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Indian Gems & Jewellery Industry, Q3 2011
Credit Analysis & Research Limited, Aug 2011, Pages: 80
India is the world's largest diamond-processing centre, cutting and polishing more rough diamonds than any other country. A significant proportion of these polished diamonds are then exported to markets like the UAE, USA, Hong Kong and the European countries. Diamond export contributes substantially to India's total exports and is supported by favourable initiatives from the central government. Many domestic Indian G&J export houses have started to export to newer markets like South America, Far-East and Eastern Europe. However, future growth is expected to be driven from emerging markets like China and India where rising income levels is giving rise to a huge pent-up demand.
CARE Research believes India's domestic gems and jewellery industry is growing at a robust pace. The country's huge appetite for gold jewellery despite higher price coupled with a rising middle class is bound to push the demand in the next 5 years and beyond. The increasingly urban and brand-conscious consumer prefers diamond jewellery over gold. This is expected to give a boost to more branded retail outlets which are perceived to offer a better service and premium quality.
CARE Research's report on ‘Gems & Jewellery Industry' gives valuable insight on the industry, based on the global and domestic consumption, the demand-supply scenario of the domestic market, the export market for domestic companies, pricing analysis, value chain and commentary on top industry players. In supply dynamics, we have given details on proven and probable gold reserves held by top gold producing companies. For diamond production, we have given rough production trend for last six years and the year going forward.
The rise in demand for diamond-studded jewellery is attributed to changing consumer preference for luxury and fashion jewellery as well as rising gold prices which makes diamond jewellery more cost effective. The cost analysis and pricing information presented in the report will help the reader identify critical cost items and their trends. The company overview section in the report provides detailed profiles of the top five players in the industry, including their financial and operational data. The report also provides the manufacturing process and technical aspects in the industry overview section. The report provides CARE Research's outlook and challenges on the Indian G&J industry for the next 5 years along with a detailed demand break-up within each sub-segment. It takes into account several initiatives taken by the Indian government and the private sector which is crucial for the future growth of the industry.
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