You are here
After major representations by the Gem & Jewellery Export Promotion Council (GJEPC) and the All India Gems & Jewellery Trade Federation (GJF), the Indian government announced that the previously-announced Goods and Services Tax (GST) rate of 18 percent on outsourced production, would now be reduced to 5 percent. The GJEPC, which represents India’s gem and jewellery export-production sector, had argued that the processing of diamonds, particularly the small sizes and cheaper qualities, was frequently outsourced to jobbing units and an 18 percent tax on it (which would have to be reclaimed in a refund process after the finished goods were exported) would end up blocking an unmanageably large proportion of the working capital of diamond processing firms. In addition, the polished...
Diamantaires from Surat joined a delegation led by the Gem & Jewellery Export Promotion Council (GJEPC) that met Gujarat state Deputy Chief Minister Nitin Patel seeking relief from the inordinately high tax levels that would be imposed by the soon-to-come Goods and Services Tax (GST). GJEPC Regional Chairman Dinesh Navadia, who led the delegation, observed that the 18 percent GST imposed on job-work production would wipe out small and medium operators. The total cost of the polished that these small operators produce, he said, carried a 70 percent labour charge component and such a high tax would impact earnings severely. He further explained that the 3 percent GST that would be levied on the inter-state transfer of diamonds would have a destabilising effect, noting that shipping the...
Shares of gem and jewellery firms listed on the Bombay Stock Exchange (BSE) surged on Monday in the wake of the Indian government’s announcement that gold and gold jewellery would attract a Goods & Services Tax (GST) of 3 percent. Shares of Titan Co. Ltd, owned by the giant Tata industrial group and which in turn owns the Tanishq jewellery brand as well as the Titan watch brand, shot up the most, rising 17 percent. Others, like Gitanjali Gems Ltd., Tribhuvandas Bhimji Zaveri Ltd., Tara Jewels and PC Jeweller all rose upwards of 6 percent. Two factors are quoted as being behind the rise. To begin with, the GST rate is lower than what was expected. Industry buzz before the announcement had the GST rate on gold and gold jewellery pegged at between 4 and 5 percent.The announcement that it...
Titan Co. Ltd., which owns the Tanishq jewellery brand, the Titan watch brand and holds a majority stake in online jewellery retailer Carat Lane, has posted revenues of ₹3,429.7 crore ($534.88 million) for the final quarter of fiscal year ended March 31, 2017. Year on year, the results are 43.4 percent higher than the performance in the same quarter the previous year. Profit after tax did not go up in sync with the increase in revenue, but was up 7.4 percent year-on-year to ₹200.7 crore ($31.3 million). Revenue from the group’s jewellery segment increased a robust 55 percent year-on-year and accounted for 82 percent of its total revenue. Volume, or “grammage” growth was 37 percent. An increase in the share of wedding jewellery and network expansion are expected to boost the jewellery...
India’s exports of gems and jewellery provisionally increased 9.85 percent to $43.16 billion in fiscal 2017 (April 2016 to March 2017) over the $39.24 billion in fiscal 2016 (April 2015 to March 2016). Gross exports of cut and polished diamonds for the year increased to $22.8 billion, growing 10.24 percent over the $20.7 billion the previous year. Exports of gold jewellery increased to $8.7 billion, up 1.92 percent over the $8.6 billion the previous year while exports of silver jewellery rose 35.83 percent to $4.02 billion. Exports of coloured gemstones dropped 3.08 percent to $419.9 million, while exports of rough diamonds increased 28.24 percent to $1.5 billion. Gem and jewellery exports accounted for 15.72 percent of the country’s cumulative exports of $274.65 billion, ranking the...
Danish mass-market jewellery brand PANDORA has entered the Indian market with the official opening of its concept store in the `Mall of India ́, in the Noida area of Delhi. The new concept store is owned and operated by PANDORA’s distribution partner, Pan India Charms & Jewellery Pvt. Ltd. PANDORA said the opening represents a significant milestone for the company and is part of its successful overall strategy of expanding its branded network globally. The group has more than 2,100 concept stores around the world and sells jewellery in more than 100 countries. Commenting on the announcement, David Allen, PANDORA’s President of Europe, the Middle East and Asia, said, “Entering one of the largest jewellery markets in the world is an integral part of our strategy to increase our global...
Indian online jewellery retailer CaratLane, now majority owned by the Titan Company, which owns India’s largest jewellery brand Tanishq, is planning to add 30 more retail stores and also eyeing to double its business turnover in the current fiscal year. Carat Lane co-founder and Chief Executive Mithun Sacheti says the company’s growth will come through a combination of increased online transactions as well as expanding the number of brick and mortar retail doors. Currently, Carat Lane has 16 brick and mortar stores in Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Chandigarh, Pune and Coimbatore. It plans to up this number to 46 by the end of the financial year. "Our retail stores are very different from the typical Indian jewellery stores that are elitist by nature. Our stores are...
The Gem & Jewellery Skill Council of India (GJSCI) has signed a memorandum of understanding with the Delhi prison authorities to teach women prisoners at Tihar jail jewellery-making skills. Most of these women have committed crimes due to poverty and a lack of other economic survival skills. The jewellery-making skill program is intended to give them the necessary skills to make a legitimate living once they are out of jail. “This project is a major achievement for GJSCI as it not only helps these women prisoners, it also helps the jewellery industry source skilled manpower,” said GJSCI Chairman Premkumar Kothari.