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The production value of diamonds has remained static over the past five years, while margins for the midstream of the diamond production pipeline are shrinking, noted Chaim Even-Zohar, on the first day of the the Mines to Market international diamond conference hosted by the Gem & Jewellery Export Promotion Council (GJEPC) in Mumbai on Sunday. Even-Zohar, who is the event’s host, noted that the midstream made a profit of some $900 million in 2016 — a very small proportion of the $20.35 billion value of the polished diamonds generated by the pipeline. According to him, the forecast for the midstream’s profits in 2017 are drastically lower at $200 million. The wholesale price of polished diamonds has also declined from $22.6 billion in 2011 to about $18.7 billion today. By far the...
Articulating an industry wish-list, Gem & Jewellery Export Promotion Council (GJEPC) Chairman Praveenshankar Pandya asked Maharashtra Chief Minister Devendra Fadnavis for help in ensuring that the Goods & Services Tax (GST) council ensured that gems and jewellery, which sometimes changes several hands while in the process pipeline, was only taxed at the final sale stage. Pandya also asked the Chief Minister to look at providing Mumbai with a world-class convention and exhibition centre, the allocation of land and clearances for an industrial park for jewellery and help in consolidating the industry’s training and certification efforts by establishing a gem and jewellery university. Pandya was speaking at the GJEPC 43rd annual India Gem & Jewellery Awards function in Mumbai on...
Mumbai-based Gitanjali Gems has bundled its diamond jewellery brands, including three former De Beers labels, into a single entity, Nakshatra World, and filed draft papers with the Securities & Exchanges Board of India (SEBI) to float an initial public offering (IPO) for the new firm. The Gitanjali filing with SEBI indicates that Nakshatra World will retail the group’s Gili, Diya, Parineeta and Rivaaz jewellery brands as well as the Nakshatra, Asmi and Sangini brands that it acquired from De Beers. The planned IPO is for 18 million shares of Nakshatra World, and though no value was declared, Gitanjali had stated in December last year that Nakshatra would raise up to ₹650 crore (about $100 million) through an IPO. The new company will join a slew of other listed Indian jewellery...
Bahrain’s state-owned airline Gulf Air has added India-based jewellery retail chain Joyalukkas to its list of rewards partners, enabling jewellery buyers to earn reward points or miles. As a kick-off incentive, Joyalukkas is letting Gulf Air’s Falconflyer loyalty program members earn twice as many miles on purchases from its participating retail outlets in Bahrain, Oman, Qatar, Saudi Arabia, Kuwait, Singapore, Malaysia, the UAE, Britain and the United States. Joyalukkas group Executive Director John Paul Alukkas, who signed the deal with Gulf Air Chief Commercial Officer Ahmed Janahi, said, “The success of Joyalukkas is largely due to the loyalty and support our customers have given us throughout our 30 years in the industry.”
Indian jewellery chain retailer Reliance Jewels has introduced a wearable tech collection of pendants that the wearer can trigger to send distress signals to a pre-set list of ‘guardians’ — designated friends or family. The company said the jewellery range, called the Aavaran Collection, comes with a button that sends out a distress alert when pressed twice. The system also allows the designated guardians to track the wearer. The pendants range from ₹4,000 ($60) upwards for silver and ₹25,000 ($378) upwards for gold and are available at all Reliance Jewels stores in cities across the country.
Coloured gemstone producer Gemfields plc reported revenue of $51 million for the six months ended December 30, 2016 — a nearly 46 percent drop from the $94 million for the same period the previous year. The company also slumped to a loss of $13.6 million for the period, as against a profit of $8.2 million the previous year. The company said the main reason for the decline was the deferral of the higher quality rough emerald auction originally scheduled to take place in December 2016 to February 2017 and a moderated product mix placed on offer at the last ruby auction; Only two auctions were held during the period, consisting of one commercial quality rough emerald and beryl auction and one mixed quality rough ruby and corundum auction, the company said. The previous period saw three...
An exhibition of diamond paintings by designer Reena Ahluwalia has gone on display at one of the outlets of the Bengaluru-based jewellery retailer C. Krishniah Chetty Group (CKC) to celebrate its 148th year of existence. A portion of the proceeds from any paintings sold will go to the CKC Foundation, which will use the funds towards improving three government-run primary schools in the Dasarahalli, Jogupalya and Ulsoor areas of Bengaluru. On display are Ahluwalia’s large-scale hyper-realistic paintings with ultra magnified facets. “I want people who stand in front of my paintings to feel like a diamond – full of potential, rare, precious, brilliant and luminous. My paintings tell positive, uplifting and empowering stories, because diamonds without stories and soul are stone cold,” said...
The Malabar Gold & Diamonds group, one of India’s biggest jewellery retail chains, announced it is planning to invest around ₹1,000 crore ($150 million) in an expansion drive focussed mainly on overseas markets. Malabar says its objective is to become the world’s largest jewellery retailer in a few years’ time. The ₹26,000 crore ($3.9 billion) Malabar group is already among the world’s top five jewellery retailers in terms of turnover. It reported ₹11,500 crore ($1.7 billion) in overseas sales and ₹10,700 crore ($1.6 billion) in domestic sales through 2016. It currently employs 9,000 personnel. Malabar said that the majority of its capital expenditure in the expansion drive would be towards setting up retail outlets in Hong Kong, Indonesia, the Middle East and Sri Lanka. Company...
When the Finance Bill 2017 is passed by the Indian Parliament, jewellery will be treated on par with general goods and any cash sales of jewellery exceeding ₹2 lakh in the country will attract a one percent ‘tax collected at source (TCS) as of April 1. Currently, cash sales of jewellery over ₹5 lakh are taxed. As the government’s budget proposals already seek a ban on all cash transactions over ₹3 lakh, the new Bill seeks to do away with the ₹5 lakh threshold for jewellery. Cash dealings over ₹3 lakh will be punished with a penalty of an equivalent amount to be paid by the person receiving the cash. A government official was quoted as saying, “The Income Tax Act provides for one per cent TCS on cash purchase of goods or services above ₹2 lakh. The definition of goods also includes...
The first GEMKonnect Knowledge Forum, one of a series of planned educational seminars powered by the Gemological Institute of America (GIA) across the country for the Indian gem and jewellery industry, was conducted in the city of Indore. The response from the jewellery retail community was overwhelming, as a rapidly changing economic and social environment in the country called for major changes in the way the industry does business. The six-module event featured two sessions by the GIA’s Amrit Patel and Mohit Agarwal — one on what gemmology is all about and what career options it could throw open for the next generation, and the other focussing on synthetic diamonds; the various types and manufacturing processes as well as methods of detecting them. A session by Chirag Warty explained...