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S B & T INTERNATIONAL LTD. IS A COMPANY IN THE JEWELLERY INDUSTRY AND NOT THE DIAMOND INDUSTRY.

· India’s share being hardly 1.2% - wide scope for future growth

· The Gems & Jewellery industry is the second largest foreign exchange earner for India.

Gold jewellery industry distinct from diamond industry.

· Diamonds account for only 30% of the final product

· Value-addition and product range create margins, markets and distinguishing niche

India’s competitive advantage lies in creation of exquisite designs & production of high volumes at low costs.

· Easing out of raw material procurement for the jewellery manufacturers

· Availability of skilled labour at low cost.

The Government of India has identified gold jewellery industry as a major thrust area capable of attaining 30% growth annually.

· Gold jewellery exports from India were Rs 4694 crores in 1999-00, up 81 times from Rs 58 crores in 1990-91

· Gold Control Act repealed in 1990 - removal of all import restrictions

Mineral and Metals Trading Corporation (MMTC) has entered the domestic market - leading to greater stability in prices.

· Difference in International and Indian prices narrowing to around 10%

The Industry Today

The Gem & Jewellery industry is the second largest foreign exchange earner for India. India has approximately 1.2% share of the global US$ 62 billion jewellery market. According to GJEPC (Gems & Jewellery Export Promotion Council) Gold Jewellery Exports from India were Rs 4693.74 crores in 1999-2000, which have gone up 80.90 times from Rs 58 crores in 1990-91. World-wide the market for Indian studded jewellery is more than Indian plain jewellery.

Government Initiatives

The Government of India has identified Gold Jewellery Industry as a major thrust area capable of attaining 30% growth annually. According to GJEPC Gold Jewellery exports from India grew by 28% from US$ 846 million to US$ 1.08 billion in 1999-2000 over 1998-99. Organisations like GJEPC and the World Gold Council are constantly liaisoning with the Government of India and suggesting measures for the betterment of the industry. The GJEPC has also urged the Government of India to reduce interest rates on post-shipment credit and to streamline procedures for import of raw materials and export of gold jewellery.

The Gold Control Act was repealed in 1990 easing out gold imports for jewellery manufacturers. Gold can now be imported without any restrictions. NRIs are also now allowed to bring in upto 10 kg of gold on payment of applicable customs duty. These factors have resulted in narrowing of difference in International and Indian prices of gold to around 10%. Also, Mineral and Metals Trading Corporation (MMTC) has entered the domestic market, leading to greater stability in prices.

India’s Advantage

India has an advantage in terms of creation of exquisite designs and production of high volumes at low costs. This has been facilitated due to the following factors:

v Easing out raw material procurement for the jewellery manufacturers, after repealment of the Gold Control Act permitting import of gold without any restrictions.

v Availability of skilled labour at low cost.

New Markets

Apart from the traditional markets like the American & European markets, non-traditional markets like Australia, China, East Europe and the Caribbean islands are sourcing their requirements from Indian manufacturers. The Company has conducted a study on the demand and consumption for jewellery products and has noticed a socio-economic evolution in the trends of consumption of jewellery products. A new market segment of college students, senior citizens and middle class spenders has emerged, which will greatly benefit the Company.

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