Centre of Excellence forGems & JewellerySkill DevelopmentGovernment of Gujarat

Page 2

Contents

Project Concept 3

Market Potential 6

Growth Drivers 7

Gujarat – Competitive Advantage 8

Project Information 9

- Location

- Infrastructure Availability / Connectivity

- Manpower Requirement

- Key Players

- Potential Collaboration Opportunities

Project Financials 11

Approvals & Incentives 12

Key Department Contacts 13

Page 3

Project Concept

Centre of ExcellenceIndustries are increasingly implementing Centres of Excellence (CoEs) as means of efficiently andeffectively managing business tasks such as research, training for focus areas, knowledgedissemination, provide support and guidance in implementing best practices and industry standards.In addition, CoEs may provide subject matter guidance to enterprises.

Projectmanagement

Qualityassurance

Regulatorycompliance

Businessanalysis

Enterprisebusiness

managementBusiness tasks

around which CoEsmay be created

Objectives of the Gems and Jewellery Centre of Excellence

The proposed Centre of Excellence for Gems and Jewellery will be equipped with state-of-the-art

infrastructure, latest technology and machinery, and faculty that will focus on serving the evolving

needs of the sector through education, training and skill development. The key objective of the

proposed centre of excellence will be to offer quality assured training at all levels of the gems and

Jewellery manufacturing value chain.

The CoE will partner with education institutes and associations, and offer quality courses to artisans,

designers, and students. In addition, it will hold conferences and seminars to promote the use of

highest standard in business practices in the industry. This will also help disseminate knowledge

about latest developments.

Page 4

Project Concept

Trainings Offered

The Gems and Jewellery CoE may appoint an Implementation and Assignment Partner(s), whichwill provide consulting services and hands-on experience with all aspects of organizationaloptimization, including shared services and centres of excellence. The objective of theImplementation and Assignment Partner(s) will be to provide support to the proposed Centre ofExcellence with a focus on skilling and training.

The Gems and Jewellery CoE will offer trainings across the value chain. These will include but notlimited to:

Sub-Sector Job Role Key responsibilities

DiamondProcessing

Bottom Polisher� Make bottom facets on diamond� Fix diamond in pot� Protect company’s intellectual property rights

Polished Grader &Assorter

� Assort small polished diamonds� Coordinate with others

Cast andDiamond – Set

JewelleryFiler & Assembler � File and assemble the cast Jewellery piece

� Maintain health and safety standards

GemstoneGirdle Polisher

Faceting & Polishing� Polish the girdle of the faceted gemstone� Fix the rough-cut gemstone on the dop for

polishing, faceting

Gemstone Pre-shaper� Pre-shape gemstone� Operate tumbling shaping machine� Maintain safe work environment

Handmade Gold& Gems-setJewellery

Goldsmith: ComponentMaker

� Draw wire or strip from precious metal� Stamp the gold sheet� Make gold chain

Goldsmith: Enameller � Paint with enamel colors on Jewellery frame� Maintain safe work environment

Goldsmith: Framemaker

� Make the Jewellery frame of gold� Maintain intellectual property rights

Page 5

Project Concept

Functions of the CoEThe scope will include the following activities:

Course Curriculum Development� Skill Mapping Studies to assess skill gaps, and sector requirements� The output of such study would include suggestions regarding strategies for

bridging the gaps� This will have a consultative mechanism with room for midcourse corrections

during the implementation of courses

Clean Technology Dissemination� The adoption and dissemination of clean technologies requires skills in

technology application, adaptation and maintenance� Adoption of sustainable behaviours through workshops, seminars, training

courses

Research and Development� Research and development activities� Reviewing latest policy developments

Training and Skilling� Conduct skill development trainings in line with the overall objectives and

framework that will be agreed upon with the industry

Assessment and Certification� Assessment and certification of each trainee, as per National Council of

Vocational Training and Gujarat Council of Vocational Training Certification

Other facilities at CoE will include:

� Computer laboratory� Conference and meeting rooms� Hostel� Cafeteria

Page 6

Market Potential

50

79

0

20

40

60

80

100

2015 2018E

B

Indi

a’s

Gem

s&

Jew

elle

ryM

arke

tSiz

e

Market Forecast

� India’s gems and Jewellery marketsize is expected to grow at a CAGR of16.4% between 2015 and 2018

� India has become the world's third largest diamond consumer with a share of 8%� India is the largest consumer of gold, accounting for nearly 29% of the total world

gold consumption� The sector provides employment to nearly 2.5 m people with the potential to

generate employment of 0.7 to 1.5 m over the next five years� India exports 95% of the world’s processed diamonds� India’s gems & Jewellery sector is second highest contributor to the Indian commodity

exports with a share of 13 %� The sector’s market size is close to 6% of India’s GDP

64

25

6 5 Cut & polisheddiamonds

Gold jewelry

Silver jewelry

Gemstones &others

� Total exports of gems and Jewelleryfrom India was estimated at USD36.15 b in 2014-15

Share of Exports within the Gems &Jewellery Sector (%)

Source: FICCI-AT Kearney Report. All that Glitters is Gold (2013)Gems & Jewellery Sector Profile, Vibrant Gujarat 2017NSDC. Human Resource and Skill Requirements in Gems and Jewellery Sector

4.64

8.23

0

2

4

6

8

10

2013 2022

� Human resource requirement of thesector is expected to increase at aCAGR of 5.8% during 2013 and 2022

Wor

kfor

cein

Mill

ion

Page 7

Growth Drivers

FavorableDemographics

TraditionalDemand

Increasing PerCapita Income

GovernmentInitiatives

� India has one of the youngest population in the world; favourabledemographics leading to an increase in demand for gems andJewellery

� Increase in the number of working women will continue to providegrowth

� Spending power of the people is also rising with an increase indisposable income leading to growth of Jewellery demand in India

� Indian government presently allows 100% Foreign DirectInvestment (FDI) in the sector through the automatic route

� Gems and Jewellery Skill Council of India is planning to train overfour million people till 2022

� Tradition of buying Jewellery during important festivals like Diwaliand Dhanteras and during weddings

High InvestmentDemand

� Gold has outperformed several other asset classes and thusremains the preference of most Indian consumers as aninvestment option

Page 8

Gujarat – CompetitiveAdvantageFocus Sector Potential

Gujarat has the highest share (nearly 85%) in the total national Jewellery production

Gujarat accounts for about 80% of diamonds processed and 95% of diamonds export from India

Almost 8 out of 10 diamonds in the world are processed in Gujarat

Rajokot

Surat

Ahmedabad

A gold Jewellery manufacturing cluster in Ahmedabad has a productivity of around 50 gm ofproduction / day, highest in the country

Major Gems & Jewellery Clusters in Gujarat

� Ahmedabad – Gems and Jewellery cluster

� Rajkot – Imitation Jewellery cluster

� Surat – Diamond Processing hub

Labor Cost (USD)

020406080

100120140160

Gujarat(India)

Antwerp(Belgium)

Shenzen(China)

Telaviv(Israel)

Source: Gems & Jewellery Sector Profile, Vibrant Gujarat2017

� Labor cost per carat in USD is the lowest inGujarat when compared to other countries

Labo

rcos

t(U

SD)

Page 9

Project Information

Suggested Location

Infrastructure Availability / Connectivity

� 90 percent of the total diamonds in Gujarat areprocessed by about 10,000 diamond unitslocated in and around Surat

� Largest diamond processing cluster in the world� Known as the “Diamond Polishing hub of

India” with more than 3500 diamond processingunits

� DREAM (Diamond Research and Mercantile)City spread over an area of 2,000 acres is beingdeveloped close to Surat

Surat

� Well connected by broad gauge� The metro rail project is expected to be

completed by 2017-18

� NH-8 Bharuch-Surat road is completed� Bus Rapid Transport System is under

construction� The major highways passing through

Surat are the Udhana-Mumbai Highwayalso known as Udhana-Navsari Highway,Surat-Ahmedabad Highway

� Surat airport has direct air connectivitywith Delhi and Mumbai

� With the installation of 2 aerobridges inDecember 2015, it has now increased to1500 pax/hour

� Planned improvements at the airportinclude a capacity to handle up to 7 jets ata time, extending the runway to 2905meters

� The nearest port is now in the Magadallaand Hazira area of Surat MetropolitanRegion

Page 10

Project Information

Manpower Requirement

Director

Head of BusinessManagement Head of Training Administration

Sales andMarketing

Training Staff andSupervisors

Finance,Maintenance and

other staff

Key Players

Venus Jewel Manubhai Zaveri Forever Diamonds

K.A.R.P Zaveri & Co.

Potential Collaboration Opportunities

Industry Directorate of Employment &Training

National Skill DevelopmentCorporation

Indian Diamond Institute, Surat National Institute of Design,Ahmedabad

Key Considerations

� Idea, vision and objective of CoE� Preparing long term training and capacity

building strategy� Creation of databases and expertise to be

readily used� Identification and documentation of best

practices� Developing training modules for all levels

� Maintaining standards in training andeducation by providing certification for qualityperformance

� Project mode – PPP/ Direct PrivateInvestments

� Existing facility may be made available bysigning Flexi-MoU

Page 11

Project Financials

Project CostCost of setting up a Centre of Excellence:

Project components & specifications Cost (INR crore)

Buildings (office, training room s, laboratory, seminar hall, server, IT room,cafeteria etc.)(Land area: 1,300 sq meter,Built-up area: 1000 sq meterAverage rate: INR 25,000 per sq meter)

2.50

Machinery and equipment(Computers-peripherals, hardware etc.) 3.50

Site Development (internal roads, water drainage system, lighting)(Average rate: INR 1,200 per sq meter) 0.15

Miscellaneous fixed assets(Furniture and fixtures, office equipment, etc.) 0.50

Indicative Project Cost 6.65

Note : Indicative Project Cost may vary subject to the scale and requirement of the Project

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Incentives & Approvals

Incentives from Government of Gujarat

Assistance shall be 70% of total expenditure, including recurringexpenditure for three years, limited to INR 20 Crore in case of national level

CoE

Assistance shall be 70% of total expenditure, including recurringexpenditure for three years, limited to INR 30 Crore in case of international

level CoE

Assistance forCentre of

Excellence

Assistance Scheme Name

Assistance forIndustrial

Infrastructure

To set up / upgrade / improve industrial infrastructure in the state -assistance will be considered up-to 60% of project cost or INR 25 Crore

per project whichever less

� 100% Foreign Direct Investment (FDI) in the sector through the automatic route is allowed

Incentives from Government of India

� Registration of business organization (Local body clearances)� Acquisition of land from concerned office / owner� Arrangement of power with zonal distribution company� Arrangement of water with concerned municipal corporations� Any other clearances required� A private investor would be able to avail Government schemes subject to approval by the

concerned Ministries / Departments

Approvals Required

� Enhancing the ease of doing business by reducing the number of mandatory documentsrequired for import and export to three and simplification of forms

National Skill Development Corporation (NSDC) Funding� Provides assistance for creation of skills infrastructure and / or working capital requirement for

skill development activity for first 3 years� Funding would be up to a maximum of 75% of the investment requirement� Promoter Contribution shall be to the tune of minimum 25% of the investment requirement� NSDC may provide funding in the form of loan, equity, preference shares, debentures and

grant. However, NSDC will prefer to provide funding in form of loan

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Directorate of Employment & TrainingPhone: +91 79 23253805

Email: director-det@gujarat.gov.in

Gujarat State Portal

www.gujaratindia.com

Directorate of Employment and Training

Industrial Extension Bureau

http://www.indextb.com/

Industries Commissionerate

http://ic.gujarat.gov.in/

http://employment.gujarat.gov.in/

Gem & Jewellery Skill Council of India

http://www.gjsci.org/

Ministry of Skill Development and Entrepreneurship

http://msde.gov.in/