD Antwerp as a leader in technology and reinforced its international presence. Under his leadership, HRD Antwerp opened a

the Chennai B2C fair, organized by MJDMA and UBM India. The association between MJDMA and UBM India has been really fruitful and we would like to thank all the office bearers of MJDMA who have untiringly been with us and supported diamond grading laboratory in Mumbai, a jewellerylaboratory in Turkey and several drop-off services worldwide. He successfully launched cooperation programmes with Chinese partners and reached key agreements in the field of research, diamond technology, training and equipment. Georges Brys says: “I am grateful for the opportunities I was given in this vibrant international business. I look forward to the new challenge I have been offered. I wish Serge, the HRD Antwerp team and Antwerp a bright, successful future”.

RBI Signs Cooperation Agreement With Belgian Counterpart

he board of directors of HRD Antwerp has appointed Serge Couvreur as general manager of HRD Antwerp. He will succeed Georges Brys. Serge Couvreur will take up his new position as General Manager of HRD Antwerp on March 25. In the past 25 years Serge Couvreur has acquired an in depth knowledge in fast moving consumer goods and the retail industry. With this knowledge he will put primary focus on communicating the unique competences of HRD Antwerp. MrCouvreur studied at HEC (Haute Etudes Commerciales) and holds a degree in Commercial Management & Marketing. “I Mines To Market / Mar-April’2013

he Reserve Bank of India (RBI) has signed a Memorandum of Understanding (MoU) with the National Bank of Belgium (NBB) “to promote greater co-operation and sharing of supervisory information between the two supervisors.”

Belgium, Luxembourg and the European Union, also took part in the ceremony.

Belgium is the 15th country with which the RBI has made such arrangements. The MoU was signed in Brussels by G. JaganmohanRao, Chief General Manager-in-Charge, Department of Banking Supervision, Reserve Bank of India, and NBB Governor Luc Coene. Dr. K.C. Chakrabarty, Deputy Governor, Reserve Bank of India and DinkarKhullar, Indian Ambassador to

SHORT NEWS

ALROSA built up its diamond reserves by 35.8 million carats in 2012

LROSA held a meeting of its Executive Committee in Mirny, Yakitia, on March 22, 2013. This was reported in the company’s press-release e-mailed to Rough&Polished on Friday.

The Committee discussed and took note of the results posted by the company’s geological division in 2012. Last year, the total diamond reserves of ALROSA went up by 35.8 million carats. This was achieved mainly in consequence of the exploration performed on the Ebelyakh and Gusiny diamond placers. The miner started to explore the DalnyayaKimberlite Pipe, while maintaining operations on the Verkhne-Munskoye, Mayskoye and Zarnitsa diamond fields. The company continued its search for diamonds in 25 prospect areas making estimates of the already surveyed sites. The committee members also discussed how to reform the diamond manufacturing group of ALROSA, which includes Brillianty ALROSA in Moscow, as well as production facilities in Barnaul and Orel. The main task of the diamond cutting arm of ALROSA is to obtain information on the current state of the polished market and its impact on the rough market. In order to optimize the operation of its manufacturing subsidiaries ALROSA intends to consistently transfer the processing of small- and medium size goods from Moscow to Orel and Barnaul. The diamond manufacturers, Orel-ALROSA and Barnaul-based Kristall will develop programs to upgrade their equipment and diamond cutting personnel skills. It is also proposed to consider the possibility of attracting a strategic investor to participate in the Barnaul factory. Brillianty ALROSA will focus on manufacturing high quality diamonds and colored diamonds. The Committee considered the 2012

procurement results satisfactory. Last year, the company bought a total of RUB 43 billion worth of goods, works and services. More than half of the purchases were made through open tenders, including online trading platforms. ALROSA saved almost RUB 3.5 billion buying at lower prices compared with the initial bids. The meeting also approved the reports on the implementation of the Program for Innovative Development and Technological Modernization in 2012, the Program of Energy Conservation and Efficiency in 2009-2012 and the revised Social Policy of ALROSA, as well as considered other issues related

to the company’s current and future activities. ALROSA is the world’s largest producer of diamonds by carat. In 2011, the company produced 34.6 million carats of rough diamonds, while ALROSA Group’s sales reached $ 4.454 billion. It is estimated that ALROSA will produce about 34.4 million carats and earn $ 4.5 billion in revenues in 2012.

Russian Jewellery Market to Grow by 6.7% per year till 2017

ccording to RBC Research of the Russian jewellery market recently cited by Russian Jewellery Network, the volume of jewellery market reached 193.3 million jewellery items, or RUB 257.9 billion in 2012. It reflects year-on-year growth of the market by 7.9% in physical terms and by 23.4% by value, correspondingly. According to analysts’ forecast, the volume of Russia’s jewellery market will post 4.6% and 6.7% annual growth

in physical terms and by value, correspondingly, till 2017. Development of jewellery market in Russia is subject to various factors including seasonal character of sales, expansion of promotion campaigns launched by the leading market players, shortcomings of the Russian legislation, outdated plant capacity of the jewellery enterprises and Russia’s accession to the WTO. Throughout 2012 Central and South Federal Districts of Russia accounted for a total of 43% of the aggregate volume of sales. Adamas and Krastsvetmet are mentioned as the leading jewellery market players among the companies, having accounted for about 11% of the aggregate sales in the above period. Overall, analysts say that there are quite a few companies operating at the market on the federal and local level. The Russian jewellery market is poised to have huge prospects for development owing to rich mineral base of Russia, age-old traditions of jewellery art and industry and evolution of legal regulation.

Mines To Market / Mar-April’2013

NEWS LINE

Re-establishing Bankers’ Faith in India’s Gem & Jewellery Sector

ndian bankers’ trust in India’s diamond sector has been badly shaken by the said debt dispute of about INR 850 crore between Arjav Diamonds and the ABN Amro Bank and some other loan scams encompassing more than 12 Indian diamond companies in recent times. There is an ill-feeling among them that banks are left with bad debts at the end. But image of India’s entire diamond industry was at stake because of the

“India’s jewellery exports have now started moving up steadily and as a result, 2.9% growth was recorded in February this year. So the sector is confident of achieving a growth of 10-12% this fiscal,”

coming into effect, companies now would require more reserve capital to do the same size of business. (Banks need collateral of 25-30% from sightholders of global mining giants like Rio Tinto and De Beers, for smaller players it can be 100% and in some cases 300%). This would result in higher cost of borrowing.”

‘wrong-doings’ of some handful of defaulters. India’s Gem & Jewellery Export Promotion Council (GJEPC) took an initiative to ‘heal injuries’ inflicted by such defaulters on banking sector and re-establish its faith in India’s diamond industry by organizing a Banking Symposium “Emerging Trends in Financing of Indian Diamond and Jewellery Sector” recently in Mumbai.

“Let us hope that the interaction between the gem & jewellery industry doyens and the banking professionals would certainly change the stance of the industry and would bring about substantial changes, decisions and compliances to help the industry flourish.”

Chairman of GJEPC Mr. Vipul Shah said, “India’s jewellery exports have now started moving up steadily and as a result, 2.9% growth was recorded in February this year. So the sector is confident of achieving a growth of 1012% this fiscal,” he said. Requesting the bankers to provide loans in dollars, Mr. Shah said “The gem & jewellery industry finds it difficult to manage the high-pitched volatility in the rupee-dollar movement. We assure you that we would work closely with banks and share information of our members regularly to wrestle the issue of bad loans and disputes.”

“The diamond stocks have recently posed a holding risk for banks which the banking sector must keep in mind before lending money to the gem & jewellery industry. Moreover, with the Basel III norms coming into effect, companies now would require more reserve capital to do the same size of business. Mines To Market / Mar-April’2013

The GJEPC asserted that the gem & jewellery industry has started to recover sentiments in global economy. However, euro zone economies have continued to remain under pressure, the recovery in the US and Asian zone gives a hopeful indication for the sector growth going forward. Deputy Managing Director of State Bank of India (SBI) Mr. Shyamal Acharya said, “The diamond stocks have recently posed a holding risk for banks which the banking sector must keep in mind before lending money to the gem & jewellery industry. Moreover, with the Basel III norms

“At the same time, the (banking) sector should look at clients with sterner due diligence, focus more on corporatization and investment grade ratings. On the other hand, gem & jewellery sector should observe more transparency and adopt the finest corporate practices to attract better funding from banks. Besides, it should also work out an efficient risk management system,” Mr. Acharya added. CEO of the ABN AMRO Bank, International Diamond & Jewellery Group, Mr. Eric Jens said, “The days of easy access to the capital globally are now gone. The recent economic crisis has left burns on the global economy. While there may be new opportunities, the keyword now is change. A serious effort is required by the diamond industry to keep up in pace with the changing reality.” Executive Director of the GJEPC Mr. Sabhyasachi Ray said, “Let us hope that the interaction between the gem & jewellery industry doyens and the banking professionals would certainly change the stance of the industry and would bring about substantial changes, decisions and compliances to help the industry flourish.” Courtesy : gems2jewellery.com

COVER STORY

Is Gold Market under “Recession”?

he gold price dropped back through the $1,600 an ounce level on Thursday, the last trading day of the first quarter. Gold is down more than $80 or 4.8% in 2013 following a 5.3% pullback in the final quarter of last year. The yellow metal’s performance marks the first back-to-back quarterly loss since 2001; placing the gold market in a “recession” (the official definition of an economic recession is two subsequent quarters of negative GDP growth). Gold is still well clear of bear market territory however which would constitute a 20% retreat – to around the $1,520 level – from the record high above $1,900 set in August 2011.

A number of factors have hurt gold this year and is

likely to continue to tarnish its prospects: Net selling of gold-backed exchange traded funds: ¦ In Q1 gold

ETFs – there are now 143 listed around the world, 53 of them backed by physical gold – experienced record outflows of 180 tonnes with grandaddy GLD dropping 130 tonnes, more than erasing the 96 tonne increase for the entire 2012. ¦ ETFs have

played a central role in gold’s rise – when the products were first introduced in March 2003, an ounce of gold could be picked up for $330. ¦ If this

momentum is thrown in

reverse it could do great damage to investor confidence in gold among retail and institutional buyers.

Growing consensus the US is closer to ending its ultra-loose monetary policy: ¦ The Fed has been reviewing its

quantitative easing program and is eager to throttle back asset purchases at the first signs of a solid economic recovery in the US, evidence of which is increasing. ¦ Chairman Bernanke has poured

more than $3 trillion of easy money into the US since December 2008 when Q1 kicked off and the pile continues grow at a rate of $85 billion a month. QE has taken gold from $837 to where it is today – up 90% – thanks to gold’s perceived status as an inflation buster. Mines To Market / Mar-April’2013

COVER STORY ¦ China’s central bank, seen by many

as the gold buyer of last resort, has poured cold water on speculation that it is becoming a more active buyer, preferring to keep gold’s proportion of the country’s reserves exactly where it is today. ¦ The likes of South Korea and

Russia stocking vaults – if they continue to do so – is not enough to make up for falls elsewhere especially no. 1 consumer India, where cutting off demand through taxes and other means is official policy. ¦ Historically high prices – gold

¦ The problem now is inflation

remains in abeyance and the next move for rates can only be up.

Risk-taking is making a comeback: ¦ US markets are back at record

levels, the clearest sign that investors’ appetite for riskier assets has been more than whetted and the hard-asset qualities of gold is no longer held in such high regard. ¦ Not even the doomsday scenarios

flowing from the disaster unfolding in Cyprus could convince investors to opt for the safe haven that gold is supposed to provide. ¦ In the absence of a catalyst on the

scale of global financial collapse or the sudden – and unlikely – emergence of hyperinflation, gold is likely to continue to drift lower.

continues to make new highs in the local currencies of India, Japan, Brazil and others – are choking consumer end-demand, forcing devotees of the shiny metal to buy

Physical demand may not be as strong as thought: ¦ After a 17% jump in

purchases in 2012 to 535 tonnes, central banks have continued to buy up gold, but as most vividly displayed by Brown’s Bottom, relying on central banks to gauge future prices can be a mug’s game.

on dips only.

Increasing evidence that gold is fairly priced: ¦ A correction after gold’s near 20-

year bear market had a certain inevitability to it, but at current levels not even the most ardent backers argue that the metal is seriously undervalued. ¦ Compared to other commodities

including oil, silver, other metals, and stocks gold is now priced close to historical ratios and appears overvalued on a 10-year horizon. ¦ Gold is increasingly seen as just

another asset class, with rotation in and out, now that the fundamentals of the gold market are more in line with historical trends and other investment trends. Mines To Market / Mar-April’2013

INDUSTRY WATCH

Why ‘No Brussels-like Robbery’ in Surat?

urat, the world’s diamond polishing hub, has never seen a heist of the kind Brussels saw recently. The entire industry works on a system of trust that is nearly inviolable. While thieves were busy looting diamonds worth Rs 250 crore from inside the high security zone of the Brussels airport on February 19, it was business as usual in the world’s biggest diamond cutting centre Surat. It is believed that at least 90 per cent of the stolen sparklers were meant for polishing units in Surat. These units, known for putting the shine on nine out of 10 diamonds in the world, enjoy an annual turnover pegged at Rs 80,000 crore. Yet, Surat has never seen a Brusselstype heist. The secret perhaps lies in

its unbelievably simple trade system founded entirely on trust. It is a system that could give corporate lawyers and executives a nightmare because of its informal nature, but it works perfectly well for Surat’s businessmen.

wrist. He carries the sparklers, wrapped in butter paper , tucked into a tailored banian stitched with hidden pouches. Thumar heads straight for the

The Brussels incident has rattled some of Surat’s top diamond merchants into rethinking its loose security system . But it is unlikely that this will lead to any alterations in how crores change hands in this city. Here is why. Every day at 4pm, Naresh Thumar leaves from his small polishing unit in Katargam on a motorcycle for the Mahidharpura diamond market. Clad in jeans, a loose shirt and sandals , Thumar carries polished diamonds that are often worth more than Rs 3 crore. He has no bodyguards with him and no locked briefcase cuffed to his

diamond dealers, and squatting on a plank, on shop steps or his motorcycle displays the sparklers on a blue feltlined tray. If Thumar and the dealer settle on a price, he is handed a chit that mentions the carat weight of his diamonds, their price and the payment period. For Thumar , this tiny chit is the sole trade document and guarantee of payment. The two diamond markets at Varachha and Mahidharpura in Surat are abuzz with tens of hundreds of diamond manufacturers and merchants. From 10 am to 6:30 pm, polished and rough diamonds worth over Rs 400 crore are traded every day. Effectively then, each man walking these streets is a crorepati. Except for the CCTV cameras installed inside the Mines To Market / Mar-April’2013

INDUSTRY WATCH

“Even without any security or surveillance cameras, it is difficult for thieves to get away with the diamonds. The market is always abuzz with tens of hundreds of traders and manufacturers and they get caught easily,” offices of some diamond merchants , there are no traces of organized security in these localities. Around 50 per cent of the diamonds that reach the markets at Varachha and Mahidharpura land up in safe deposit vaults. There are a total of 15 vaults in both the markets where Rs 700 crore worth of diamonds are stored. If a dealer cheats, he is simply kicked out of the circle forever and his

known as angadias. They take consignments of polished stones from the big diamond companies and merchants to Mumbai. They often use trains and buses and carry the diamonds in stitched pockets of their inners or in their baggage. The diamonds are finally delivered to traders at Mumbai’s Opera House for export. The informal courier service in the

“In my 25 years of service in the industry, I have only heard of a few small incidents. But in the recent Brussels heist, two Suratbased DTC sightholder companies lost more than Rs 200 crore worth of diamonds,” “Even without any security or surveillance cameras, it is difficult for thieves to get away with the diamonds. The market is always abuzz with tens of hundreds of traders and manufacturers and they get caught easily,” says Dinesh Navadia, president, Surat Diamond Association (SDA). But Navadia adds that after the Brussels robbery, the industry is planning to approach the state government for a special protection force.

debt is shifted to other family members. Surat has more than 3,500 large and small diamond manufacturing units employing around 4.5 lakh workers. Like most of the complexes housing diamond manufacturing units, the Diamond World Towers and the Princess Towers in Varachha’s Mini Bazaar have ‘light security’ , a euphemism given that you can only see a few baton-wielding guards who spend most of their time asking people to park their vehicles properly. The last stage of the diamond trade is left to an informal courier service Mines To Market / Mar-April’2013

diamond capital of the country is run entirely by 15 to 20 angadia firms, each of which transport diamonds worth Rs 50-60 crore every day. These men wear no uniform and their strength is their ability to blend with the crowds. The Surat system rests on a tightknit, secretive network of families of thousands of manufacturers, dealers and importers. Almost all those in the diamond industry come from small towns like Palanpur or from Saurashtra . New recruits have to be vouched for by working angadias before they are taken on by units.

“In my 25 years of service in the industry, I have only heard of a few small incidents. But in the recent Brussels heist, two Surat-based DTC sightholder companies lost more than Rs 200 crore worth of diamonds,” says K K Sharma, former executive director, Indian Diamond Institute (IDI). Naresh Gabani, a diamond dealer in Mahidharpura diamond market, claims that the diamond markets in Surat and Mumbai are safer than the diamond district of Antwerp and the high street jewellery stores in UK and US. “We have a knack of identifying outsiders entering the markets or even at the diamond manufacturing facilities,” he says.

INDUSTRY WATCH

Zambian government ruling hits Gemfields shares hares in emerald group Gemfields plunged 16pc recently after the Zambian government said it would not allow stones mined in the country to be exported for auction.

The move aims to stop “capital flight”, but it could blow up in the government’s face if it means Zambian producers are forced to sell stones at knock-down prices. The move has also increased the risk profile for foreign investors, which could hit investment in the country. This is certainly a setback for Gemfields, which plans to do for coloured gemstones such as emeralds and rubies what De Beers did for diamonds in the 20th century. The company’s management scored a major coup by signing up Hollywood actress Mila Kunis as the face of the company and it is current launching the brand across the world. To help in brand recognition, it has also bought Fabergé, the upmarket jeweller

famous for the eggs made for the Russian tsars. Gemfields has mining operations in Zambia for emeralds and amethysts, in Mozambique for rubies, as well as owning prospecting licences for other gemstones in Madagascar. Its main asset is the Kagem emerald mine in northern Zambia. Gemfields owns 75pc of Kagem and the

Zambian government has the rest. Gemfields also owns 50pc of the Kariba amethyst mine in southern Zambia, with the government owning the other half. It is therefore in the interest of the Zambian government to maximise the money received in each auction. However, this news from the Zambian government could be a significant setback. Emeralds are traditionally auctioned in Singapore and India. Forcing the auctions to be held in Zambia means that there is likely to be less bid interest and lower realised prices. This is especially true for the lower-quality, high-volume stone sales, which are likely to be hit hard. “Zambian gemstones have for a long time been sold on foreign markets, a situation that has contributed to capital flight and denied Zambians of the much-needed benefits of the resource,” said Yamfwa Mukanga, Zambia’s minister of mines. “In an effort to address this problem, the government has directed that all auctioning of emeralds be held in Zambia.” He argued that this would promote transparency, stimulate local demand for emeralds and create an opportunity for small-scale emerald miners to have access to a market where they get a fairer return. Smaller miners are forced to sell their emeralds to illegal buyers at depressed prices because of a lack of a formal market in the country,

Mr Mukanga said. However, it is more likely to put Zambian producers at a disadvantage, as miners of gemstones in places such as Colombia will take their stones where they expect to get the highest price.

Since 2009, Kagem’s production has been sold only outside Zambia, generating $160m (£104m) of revenue from 11 auctions. Gemfields already had plans to hold an auction within Zambia later this month, but yesterday’s move could raise doubts over the sale in Singapore scheduled for later this year. It could be that the situation is fluid, as often proves to be the case when political developments impact on the mining sector. Some analysts have said they won’t adjust forecasts, and it will be interesting to see the results of the auction in Lusaka between April 15 and 19. Questor recommended the shares as a speculative buy at 31p on March 5 this year. The view remains the same. Mines To Market / Mar-April’2013

INDUSTRY WATCH

Capital Coloured Diamonds Recommends Investment in Diamonds

ith so many investment options out there, it can be difficult to decide how to invest wisely without risking a big loss. There are all sorts of options for people who are looking for a way to turn their money into more stable or permanent assets. Lots of people who are looking for an investment think of

real estate first, but real estate investments often require a lot of upkeep and involve a high level of risk. According to Toronto investment company Capital Coloured Diamonds, diamonds, especially rare colored diamonds, offer a stable investment opportunity that involves very little risk and almost guarantees a large return on investment. The rare and unique diamond market has grown in value for the past several decades. As the market has improved, new and experienced investors have been turning to Capital Coloured Diamonds for advice on major investments. Capital Coloured Diamonds has a world-renowned staff of investors, collectors, and diamond experts who select and recommend diamonds to potential investors. They can work with all budgets, tastes, and preferences and they serve clients all over the world. Most of the staff at Capital Coloured Diamonds has Mines To Market / Mar-April’2013

personal collections of colored diamonds themselves, so it is easy to see that. They are passionate about their product. Capital Coloured Diamonds only sells conflict-free diamonds, so investors can rest assured that their investment isn’t causing any harm. In fact, by investing in a conflict-free diamond, you are supporting an emerging trend in the diamond industry and helping to make sure that the demand for conflict-free diamonds continues to make them attractive to diamond producers. Over the past several years, diamond prices have steadily gone up. The value of the overall diamond market has increased by quite a bit. The colored diamond market has shown even more impressive growth, growing by about 25% each year for the last 30 years. In the past, colored diamonds were only sold by private dealers by invitation. Now, Capital Coloured Diamonds is bringing this market to the public with increased transparency and consumer protection. A Capital Coloured Diamonds finance and investment expert says, “Diamonds are a very stable and growing market. Most people, especially new investors, are nervous to put their hardearned funds into stock markets that are recovering or worsening. To make a strong investment with very little risk, we strongly recommend that our clients invest in rare and unique diamonds. Of course, we’re happy to provide any personalized advice or guidance our clients need as well.”

“Diamonds are a very stable and growing market. Most people, especially new investors, are nervous to put their hard-earned funds into stock markets that are recovering or worsening. To make a strong investment with very little risk, we strongly recommend that our clients invest in rare and unique diamonds. Of course, we’re happy to provide any personalized advice or guidance our clients need as well.” standing by to answer your questions and to give you more information about why diamonds are such a good investment. Though they are based in Canada, they have experts around the world who are fluent in several languages. Capital Coloured Diamonds also hosts auctions, receptions, and events around the world. Check their web site to see if they are coming near you! To get in touch with Capital Coloured Diamonds, visit them online at www.capitalcoloureddiamonds.com or use the contact information provided below.

Capital Coloured Diamonds has expert investment specialists

INDUSTRY WATCH

Inaugural Dubai Diamond Conference 2013 sets the agenda for the future of the diamond industry

he Dubai Diamond Conference 2013 (‘DDC 2013’), a Dubai Multi Commodities Centre (DMCC) and Dubai Diamond Exchange (DDE) initiative, came to a successful close on Tuesday, 19 March, 2013. Following a spectacular gala dinner attended by over 600 guests at the Asateer Tent, Atlantis The Palm, the closing session of the conference featured Dubai and GCC jewellery manufacturers and traders. Key topics of discussion included the changing luxury retail landscape, and the benefits and challenges of competing on a global scale for international high-end consumers.

become more important than ever for all luxury brands, including diamonds.” Rihen Mehta, General Manager of Rosy Blue, echoed Mr. Flambeau’s viewpoint, adding: “The next logistical step in Dubai’s growth as a diamond hub is to become a centre for jewellery manufacturing. Local companies that have benefited from Dubai’s position between producers and consumers are now gearing up to manufacture their own high-quality contemporary jewellery, pushing Dubai into a new

phase of growth.” Amit Dhamani, CEO and Managing Director of the Dhamani Jewels Group, gave participants an insight into consumer buying trends in the UAE: “The UAE is the highest per capita jewellery consumption destination in the world, with 80% tourists visiting the country buying jewellery during their stay. Most of our Chinese customers buy solitaires and know exactly what they want, whereas the

In his presentation, Arnaud Flambeau, of Flambeau Luxury Trading DMCC, said: “With the number of high net-worth individuals worth $30m and more in Dubai expected to increase by 53% in the next 10 years, the Emirate’s luxury retail market will only continue to grow. With its modern infrastructure, cosmopolitan culture, booming wealthy local population and high level of security and safety, Dubai has

Mines To Market / Mar-April’2013

INDUSTRY WATCH important role to play in ensuring a thriving diamond trade in the future. We heard from Ministers of Mines, the Kimberly Process, Ambassadors and Dubai’s Assistant Foreign Minister for International Organisations, all of whom expressed their commitment towards facilitating cooperation along the New Silk Route. It was an honour to host such a diverse and insightful gathering that reflects Dubai’s pivotal role in the New Silk Route.”

majority of our Russian clientele make impulsive purchases. Retailers need to understand and cater to the buying habits of their diverse customers.”

evolving global diamond industry. Today’s diamond trade is truly

Other speakers during the afternoon session included Jamil Farsi, Dean of Jewellers and Former Chairman of the Gold and Jewellery Committee in the Chamber of Commerce, Jeddah; ChanduSiroy, Vice Chairman of the Dubai Gold & Jewellery Group; Roberto Coin, president of Roberto Coin Spa, Italy; Roland Lorie, CEO of International Gemological Institute (IGI) and Sheikh Suliman Al Othaim, of the Suliman Al Othaim Jewellery Group, of Saudi Arabia. Reflecting on the conference as a whole, Ahmed Bin Sulayem, Executive Chairman of DMCC, concluded: “The inaugural Dubai Diamond Conference drew over 600 delegates and 28 distinguished speakers addressing critical aspects of the

Mines To Market / Mar-April’2013

international and the conference roster was indicative of the increasing role the East is playing within the industry. During the two days, we heard from the leaders of 19 diamond companies and financiers representing companies across the globe, ranging from Antwerp to Zimbabwe. ”The public sector has an equally

Mobile : 9833023900 Email: editor@minestomarket.net prashant022@gmail.com Web: www.minestomarket.net

ISRAEL SECTION

US/International Diamond Week- a Grand Success!

he closing day of the March17-20 US/International Diamond Week at the Israel Diamond Exchange (IDE) ended with an exceptionally well-attended auction of spectacular white and colored diamonds and gemstone jewelry by Tzoffey’s 1818. Reportedly, more than 30 lots were sold. IDE President Yair Sahar paid tribute to Tzoffey’s 1818 owner Avner Sofiov putting together the idea of the auction, creating the lots of diamonds and gemstones, and making it a reality in less than two months. “To be able to make something like this take place in two months is exceptional,” Sahar

diamond weighing 1.96 carats and then put the diamond back into the auction and donated the money from the sale to Friends for Friends.

said. He added that 1 percent of the proceeds from the auction would be donated to the IDE’s Friends for Friends organization to help people in need. IDE Vice President Ilan Samuel bought a heart-shaped brown

Among the highlights of the auction, which included more than 30 lots, was a 1.27-carat fancy intense purple pink cushion cut GIA certified diamond of SI1 clarity that sold for US$242,000. Among the other items was a platinum ring set with a 10.19-carat cushion-cut diamond pave set with brilliant-cut diamonds, a man’s ring set with a cabochon sapphire weighing 7.83 carats and mounted in yellow gold and signed by French designer Reza, and an outstanding oval-cut fancy color diamond weighing 11.56 carats set in white gold.

“There are enough diamonds held by households for the next 40-50 years if they were to all go back into the market. Those are the kinds of volumes we are talking about,” In addition, there was an emerald and diamond ring, with the square-cut emerald weighing 13.91 carats and set among 3.02 carats of pear-shaped diamonds in white gold, as well as a cushion-cut ruby weighing 6.22 carats set in white gold and with white paveset diamonds on either side, and many other outstanding jewelry items. Before the auction, diamantaires from Israel and overseas were given a presentation by renowned diamond

Mines To Market / Mar-April’2013

ISRAEL SECTION The third day of the US/International Diamond Week at the Israel Diamond Exchange (March 19) saw 200 foreign buyers taking part, and among the foreign diamantaires inspecting the goods on offer was British jeweler Laurence Graff, a leading global buyer of large special diamonds and specializes in the top end of jewelry retailing.

industry analyst Chaim Even-Zohar, President of Tacy Ltd., on the issue of the global diamond market. EvenZohar, who publishes an annual diamond pipeline chart showing the production of rough goods from diamond-producing nations and the value of the diamonds and how much is added at each stage through manufacturing and sales to the consumer, said he did not expect rough prices in 2013 and 2014 to rise “meaningfully,” and added that prices would continue to be volatile. He said that annual rough sales globally were $15 billion, while polished sales were $22 billion, meaning manufacturers added value is

An oval cut fancy color diamond weighing 11.56 cts., set with two taper baguette side stones, set in white gold was one of the items sold at auction during the US / International Diamond Week in Israel. Mines To Market / Mar-April’2013

just $7 billion. “Manufacturers are the suckers between the mining firms and jewelers.” Although manufacturers lost money in 2011 and 2012, their financial situation has never been better. As a result of the financial crisis they had injected equity into their companies, and borrowing had fallen, Even Zohar noted. However, it is imperative that banks provide credit to the diamond industry as that is the only way to survive and expand. “The business cannot grow without credit.” Even-Zohar also spoke about the danger to the industry posed by synthetic stones, saying that of the $22 billion of polished goods last year at least $500 million were synthetics. Manufacturing of synthetics has ramped up considerably with manufacturers installing hundreds of machines. “In addition, there is a perfect system where synthetic stones are made by Chemical Vapor Deposition (CVD) and then improved using the High Pressure-High Temperature (HPHT) system.”

Known as the ‘King of Diamonds’, the London-based jeweler last December bought a 50-carat, rectangular-cut, D-color, potentially flawless diamond ring for $8.37 million at Christie’sNew York Magnificent Jewels auction. In 2010, he bought a rare pink diamond weighing 24.78 carats for a recordbreaking US$46 million at auction, and immediately named it The Graff Pink. In 2008, he bought the famous Wittelsbach Diamond for US$24.3 million. Graff was personally escorted around the trading hall by Israel Diamond Exchange (IDE) President Yair Sahar and Diamond Dealers Club of New York President Reuven Kaufman. More than 150 Israeli diamond companies are offering in excess of $1 billion of polished goods for sale. Graff said the US/International Diamond Week was an “excellent idea, well-planned and executed with a tremendous number of people taking part. Is it like this every day?” he asked as he left the hall.

Even-Zohar also spoke about the danger to the industry of recycled diamonds and stones being sold to the ever-expanding pawn business in the United States which he estimated to have an annual value of $1.2 billion. “There are enough diamonds held by households for the next 40-50 years if they were to all go back into the market. Those are the kinds of volumes we are talking about,” he said.

UK SECTION

CMJ Spring show opens on positive note

he first CMJ trade event of 2013 opened today, with a resounding vote of confidence on the outlook for business by the group’s retail members. In a survey of all the members in the run-up to the event, 90.9% said they were “quite confident” about outlook for business in 2013 and 9.1% said “very confident”.65.9% of the membership said they plan to definitely place orders at the show,

while 31.8% will consider it depending on what they see. And 59.1% are more likely to consider placing orders for new watch brands having seen the special watch feature in the latest edition of the CMJ’s magazine FACETS, published in March.

businesses representing over 250 shops.Membership is made up of a varied mix of jewellery retailers, from quality, established family jewellers to some of the most dynamic and forward-thinking contemporary jewellers in the industry.

New suppliers all showing at the CMJ for the first time include watch brands Dreyfuss& Co, Storm, Maurice Lacroix, Fendi and Ball & Co. Frederique Constant, Guess watches and Jewellery, Gc Watches, Rotary and Accurist are all returning to the event after several years of not showing. Other new CMJ suppliers and guest designers exhibiting at the two day event in Birmingham include MiMoneda, White Pine recycled diamonds, Shards of London, SoShine,Allumer, Laura Gravestock, ArabelLebrusan, Lily &Lotty, Lucy Q, SuShilla and OCD. The CMJ is the UK and Ireland’s biggest co-operative group of independent retail jewellers, with a total membership of over 140

Mines To Market / Mar-April’2013

NEW LAUNCH

New Zealand Designer Creates Diamond-Set Shoe Worth $420,000

New Zealand designer has created a diamond-set shoe that is claimed to be the most expensive in the world worth an estimated US$420,000.

Making the shoe involved more than 50 hours of surgeon-like precision using tweezers and a special glue to set the diamonds on the shoe, one at a time.

Called ‘The Diamond Shoe’ and set with 21.18 carats of diamonds, New Zealand designer Kathryn Wilson created the footwear with the assistance of Sarah Hutchings from Auckland’s Orsini Fine Jewellery company.

The two women said they wanted to create a shoe that both symbolized the ultimate in designer luxury and the Cinderella fantasy. Hutchings says: “‘It was incredibly time consuming and a lot of thought went into it before I even began. The shoe was originally black so to give it more impact I painted it white, then used a pencil to mark out the patterns and designs. “I also had to work out how many carats of diamonds were required and how much space I needed to place the lace

Mines To Market / Mar-April’2013

and embellishments. Then the late nights painstakingly placing the diamonds onto the shoe using

tweezers at home, one night I was still going at 2am. The high value of the shoe also meant a security operation was needed, with two guards on standby at the door while Hutchings worked. She also had a custom-made smash proof box created from Perspex. The shoes were made for a charity auction, to raise money for a children’s hospital network.

NEW LAUNCH

Gemfields, unveiled set of fine jewellery collaborations with 36 leading international designers emfields, the world’s leading coloured gemstone producer, unveiled a truly one-of-a-kind set of fine jewellery collaborations with 36 leading international designers.

“Gemfields has observed that the demand for coloured gemstones in India has increased by 50% per year over the last four years alone, and we expect this percentage to grow higher in the coming years”

¡ GEMFIELDS - The world’s

foremost coloured gemstone producer with operations worldwide: Zambia, Mozambique, Madagascar, India, UK, US, South Africa

¡ Growth of coloured gemstones on

a all time high – demand in India alone has increased by 50% per year over the last four years ¡ To bring

rubies to the Indian market in the second half of the year ¡ Has

announced Mila Kunis as the Global Ambassador

¡ The Indian gem and jewellery

market alone is estimated at US$ 30.1 billion ¡ Coloured gemstones in India have

a market share of 8%, preceded by diamonds with a market share of 15%

Has collaborated with the world’s top jewellery designers to create one of its kind jewellery pieces using Gemfields’ emeralds, rubies and amethysts Retail price up to US$ 750,000 This collection of designer collaborations underscores not only the beauty of the gemstones, but also the range of shades, shapes and sizes

that make up Gemfields’ portfolio. Whether precision cuts, cabochons that look like candy or slices that are ruggedly organic, each Gemfields Zambian emerald, Mozambican ruby and Zambian amethyst was the starting point for a bespoke creation. To coincide with the launch of this project, Gemfields unveiled a new global advertising campaign featuring brand ambassador Mila Kunis wearing ethically sourced Zambian emeralds and Mozambican rubies shot by Mario Sorrenti in Los Angeles Building on the success of its emerald and amethyst operations in Zambia, Gemfields has now ventured into rubies, processed in Mozambique. Globally, it is the leading manufacturer and producer of emeralds Gemfields announced its strategy for the Indian market alongside the announcement of famous Hollywood actress, Mila Kunis, as the company’s Global Ambassador. After carefully studying consumer preferences and buying patterns, Gemfields has observed that the North and West

Mines To Market / Mar-April’2013

NEW LAUNCH Natasha Collis, Octium, Parulina, Penny Winter, Robinson Pelham, Shaun Leane, Solange AzaguryPartridge, Stephen Webster, Sutra, Svetla, The Gem Palace, Theo Fennell, Wendy Yue, Wright &Teague, Zaiken.

regions largely consume emeralds whereas the South and East regions are promising for ruby sales. Gemfields’ unprecedented mine to market strategy, which allows consumers to trace the origin of their gems from the source, has rightfully resulted in the Company becoming leaders in the industry, especially in both India and Asia. As well as developing proprietary product and practices, Gemfields is committed to bolstering the coloured gemstone sector, especially emphasizing the rare, unique qualities of coloured gems. Emeralds, for example, are many times scarcer than diamonds, although arguably infinitely more exciting, made up of countless microscopic fissures within in each stone that makes each gem completely unique. Gemfields is committed to bolstering the coloured gemstone industry, especially by emphasizing the rare, unique qualities of coloured gems. “Gemfields has observed that the demand for coloured gemstones in India has increased by 50% per year over the last four years alone, and we expect this percentage to grow higher in the coming years”, states Ian Harebottle, Gemfields Chief Executive Officer. “The overall acceptance, demand and popularity of gemstones in India have significantly risen in pursuit of owning something unique and unparalleled. In-fact, most of our gemstones are sent to India to be cut and polished. Indeed, Jaipur where we are well established - is Mines To Market / Mar-April’2013

known as the emerald capital of the world.” STATEMENT FROM GEMFIELDS AMBASSADOR, MILA KUNIS “Gemfields has this incredible knack for finding the absolute coolest designers to work with to create jewellery. I’ve worn a number of the pieces and I can tell you that this collection is so unique and special, and no two pieces are alike.”

“The overall acceptance, demand and popularity of gemstones in India have significantly risen in pursuit of owning something unique and unparalleled. In-fact, most of our gemstones are sent to India to be cut and polished. Indeed, Jaipur where we are well established - is known as the emerald capital of the world.”

PARTNER JEWELLERS Alexandra Mor, Amrapali, Anndra Neen, Bina Goenka, Coomi, Dickson Yewn, Dominic Jones, Duffy, Fabergé, Farah Khan, Fernando Jorge, Hannah Martin, Hoorsenbuhs, Jasmine Alexander, Jayce Wong, Jordan Askill, Kara Ross, Kimberly McDonald, Mappin & Webb, Monica Vinader, Nam Cho,

PROFILE POINT

Kiran Gems Pvt Ltd. Board & Management:

Vallabhai S Patel: Chairman- Rough procurement, Production and technology development.

Mr Dinesh Lakhani: Director- Global sales and distribution management for diamonds up to 0.18cts, develop new markets and global customer relations.

V Lakhani : Director (Kiran Exports BVBABelgium)- Rough procurement and sales & distribution management for diamonds in European region, develop new markets and customer relations

Mr Mavji S Patel: Managing Director- Global strategies for Finance, Marketing and Distribution of Diamonds and Diamond Jewellery.

Mr Rajesh Lakhani: VP- Global sales and distribution management for diamonds above 0.18cts and certified diamonds, develop new markets and global customer relations

Mr Kalpesh Patel: VP- Global sales and distribution management for fancy shape diamonds (Princess), develop new markets and global customer relations

G Gopani: Director (Kiran Exports HK LtdHong Kong and Kiran Gems Shanghai LtdChina) - Sales & distribution management for diamonds in Far East and China, develop new markets and customer relations

Mines To Market / Mar-Aprilâ&#x20AC;&#x2122;2013

PROFILE POINT

Kiran Gems Private Limited Awarded for Highest Importer of Cut & Polished Diamonds From India in Europe Gem & Jewellery Export Promotion Council

All Suppliers: 1 Rough import Kiran is the world’s largest manufacturer of white diamonds below 1.50 carats and uses rough from all the miners of the rough like De Beers and Alrosa.

2. Polished diamond (in factory) Kiran has an unmatched breadth of world class product offering in terms of colour, clarity, sizes, shapes and customised services. Kiran manufactures diamonds in its 138 specialised factories spread across 1 million sqft of factory space in Ahmedabad and Surat.

3. Export diamonds With its offices at prime business locations, Kiran has satisfied customers across all geographiesBelgium, Thailand, Hong Kong, U.S.A., Australia, Japan, Taiwan, Malaysia, U.A.E., Switzerland, Italy, U.K., to name a few.

4. Jewellery brand (export or retailer chain) Kiran is one of the foremost Jewellery manufacturers of the world. Kiran manufactures and exports its diamond jewellery world wide namely USA, UK, Mid East besides catering to its domestic markets. Kiran has created a B2B brand Unity diamond jewellery which is innovative concept jewellery. Kiran also keep creating new collections which are offered to its customers time to time globally.

Mr Dinesh Lakhani with Belgium team Basel March’ 2012

5. Participates in various jewellery shows: Kiran participates in every major diamond and diamond jewellery shows of the world. It includes IIJS, IIJS Signature and other regional shows in India, HKIJS, JuneHKJGF and HKJGF in Hong Kong, Istanbul Show in Mid East, Vicenza in Europe, JCK Vegas show.

RtoL Mr Mavji Patel with Kiran Jewels (India) team- Mr Mehul Vaghani and Mr Varun Lakhani- IIJS Signature 2012

Mr Rajesh Lakhani with customer Hong Kong Show March’ 2013

Mines To Market / Mar-April’2013

SHOW TIME

GJIIE 2013 receives astounding response

he ninth edition of GJIIE at Chennai Trade Centre from 1618 March 2013 saw a record turnout at the Chennai Trade Centre of more than 12000 people visiting this year The three day conglomeration of the country’s leading jewellery design houses saw a whooping 12,000 visitors turn out. Gem & Jewellery India International Exhibition (GJIIE) jointly organised by Madras Jewellers and Diamond Merchant’s Association and UBM India celebrated its 9th edition from 16th to 18th March at the Chennai Trade Centre in the heart of the cultural capital of south India, Chennai. The country’s most comprehensive B2B fair brought together manufacturers, wholesalers and retailers under one roof and also proved to be a perfect centre of glitterati jewellery and loose stones. With an orchestra of traditional South Indian instruments, from the maelam to the nathaswaram to the thavil rendering uplifting traditional music, the Chief Guest, Mr. Rajendran, was ushered into the exhibition to light the ceremonial kuthuvillaku on the opening day of the exhibition.

audience on various aspects of the jewellery industry. A panel of experts, comprising Emmanuel Babu of Original Kerala Jewellers, Mohamed Yasir Sultan of Sultan Group, Suraj Shantakumar of Kirtilals and Sanjay Banerjee of Nizam Jewellers, engaged in a discussion on ‘Independent Retailing vs. Chain store Retailing’. This discussion was an eye-opener where the audience was brought to understand, the importance of brand identity in the market, which is essential for small-scale jewelers as well as large-scale jewelers. During the course of the exhibition, the gold walk featuring models with signature pieces from participating jewelers also received an overwhelming response from the exhibitors as well as the visitors. Kranti Nagvekar, Group Director for UBM India’s jewellery portfolio announced the launch of the first B2C show, I Love Jewellery, to be kick-started in October exclusively for the jewellers of Chennai and other important surrounding cities during the inaugural speech of GJIIE 2013. For the first time ever, UBM India is organizing a B2C Jewellery show in October 2013 and since it is going to be held a week before Diwali with a focus on high end products like jewellery, watches and others, it is expected that the turn over

and turnout will be excellent with more than 20 – 30 thousands visitors. Jayantilal J Challani, President, MJDMA shared, “The idea behind B2C is to benefit the end users by making available all varieties and latest design under one roof at an affordable price. Chennai will become the hub of B2C jewellery exhibition as it is for B2B jewellery show.” Kranti Nagvekar, Group Director, UBM India opines, “It is indeed a great opportunity for the residents of Chennai to come, see and be a part of the Chennai B2C fair, organized by MJDMA & UBM India. The association between MJDMA & UBM India has been really fruitful and we would like to thank all the office bearers of MJDMA who have untiringly been with us and supported us everywhere.” She further added, “I would also like to take this opportunity to thank the associations across the state of Tamil Nadu, Andhra Pradesh, Karnataka and Kerala for coming with us and ensuring GJIIE’13 is the bench mark setter in the Indian gems & jewellery industry. This year UBM India has announced its latest venture, Kolkata Jewellery & Gem Fair which will be held from 11-13 January, 2014. KJGF along with the other four exhibitions in Chennai, Mumbai, Delhi & Hyderabad together attracts over 30,000 key buyers and over 800 exhibitors from India and overseas.” The three day event, the ninth edition of Gem & Jewellery India International Exhibition has raised the benchmark and increased business opportunities for the jewellery industry, with a participation of 250+ exhibitors.

To add glamour to the glittering extravaganza, GJIIE organized an evening of jewellery fashion extravaganza titled ‘Style Statement’, to creatively display amazing designs with a touch of smartness. The fashion show served as the exclusive platform for the country’s top manufacturers to showcase their trendsetting jewellery collection for the year 2013 in India. At GJIIE 2013, several interesting seminars were also held during the three day of the show that educated the

Mines To Market / Mar-April’2013

SHOW TIME

HKTDC Hong Kong International Jewellery Show Draws Record Number of Buyers Emerging Market Buyers Up 18 % 66 per cent of buyers interviewed expect an increase in procurement spending, and more than 40 per cent are prepared for price hikes.

Emerging Market Trends The survey also gathered the opinions of buyers and exhibitors on emerging markets. The respondents generally believe that, over the next two years, sales to the Chinese mainland, India and Russia, as well as ASEAN, will see significant growth, with more than half the respondents saying that the mainland market has the most potential.

he 30th edition of the HKTDC Hong Kong International Jewellery Show, which closed its five-day run Saturday, 9 March, attracted more than 42,000 buyers from some 140 countries and regions,

a new buyer record. This year’s buyer total was up nearly 11 per cent over last year, with emerging market buyers up 18 per cent. Hong Kong Trade Development Council (HKTDC) Deputy Executive Director Benjamin Chau was encouraged by the response, especially from emerging markets. “The number of buyers from the Chinese mainland was up 24 per cent over last year, while Indian and Russian buyers both increased by 16 per cent; ASEAN buyers were up 11 per cent,” he said. “The continuing expansion of the middle class and the rapid development of sales channels in emerging markets are fuelling Mines To Market / Mar-April’2013

consumer demand for luxury goods.”

Survey Spotlights Prospects More than 3,300 exhibitors from 49 countries and regions participated in this year’s fair, a new exhibitor record. During the show period, an independent body was commissioned to interview some 800 buyers and exhibitors to understand their views on market prospects, export outlook and product trends. The majority of buyers and exhibitors interviewed were positive about market prospects. While 85 per cent of buyers interviewed expect a growing or steady turnover this year, 76 per cent of exhibitors interviewed believe that the market this year is better than or comparable to last year. In addition, 70 per cent of the exhibitors interviewed expect a rise in production or procurement costs, and about 30 per cent of the exhibitors interviewed indicate that they will consider raising product prices. Some

As far as product materials are concerned, exhibitors and buyers interviewed expect that white gold will be the most popular in the coming year, followed by silver and yellow gold. As to product trends, modern, minimalist and feminine designs are now dominant. Diamonds are the most popular gemstone, followed by pearls and jade. Respondents’ appraisals of the fair were positive, according to Mr Chau: “The survey reveals that buyers generally find the quality and design of Hong Kong jewellery to be outstanding, while offering a variety of styles. About 80 per cent of the respondents said that the show was effective in helping them identify suitable suppliers.”

Small-Order Zone Attracts Buyers The HKTDC organised more than 90 overseas buying missions to take part in the show. In addition, more than 20

SHOW TIME special activities, from parades and seminars to networking receptions, were held to help participants expand their business contacts. In response to market needs, a Small-Order Zone was added to the show this year. It offered jewellery purchases in small quantities, between five and 500 pieces, and at prices below US$1,000 per piece. The zone attracted more than 4,600 buyer visits and created about 8,000 trade enquiries.

The 36th Istanbul Jewelry Show in March smashed records Overall visitor attendance up 30%

“The setting up of the Small-Order Zone was really considerate of buyer needs,” said United States buyer Daniel Katz, sourcing at the show for his own jewellery shop. “We focused on silver items and jewellery in simple and young styles.” “This exhibition is a perfect venue for us to find new products and keep abreast of design trends,” said Prasanna Kumar, President of the Indian jewellery shop Nathella, participating in the show for the second time. “We have identified three or four suppliers and have placed US$1 million worth of orders so far.”

Confidence Returning “We see positive momentum at this show, as buyers are more confident to place orders now,” said Vishal P Mehta, President of Dimexon (Hong Kong) Ltd. “So far, buyers from the Chinese mainland, Hong Kong, Indonesia, Singapore and Thailand have placed orders for our loose diamonds. For finished jewellery, we have received orders from many buyers, especially those from Asia and the Middle East. We are cautiously optimistic about this year’s business.” Wang Ensheng of Shanghai’s Laofengxiang, which was exhibiting at the fair, said the jewellery company’s participation had been fruitful. “By joining the show, we have been able to bring the Laofengxiang brand to the international arena, to get to know more overseas buyers and tap opportunities for cooperation.”

erving as the meeting point for the world jewellery industry and an outstanding trade bridge between Europe and the Middle East, the 36th Istanbul Jewelry Show (IJS) – organised by UBM Rotaforte with the main sponsorship of Türk Ekonomi Bankas1 (Turkish Economy Bank / TEB), concluded on a high note on 24 March 2013, occupying Halls 2, 4, 6, 7 and 8 of Istanbul Fair Center with total gross exhibition space of 40,000 square metres. The Istanbul Jewelry Show March registered a remarkable 30% increase in total visitors compared to the 2012 edition. A total of 26,523 top unique buyers, 81% of whom were domestic visitors and 19% came from 110 overseas countries, convened in four days to conduct business and meet suppliers and buyers from all over the world.

There was an impressive increase of buyers from Jordan, Kosova, Israel, Serbia, Syria, Libya, France, Kazakhstan, Northern Cyprus Turkish Republic, Spain, Belgium, China, Malaysia, Netherlands, Liberia, Albania, Canada, Georgia, Pakistan and United Kingdom compared to the 2012 edition of Istanbul Jewelry Show March. This once again confirms that the fair is a truly world-class trade event. This year, in addition to the country and group pavilions of Hong Kong, Italy and Thailand, more than 1,000 companies and brands from Belgium, Egypt, Germany, India, Singapore, Spain, the UAE and more, participated in Istanbul Jewelry Show March 2013. Ms. Sermin Cengiz, Managing Director of UBM Rotaforte said: “We are extremely happy and proud to

The jewellery show is organised by the HKTDC in cooperation with the Hong Kong Jewellers’ & Goldsmiths’ Association, the Hong Kong Jewellery & Jade Manufacturers Association, the Hong Kong Jewellery Manufacturers’ Association and the Diamond Federation of Hong Kong.

Mines To Market / Mar-April’2013

SHOW TIME organise such a successful show which has become one of the top events for all professionals of the industry for the 36th time. We believe that Istanbul Jewelry Show, which allows the exhibitors and visitors to follow all novelties and developments in the industry, is of great importance for Turkey which aims to become the largest jewellery producer in the world. Trade exhibitions are channels for business opportunities and we are always happy to see IJS successfully fulfill its role in bringing business opportunities to our exhibitors. The rise in number of exhibitors, exhibition space and number of visitors this year not only confirms the fair’s international status but also

The First IGJF 2013 Unveiled In New Delhi From 12th - 15th April, 2013

n its first B2C initiative GJEPC, in association with India Trade & Promotion Organization brings the best of jewellery to consumers New Delhi highlights Istanbul’s important role in the global jewellery trade. We are more confident than before on the road to become the leading show in the jewellery industry globally. We heartily thank the jewellery industry of Turkey which empowers us with the big moves they have made in exports in recent years and now compete with the giants of the world.” Supported by the Republic of Turkey Ministry of Economy, Istanbul Precious Minerals and Jewellery Exporters’ Association (IMMIB), Small and Medium Enterprises Development Organisation (KOSGEB), Jewellery Exporters’ Association (JTR), certified by the Union of International Fairs (UFI) and the Quality Management System ISO-9001, Istanbul Jewelry Show, targeting the Middle East, Eastern Europe, North Africa, Russia, CIS Countries, United States and Asia once again confirmed its professional and international status in the jewellery industry. The 37th Istanbul Jewelry Show will be held from 3-6 October 2013. Mines To Market / Mar-April’2013

In its first ever endeavour to reach out to the consumers, the Gem & Jewellery Export Promotion Council (GJEPC) along with The India Trade Promotion Organization (ITPO) under the Ministry of Commerce and Industry inaugurated the India Gems & Jewellery Fair at Pragati Maidan, New Delhi. With over 100 jewellers and designers participating, the India Gem & Jewellery Fair (IGJF) is being held from 12th – 15th April 2013 at Hall No. 12 & 12A showcasing the best in latest trends and a collections that suit every occasion. Some of the leading participants’ collection to look out for includes leading Indian brands such as Gitanjali Gems, Kays Jewels, Birdichand Ghanshyamdas, PP Jewellers, GEHNA CLASSICS, Bholasons, Hazoorilal, KGK ENTICE, Malabar Gold & Diamonds, Golecha’s Jewels, Jewels Emporium, Kinu Baba Jewellery, Forevermark Diamonds, Sawansukha Jewellers and Samana Jewellery among various others. The event was inaugurated by Smt. Sheila Dixit, Honourable Chief Minister of Delhi, along with Smt.

“India has traditionally been a huge market for jewellery having the world’s highest consumption for gold and jewellery products. Given the diverseness of the Indian culture, which has historically had huge influences on our jewellery designs, it is a matter of absolute pride to join hands with GJEPC as IGJF is the ideal platform by which we hope to introduce the Indian consumer to the wide gamut of jewellery crafts and extensive design and manufacturing capabilities that the industry has to offer.” Rita Menon, CMD, ITPO, Mr. Vipul Shah, Chairman, GJEPC, Mr. Pankaj Parekh, Vice Chairman, GJEPC, and other ITPO & GJEPC officials, VIPs and dignitaries. Speaking at the event, Mr. Vipul Shah, Chairman, GJEPC commented, “The Gems & Jewellery Export Promotion Council has initiated various B2B trade fairs and received phenomenal response for each of them over the years. However IGJF is GJEPC’s premier endeavor to organize an event directly targeting consumers and we are very grateful to the India Trade Promotion Organization, ITPO, who

SHOW TIME have lent us their unrelenting support to put together one of the largest consumer jewellery shows in the country. With participants from across the country our main objective is to engage the consumers directly and allow them to view the extensive range of jewellery, while providing the Indian gem and jewellery industry the much needed impetus as they continue to face the various challenges that continue to be prohibitive to the businesses’ growth in recent times.” “India has traditionally been a huge market for jewellery having the world’s highest consumption for gold and jewellery products. Given the diverseness of the Indian culture, which has historically had huge influences on our jewellery designs, it is a matter of absolute pride to join hands with GJEPC as IGJF is the ideal platform by which we hope to introduce the Indian consumer to the wide gamut of jewellery crafts and extensive design and manufacturing capabilities that the industry has to offer.” said Rita Menon, CMD, The India Trade Promotion Organization. The IGJF will bring forth a large and versatile collection of jewellery from across the country. The exhibition will include leading retailers and jewellery brands with collections featuring jewellery that are plain, studded with diamonds and precious and semiprecious stones in precious metals such as gold, silver, platinum and more showcasing a variety of styles and trends such as couture jewellery, bridal wear, traditional, vintage, contemporary, classic styles and much more. The India Trade Promotion Organisation (ITPO) has over the years been actively promoting various industry segments, bringing the trade and the consumer closer through its exhibitions that are held across the country as well as showcasing Indian products and craft at international exhibitions. In its bid to provide an added boost to the gem and jewellery industry, the ITPO signed an MOU with the GJEPC to organize the first India Gems & Jewellery Fair (IGJF) from April 12-15, 2013 at the Pragati Maidan in New Delhi with plans to continue take the platform to national and international levels.

IIJW’ Delhi 2013 Extravaganza Came To A Glittering End With Amazing Trends, And Dazzling Celeb Line Up

he first edition of the India International Jewellery Week Delhi 2013 organized by the Gem and Jewellery Export Promotion Council which was held on April 12 and 13 2013, came to an end after two hectic days. The event organized by the Gem and Jewellery Export Promotion Council presented to the international and domestic buyers the immense talent of the Indian designers in the Jewellery industry.

through 14 dazzling shows to hundreds of eager fashion followers. Two top choreographers – Lubna Adam, and Anu Ahuja presented

The Gem & Jewellery Export Promotion Council, the apex body of the Gem and Jewellery trade in the country is supported by the Ministry of Commerce and Industry Government of India. The IIJW DELHI 2013 is the only international jewellery week in the world and attracted numerous buyers, media and visitors. 17 designers showed their collections Mines To Market / Mar-April’2013

SHOW TIME around the theme of earth, water, fire and air, the collections were fitted into the many moods of a woman with stunning jewellery that left the viewers breathless with admiration.

traditional brands like Nizam, Envi and True Platinum from the group revealing their best collections. Bholasons gave jewellery that antique look; while JUD Jewellery from

The Grand Finale As always the Grand Finale was by P C Jeweller who have been the constant sponsors since 2010 and helped the Council to create awareness amongst the international and domestic buyers regarding the beauty of Indian jewellery and its designer talents. The show was a magnificent display of bridal jewellery created in fine diamonds and polkis that was a big success with the audience as well as the media and buyers.

fabulous entertaining shows with 30 models that glided down the ramp during the two day extravaganza.

The Grand Opening The grand opening took place on the first day of IIJW 2013 when Chairman Vipul Shah, of GJEPC welcomed the guests and IIJW brand ambassador Sonam Kapoor lit the lamp with other dignitaries and walked the ramp. The first opening show had to be by the Gitanjali Group, co sponsors of the IIJW 2013 that launched the fabulous “Shuddhi Jewels” collection dedicated to the empowerment of women. Working

Superb Traditional Bridal Designs With the bridal season just around the corner, the brands displayed their most magnificent jewellery pieces to the buyers. Rio Tinto showed an array of beautifully crafted jewellery from their “Nazraana” collection. Birdhichand Ghanshyamdas displayed the “Amer” collection of bridal creations. Hazoorilal brought in the “Desire” collection for their Tribal, Diamond and Jadau lines. On the second day the Gitanjali Group created the Great Indian Wedding Carnival with jewellery that would fit into the Mehndi, Sangeet, Baraat and Shaadi segments, with

Junagadh Jewellery Pvt Ltd which stands for Junagadh Uncut Diamonds showed their outstanding line of bridal ornaments. Charu Jewels were inspired by the beauty of heaven for their “Statements of the Heaven” line so there were ethereal creations that dazzled the audience. Kays Jewels Pvt Ltd created magic on the ramp with their line of 16 sets called “Alaukik” and R K Jewellers presented the collection of Prakshi Sharma as well as their “Zistatva” line.

Personal Designer Brands The many lady designers who dazzled with their collections proved their expertise in the jewellery business. Aum Monica Kapur’s collection was a dream like range which the designer called “Anupam” while Rosily Paul played with gold and amber to mesmerize the audience with the “Layers” collection of eight different versions of amber pendants on long tantalizing gold chains. Pooja Juneja’s line of jewellery was titled “The Conflation” and it captured the attention of the viewers.

The Young Turks Of Jewellery Designing Mines To Market / Mar-April’2013

SHOW TIME PFDC Boulevard for the outfits. Kays Jewels Pvt. Ltd. Had the creations of designer Siddhartha Sehgal to add glamour to the show.

The Show Stoppers Parade

The international Gemological Institute who have partnered IIJW since its inception in 2010, once again presented fresh talent when Namita Naik, Vidhi Chaudhary, Sakshi Dhameliya and Hetvi Jasani wowed the gathering with their stunning bridal jewellery.

Couture And Jewellery When jewellery is the centre of attraction can couture be far behind? Here a lineup of designers matched their talents with the brilliance of the jewellery. Archana Kochher gave the Gitanjali show’s Shuddhi Jewels collection the perfect creations. Anjali and Arjun Kapoor matched their designs for the IGI designer show, while Gavin Miguel complemented the shimmer of the Rio Tinto diamonds. Charu Parashar’s all black fusion line gave the Hazoorilal collection that added zest. Pam Mehta for the label Kisneel by Pam added to the grandeur of the Great Indian Wedding Carnival presented by the Gitanjali Group. Gyan’s made the perfect creations for Bholasons and Sumeet Das Gupta showed a rainbow of mermaid style lehenga, choli, dupatta sets for bridal wear. Aslam Khan ensured that Charu Jewels had the ethereal fusion wear but Pooja Juneja’s jewellery needed the slinky black gowns. Birdhichand Ghanshyamdas had designers Rahul and Gunjan doing the clothes while Aum Monica Kapur felt the creations of Manpreet Kaur of Red Couture fitted the bill. Rosily Paul gave Samant Chauhan the job of matching her jewellery with his ecru collection and R K Jewellers selected

Jewellery and especially the diamond is a girl’s best friend so the show stoppers were as glamorous as the jewellery on display. Ankita Shorey Miss India International 2011 as well as brand ambassador of Gitanjali and Shriya Saran opened the IIJW 2013 Delhi expo while Neha Dhupia added grace to the Great Indian Wedding Carnival. Aurithra Ghosh was the beauty who ended the show for IGI designer Vidhi Chaudhary and Yami Gautam made a great show stopper for Rio Tinto. The sensuous Chitrangda Singh was the show stealer for Hazoorilal and Lara Dutta, Miss Universe 2000 stopped the show for Birdhichand Ghanshyamdas. Juhi Chawla was the charming beauty for Kays Jewels Pvt ltd and Zeenat Aman made a dignified entry for R K Jewellers. P C Jewellers brought in Jacqueline Fernandez as well as top director, Madhur Bhandarkar. Aum Monica Kapur also felt that Indian cricketer Atul Wassan was the right choice to end the show. Pooja Juneja selected Delhi entrepreneur, Shabnam Singhal to create a fitting end for her show. Miss Universe India 2012 Shilpa Singh, closed the show for Prakshi Sharma.

Dance And Jewellery Dance played an important part from the very first show by the Gitanjali Group when Veena Jog, Himani Sharma Riya Mandal and Meenakshi Chopra created the different moods of women. Ballerina Sarah Jordan moved beautifully for the Rio Tinto opening and Prakshi Sharma had Ballerina Emily to set the pace for the formal jewellery. Creating the perfect atmosphere for the Great Indian Wedding Carnival by the Gitanjali

Group it was the Sumeet Nagdev Dance Arts that did a wonderful job.

Sponsor Lineup The sponsor line up was impressive as always with Gitanjali cosponsors partnered by Signature the liquor partner, Kingfisher Ultra beverage partner and Star Plus broadcast partner. Radio Mirchi was the radio partner and Femina, Hello, Grazia were media partners. The IGI has been a constant partner since 2010 along with the very popular P C Jeweller that has encouraged IIJW from its inception.

Media Action TV channels, print media from India and abroad and the many bloggers and web sites were present in large

numbers at every show and extremely thrilled with the beautiful collections on display.

The Buyer Strength The buyer strength proved to be very strong as Indian as well as international buyers eagerly attended the shows to view new talent for their countries and stores. With the first IIJW 2013 in New Delhi being a thumping success it will be now a set date in the international calendar when two jewellery weeks will be held every year in Mumbai and the capital of India to give the global buyers an experience of India’s immense talents. Mines To Market / Mar-April’2013

SHOW TIME

21% visitor growth for Jewellery and Watch Show in its 21st edition The 21st edition of the International Jewellery and Watch Show (JWS) ended with a 21% increase in visitor numbers compared to last year. 7,382 people attended JWS 2013 which was held and inaugurated under the patronage of HH Sheikh Mohamed Bin Hamdan Al Nahyan at the Abu Dhabi National Exhibition Centre from March 14-18.

WS is organized by Reed Exhibitions in collaboration with Abu Dhabi Gold and Jewellery Group. 175 exhibitors, including 120 companies and 55 represented companies from 19 countries, a 35% growth from the 2012 edition, brought the latest jewellery and watch designs to Abu Dhabi, many of which have been specially made for JWS. His Excellency Ibrahim Mahmoud, Chairman of Abu Dhabi Gold and Jewellery Group, said, “The Abu Dhabi Gold and Jewellery Group is keen to support the emirate’s efforts in developing the jewellery industry in line with Abu Dhabi’s Economic Vision 2030 which aims to diversify the economy of Abu Dhabi. The increased number of visitors at this year’s show, especially Emiratis, demonstrates the influential position that the show holds in Abu Dhabi. This is what motivates the organizers to dedicate more and more efforts each year to bring a successful event together.” Rafif Al Trabishi, General Manager of Al Masaood Jewellery, a member of the judging committee for the EBDA’A competition and part of the Abu Dhabi Gold and Jewellery Group, said, “The 20 represented

and Sons Company. “This year we have showcased six unique limited edition Rolex watches, which are among only 30 other watches produced by the mother company worldwide.This reflects the excellent status that the International Jewellery and Watch Show has achieved over the years.”

“The Abu Dhabi Gold and Jewellery Group is keen to support the emirate’s efforts in developing the jewellery industry in line with Abu Dhabi’s Economic Vision 2030 which aims to diversify the economy of Abu Dhabi. The increased number of visitors at this year’s show, especially Emiratis, demonstrates the influential position that the show holds in Abu Dhabi. companies within the Al Masaood Jewellery stand showcased a collection valued at more than one billion dirhams, 90% of which was produced abroad and 10% produced locally.” “Watches have attracted a large segment of the exhibition’s visitors,” said Bilal Mustafa Khalid, General Manager of Mohamed Rasool Khoury

Mr. Bilal also added, “The Parmigiani stand showcased some of the world’s most expensive watches, worth more than Dhs1.2m. They also showcased jewellery sets made of four pieces, worth more than Dhs700,000.” He also pointed out that 80% of their products were produced locally and only 20% of them were imported. Rohit Dhamani, Chief Executive Officer of Dhamani, which has been exhibiting at JWS since its inception 21 years ago, said, “The value of our showcased collection this year has exceeded Dhs300m. We have also noticed that there were more high profile and unique customers who are visiting the exhibition. JWS is where the heart of the UAE is, all the trends start from this event where we can interact with high-end customers and know more about what the need so we can create pieces that meet their demand.” The exhibition attracted an elite group of local companies in the jewellery sector, Including Mohamed Rasoul Khoury and Sons, Al Masaood, Salem Al Shueibi, Salem Al Saman, Amwaj, Al Mansour and Dhamani. Christian Orlov, owner of ORLOV London, said, “This was ORLOV’s first Middle East exhibition, and the benefits of participation were twofold. The event gave us a

Mines To Market / Mar-April’2013

SHOW TIME have been suppliers in the jewellery market for the past 40 years, but we now aim to create a brand out of Butani; that’s why it is crucial for us to be actively present in JWS to spread awareness on our brand among the perfect target audience. This year, we noticed there was high demand for wedding sets and yellow gold.”

unique opportunity to learn more about the culture and tastes of our Gulf-based clients, and was a good platform at which to showcase our high-end jewellery collections, which range from €20,000 up to €1m. We are looking to grow our presence and increase awareness of ORLOV within the region, and are set to sign a distributorship deal later this year; so we will definitely return for the show in 2014, with a bigger stand.” Mukesh Butani, CEO and owner of Butani Jewellery, commented, “This is our 4th year to participate in JWS. We

From the Luxury Gift Show, George M. Ribeiro, owner and CEO of The Royale Collection, said, “We believe that the event as a whole including JWS and the new edition of LGS is very unique. The people of the UAE have tremendous buying power and demand our customized items. It is very important for us to participate in this event to spread awareness about our unique products in Abu Dhabi.” According to an exhibitor survey conducted by Reed Exhibitions, the event organizer, 50% of the exhibitors collectively sold items during the days of the exhibition for more than Dhs38m. The range value spent by visitors on purchases started from Dhs3,000 up to Dhs500,000. Additionally, 43% of visitors bought

“The Parmigiani stand showcased some of the world’s most expensive watches, worth more than Dhs1.2m. They also showcased jewellery sets made of four pieces, worth more than Dhs700,000.” jewellery and watches for their personal use and 22% bought them items for gift purposes. Reed Exhibitions also announced that 75% of exhibition space for JWS is booked for next year, which is a strong increase compared to last year’s figure of 21% at the same period. This year, Reed Exhibitions launched the EBDA’A Award Emirati jewellery design competition which was open in three categories including daywear and casual jewellery, evening wear and contemporary interpretation of traditional jewellery. Leading Abu Dhabi jewellers Al Masaood Jewellery and Mansour Jewellers sponsored the EBDA’A Award 2013.

www.minestomarket.net 48

Mines To Market / Mar-April’2013

Get connected with us

www.minestomarket.net

WORLDâ&#x20AC;&#x2122;S LARGEST DEALER OF NATTS

Diamond Manufacturers, Importers and Exporters

Hiraco India Pvt. Ltd. C/West, Off No. 6051-56, Bharat Diamond Bourse, BKC, Bandra (East), Mumbai - 400 051 T: +91 22 40340340 W: www.hiracoindia.com E: hiracoindia@gmail.com

Hira Exports Ltd. Suite #901, 9/F Harbour Centre 2, 8 Hok Cheung Street, Hung Hom, Kowloon, Hong Kong T: +852-31632289 F: +852-23339518 E: hiraexportsltd@yahoo.com