ORGANISATIONS FOR GEMS & JEWELLERY INDUSTRY

 

 

1.     THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL (GJEPC)

 

Set-up in 1966, the GJEPC has over the years effectively moulded the scattered efforts of individual exporters to make the gem and jewellery sector a powerful engine driving India's export-led growth. This apex body of the gem & jewellery industry has played a significant role in the evolution of the Indian gem and jewellery industry to its present stature. GJEPC is continuously working towards creating a pool of artisans and designers trained to international standards so as to consolidate the Indian jewellery industry and establish it as a prominent global player in the jewellery segment.

With strength of 6,500 members' spread all over the country, the Council is primarily involved in introducing the Indian gem & jewellery products to the international market and promotes their exports. To achieve this, the Council provides market information to its members regarding foreign trade inquiries, trade and tariff regulations, rates of import duties, and information about jewellery fairs and exhibitions.

The role of GJEPC can be broadly classified under the following categories:

I. Trade Facilitator
The Council undertakes direct promotional activities like organising joint participation in international jewellery shows, sending and hosting trade delegations, and sustained image building exercises through advertisements abroad, publications and audio-visuals.

GJEPC also invites countries to explore areas of co-operation in supply of rough diamonds and rough colored stones as well as offers co-operation in jewellery manufacturing. The Council regularly communicates with Indian Embassies, trade bodies and associations in various countries. And finally, GJEPC also organizes seminars, buyer-seller meets, symposiums.

II. Advisory Role
A crucial area of activity of the Council has also been aiding better interaction and understanding between the trade and the government. The Council takes up relevant issues with government and agencies connected with exports and submit documents for consideration and inclusion in the Exim Policy. The Council also grants membership, registration certificates and performs other roles as per the Exim Policy.

III. Nodal Agency for Kimberly Process Certification Scheme
GJEPC works closely with the Government of India and the trade to implement and oversee the Kimberly Process Certification Scheme. To that effect, the Council has been appointed as the Nodal Agency in India under the Kimberly Process Certification Scheme.

IV. Training and Research
The Gems & Jewellery Export Promotion Council runs a number of institutes that provide training in all aspects of manufacture and design in Mumbai, Delhi, Surat and Jaipur. These training programs are being conducted to ensure that the Indian industry achieves the highest levels of technical excellence.

V. Varied Interests
The Council also publishes a number of brochures, statistical booklets, trade directories and a bi-monthly magazine - Solitaire International, which is distributed internationally as well as to its members. Finally, the Council has also developed its own promotional audiovisual film - 'India - Your First Choice', which is dubbed in various international languages as well as screened at various trade shows.

 

2. GEM AND JEWELLERY COMPLEX WITHIN SEEPZ (SANTACRUZ ELETRONICS EXPORT PROCESSING ZONE)

 

SEEPZ was initially established with a view to exploit the growing world trade in electronics. It came into being in September 1974 on about 100 acres of land taken on a 99 year lease from the state government of Maharashtra in the Marol Industrial Area, Mumbai.

 

SEEPZ has a vast commercial, industrial and social infrastructure. Various facilities such as factory space, power, water, in-zone customer clearance, warehousing, communication, canteen, etc. are provided within the Zone.

 

Although SEEPZ was initially set up for 100%  export production of electronics, during 1986-87 the government decided to create a gems and jewellery complex in SEEPZ for the 100% export of gems and jewellery items. Various concessions and facilities have been granted to those who set up production in the zone.

 

At present 51 gems and jewellery units are in operation. A large number of applications for new units are pending since 1989-90 for want of space. A building is under construction through the self-financing scheme, which will accommodate 32 new projects in the gems and jewellery sector.

 

Gems and jewellery sector contributes to more than 50% of SEEPZ exports. Taking view of this fact, the government has simplified export procedures wherever possible and several other promotional measures have been implemented.

 

ZEEPZ jewellery units contributed Rs. 458 crore (54%) to the total gold jewellery exports of Rs. 846 crore from India during 1998-99.

 

 

Table - 19: Imports into S.E.E.P.Z. Mumbai and Exports from S.E.E.P.Z. Mumbai

 

 

 

 

 

 

 

 

 

 

 

 

(US $ In Million)

 

 

 

 

 

 

Description

90 -91

95-96

98-99

99-00

00-01

01-02

IMPORTS:

 

 

 

 

 

 

 Rough Diamonds

21.93

53.24

23.14

60.61

37.11

46.35

 Gold Bars

17.12

64.1

64.52

35.68

25.31

89.46

 Stones

1.23

1.01

0.48

1.22

0.73

1.87

 Cut & Polished Diamonds

16.59

107.02

135.84

173.88

182.53

210.85

 Silver Bars

0

0.7

0.11

0.19

0.46

0.05

 Platinum

0

2.97

1.22

10.67

4.84

8.23

 Total Imports into ZEEPZ

56.87

229.04

225.31

282.25

250.98

356.81

EXPORTS:

 

 

 

 

 

 

 Cut & Polished Diamonds

27.76

52.04

78.52

29.15

56.79

41.66

 Gold Jewellery

44.58

227.74

406.16

525.29

507.47

504.25

 Silver Jewellery

0

0

7.12

0

0.51

0.51

 Platinum

0

6.59

7.71

7.32

8.13

7.21

Total Exports from ZEEPZ

72.34

286.37

499.51

561.76

572.9

553.63

 

 

3. TRAINING INSTITUTIONS:

 

There are several training institutions for imparting training in diamond and gem processing and jewellery manufacturing industry. The prominent ones are listed below:

 

A) UNDER THE AUSPICES OF GJEPC:

1.       Indian Diamond Institute, Surat:

      Courses in diamond, Gems and Jewellery and Computers; Established in 1978; Enrolment: About 350 students.

2.       Indian Gemmological Institute, New Delhi:

      Gem Testing Laboratory and Gemmology Courses;  Established in 1980.

3.       Gem Testing Laboratory, Jaipur:

      Gem Testing Services, Courses in Gemmology, Technical services to overseas buyers.

4.       Jewellery Product Development Centre, Mumbai:

      Short-term courses in Jewellery and video cassettes and  other library for free use.

5.       Jewellery Product Development Centre, New Delhi:

      Seminars and Workshop-cum-Training programmes for jewellery industry and technical assistance.

 

B) PRIVATE SECTOR INSTITUTIONS:

1.       S.G. Centre for Diamond Technology, Vile Parle (W), Mumbai

            This institution is situated within  the campus of Shri Bhagubhai Mafatlal Polytechnic and conducts a comprehensive diploma course in Diamond Technology.

      2. Gemmological Institute of India, Mumbai

           Founded  by  the  Gem and  Jewellery  Exporters'  Association, Mumbai  in  1971;  Diploma course  in  Gemmology  and  Diamond Course, both of which are resident programmes;  Correspondence Course in Gemmology, Pearl Course, Jewellery Designing Course; Jewellery Casting Course; gemstones testing through its Gem Testing Laboratory.

 

4.  INDIAN DIAMOND INSTITUTE (IDI), SURAT

 

IDI is jointly aided by Ministry of Commerce, Government of India and The Gem & Jewellery Export Promotion Council. IDI is located in Gujarat, which accounts for about 80% of the cut and polished diamonds exported from India. Surat, the ‘Diamond City’, has the largest share in diamond processing among all the diamond processing centres. Over 10,000 diamond units operate in Surat, which accounts for the largest share in diamond industry employment, i.e., 750,000 out of an estimated 800,000. Therefore, it is natural that The Indian Diamond Institute, the premier institution for training for this industry is located at Surat.

 

IDI provides training, laboratory services, research & development and consultancy services in a wide spectrum of areas related to the Gems and Jewellery Industry.

 

 

5. DIAMOND TRADING COMPANY (DTC)

 

The Diamond Trading Company (DTC), London, established in 1934, is the selling arm for rough diamonds and is a wholly owned subsidiary of Dee Beers of South Africa. DTC functions as a wing of the Central Selling Organisation (CSO). Dee Beers and CSO and the Dee Beers group company based in Switzerland control and regulate the rough and polished diamond markets.

 

 

CSO has annual budget of about $200 million for conducting market studies, trade promotion, advertisement and highly emotive and successful publicity campaigns spread out in 30 different countries, including China. CSO ensures market expansion and price stability for the benefits of all the participants in the diamond industry.

 

Table - 20: C.S.O. Sales of Rough Diamonds

(US $ Million)

Year

DTC Sales

India’s Offtake

Percentage share

1990

4167

638

15.31

1991

3927

678

17.27

1992

3417

566

16.56

1993

4366

706

16.17

1994

4250

690

16.24

1995

4531

747

16.49

1996

4834

677

14.00

1997

4640

618

13.32

1998

3345

483

14.44

1999

5240

777

14.83

2000

5670

995

17.55

2001

4454

989

22.20

2002

5154

1127

21.87

2003

5518

1469

26.62

2004

5695

1608

28.23

 

 

6. DIAMOND PLAZA CUSTOMS CLEARANCE CENTRE

 

All imports and exports of diamonds, as also other articles in the gems and jewellery group, are subject to appraisal and evaluation by the Customs Department. Each and every export and import parcel is appraised by the Customs Authorities as regards description and value before clearance by them.

 

Disputes and differences, if any, arising in regard to description or value have to be first settled before the export or import parcel is allowed clearance. To advise the customs in such matters, a panel of experts drawn from the trade has been constituted. This procedure ensures that both imports and exports are done at fair international prices and strictly in terms of the Government policy.

 

Practically the entire trade is by air transport and both import and export cargoes are carried through specialised Cargo Consolidators  (international cargo companies) who arrange for speedy, economical and safe transit and delivery of parcels to notified consignees.

 

Almost 98% of India’s import of rough diamonds and export of cut and polished diamonds are effected through the city of Mumbai. Therefore, the Government of India agreed in 1985 to set up a specialised Customs Clearance Cell in the “Opera House” area, the “Diamond District” of Mumbai.  Ordinarily, Customs Clearance Centres are located at the sea or airports. As an exception, and on 'cost reimbursement basis', the Government of India permitted the setting up of a customs clearance centre for gems and jewellery known as Diamond Plaza Customs Clearance Centre  (DPCC).

 

It is the first of its kind to be set up jointly by the gems and jewellery industry and the Customs Department. DPCC has been functioning effectively within the city of Mumbai under a special arrangement worked out between the gems and jewellery trade and the Government of India. The Centre is run on self-financing basis through income generated through service charges levied on all import and export parcels. The service charge amounts to just 0.01% of the value of the parcels handled. The Diamond Plaza Customs Clearance Centre will shift to the new Bharat Diamond Bourse coming up within the Bandra-Kurla Complex (BKC) in Mumbai.

 

ACKNOWLEDGEMENTS:         

FINANCEMAN ASSOCIATES acknowledges the use of various printed and electronic media for compiling the content, ideas and statistics on the gems and jewellery industry presented on this web page. We at FINANCEMAN ASSOCIATES are thankful to the industry leaders, their spokesmen, commentators in the media and experts in diamonds processing and jewellery manufacture and, specifically the Gem & Jewellery Export Promotion Council, Mumbai, for the use of published text and statistics that are in the public domain. The place of jurisdiction concerning all issues presented on this Web Page by FINANCEMAN ASSOCIATES shall be Mumbai, Maharashtra, India.

Copy Right © 2007 FINANCEMAN ASSOCIATES

 

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