Industry profile
The gems and jewellery industry occupy an important position in the Indian economy.
It is a leading foreign exchange earner, as well as one of the fastest growing industries
in the country.
As of February 2021, India's gold and diamond trade contributed ~ 7.5% of India's
gross domestic product (GDP) and 14% of India's total merchandise exports. The gem
and jewellery sector are expected to employ 5 million in 2020 and ~ 8.23 million in
2022.
Based on its potential for growth and value addition, the government has declared the
gem and jewellery sector as a hub for export promotion. The government has recently
taken various steps to promote investment and enhance technology and capabilities to
promote ‘Brand India’ in the international market.
The government has allowed 100% foreign direct investment in an automated way,
the foreign investor or Indian company does not require any prior approval from the
Reserve Bank or the Government of India.
Market size
India's gem and jewellery market volume stood at US $ 78.50 billion in FY21.
Export growth was mainly due to renewed import demand in the US export market
and fulfilment of orders received by N number of Indian exhibitors during virtual
buyer-seller meetings (VBSMs) conducted by GJEPC.
From April 2021 to January 2022, India's total gem exports stood at US $ 32.37
billion, an increase of 69.13% over the same period last year. In January 2022, India's
total gem and jewellery exports increased by 23.66% year-on-year to US $ 3.28
billion. India's gem and jewellery exports will reach US $ 40 billion by 2021-22, a
growth of 6.5% over pre-covid levels. The Government of India has set a target of $
70 billion for jewellery exports over the next five years (until 2025), which is
expected to reach $ 35 billion by 2020.
BRIEF HISTORY
Before the liberalization of the Indian economy in 1991, only the Minerals and Metals
Trading Corporation of India (MMTC) and the State Bank of India (SBI) were
allowed to import gold.
The abolition of the Gold Control Act in 1992, allowed large export houses to import
gold freely. Exporters in export processing zones were allowed to sell 10 percent of
their produce in the domestic market.
In 1993, gold and diamond mining were opened up for private investors and foreign
investors were allowed to own half the equity in mining ventures.
In 1997, overseas banks and bullion suppliers were also allowed to import gold into
India. These measures led to the entry of foreign players like DeBeers, Tiffany and
Cartier’s into the Indian market. In the 1990s, the number of retail jewellery outlets in
India increased greatly due to the abolition of the Gold Control Act. This led to a
highly fragmented and unorganized jewellery market with an estimated 100,000
workshops supplying over 350,000 retailers, mostly family owned, single shop
operations.
In 2001, India had the highest demand for gold in the world; 855 tons were consumed
a year, 95% of which was used for jewellery.
Structure of the industry
India’s G&J industry is highly unorganized and fragmented with 96 percent of the
total players being family owned businesses. The gold processing industry has around
15,000 players, with only 80 having revenues over USD 5 million. India is also home
to around 450,000 goldsmiths, 100,000 gold jewellers along with 6,000 diamond
processing players and 8,000 diamond jewellers.
The value chain of the industry starts from sourcing and mining of the metals and
extends to jewellery retail. While India is not a major miner of previous metals and
stones, the country’s inexpensive and well skilled workforce makes it a world leader
in processing of diamonds. The country’s jewellery retail sector is also expected to
evolve with a shift among consumers towards branded jewellery, driven by greater
quality consciousness.
India was one of the first countries to start making fine jewellery from minerals and
metals and even today, most of the jewellery made in India is hand made. The
industry is dominated by family jewellers, who constitute nearly 96 per cent of the
market. The country at present has a small but growing organized sector.
Organized players such as Tata with its Tanishq brand, have, however, been growing
steadily to carve a 4 per cent market share.
India was the first country to introduce diamonds to the world, the first to mine, cut
and polish them as well as trade them. The cutting and polishing of diamonds and
other precious stones is one of the oldest traditions in India and the country has earned
a considerable reputation both in the domestic and international markets for its skills
and creativity.
In the global diamond market today, Indian diamonds account for 55 per cent share in
value terms, 80 per cent share in carat age (weight) terms and 90 per cent share in
volume terms. Today there is a ready availability of an entire range of diamonds in
nearly every size, quality and cut.
India offers the twin advantages of skilled labour and low cost in the area of gemstone
processing. India's significance in the global gems and jewellery industry can be
largely attributed to its strength in diamond processing.
The export industry mainly comprises of small-to-large units based in various special
economic zones (SEZs), export processing zones (EPZs) and in Electronics Exports
Processing Zone (SEEPZ).
CERTIFICATION OF GEMS AND JEWELLERY:
The Gems & Jewellery Promotion Council is India's certification authority. The
government's Central Board of Excise and Customs has banned the import or export
of rough diamond shipments, which are not accompanied by a Kimberley Process
certificate launched in Switzerland. Certification for quality diamonds and jewellery
has boosted exports and has resulted in greater acceptance of Indian products in the
world market.
Investments
According to the Department of Industry and Internal Trade Development (DPIIT),
the total foreign direct investment in diamond and gold jewellery in India between
April 2000 and June 2021 was US $ 1,194.00 million.
Listed below are some of the key developments in this industry:
In September 2021, Mulbar Group raised Rs. 750 crores (US $ 100 million) in the
gold refining and jewellery segment in Hyderabad.
In May 2021, GJEPC and the Embassy of India in Morocco partnered with India
Global Connect to better understand the current business environment in the gem and
jewellery industry and to look for trade opportunities for manufacturers, exporters and
importers from both countries.
GJEPC will hold its first International Gem and Jewellery Exhibition (IGJS) Outside
the Country, Dubai, from August 14-16, 2021. It will host a five-day body exhibition
the Indian International Jewellery Exhibition (IIJS-2021) - at the first such event
outside Bangalore, from September 15-19, 2021. According to GJPEC sources, 250
buyers have registered for Dubai IGJS 2021 and 95 stalls have been booked. There
will be 150 booths with items such as plain gold, gold-plated jewellery, diamond-
studded jewellery, silver jewellery, loose diamonds and gemstones.
In June 2021, Tanishq launched Antimicrobial Jewellery as a pilot project in some
markets. Currently, the range is available in stores across Chennai and Luck now, and
plans are afoot to launch other major markets in Kolkata and Hyderabad.
Antimicrobial jewellery is offered in the form of chains and rings, which have special-
coated layers that self-disinfect the surface and prevent further microbial growth.
In June 2021, the World Gold Council and the Gem and Jewellery Export Promotion
Council signed an agreement to promote gold jewellery in India. Under the terms of
the agreement, the two partners will jointly fund a multimedia marketing campaign
aimed at raising awareness, fit and adoption of gold jewellery among Indian
consumers, especially among millennials and General Z.
In April 2021, Malabar Gold & Diamonds raised Rs. FY22 has 1,600 crores (US $
214 million) to launch 56 stores, of which 40 will be in India and 16 in global
markets. In India, it will open stores in Tamil Nadu, Telangana, Andhra Pradesh,
Karnataka, Maharashtra, Delhi, West Bengal, Uttar Pradesh, Orissa and Kerala. In
July 2021, the company announced that it would be hiring> 5,000 employees at its
retail operations, brand headquarters and regional offices across the country.
In March 2021, Joalukas collaborated with IBM Global Business Services to design,
develop and deploy new cloud-native e-commerce platforms in 11 countries,
including India, United Arab Emirates, United States, United Kingdom, Singapore,
Malaysia, Bahrain, Qatar and Saudi Arabia. Arabia, Kuwait and Oman.
In February 2021, Reliance expanded its e-commerce division Geomart into 5 gram
and 10-gram silver coins and 1 gram, 5 gram and 10-gram gold coins.
Reliance Jewels, a Reliance in-house jewellery brand with ~ 93 flagship showrooms
and 110 shop-in-shops in 105 cities across the country, will execute orders for the
new division.
FOREIGN DIRECT INVESTMENT POLICY:
100% FDI is allowed under automatic route for exploration and mining of
minerals other than diamonds and precious stones.
For exploration and mining of diamonds and precious stones FDI is allowed
up to 74% under automatic route.
For exploration and mining of gold and silver and minerals other than
diamonds and precious stones, metallurgy and processing, FDI is allowed up
to 100% under automatic route.
Government Initiatives
India has signed an FTA agreement with the United Arab Emirates, which is expected
to further boost exports and reach the US $ 52 billion target.
The government has reduced the customs duty on cut and polished diamonds and
colored gemstones from 7.5% to 5% and NIL.
The amended SEZ Act is expected to increase exports of gems and jewellery.
In September 2021, Ms. Anupriya Patel, Minister of Commerce and Industry, said
that the renewed gold monetization scheme, reduction of import duty on gold,
hallmarking and other reforms would help the industry grow. The market export
target for 2021 is US $ 43.75 billion.
The government has reduced import duty on gold and silver (12.5% to 7.5%) and
platinum & poly (12.5% to 10%) to reduce the price of precious metals in the local
market.
The Government of India has made Hallmark mandatory for gold jewellery and
artefacts. A one-year grace period for implementation, i.e. until January 2021.
In December 2020, the All India Gem and Jewellery Domestic Council (GJC)
welcomed the decision to gradually make hallmarking mandatory from June 2021; It
urged the government to look into the major concerns of the industry to ensure the
smooth implementation of the initiative.
COMPANY PROFILE
Titan Company Ltd. made a paradigm shift when it introduced its future quartz
technology in the Indian watch market. Titan Company Limited is the fifth largest
integrated watch manufacturer in the world, with two credits being Titan and Tanishq,
two of India's most recognized and preferred brands.
The success story began in 1984 with a joint venture between the Tata Group and the
Tamil Nadu Industrial Development Corporation. Titan transformed the Indian watch
market by offering Titan quartz watches with an international look. After Sonata, a
valuable brand of watches designed in a functional style at an affordable price, Titan
has reached out to the youth segment with its third brand, Trendy and Chic Fastrack.
The company has sold 100 million watches worldwide and produces 12 million
watches each year.
With the licensing of premium fashion watches by global brands, Titan has
rediscovered its pioneering work in bringing international brands to the Indian market.
Tommy Hilfiger & fcuk and watch made in Switzerland - Xylys owe their presence in
the Indian market to Titan.
Titan, which entered the Indian jewellery market on a large scale without any known
brands in 1995, has launched Tanishq, India's most trusted and fastest growing
jewellery brand. Gold Plus, then additionally, focuses on the preferences of semi-
urban and rural India. Zoya, the latest retail chain in the luxury segment, completes
the jewellery segment.
Titan Company introduced glasses and Fastrack glasses and sunglasses and
recommended glasses.
Since its inception in 1984, Titan Company Ltd has been constantly growing and
setting new standards for innovation and quality. With over 1300 retail outlets in over
260 cities and over 1.8 million square feet of carpet area, it has the largest retail
network in India.
Titan is India's largest watch retailer, with 470 exclusive World Titan stores and 159
Fastrack stores & kiosks. In 1994, Titan launched Tanishq, India's most trusted and
leading jewellery brand. Today, Tanishq operates as India's largest jewellery retailer,
with 218 exclusive Tanishq boutiques and soy stores, investing in boutiques starting
at Rs 1.5 crore. Titan entered the glasses segment in 2007 with the Titan Eye plus.
The brand is retail in 467 Titan Eye plus stores, with investments starting from 30 *
lakhs. Titan Company is supported by over 7,000 employees and is supported by
countless fans around the world.
Titan Skinn entered the perfume segment under the brand name and later that year
entered the helmet category under its brand Fastrack. In the same year, it changed its
name to Titan Company Limited. In 2014, it launched a joint venture with Montblanc
to establish its retail outlets in India.
In 2016, Titan opened pharmaceutical lens manufacturing facilities in Noida, Kolkata
and Mumbai to improve its order processing time. In 2018, Titan maintained its brand
presence in the South with Tanishq, targeting its jewellery brand Gold Plus in South
India.
Taneira is an ethnic clothing brand of Titan that sells hand-woven sarees from various
weaving mills in India. The brand was launched in 2016. The first retail store opened
in Bangalore in 2017, followed by more stores in New Delhi and Hyderabad.
In addition, Titan recently (in the last quarter of 2016) announced that it will soon be
releasing smartwatches at affordable prices under brands such as Sonata and Fastrack.
In 2016, Titan entered the wearable devices market with the introduction of its
smartwatch jacket, co-produced with Hewlett Packard. In 2017, the company
launched Gesture Band, a fitness tracker under its youth accessories brand Fastrack.
In the same year, it invested $ 3 million in CoveIoT, a Singapore-based wear
technology company. In 2018, the company added new fitness tracker pants. The
company had a 7.4% market share in the wearable devices market in 2018.
1.3.1 PRODUCT PROFILE
Titan Industries, best known as India's pioneering manufacturer of quartz watches, has
also etched a niche for itself in some of the most competitive spaces in the fashion
industry such as jewellery and eyewear. Skinn a range of fine French perfumes is
another area of specialization that Titan Industries is proud of.
WATCH
Over the years, Titan has maintained its strong foothold in the watch market by
introducing compactly designed collections made for the discerning customer.
The Titan story began with the watch products division. Today, the division has
established Titan as one of the largest retail networks in the world and the company is
ranked as the fifth largest integrated watch manufacturer in the world. With over 4000
employees spread across 3 business units in Bangalore, India, one manufacturing unit
in Hosur and 3 assembly plants located in the north of India, this division continues to
add world class brands to the company's portfolio.
Edge -Demonstrates the theory that the world's thinnest clock (3.45 mm) is low.
Raga- the only collections of Indian watches conceptualised for the modern woman.
Fastrack- The first kind of collection that will make everyday office more glamorous
and fun.
HTSE- A set of watches under the high-tech self-propelled HTSE operating system
that can be converted to the current state of natural and artificial light.
Nebula-watches are made of solid 18k gold and precious stones.
Xylys is a Swiss-made, flawlessly designed watch inventor and new age achiever.
JUXT- The first smartwatch developed by an Indian brand combining impeccable
design and technological ingenuity.
Sonata - India's largest selling and cheapest watch brand.
International Brand: Helios India funds the mission of serving the customer with
incomparable international watches - the exclusive high-end watch fashion for well-
travelled watch enthusiasts. As India's leading retailer of international brands. Helios
House includes over 2200 watches and over 35 premium international watch brands
versatile, Seiko, Movado, Hugo boss, Citizen, Fossil, Titan, Xylys, DKNY, Roberto
cavalli, Tommy Hilfiger, Raymond weil, Victorinox and more.
JEWLLERY
Tanishq began its journey in 1994 with the introduction of 18K gold watches
encrusted with precious stones, challenging the family jewellery system in place in
India. Over the years, it has evolved into one of the finest jewellery brands in line
with exquisite craftsmanship and the highest quality. Offering traditional and modern
statement pieces in gold, diamond and platinum, Tanishq offers an immersive
experience that considers the individual needs and preferences of each customer.
Through retail sales of Rs. 10000 crores in the last financial year, Tanishq valued its
customers and shareholders.
Titan Standard
Quality, innovation and aesthetics have always been the hallmarks of Titan products.
Design Studio works closely with trend research to product development, creating
new ideas and creating elegant designs.
Each project begins with an in-depth market and consumer study, followed by a
comprehensive trend and forecast analysis, decoding lifestyle movements and cultural
trends and understanding consumer demands. Each part is designed with precise
details, creating a definite price range and unique designs spread across product
categories.
Jodhaa Akbar
A collection of notable kundan jewellery designed for the Jodhaa Akbar film
conveying the grandeur and richness of the Mughal period.
INARA
Inspired by the majesty of the universe. INARA marries uninterrupted aesthetic and
intellectual engineering.
Gang
The film captures the journey from the Himalayas to the confluence of the Divine
River with the sea. The designs illustrate the spectacular patterns set with unique
colored gemstones and rose cut diamonds.
TAJ
Tanishq Taj is a symbol of the wonder of the world. Details Craft Taj Mahal. Made of
gold, diamonds and precious stones.
IVA
Bold and chic, this is Tanishq's fashionable collection. Race 2
Divine mantras
The smallest Bhagavad Gita in the world. Medals inlaid with 24k gold in 1cm.
Square. Tablet using nanotechnology.
Glam Gold
India's largest selling and most affordable watch brand.
Mia
The first-of-its-kind collection that makes everyday office wear so glamorous and fun.
TITAN EYEWEAR
The third largest venture of Titan Company's consumer business. Titan Eye +
redefined the functioning of the organized optical retail market in India. In
collaboration with Sankara Nethralaya, India's leading eye care company, it not only
showcases the best in contemporary design and style, but also offers unparalleled
optical expertise and a world-class optical retail experience for its products.
Customers look forward to the Titan Eye + at the House of Tata with pioneering ideas
such as open touch-feel-browsing format, complete transparency in pricing, free
insurance for contemporary styles, quality and confident glasses. It has recently
launched a remote online eye examination facility.
NEW BUSINESS DIVISION
Taneira
With the aim of reviving handloom weaving, one of the oldest industries in our
country, Titan launched its younger brand Taneira in January 2017.
After traveling all over India, Taneira brings with her collections of very fine
handlooms such as Mugas from Assam, cotton from Chettinad, Tussars from
Bhagalpur, Ikats from Gujarat, Andhra and Orissa, Jamdhanis from Bengal,
chikankari works from Lucknow. Exotic Banarasi silks, elegant kanjeevaram, patan
patolas, muslin jamdhanis and many more.
Taneira Flagship, located at the redesigned Villa in Indiranagar, 100ft Road, offers a
full-fledged 'Style Studio' facility where people can feel the purity of the fabric and
craftsmanship and avail services such as customization. Sewing to complete their
ensemble. The Taneira store has an extensive collection of over 3,500 beautiful
sarees, lehengas, yards, stoles and dupattas for Rs. 2,000 to Rs. 2.5 lakhs.
With this unique collection, Taneira celebrates Indian craftsmanship and heritage.
This Brande is a witness to the woman who believes in the pure ecstasy and
transformative power of linen.
Skinn
With a blend of excellent international perfume expertise and one of India’s most
trusted brands; SKINN Titan redefines the Indian fragrance industry by offering its
product. Ensuring the highest quality and bearing the uniqueness of Titan, the SKINN
range is specially designed by blending exotic and contemporary notes from rare and
exquisite materials from countless locations around the world.
Locally designed and created by six world-renowned master perfumers including
Harry Fremont, Michael Girard, Fabrice pellegrin, Nadege Le Garlantezec and the
renowned Alberto Morillas and Oliver Pescheux, these French-made HIMs are
internationally produced fragrances. The sequence of perfumes depicts the eroticism
of a young woman in SKINN IMERA; Her hot dizziness at SKINN NUDE and her
charm and issues at SKINN CELESTE. SKINN EXTREME celebrates a man's sporty
vitality, while SKINN RAW defines masculinity, and SKINN STEELE is the energy
journey of complex spices.
SKINN's current portfolio includes these 6 fantastic variants in EDP (Eau De Parfum)
format and is designed to be long lasting with enduring notes over time.
JEWELLERY DIVISION IN MORE DETAILS
VISION & MISSION STATEMENT
Vision:
To be the most desirable jewellery brand of Indian women.
Mission
We will continually create wealth for all our stakeholders, by transforming the
jewellery business and by being the gold standard in design, shopping experience and
ethical practice.
Titan's business excellence (BE) process is managed as a distinct entity, with a
separate team reporting directly to the company's managing director, to drive
initiatives across all divisions. N. Kailas Nathan, vice president, chief information
officer and head of business excellence and knowledge management, wants the
quality initiative to become an indivisible part of the company's day-to-day activities.
Values and Standards:
Total customer orientation - Customers take precedence over all else, always.
Employee appreciation -We value and respect Titanians and endeavor to fulfill
their needs and aspirations.
Performance culture and teamwork - At Titan Industries, high performance is
but a way of life and is nurtured by teamwork.
Creativity and Innovation - Driven by innovation and creativity, we focus on
smarter approaches and newer technologies.
Passion for excellence - In all our pursuits, we ceaselessly strive for
excellence.
Corporate Citizenship - We ensure that a part of our resources is invested in
environment and community betterment.
TANISHQ
Manufacturers of India's leading watch brand and India's only national jewelry brand -
using design, technology and people to challenge market leadership.
The product portfolio includes watches, jewelry, glasses and precision engraved
products.
With manufacturing facilities in Hosur, Dehradun and Goa, it exports watches to
around 40 countries around the world and manufactures precious jewellery under the
Tanishq brand name, making it the only national jewellery brand in India.
Tanishq as a brand:
Tanishq is India’s largest, most desirable and fastest growing jewellery brand in India.
Tanishq, founded in 1995, is the jewelry business arm of Titan Industries Ltd -
promoted by the TATA Group, India's most respected and widely diversified business
conglomerate.
This year marks the decade of Tanishq's successful innings. Tanishq, which had a
retail sale of Rs 732 crore last year and Rs 1025 crore this year, has entered the Indian
jewellery market. Tanishq began its journey 10 years ago, challenging the established
family jewelry store and introducing new rules on precious jewelry; A type as
primitive as civilization.
It is the story of a successful Indian company that has given value to its customers and
shareholders in a complex segment, characterized by its completely localized front
end and rear end.
