UBM

1
YOUR GATEWAY TO INDIAN JEWELLERY MARKET
2
Indian Jewellery Indicators

• Tap into a huge market India is a US 27.5
  billion Jewellery market
• Indias Jewellery consumption is driven by the
  massive wedding and festival seasons
• India is a home to a large number of jewellers,
  goldsmiths and processors 450,000 goldsmiths and
  100,000 gold jewellers, 6,000 diamond processing
  players and 8,000 diamond jewellers
• India is the number 1 consumer of gold jewellery
  in the world
• Indias tastes for jewellery are evolving to more
  modern and international diamond and white gold
  design and away from the traditional Indian gold
  jewellery styles
• India has been the worlds largest manufacturing
  centre of cut and polished diamond for many
  years, contributing 60 of the worlds supply in
  terms of value, 85 in terms of volumes.
• Indias gems and jewellery sector is expected to
  grow at a compound annual growth rate (CAGR) of
  around 13 during 2011-20013 .

3
India Gems and Jewellery Sector

• Gems and Jewellery is one of India 's leading
  foreign exchange earning sectors.
• It accounted for 16.7 per cent of India 's total
  Merchandise Exports.
• USAs import of Gem Jewellery from India
  increased by 50.5 in 2010 as compared to 2009.
• India Gems Jewellery exports are expected to
  grow at a whopping 15 to 20 per cent in FY
  2011-2012.
• At present India exports 85 of the worlds
  diamonds.
• Advantage India
• Gems and Jewellery hub
• Rich tradition / heritage of craftsmanship with
  high level of skills
• Low production costs
• Effective worldwide distribution network for
  promotion and marketing.

4
India Gold Sector

• India is worlds largest gold consumer, consuming
  almost one fifth of total world gold demand
• India owns over 18,000 tonnes of above ground
  gold stocks, worth approx. USD 800 billion
• Gold import is likely to rise by 15 in to around
  805 tonnes, as compared to 2010 due to growing
  demand for gems and jewellery
• Gold jewellery makes up about 30 of Indian
  jewellery exports, which totalled 43.14 billion
  in fiscal year 2010-2011
• Not just traditional gold jewellery any more, the
  demand is increasing for modern designs and
  lighter gold jewellery.

5
FOREIGN DIRECT INVESTMENT POLICY

• 100 per cent FDI allowed in gems and jewellery
  through the automatic route.
• 74 FDI allowed for exploration and mining of
  diamonds and precious stones under the automatic
  route.
• 100 FDI allowed for exploration and mining of
  gold and silver and minerals other than diamonds
  and precious stones, metallurgy and processing,
  under the automatic route.
• Investment Opportunities
• Gemstone Processing (Cutting and Polishing)
• Jewellery Manufacturing and Retailing
• Jewellery Certification
• Branded Jewellery

6
Jewellery Portfolio Growth 2008
2012Exhibitors, Visitors Square Meters
  2011 2012 2013
MJGF 3775   2359
DJGF   770  
HJF 1866 1883  
GJIIE 3726 4296  
Show 2009 2010 2011 2012 2013
MJGF     3155   4342
DJGF       1396  
HJF 5036 3399 3271 4000  
GJIIE 7936 7822 9728 8000  
  2009 2010 2011 2012 2013
MJGF     209   145
DJGF       70  
HJF 87 103 106 125  
GJIIE 98 132 202 212  
7
Jewellery Portfolio In India
Promising Markets for the Prominent Players
8
Gem Jewellery India International Exhibition
8-10 March 2014 (10th Edition)

• Launched in 2005 with an intention to promote the
  Jewellery trade in South India.
• Co-orgnised by UBM India and MJDMA, now in 9th
  edition.
• 1 Fair in South India, accounts for 45 sales of
  gold in South
• 250 Exhibitors 85 rebooking onsite in 2013
• 12000 unique buyers attended the 2013 edition
• Spread across 4300net sq mtrs of Chennai Trade
  Centre
• Domestic Participants from cross all major
  markets
• Seminars and Educational Workshops by Knowledge
  Partner GIA, BIS,
• Style Statement Fashion Show

9
Hyderabad Jewellery, Gem Pearl Fair7 - 9
June 2013 (6Th Edition)

• Market Facts
• Hyderabad is the centre for precious and
  semi-precious studded jewellery
• Andhra Pradesh has significant reserves of gold,
  diamond, ruby, Pearls and other gem stones.
• The industry is dominated by family jewellers,
  who constitute nearly 96 percent of the market.
• Key access to the wholesale gold market
• SHOW HIGHLIGHTS
• The 6th edition promises to be bigger and
  brighter with 84 rebooking done onsite
• 125 exhibitors expected in 2013
• 3293 unique buyers across South India attended in
  2012
• Spread over 2400 net sq meters of Hitex
  exhibition Centre
• Domestic and International Participants
• 80 association tie-ups in major and interior
  parts of South India
• Educational Seminars and Workshops
• Networking dinner for Exhibitors and Visitors
• Hosted Buyers Programme

10
Delhi Jewellery Gem Fair (DJGF)21 23
September 2013 (2nd Edition)

• Market Facts
• Targeted at North India region, i.e Delhi,
  Punjab, Haryana, Rajasthan, Uttarakhan UP.
• Delhi is biggest consumer of Diamonds in India.
• North India known for colored gemstone, colored
  gemstone jewellery, silver jewellery, kundan
  meena jewellery and diamond jewellery.
• Major and prominent players PC Jeweller, Khanna
  Jeweller, Hazoorilal Jewellers,etc.
• Test event proved successful, hoping for a larger
  event in 2013
• SHOW HIGHLIGHTS
• The 2th edition promises to be bigger and
  brighter with 84 rebooking done onsite
• 120 exhibitors expected in 2013
• 3000 visitors expected in 2013
• Domestic Participants from Pan India
• Seminars and Educational Workshops by knowledge
  Partner GIA, BIS, eBay
• Panel Discussions for Retailers Manufacturers
• Style Statement Fashion Show
• Association support from all across north region.

11
Mumbai Jewellery Gem Fair (MJGF)27 - 29
November 2013 (3rd Edition)

• Market Facts
• Mumbai is the centre of India's Gems Jewellery
  industry, Its continues to be the main diamond
  trading center of India.
• Mumbai has a strong presence of players with
  export focus located in SEEPZ
• Mumbai has large numbers of modern semi-automatic
  factories, laser-cutting diamond processing
  units. A state of the art diamond trading centre
  is recently inaugurated in Mumbai.
• Leading Gems and Jewellery players Gitanjali
  Gems, Classic Diamond, Asian Star, Golkunda
  Diamond Jewellery, Sheetal Diamond etc..
• Gems and jewellery clusters in the Maharashtra,
  concentrated various regions of Mumbai. The
  state is a leading trader of cut and polished
  diamonds in the country.
• Financial capitol of India, leverage the key
  second wedding buying season
• SHOW HIGHLIGHTS
• 250 Exhibitors
• International Pavilions from Hong Kong, Israel,
  Thailand Sri Lanka.
• 4500 unique buyers expected
• Educational workshops and seminars presented by
  GIA, BIS and more.
• Exclusive networking evening
• Style Statement Luxury Fashion Show
• Introducing an exclusive Machinery Pavilion
• Buyer Seller Programs
• International Buyer delegations

12
Kolkata Jewellery Gem Fair (KJGF)11 13
January 2014 (First Edition)

• Market Facts
• Targeted at East India states i.e West Bengal,
  Assam, North Eastern states, Jharkhand, Orissa,
  Bihar and Chattisgarh.
• Major Players in Manufacturing Ramesh Chand
  Parekh, Kriplani Sons, Bhuramal Rajmar Surana,
  Shree Ganesh Jewellery House, Indian Gem
  Jewellery Imperial, Indian Gem Jewellery
  Creation.
• Most of the manufacturers in Kolkata have their
  retail outlets. E.g Shree Ganesh has 9 retail
  outlets in India.
• Retail sector is very robust with player like P C
  Chandra, B C Sen, M P Jeweller, R R Agarwal,
  Nemichand Bamalwa.
• Kolkata is a major manufacturing centre for
  diamond, gold and other precious and
  semi-precious jewellery in India.
• Kolkata is know for its craftsmanship and skilled
  Karigars.
• Launched show and the only B2B show for east of
  India
• SHOW HIGHLIGHTS
• 150 Exhibitors
• 3000 unique buyers expected
• Educational workshops and seminars presented by
  GIA, BIS and more.
• Exclusive networking evening
• Style Statement Luxury Fashion Show
• Introducing an exclusive Machinery Pavilion
• Buyer Seller Programs

13
Marketing Visitor Promotion Update

• Associations Tie-ups Over 600 Association
  Tie-ups nationally.
• Media Tie-ups Trade Journal, B2B Trade
  Publications, Online Media, Mainline Media.
• Road Shows Seminar Multicity Road shows for a
  wider reach and mileage
• Shop-to-Shop Activity Connects with 20,000
  jewellers in all region.
• Personal Meetings with association heads and top
  retailers.
• Hosted Buyer Program Host Top Retailer
• Aggressive Marketing Campaign , tele-calling
  Emalier, Posters etc..
• SMS Activity to the huge database of 1lac
  Jewellers and Retailers
• Creating a Royal Club for elite Retailers with
  personalised card and values.

14
Marketing Visitor Promotion Update

• Barter Media Connect
• Tied up with Trade Publications to connect with
  retailers jewellers across India
• Few Publications to list Few Online Media list
• Jewellery News Asia IDEX
• Indian Jeweller
  diamondworld.net
• Rapaport eBay
• JewelTrendz
  Trade India.com
• The New Jeweller India Mart
• Heera Zhaveraat
• Art of Jewellery
• Jewellery News India
• SMS Activity
• E-Mailers to the growing jewellery database
• Presence at all prominent domestic Intl.
  exhibitions across the world

15
Association Tie-Ups Across India

• 650 Associations support across Maharashtra,
  Madhya Pradesh, Gujarat, Punjab, Himachal
  Pradesh, Haryana, Jammu-Kashmir, Uttar Pradesh,
  Bihar, Rajasthan, Delhi, Andhra Pradesh, Tamil
  Nadu, Kerala, Karnataka,
• Few Eminent Associations
• Mumbai Wholesale Gold Jewellers Association 800
  members
• Mumbai Diamond Merchants Association 15,000
  members
• Delhi Jewellers Association
• Karol Bagh Jewellers Association
• Maliwara Jewellers Association
• New Delhi Jewellers Welfare Association
• Ludhiana Jewellers Association
• Jalandar Sarafa Association
• Uttar Pradesh Sarafa Association

16
Shop-to-Shop Activity Across Jewellery
Markets20,000 Shops planned

17
Road Shows - Seminars
18
International Participation Price List
Hyderabad Jewellery Gem Pearl Fair 2013 Hyderabad Jewellery Gem Pearl Fair 2013 Hyderabad Jewellery Gem Pearl Fair 2013
7-9 June 2013, HITEX Exhibition Centre 7-9 June 2013, HITEX Exhibition Centre 7-9 June 2013, HITEX Exhibition Centre
  Jewellery Section Machinery Section
Shell Scheme  US 230/sqm US 121/sqm
(Min 9 sqm)    
Raw Scheme US 190/sqm US 111/sqm
(Min 18 sqm)    
Taxes as applicable Taxes as applicable Taxes as applicable
     
Delhi Jewellery Gem Fair 2013 Delhi Jewellery Gem Fair 2013 Delhi Jewellery Gem Fair 2013
21 23 September 2013, Pragati Maidan 21 23 September 2013, Pragati Maidan 21 23 September 2013, Pragati Maidan
  Jewellery Section Machinery Section
Shell Scheme  US 226/sqm US 165/sqm
(Min 9 sqm)    
Raw Scheme US 200/sqm US 137/sqm
(Min 18 sqm)    
Taxes as applicable Taxes as applicable Taxes as applicable
Mumbai Jewellery Gem Fair 2013 Mumbai Jewellery Gem Fair 2013 Mumbai Jewellery Gem Fair 2013
27 2 November 2013, Bombay Convention Exhibition Centre 27 2 November 2013, Bombay Convention Exhibition Centre 27 2 November 2013, Bombay Convention Exhibition Centre
  Jewellery Section Machinery Section
Shell Scheme  US 235/sqm US 173/sqm
(Min 9 sqm)    
Raw Scheme US 200/sqm US 143/sqm
(Min 18 sqm)    
Taxes as applicable Taxes as applicable Taxes as applicable
     
Gem Jewellery India International Exhibition 2013 Gem Jewellery India International Exhibition 2013 Gem Jewellery India International Exhibition 2013
16-18 March 2013, Chennai Trade Centre 16-18 March 2013, Chennai Trade Centre 16-18 March 2013, Chennai Trade Centre
  Jewellery Section Machinery Section
Shell Scheme  US 230/sqm US 175/sqm
(Min 9 sqm)    
Raw Scheme US 200/sqm US 160/sqm
(Min 18 sqm)    
Taxes as applicable Taxes as applicable Taxes as applicable
Kolkata Jewellery Gem Pearl Fair 2013 Kolkata Jewellery Gem Pearl Fair 2013 Kolkata Jewellery Gem Pearl Fair 2013
11 13 January 2014, Milan Mela, Kolkata 11 13 January 2014, Milan Mela, Kolkata 11 13 January 2014, Milan Mela, Kolkata
Jewellery Section Machinery Section
Shell Scheme  US 200/sqm US 175/sqm
(Min 9 sqm)    
Raw Scheme US 166/sqm US 150/sqm
(Min 18 sqm)    
Taxes as applicable Taxes as applicable Taxes as applicable
19
(No Transcript)
20
Import Procedure ATA Carnet

• Booth Allotment Letter
• Carnet Copy
• Detailed Invoice including product description
  and photographs of products
• Packing List
• No duty deposit needs to be paid
• Sales of merchandise is not permitted
• Machinery is imported as ATA Carnet in most cases
  as the duty structure is complicated based in the
  classification of machinery.

21
Import Procedure Temporary Importation under
Bond (TIB)TIB

• Booth allotment letter
• Detailed Invoice including product description
  and photographs of products
• Packing List
• Pay 100 duty deposit or your with the authorized
  agent can do this on your behalf by charging
  applicable
• Customs Bond Fee
• No sales are permitted
• Duty deposit will be refunded one the goods leave
  the country and after completion of due process

22
Clearance Processing Charges

• Approximation based on
• Shipment invoice value of US 500,000 to US
  600,000
• Charges will be
• US 850 US 950
• Bond Fee of 1.5 on total applicable duty
• 0.01 Octroi on assessable value (Invoice value
  1 Landing Charges Duty)

23
Custom Duty
Product Applicable Duty
Gold Jewellery plain or studded 17.513
Gold Jewellery plain or studded (FTA) 7.11
Silver Jewellery 17.513
Diamonds 2.15
Gemstones 2.15
Natural Pearls 5
Drilled or Strung Pearls 10
Machinery Varies as per classifications of machines or equipment supplies. Check with forwarder for exact duty applicable.(DB Schenker, Re Rogers, Translink PS Bedi)
24