MINES TO MARKET - Mines to Market Diamond, Jewellery, Gold, Mining ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
VOL-1,ISSUE-23
R
MINES TO MARKET INTERNATIONAL TRADE
www.minestomarket.news WEEKLY NEWSLETTER
‘Sparkle-21’ raises hope for good business
The Southern Gujarat Chamber of Commerce and Industry Industry and Southern Gujarat Chamber of Trade and Industry
and Southern Gujarat Chamber of Trade and Industry Development Center between February 20 and 22, 2021 at
Development Center organised ‘Sparkle-21’, a three-day Surat International Exhibition and Convention Center, Sarsana,
exhibition, at Surat International Exhibition and Convention Gujarat. The exhibition was attended by may dignitaries and
Center, Sarsana, between February 20 and 22, 2021 and was renowned personalities in diamond and jewellery business.
visited by over 7500 domestic and international buyers.
Along with the South African Consulate General, Consul
Dinesh Nawadia, President of the chamber, said, “Buyers General in Mumbai, Consul Economy Dean Hoff and Business
from all across the country visited the three-day exhibition. Development Advisor Rajan Kumar also showcased the sparkle.
Also, buyers from the United States, Dubai, South Africa and
Nepal, received a very good response from their trade Speaking on the occasion, Dinesh Nawadia, President of the
partners in ‘Sparkle-21’. chamber, said, “A huge quantity of rough diamonds comes from
African mines for cutting and polishing in Surat. We held an
Encouraged by this response, the Chamber has decided to important discussion with the Consul General of South Africa
participate various business-to-business (BTB) trade events. on how process can be simplified for easy import of rough
On the last day of Sparkle-21, nearly 1290 buyers visited the diamond from South Africa for cutting and polishing in Surat.”
exhibition.
After marathon discussion with the trade between the two
Jayanti Savlia, group chairman of the chamber, said, “Major countries, the South African delegation, including the Consul
cities of the country like Delhi, Punjab, Chandigarh, Chennai, General, visited various stalls at the Sparkle-21 exhibition. All
Kochi, Krishur, Trivandrum, Malappuram, Calicut, kinds of diamond ornaments exhibited on the stall were seen in
Bangalore, Coimbatore, Mumbai, Pune and major cities of this exhibition. The Consul General was mesmerized by the
Gujarat where managers and buyers of large channel stores famous handmade jewellery made especially in Gujarat and all
where consumption takes place, visited Surat Sparkle-21 over the world.
exhibition. The survey reveals that buyers were skewed
towards handmade, lightweight, temple, close-setting and all
kinds of ornaments like western and bridal in this exhibition.
South African consul general visits Sparkle-21,
discusses trade
The Gems and Jewelery Exhibition 'Surat Sparkle-21' was
organized by the Southern Gujarat Chamber of Commerce and
measures in the trade. This includes increase in import duty on
polished LGDs to 15% that will provide immense support to
the local growing and manufacturing of lab grown CVD
diamonds, discouraging competition from other countries
including China.
Other measures include the Bharat Diamond Bourse now
permitting the trading of LGDs as well as GJEPC's move to
introduce LGD as a separate panel providing it an independent
category status. All actions indicate a common belief that LGDs
are the future and certainly a huge opportunity for the Indian
gems & jewellery sector to leave a stronger mark in the world.
Going forward, we strongly believe that the LGD industry will
be even stronger in FY 21-22 driven by further growth in
exports as global economies see a ‘V’ shape recovery and see a
significant pickup in consumer demand.
In addition to that, the domestic jewellery market is also going
to contribute to LGDs success in India - mainly due to
Pooja Sheth, MD & Founder, Limelight Lab Grown increasing consumer demand amongst India’s young
Diamonds Ltd:As one of the first few trade shows post the “millennial” population who believe in buying LGDs because of
lockdown, the Sparkles-2021 exhibition, in my view, has yet their environmental, economical and sustainable benefits.
again shown the growing success of lab-grown diamonds in
India and globally.
It was exciting to see increasing participation from different
players across the value chain of lab-grown diamonds including
growers, traders, manufacturers as well as now jewellery brands
like us.
For Limelight Lab Grown Diamonds, as India’s largest
consumer brand in chemical vapour deposition (CVD)
diamond jewellery - this was our first showcase in Sparkles and
we have received a fantastic response. We were honoured to
have the opportunity of Mr. Colin Shah, GJEPC Chairman
alongside Mr. Dinesh Navadia to inaugurate and launch our
hologram display. We are glad to receive the recognition and
appreciation for our efforts and for being the first of its kind not
just in India but in the global jewellery industry that showcases
the CVD diamond creation process and its benefits.
This event in my view has only added to the continued growth
story of the LGD industry which has seen significant measures
in the trade even during the pandemic. Despite having spent
most of the year in the pandemic, the Indian lab-grown
diamond (LGD) market proved to be extremely robust
reporting the strongest ever exports of rough & polished LGDs
in value terms. As per GJEPC data, between Apr - Dec 2020,
India exported nearly INR 3,600 crore worth of polished LGDs,
a 63% increase year on year.
This growth has certainly not gone unnoticed in the gems &
jewellery industry and has been welcomed with several
Keyur Miyani, Narah Jewels:We got very good response
at Sparkle-2021 exhibition. Demand of fancy diamond
ornaments would certainly move up with the recovery in the
overall market sentiment. We produce fancy cut and unique
shape of diamond collection with lower colour clarity for
which we see huge market.
Kanak Doshi from Kayra Platinum:It was an amazing
experience in Sparkle 2021 Surat exhibition. We got an
unexpected response. Good crowd and genuine buyers
visited our platinum jewellery stall at the exhibition.
Mit From S.R.Mehta:It’s an amazing show. Serves as a
great platform to connect to local surat manufacureres. Since
most of the traders in Mumbai or abroad have a set up in surat,
one is able to get in touch with almost all of them under one
roof. As the numbers show, we saw a strong demand for
products and we feel the recovery of the industry will be even
stronger than previously imagined
Duty cut to boost gold demand, curb unofficial import
The import duty cut is set to boost India’s gold demand and Grey trading is the prime obstacle to extending gold’s role in
curb unofficial import of the yellow metal, industry experts mainstream financial services and is a serious limitation to the
said. global role India plays in manufacturing handcrafted jewellery
and in trading. Tax cuts soften the price increase but are not
The Union Finance Minister Ms Nirmala Sitharaman necessarily a big driver of demand unless the cut is steep or is
announced import duty cut across various purity of gold in accompanied by a sharp drop in domestic prices due to other
the Union Budget 2021-22 announced on February 1, 2021. factors.
In the Union Budget of 2018-19, the government had In this case, the cut of 2.19% juxtaposed with a 42% rise in
indicated its intention to establish a system of regulated gold gold prices since July 2019, when duty was last raised, may
exchanges, and the current budget authorised the equity not, on its own, be a strong enough trigger for demand,
markets watchdog the Securities and Exchange Board of India although it is a step in the right direction.
(SEBI) as the regulator. It also expanded the responsibilities
of the Warehousing Development and Regulatory Authority The apex industry body the World Gold Council (WGC)
(WDRA) to include a commodity market eco-system, estimates India’s gold demand to decline by 35% at 446
embracing vaulting, assaying and logistics, as well as tonnes to hit the lowest in 25 years due to Covid-19 related
warehousing. economic slowdown and trade disruptions on nationwide
lockdown.
The current budget lowered custom duty on gold bars and
gold dore in light of the significant increase in the gold price Shifting towards organised gold market
since the duty was last raised (from 10% to 12.5%). Under the
change, the basic customs duty (BCD) on gold bars and gold The import duty cut is set to increase headwind for gold
dore is reduced to 7.5% and 6.9% from the previous level of smuggling. According to an estimate, unofficial imports fell by
12.5% and 11.85%, respectively. To improve agricultural a whopping 80% in 2020 – to 20-25t – due to logistical
infrastructure, an additional Agriculture and Infrastructure disruptions caused by Covid-19, and may be further impacted
Cess (AIDC) was levied on several items, including gold bars in 2021 with ongoing flight restrictions and lower customs
and gold dore, at a rate of 2.5%. Also, the Social Welfare duty. With import costs falling, official inflows in 2021 could
Surcharge (SWS) was imposed on BCD at 10% for gold bars be spurred on. Lower customs duty and recovering demand
and gold doré but will not be applied to AIDC. may allow official imports to gain strength at the cost of
unofficial imports, although the 14.07% duty continues to
The finance minister also announced the pre-trial for disposal make the grey market attractive.
of seized gold. Expediting such disposals will likely increase
the cost of gold seizures and discourage smuggling. Meanwhile, the government’s focus on the rural economy is
especially important for gold demand. Rural India accounts
Thus, the new tax structure brings the total import duty on a for around two-thirds of the nation’s gold demand, and this is
gold bar (including BCD, AIDC, and SWS) to 10.75%, heavily linked to income levels. Indeed, a thumb rule analysis
compared to 12.875% before the budget. With an additional reveals that a 1% increase in income leads to a 1% increase in
3% Goods and Services Tax (GST) consumers will now be gold demand, all else being equal.
expected to pay 14.07% tax on gold bars compared to 16.26%
previously – a net tax reduction of 2.19% post budget. Interestingly, the government announced its intention to
establish a system of regulated gold exchanges back in the
Similarly, the total post-budget import duty on gold dore 2018-19 budget. The gold spot exchanges in both the
(including BCD, AIDC and SWS) stands at 10.09% domestic and GIFT-IFSC city will help to create an efficient
compared to the 12.21% pre-budget level. price discovery mechanism. The exchanges may lead to the
successful implementation of the gold monetisation scheme
“The lower tax rate on gold could, to an extent, support
and the development of gold-backed products; they may also
demand. Lowering tax rates is more about creating a level
empower bullion banking and establish India as a major
playing field for the compliant and organised sections of the
bullion trading hub.
trade by squeezing the grey market,” said an industry veteran.
@minestomarket
Somasundaram PR, Managing Director, India, system around tax avoidance is likely to be stronger even at
World Gold Council:“While the rationalisation of import the current level of tax (post-cut) at 14.07% on gold.
duty on gold is a step in the right direction, we hope this is the
first of a series of such cuts. Tax cuts soften price increase but The regulatory clarity in this budget by way of the
are not necessarily a big driver of demand unless the cut is appointment of SEBI as the regulator of domestic gold spot
steep or is accompanied by a sharp drop in domestic prices exchanges, will spur infrastructure development and good
due to other factors. In the case of this year’s Union Budget delivery standards, enabling India to emerge as a major
announcement, the net reduction in duty of 2.19% bullion trading hub. We expect the formation of the
juxtaposed with a 42% rise in gold prices since July 2019, International Bullion Exchange at GIFT-IFSC city to happen
when duty was last raised, cannot, on its own, be a strong more quickly as the relevant notifications and regulations are
enough trigger for demand. Our econometric analysis already published and the authority is working on the
suggests that the impact of this approximate 2.2% net enactment of the operational framework of the exchange.
reduction in the duty may result in an increase of slightly less However, the domestic gold exchange, may take longer, as
than 7t per year in long-term consumer demand, everything SEBI chalks out future steps to work on the modalities of the
else remaining constant. Every such cut in duty will weaken exchange and the necessary regulatory framework.
the grey market and promote transparency in official inflows. Directionally, this year’s budget can be considered very
However, following a disruptive year when unemployment positive for the industry.”
and loss of livelihoods have been a reality, the support eco-
Hazoorilal Legacy launches its latest jewellery campaign for
2021 featuring their brand ambassador Tara Sutaria
for classic and timeless jewelry and Tara, with her immense
talent and remarkable ethics empowers and embraces the
brand’s legacy.”
The campaign’s overarching theme of hope and positivity
comes after what was a difficult last year, globally. Touting
2021 as the year of recovery and zeal, the campaign intends to
evoke the emotions of the audience and create engagement
via #TheNextChapter. Over the next few months, Hazoorilal
Legacy plans to release signature bridal looks with couture,
high jewelry pieces, delicately weaving the rich cultural
heritage of Indian craftsmanship with a contemporary
outlook. The line of statement jewelry from the Legacy
Collection in gold, polki and diamonds has been extensively
curated for the brides-to-be.
Talking about the campaign, Mr. Rohan Narang, Managing
Director, Hazoorilal Legacy goes on to add “We delved deep
At the forefront of the fine jewelry segment for the past 68 into the brand’s values and consciously devised a thought-
years, New Delhi based fine jewelry brand Hazoorilal provoking campaign that spoke of hope, resilience and our
Legacy announced the launch of its Brand Campaign 2021 passion for building an everlasting legacy of beauty through
with brand ambassador, Bollywood star Tara Sutaria. The exquisite designs & unmatched aesthetics. Tara’s superlative
charismatic Ms. Sutaria made an announcement for talent will mark this as one of our most memorable
Hazoorilal Legacy’s campaign launch on her social media, campaigns!”
fondly highlighting her affiliation with the brand. As the face of the brand, Ms. Tara Sutaria said, “I am honored
Commenting on the association, Mr. Ramesh Narang, to continue my association with an iconic brand like
Director, Hazoorilal Legacy said, “We’re delighted to have Hazoorilal Legacy. A pioneer in the jewelry industry, the
Tara take our brand story forward. Hazoorilal Legacy stands brand has changed the face of the jewelry design landscape. I
can't wait for the big reveal in the next few weeks.”
GJEPC signs MoU with eBay to boost retail exports
towards facilitating gem and jewellery exports through e-
commerce platform and drive the vision of “Digital India”.
The platform will enable Indian jewellers to have easy access
to international buyers,” said Colin Shah, Chairman, GJEPC.
During the pandemic, the industry demonstrated a keen
willingness to adapt to new business realities. Demand for
gems and jewellery is picking up in all major export markets,
hence it is important for us to tap all important online
opportunities.
The Gem & Jewellery Export Promotion Council (GJEPC), “We believe, this association with eBay will be a key catalyst
apex body of gem and jewellery trade, has signed an MoU for the digital transformation of the gems and jewellery sector
with ES Online Services (India) Pvt. Ltd. (an eBay Group in India," said Shah.
Company) to provide impetus to Indian gem & jewellery
sellers on the global (electronic) e-marketplace and explore Shah further said that GJEPC’s association with eBay will
potential business collaborations for facilitating sectoral help the gem and jewellery industry to contribute to Hon’ble
growth. Prime Minister’s dream of enabling MSMEs to reach out to
the overseas customers; this will aid in achieving the vision of
As a first step towards this endeavour, eBay will create a micro making every district in India to export at least one product
site (‘Made in India’ page) for GJEPC members selling in (one district one product). Moreover, it will boost the gem
eBay websites. GJEPC members subscribing on eBay and jewellery exports thus helping us to achieve our goal of
marketplace(s) will be placed together on this proposed USD 75 billion exports by 2025,” adds Colin Shah.
micro site for better accessibility.
Vidmay Naini, Country Manager, eBay India-CBT, said
As per the understanding, ES Online will facilitate awareness “We, at eBay in India, are convinced that Indian gems and
workshops/ webinars/ seminars to educate GJEPC members jewellery sellers are well poised to scale their business and
about e-commerce retail exports opportunities and train on presence across the eBay marketplace globally. The MoU is a
policies and best practices in product listings, selling, step forward in enabling them in this endeavour. Together
shipping, and customer services. with GJEPC, we will educate, support and scale these sellers
on the eBay marketplace.”
“It will also provide information on cross-border trade, such
as market studies, latest design trends, standards and ES Online, itself or through its service providers will assist
specifications etc. GJEPC, on the other hand, will provide GJEPC members on registration/sign-up process on eBay
infrastructure support for conducting such awareness marketplace and provide support to end-to-end on-boarding
workshops/seminars, said a statement from GJEPC. procedures (including sellers’ registration on eBay, KYC
documents, PayPal registration etc.) and getting their account
Meanwhile, the council will be setting up an e-commerce
activated.
Promotion and Facilitation Desk (EPFD) at all its six regional
offices which will have a dedicated manpower promoting e- For GJEPC members, eBay to offer its basic store
commerce amongst GJEPC members and generating leads. subscription (worth US$ 27.95 per month) at free of cost for
While ES Online would train the manpower at EPFD. three months from the date of registration/sign-up on eBay
marketplace.
“The collaboration between eBay, India and GJEPC is a step
@minestomarket
WDC calls for stringent due diligence for African rough diamond
Due to the political unrest, and in accordance with the special
operational framework that was approved in November 2019
by the Kimberley Process, the WDC urges all members of the
trade to continue conducting enhanced due diligence,
regarding import of rough diamonds from the CAR and its
neighboring countries. Although diamond production from
conflict-affected areas in CAR represents only a very small
percentage of global diamond production, diamond
businesses should exercise the utmost caution, a WDC
statement said.
The only rough diamonds sourced in the CAR that currently
can be purchased legitimately are those that meet the
minimum requirements of the Kimberley Process
Certification Scheme (KPSC) and are accompanied by
official CAR Kimberley Process (KP) certificates. These
The World Diamond Council (WDC) has urged its members indicate that the diamonds were mined in KP-compliant
to exercise enhanced due diligence while purchasing rough “green” zones, which are areas under secure CAR-
diamond from central African region due to political unrest government control that show no evidence of armed rebel
there. group activity.
It has been reported in various international media that the The WDC calls on the entire industry to uphold the integrity
CAR capital Bangui and other major towns have come under of the diamond supply chain by proactively implementing the
fire from rebel fighters over the past several weeks. The official guidelines contained in the WDC’s new System of
elected government and its allied forces are strongly fighting Warranties. These include addressing risks in areas beyond
armed rebel groups siding with the political opposition. The those covered by the Kimberley Process Certification
situation has caused many civilians to seek refuge in other Scheme, including human and labour rights and anti-
parts of the nation or neighboring countries, such as the corruption.
Democratic Republic of Congo (DRC).
Boaz Moldawsky replaces Yoram Dvash as the President of the
Israel Diamond Exchange
Diamond Exchange and Chairman of the Israel Diamond
Institute.
The presidency was declared after two rounds of rigorous
voting and a rigid election campaign. The elections also
resulted in the selection of 16 members of the Israel Diamond
Exchange Board of Directors.
In the words of Moldawsky: "The members of the Diamond
Exchange have chosen experienced and responsible
management. It is an honor and privilege for me to lead the
exchange in the coming years, and especially during such a
Boaz Moldawsky replaces Yoram Dvash as the President of complex and challenging period for the industry. The
the Israel Diamond Exchange. Moldawsky, 54, belongs to one
Diamond Exchange represents a key sector of the Israeli
of the founding families of the Israeli Diamond Industry. He
economy and I am convinced that we will bring it to renewed
is a second-generation diamantaire and the joint CEO of the
Moldawsky group. He has also served as the VP of the Israel growth.”
@minestomarket
ORRA launches an exciting new collection targeting millennials
~Introduces ‘DESIRED’ with Disha Patani as ORRA’s first brand ambassador~
Elated about her association with ORRA, Disha Patani shares,
“I am excited to be a part of ORRA Fine Jewellery. It is so
exciting to represent a brand whose persona is so close to your
own. The DESIRED collection is a perfect representation of
my personal style with designs that are unique and trendy. I
feel ORRA understands the sensibilities of today’s young
woman and our need to be comfortable in our own skin. That
makes our association so much more meaningful and I am
extremely delighted about our partnership.”
ORRA, India’s leading and trusted brand of diamond
jewellery has added a new category to its portfolio by
introducing DESIRED collection, targeted at millennials.
With the launch of DESIRED, ORRA has further expanded
their contemporary jewellery line for the growing base of
young women consumers. The significant launch is marked
with the announcement of Disha Patani as the brand
ambassador for ORRA.
ORRA has witnessed a committed consumer base during
lockdown and forecasts a positive topline growth in 2021
with a focus on the rising young consumer segment. The
DESIRED collection is designed to appeal to the fashion
conscious, modern women who think of jewellery as a
fashion statement with an extension of their personality. The
edgy and versatile jewellery collection is crafted in Rose gold
& diamonds with over 100 styles available. The collection is
set in 14 karat gold with the introduction of earrings and
rings, being the first for ORRA in this product category.
Speaking about introducing DESIRED and a brand
ambassador, Mr. Dipu Mehta, Managing Director, ORRA
shares, “Being a pioneer in design leadership and product
innovation, it is only natural for us to further expand our
contemporary jewellery category. We are speaking to a
growing base of millennial consumers, who bring their
personality to everything they do including their wardrobe.
All these facets and more come through in our new collection
DESIRED. The significant launch of DESIRED is steered by
the appointment of our brand ambassador Disha Patani.
ORRA is delighted to collaborate with Disha Patani as the
face of ORRA. She is a natural fit to this collection as she
represents the quintessential woman of today - distinctive
style, progressive and with the courage of her conviction.”
@minestomarketYou can also read
