Centre of Excellence for Gems & Jewellery. Skill Development Government of Gujarat
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1 Centre of Excellence for Gems & Jewellery Skill Development Government of Gujarat
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 2
3 Project Concept Centre of Excellence Industries are increasingly implementing Centres of Excellence (CoEs) as means of efficiently and effectively managing business tasks such as research, training for focus areas, knowledge dissemination, provide support and guidance in implementing best practices and industry standards. In addition, CoEs may provide subject matter guidance to enterprises. Project management Enterprise business management Business tasks around which CoEs may be created Quality assurance Business analysis Regulatory compliance 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 3
4 Project Concept Trainings Offered The Gems and Jewellery CoE will offer trainings across the value chain. These will include but not limited to: Sub-Sector Job Role Key responsibilities Diamond Processing Cast and Diamond Set Jewellery Gemstone Girdle Polisher Handmade Gold & Gems-set Jewellery Bottom Polisher Polished Grader & Assorter Filer & Assembler Faceting & Polishing Gemstone Pre-shaper Goldsmith: Component Maker Goldsmith: Enameller Goldsmith: Frame maker Make bottom facets on diamond Fix diamond in pot Protect company s intellectual property rights Assort small polished diamonds Coordinate with others File and assemble the cast Jewellery piece Maintain health and safety standards Polish the girdle of the faceted gemstone Fix the rough-cut gemstone on the dop for polishing, faceting Pre-shape gemstone Operate tumbling shaping machine Maintain safe work environment Draw wire or strip from precious metal Stamp the gold sheet Make gold chain Paint with enamel colors on Jewellery frame Maintain safe work environment Make the Jewellery frame of gold Maintain intellectual property rights The Gems and Jewellery CoE may appoint an Implementation and Assignment Partner(s), which will provide consulting services and hands-on experience with all aspects of organizational optimization, including shared services and centres of excellence. The objective of the Implementation and Assignment Partner(s) will be to provide support to the proposed Centre of Excellence with a focus on skilling and training. Page 4
5 Project Concept Functions of the CoE The 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 5
6 Market Potential Market Forecast India s Gems & Jewellery Market Size B E Workforce in Million India s gems and Jewellery market size is expected to grow at a CAGR of 16.4% between 2015 and 2018 Human resource requirement of the sector is expected to increase at a CAGR of 5.8% during 2013 and Cut & polished diamonds Gold jewelry 64 Silver jewelry Gemstones & others Total exports of gems and Jewellery from India was estimated at USD b in Share of Exports within the Gems & Jewellery Sector (%) Page 6 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 Source: FICCI-AT Kearney Report. All that Glitters is Gold (2013) Gems & Jewellery Sector Profile, Vibrant Gujarat 2017 NSDC. Human Resource and Skill Requirements in Gems and Jewellery Sector
7 Growth Drivers Favorable Demographics India has one of the youngest population in the world; favourable demographics leading to an increase in demand for gems and Jewellery Increase in the number of working women will continue to provide growth Traditional Demand Tradition of buying Jewellery during important festivals like Diwali and Dhanteras and during weddings Increasing Per Capita Income Spending power of the people is also rising with an increase in disposable income leading to growth of Jewellery demand in India Government Initiatives Indian government presently allows 100% Foreign Direct Investment (FDI) in the sector through the automatic route Gems and Jewellery Skill Council of India is planning to train over four million people till 2022 High Investment Demand Gold has outperformed several other asset classes and thus remains the preference of most Indian consumers as an investment option Page 7
8 Gujarat Competitive Advantage Focus 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 A gold Jewellery manufacturing cluster in Ahmedabad has a productivity of around 50 gm of production / day, highest in the country Major Gems & Jewellery Clusters in Gujarat Ahmedabad Gems and Jewellery cluster Ahmedabad Rajkot Imitation Jewellery cluster Rajokot Surat Diamond Processing hub Surat Labor Cost (USD) Labor cost (USD) Gujarat (India) Antwerp (Belgium) Shenzen (China) Telaviv (Israel) Labor cost per carat in USD is the lowest in Gujarat when compared to other countries Source: Gems & Jewellery Sector Profile, Vibrant Gujarat 2017 Page 8
9 Project Information Suggested Location Surat 90 percent of the total diamonds in Gujarat are processed by about 10,000 diamond units located in and around Surat Largest diamond processing cluster in the world Known as the Diamond Polishing hub of India with more than 3500 diamond processing units DREAM (Diamond Research and Mercantile) City spread over an area of 2,000 acres is being developed close to Surat Infrastructure Availability / Connectivity Well connected by broad gauge The metro rail project is expected to be completed by NH-8 Bharuch-Surat road is completed Bus Rapid Transport System is under construction The major highways passing through Surat are the Udhana-Mumbai Highway also known as Udhana-Navsari Highway, Surat-Ahmedabad Highway Surat airport has direct air connectivity with Delhi and Mumbai With the installation of 2 aerobridges in December 2015, it has now increased to 1500 pax/hour Planned improvements at the airport include a capacity to handle up to 7 jets at a time, extending the runway to 2905 meters The nearest port is now in the Magadalla and Hazira area of Surat Metropolitan Region Page 9
10 Project Information Manpower Requirement Director Head of Business Management Head of Training Administration Sales and Marketing Training Staff and Supervisors 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 Development Corporation 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 and education by providing certification for quality performance Project mode PPP/ Direct Private Investments Existing facility may be made available by signing Flexi-MoU Page 10
11 Project Financials Project Cost Cost of setting up a Centre of Excellence: Project components & specifications Buildings (office, training room s, laboratory, seminar hall, server, IT room, cafeteria etc.) (Land area: 1,300 sq meter, Built-up area: 1000 sq meter Average rate: INR 25,000 per sq meter) Machinery and equipment (Computers-peripherals, hardware etc.) Site Development (internal roads, water drainage system, lighting) (Average rate: INR 1,200 per sq meter) Miscellaneous fixed assets (Furniture and fixtures, office equipment, etc.) Indicative Project Cost Cost (INR crore) Note : Indicative Project Cost may vary subject to the scale and requirement of the Project Page 11
12 Incentives & Approvals Incentives from Government of Gujarat Assistance Assistance shall be 70% of total expenditure, including recurring expenditure for three years, limited to INR 20 Crore in case of national level CoE Assistance shall be 70% of total expenditure, including recurring expenditure for three years, limited to INR 30 Crore in case of international level CoE Scheme Name Assistance for Centre of Excellence 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 Assistance for Industrial Infrastructure Incentives from Government of India 100% Foreign Direct Investment (FDI) in the sector through the automatic route is allowed Enhancing the ease of doing business by reducing the number of mandatory documents required 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 Approvals Required 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 Page 12
13 Gujarat State Portal Directorate of Employment and Training Industrial Extension Bureau Industries Commissionerate Gem & Jewellery Skill Council of India Ministry of Skill Development and Entrepreneurship 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 & Training Phone: director-det@gujarat.gov.in
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