1. Gems & Jewelry Market India October 2013

2. Executive Summary Market Gems and Jewelry (G&J) market in India was valued at INR a bn in 2012 and is expected to grow at x% CAGR G&J market includes gemstones such as diamonds, colored stones and pearls; and precious metals and jewelry such as gold & gold jewelry, silver jewelry and gemstones-studded jewelryDrivers: Drivers & ChallengesChallenges:Mass appeal and growing income among households Low cost and abundance of skilled labor Growing use of high-end technology Advantages of SEZs Changing consumer perceptions & preferences Growing training institutes Rising gold prices Stiff competition among players Dependence on raw materials imports Emerging threat from other countriesTrends Growing organized retail space Aggressive marketing and advertising Online retailing of jewelry Preference towards affordable jewelry Large scale shows and exhibitions Domestic players acquiring foreign companies Investments from PE firmsGovernment Policies and Initiatives Industrial policy FDI policy Taxes Kimberley Certification Process Hallmarking Foreign Trade Policy (2009-2014) Initiatives Import Duties and RelaxationsCompetitive LandscapeMajor Companies Company 1Company 2Company 3Company 4Company 5Company 6GEMS & JEWELRY MARKET IN INDIA 2013.PPT2 3. Economic Indicators Introduction Value chain Market Overview EXIM Drivers & Challenges Trends Industry Bodies and Associations Government Policies and Initiatives Competitive Landscape Strategic Recommendations Appendix GEMS & JEWELRY MARKET IN INDIA 2013.PPT3 4. Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 14a1 b112c1a2 b2 c211d1b4 c4b3d213c3d4d310 Q2 2009-10Q12010-11Q4Q3 2012-132011-12Inflation Rate: Monthly % 1.0ac0.8 0.6bdeFeb 2013 - Mar 2013Mar 2013 - Apr 20130.4 0.2 0.0Nov 2012 - Dec 2012Dec 2012 - Jan 2013Jan 2013 - Feb 2013SANITARYWARE MARKET IN INDIA 2013.PPT4 5. Indias major strength in the G&J value chain is its strong processing capability Stage 1 Indias Involvement: High/Moderate/LowxStage 2Stage 3Stage 4Indias Involvement: High/Moderate/LowIndias Involvement: High/Moderate/LowIndias Involvement: High/Moderate/LowxxGEMS & JEWELRY MARKET IN INDIA 2013.PPTx5 6. Willingness of Indians to spend on jewelry has ensured that G&J market in the country is growing at a steady pace Gems & Jewelry Overview Gems & jewelry is a fast growing industry in the country and is one of the leading foreign exchange earning sectors in the country Country 1 and Country 2 have emerged as the leaders in terms of consumption in the global jewelry market Although traditionally the gems & jewelry sector has been dominated by small unorganized players, it is gradually getting more professionalized and organizedMarket Size and Growth (Value-Wise) INR bn 3,000 2,500 2,000 1,500 1,000 500 0x% a2012b2013ec2014ed2015eGEMS & JEWELRY MARKET IN INDIA 2013.PPTf2016eg2017e6 7. G&J sector has been one of the biggest contributors to Indias forex earnings Export-Import Overview G&J accounted for ~y% of Indias total merchandise exports during FY 20- Exports in the industry have registered remarkable growth over the past a decades, from USD m mn in FY 19-- when Industry Body A was established, to USD n bn in FY 20- However, G&J exports declined u% in dollar terms and v% in rupee terms in 20-- due to the stagnating demand from Region 1 and Region 2 Decline in dollar terms was partly set off by the depreciation in the rupee Overall, G&J exports fell to INR p tn in 2012, compared with INR q tn in the previous year Diamonds account for r% of the total G&J export volumes with gold jewelry contributing s%, colored gemstones and others contributing t% each and rough diamonds contributing w% of the total share Major importers of G&J from India are Country 1, Country 2, and Country 3 contributing b%, c% and d% respectively of the total exports Country 4 is the major supplier of raw materials, contributing f% of all importsIn the Union Budget for FY 20--, the import duty on pre-forms of precious and semi-precious stones was reduced from g% to h%GEMS & JEWELRY MARKET IN INDIA 2013.PPT7 8. Export-Import (1/16) Pearls, natural or cultured, whether or not worked or graded but not strung, mounted or set Exports (Value-Wise)Imports (Value-Wise)INR mnINR mn6,000d16004,0004002,000a2b220102011c2d220122013200a1b1c1201002011201202013Exports (Region-Wise: 2013) q1% r1% s1%Imports (Region-Wise: 2013) UAE Hong Kong USAUAEs2% q2%Hong Kongr2% t2%Japan ChinaOthersOthers p2%p1% HS Code: GEMS & JEWELRY MARKET IN INDIA 2013.PPT8 9. Drivers & Challenges SummaryDrivers Mass appeal and growing income among households Low cost and abundance of skilled labor Growing use of high-end technology Advantages of SEZsChallenges Rising gold prices Stiff competition among players Dependence on raw materials imports Emerging threat from other countriesChanging consumer perceptions & preferences Growing training institutesGEMS & JEWELRY MARKET IN INDIA 2013.PPT9 10. Key Trends Summary Growing organized retail spaceAggressive marketing and advertisingOnline retailing of jewelryTrends `Preference towards affordable jewelryLarge scale shows and exhibitionsDomestic players acquiring foreign companiesInvestments from PE firms GEMS & JEWELRY MARKET IN INDIA 2013.PPT10 11. Government Policies and Initiatives Summary Industrial policyFDI policyTaxesGovernment ` Policies and InitiativesKimberley Certification ProcessHallmarkingForeign Trade Policy (2009-2014) InitiativesImport Duties and Relaxations GEMS & JEWELRY MARKET IN INDIA 2013.PPT11 12. Competitive Benchmarking (x/y) Key Ratios of Top 5 Companies Operational Basis (FY 2013) (p/q) Gross Margin% 30Net Margina1 a320 10Operating Marginb1b3c1 a20Titan Industries Ltd.b2c2Rajesh Exports Ltd.a5a4 c3Tribhovandas Bhimji Zaveri Ltd.b4c4Gitanjali Gems Ltd.b5c5Shrenuj Company Ltd. Company 1 recorded the highest gross margin of a1%, while Company 2 with a2% recorded the lowest gross margin Company 1 recorded operating margin of b1%, higher than that of its peers, while Company 2 recorded the lowest operating margin with b2% Net margin was also highest for Company 1 with c1% while it was lowest for Company 2 which recorded net margin of c2%GEMS & JEWELRY MARKET IN INDIA 2013.PPT12 13. Public: Domestic Company Company 1 (1/4) Company InformationOffices and Centres IndiaCorporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock ExchangeProducts and Services CategoryHead OfficeProducts/ServicesKey People NameDesignationPerson 1Whole-time DirectorPerson 2Managing DirectorPerson 3Whole-time DirectorPerson 4DirectorGEMS & JEWELRY MARKET IN INDIA 2013.PPT13 14. Public: Domestic Company Company 1 (2/4) Financial SnapshotKey RatiosTotal IncomeINR mnNet Profit/Loss INR mnb2c2d2a2 a1b1c1d1201020112012201360,000 40,000 20,000 02,000 1,500 1,000 500 0Financial Summary Company earned a net profit of INR XX mn in FY 20XX, as compared to net profit of INR Y mn in FY 20YY It reported total Income of INR XX mn in FY 20XX, registering an increase of X per cent over FY 20YY It earned an operating margin of X.X per cent in FY 20XX an increase of X.X percentage points over FY 20YY The company reported debt to equity ratio of X.XX in FY 20XX, an increase of X.X per cent over FY 20YYKey Financial Performance Indicators Indicators Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)Value (dd/mm/yyyy)Particularsy-o-y change (2013-12)2013201220112010Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed AssetsCost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)Liquidity Ratios Current Ratio Cash RatioLeverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage RatioEfficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover ImprovedGEMS & JEWELRY MARKET IN INDIA 2013.PPTDecline14 15. Public: Domestic Company Company 1 (3/4) Key Business SegmentsKey Geographic SegmentsSegment 1Region 1 100%100% 50%Region 2100%100%100%100%50% 0%0%2010201120122013p1%q1%r1%p2%q2%r2%201020112012Business Highlights Description Overview Diamond Business Jewelry Business Overseas PresenceNews Company 1 was established in 19-- for manufacturing and trading diamonds Principal operations of the company are classified into Business Segment 1 and Business Segment 2 It set up its first factory for manufacturing cut and polished diamonds in City 1 in 19-- and its second manufacturing facility in City 1 for manufacturing large size polished diamonds in 20- They procure the rough diamonds directly from Company A as well as from the open market Company B, a subsidiary of Company 1, designs and manufactures, diamond studded jewelry which is retailed under the brand name Brand 1 across the world Company B owns a jewelry manufacturing facility in City 2, State 2 It has sales and distribution associates in z countries that include Country 1, country 2, Country 3, Country 4 and Country 5 GEMS & JEWELRY MARKET IN INDIA 2013.PPT15 16. Public: Domestic Company Company 1 SWOT Analysis (4/4)SWOTCORONARY STENTS MARKET IN INDIA 2013.PPT16 17. Thank you for the attention Gems & Jewelry India report is part of Netscribes Consumer Goods Industry Series. For any queries or customized research requirements, contact us at: Phone: E-Mail:+91 22 4098 7600 info@netscribes.comFollow us on:About Netscribes, Inc. Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The companys expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. CORONARY STENTS MARKET IN INDIA 2013.PPT17