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INTERNATIONAL sEpTEmbER 201234

COVERsTORY

IIJSSpurs GoldRush

The IIJS came as an unexpected breath of fresh air in an otherwise asphyxiated market. Gold surprisingly performed well over the duration of the show, although loose diamonds and diamond jewellery had a mixed response, in accordance with market sentiments. Here’s a wrap-up of India’s biggest gem and jewellery event. Shanoo Bijlani, Regan Luis & Erum Ali Qureshi report.

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The 29th edition of the India International Jewellery Show (IIJS) opened amid a lot of apprehension as

slow market conditions the world over, including India, didn’t inspire much confidence. Many of the 852 exhibitors came to the IIJS with zero expectations, looking forward to meeting only old clients. To top it all, gold touched an all-time high of R30,800 on the opening day. However, the mood on the show floor turned around right from day one as domestic visitors filled up the halls and started placing orders undeterred by the bleak conditions of the market.

At a press briefing, Gem and Jewellery Export Promotion Council (GJEPC) chairman Rajiv Jain said, “The biggest achievement of this show has been to generate positive sentiments among the trade. When sentiments are low, it affects business confidence. This time, there are lots of enquiries and orders have been placed as retailers and wholesalers are planning to stock up for Diwali and the wedding season.” He added that if the rupee gets stronger, it may bring down the gold price, which in turn will boost jewellery purchases. “The gold price in India depends on how the rupee behaves.

months. It is imperative that we reverse this trend. While our government is putting in every effort to remove the supply side constraints for manufacturing and exports as early as possible, we intend to work with manufacturers and exporters and implement appropriate short term and medium term measures as announced in the Exim Policy. I have met the exporters and am looking to further ease the bottlenecks to reverse the deficit in exports and thus the balance of trade.

“The exports are showing marginal decline due to external factors like demand slump in major Western markets and economic turmoil in Europe. Though we cannot do much about the conditions that prevail outside our country, we must make every effort to resolve the problems inside our country so that our economic growth and the creation of employment opportunities in the country are again speeded up.”

Sharma gave the industry several reasons to cheer at the show opening. “I am not in favour of the 2% tax on coloured stones and I am going to take it up with the finance minister. I was also never in favour of the imposition of VAT on jewellery sales,” he noted. Urging the industry to make India an attractive destination for gems and jewellery, Sharma emphasised

If the rupee gets stronger, the prices are bound to come down. The gold price has not risen so high across the world. The difference in India is because of the rupee devaluation,” Jain said.

GJEPC vice chairman Sanjay Kothari commented, “For six months since February, economic conditions around the world as well as in India haven’t been very good. After the Indian Union Budget, consumers have been tight-fisted and have not been buying jewellery. Owing to that even retailers have not made any purchases over the same period. Now they expect consumers to start buying again, and that is the buzz that was seen at the show. The next three months will be crucial for the whole industry’s future in 2013.”

Government assurancesIIJS 2012 was inaugurated by the chief guest Anand Sharma, minister of commerce, industry and textiles. He was joined by Siddharth Singh, joint secretary, minister of commerce, GJEPC’s Rajiv Jain, Sanjay Kothari, convener – exhibitions Haresh Zaveri, and executive director Sabyasachi Ray.

In his inaugural speech, Sharma noted, “Manufacturing and exports are two key drivers of the economy. Both have registered low or negative growth in recent

(Left to right) GJEPC convener – exhibitions Haresh Zaveri, commerce department joint secretary Siddharth Singh, GJEPC chairman Rajiv Jain, minister of commerce, industry and textiles Anand Sharma, GJEPC vice chairman Sanjay Kothari, and GJEPC executive director Sabyasachi Ray.

the need to upgrade technology and train people in precision skills so that Indian jewellery finds its way into major global markets more than it has in the past.

“The government has invested in the industry by setting up training institutes. I hope the diamond training institute in Surat and the proposed skills training institute in Khambhat will be a useful step in that direction,” Sharma said.

“For India it is important to source diamonds, and we have been sourcing rough diamonds from Russia, Zimbabwe, Namibia, etc. and I want our industry and public sector institutions to enter into long-term agreements to purchase diamonds and negotiate with producer countries for the direct purchase of gold thus reducing the extra margin paid,” he added.

“We are committed to working in close partnership with the industry by creating an enabling environment which supports trade and creativity, and creates jobs to save the traditional artisans of the country,” Sharma said.

The IIJS this year saw record numbers of visitors from 722 Indian cities and 69 countries across the world.

While last year saw buyer delegations from 13 countries, this year we have received 21 international delegations. This year, 852 exhibitors were spread over 1,700 booths, including five international pavilions from Thailand, Dubai, Turkey, Israel and Belgium.

Gold shines at the showGold breached the R30,000 mark on the opening day of the IIJS. There were hushed whispers among exhibitors whether the show would draw in or turn away serious buyers. The apprehensions were put to rest as the yellow metal was sought by visitors from the north, south and the west of India.

Gold is equated with religion in India, and it had many worshippers at the show. Mangalsutra manufacturer Trident’s Manish Jain said that only chains below 50 grams were picked up, but they received a good number of footfalls from Gujarat, Madhya Pradesh and Maharashtra. Second-time exhibitor JP Exports from Rajkot got a good number of orders for its 22-karat traditional and modern gold jewellery. “Yes, the sales in volume have dipped,” said the firm’s partner Hiren Vedia, “but typical Rajkot chains are selling well.”

Several exhibitors were surprised to receive such a heartening response for gold. “Every one of our customers is coming back with orders to stock up for the forthcoming season,” revealed D.D. Karel, proprietor of N.M. Karel, New Delhi. “Buyers are picking up jewellery across the entire range and are pleased with our new collections in which we have experimented with different surface finishing and new styles of enamelling.”

Another New Delhi-based gold and diamond manufacturer Avnish Goel, owner of Radhey Shyam & Co, echoed the

We are committed to working in close partnership with the industry by creating an enabling environment which supports trade and creativity, and creates jobs to save the traditional artisans of the country.”

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same sentiments. “We were booked with prior appointments for the first two days of the show, and are happy to see vibrancy in the domestic market. Sentiments towards gold have remained strong and we are enjoying the momentum.”

Junagadh’s Bhindi Jewellers is getting new clients from the south and north. Manish Bhindi, owner of the firm, informed that though sales in volume terms had fallen, visitors preferred to buy in the range of 50 to 70 grams. “This year is better than the last in terms of overall sales,” he noted.

Subhash Vadala, director of V Chains is a happy exhibitor. “In this scenario, we have retained our regular buyers, and that bodes well for our business. We have introduced new concepts in chains with kundan-meena elements and tiny pearls. We are getting a decent number of orders for our 22- and 18-karat jewellery set with cubic zirconia, and plain gold jewellery.”

Design differentiation is the key to good sales, and buyers these days do a lot of window shopping at the show before they place their orders. Mayank Gala, partner, Vallabhji Malsi and Co. said, “We specialise in gold and diamond jewellery and despite gold’s steep incline on day one of the show, we received many orders for gold jewellery across all our categories. If you have good designs and something new to offer, you are bound to do well even in a tough market.”

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of Kolhapur is famous for its 22-karat traditional antique jewellery, plain gold jewellery and polka jewellery. Its owner Chandrakant Rathod informed that because of the surge in gold prices, he witnessed cautious buying at the fair. “Of course, there was not much drop in volumes but there is a bit of apprehension in the market. We retained our old buyers, but received a few new customers from the south.”

Mahendar Kataria, partner, Navrathan Jewellers, Bangalore, said that his firm makes 22-karat temple jewellery with a dash of kundan and coloured gemstones. “We received a good response from across India for our products ranging from heavy necklace sets to light items like jhumkas, bangles, and rings.”

Sabhya Seth, managing director, Dwarka Das Seth International, New Delhi, said the company received a number of orders from overseas buyers in Saudi Arabia, Jordan, Amman and London. “We have an office in Dubai and a factory in Noida SEZ, and that helps because our buyers know that they can get a variety of gold jewellery made in 18-, 21- or 22-karat gold. Surprisingly, we did not get many queries from domestic buyers, and we turned away those who wanted to place orders but were asking for extended credit periods, which could later add to my hedging cost.”

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Justin Varkey of Jewel Ace added, “Buyers get value for money as our jewellery is a combination of gold and silver. Additionally, it is set with stones and looks big and dressy. The business at this show has been exceptionally good. We have covered sales of five days at the last IIJS in the first two days this year! We have been getting queries from retailers in Maharashtra, Gujarat, and northern India.”

Pankaj Bhandari, director, Bhandari Gold, Mumbai, noted, “New buyers have been visiting us for designs and innovations. Buyers today are selective and are more aware of their customers’ choices. So, they know what to stock and what not to. They are constantly looking for different concepts and as a result, manufacturers have to be two paces ahead in terms of designs and innovations. Buyers from Saudi Arabia, Libya and US placed orders for our handcrafted pendant sets. Top retailers have been handpicking a couple of our pendant

sets and placing bulk orders for their stores across the country. These goods are then sold under their own brand names. This trend continues this year too. Our iPad application has simplified the ordering process as retailers are able to run through the entire inventory in a matter of minutes.”

Diamond jewellery favoured Jewellery studded with diamonds came only second to gold. But it brought in good cheer for its sellers. Mehul Choksi, CMD, Gitanjali Group, Mumbai, confessed that Gitanjali had come with low expectations to the show. “We are happy to have achieved the same results as last year. I am confident that demand for diamond jewellery will be on the rise. We have already seen a 20-25% increase in sales in terms of value across all the brands of our company. And the coming festive and wedding seasons followed by Christmas will only spur growth for Gitanjali.” Diverse

brands from the company are satisfying needs across different consumer segments and branded diamond jewellery is here to stay, he added.

Rahul Singh, marketing head of Shree Ganesh Jewellery, Kolkata, remarked, “On the first day itself, we started getting customers from all over India and abroad, especially from the Middle East, Singapore and Hong Kong. Our buyers are showing keen interest in our diamond jewellery collection this year.”

This year the GJEPC road shows held in the interiors of India helped draw in new quality buyers from smaller towns and cities. Siddhartha Sawansukha, managing director, Sawansukha Jewellers, Kolkata, said, “We were surprised to receive a number of clients from smaller towns of India, who have booked orders for all kinds of jewellery from big to small pieces. We are getting an amazing response for our fusion collection that incorporates many innovative elements.”

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2.5-8 grams gold in the collection. Our unbranded diamond jewellery collection, too, is lightweight and utilises between 9 and 16 grams of gold and 2 to 3.5 carats of diamonds in jewellery,” he said.

Smaller diamond jewellery set with coloured stones to offset costs sold especially well. Vijay Chordia, partner, Valentine Jewellery, Jaipur, said that based on market conditions, his company had shifted from heavy sets to making designer daily wear products. “Keeping in mind our buyers’ needs, we have begun to make lightweight jewellery that can transition from daily to party wear. We are working regularly with new styles in yellow gold ranging from R25,000 to R4 lakh that received a good response.”

Viral Vaidya, director, Arya Diamonds, Mumbai, noted, “We have already seen a growth of 20% in terms of value and volume as compared to last year. Clients from the northern parts of India – especially Madhya Pradesh, Rajasthan and other areas – purchased smaller items such as pendant sets, rings, earrings and bangles. Heavier and costlier necklace sets moved slowly.”

Role of design The Indian gem and jewellery industry is slowly waking up to the importance of design in jewellery. All this while, the Indian industry has celebrated old crafts, but has been selling largely on a cost plus model

to market vagaries and have produced lightweight designer jewellery. We got many buyers from Delhi and Jaipur, and the southern parts of the country. As for diamond jewellery collections, buyers were veering towards lower priced ranges from R50,000 to R100,000. Buyers don’t want to risk purchasing bigger and expensive diamond pieces as they are not sure which way diamond prices are heading.”

Manish Jain of Cappuccino Collection informed, “Although the market condition has been slow since the past three months, we have had an amazing show. Our diamond jewellery collections are popular in the north and south. Buyers prefer bracelets and pendant sets, but the movement of bigger necklace sets is slow. Buyers from the north prefer stones of I colour and SI purity, those from the south opt for jewellery set with F colour and VS purity diamonds.”

Lighter sets in diamonds, with a high daily wearability quotient and competitive prices were picked up without a moment’s hesitation. Jinesh Jain of Gurjar Gems Pvt Ltd, informed that his newly launched diamond jewellery brand Saanvi, which consists of low-cost, daily wear jewellery set with EF, VVS, IGI certified diamonds and hallmarked gold, was favoured by buyers. The range uses good quality diamonds and starts from R8,000. “We have received orders from Maharashtra, Karnataka and northern parts of India. Surprisingly, awareness has increased in the north and they now opt for good quality of diamonds. To rein in the cost, we use from

Navin Jashnani, owner, Sama Jewellery, noted, “Sixty per cent of our clients on the first two days of the show were new – most of them from Tier II and III towns. Our high-end collections in lightweight gold aesthetically mix coloured gemstones and less of diamonds to make it a viable proposition for a buyer. The pieces are bigger in size and are ideal for the bridal segment. The 50 plus new designs in this range use tanzanite, flat cut Burmese rubies, amethysts, and rose cuts. We also have launched gem-studded collections in 9-karat gold, and silver.”

Then there were some who were banking on rural India’s increasing purchasing power. Sanjay Pandya, business development manager, KGK Creations (India) Pvt Ltd, Mumbai, said that their firm had done a lot of leg work to spread its base in the interiors of India, and that helped them reap good results. “The market conditions were not favourable in the last four to five months, and we had come to the show with no expectations. It turned out to be a good surprise when we received a positive response. We cannot say that the show is spectacular, but it has been more than satisfactory.” Networking in the interiors of India is one of the wisest ways out as the market dynamics are rapidly changing in these areas.

Buyers were sharp enough to spot new designs displayed at the fair and they didn’t disappoint exhibitors who had come prepared for the show. Kunal Mehta director, Diatrends, noted, “Our electroplated gold jewellery collection was a crowd-puller. We have long adapted

The Indian gem and jewellery industry is slowly waking up to the importance of design in jewellery. All this while, the Indian industry has celebrated old crafts, but has been selling largely on a cost plus model which is completely dependent on the gold price.”

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We have to respect design. I need to pass on the profits to my artists, who have to be happy to work with us. It is because of them that we are who we are today. If the gold price has increased, you have to increase labour charges accordingly.”

which is completely dependent on the gold price. As the gold price increases and margins get pinched, the jeweller cannot afford to pass on the benefits to the karigars who are actually breathing life into every piece of jewellery. Labour or design charges are the first casualty at the sales counter.

But there are a handful of Indian jewellers who have dared to go against the flow and refuse to compromise on labour charges because they value and respect the artistry of their workers. On the contrary, they are able to charge a premium for their designs.

Anup Bohra, owner of Jewels Emporium, Jaipur, observed, “I work on high margins, because if you are creative you can command a premium. I guess end consumers and retailers who sell my jewellery should understand that jewellery is an art. We have to respect design. I need to pass on the profits to my artists, who have to be happy to work with us. It is because of them that we are who we are today. If the gold price has increased, you have to increase labour charges accordingly. I cannot compromise on my labour charges. I came to the IIJS with no expectations at all, but I did get new buyers this time. Southern India has been my forte because they understand the design language and appreciate quality. But slowly

I have started getting orders from Lucknow, Delhi, Jharkhand and Meerut.”

But the road to success is slow. Sudeep Sethi, marketing head, Intergem informed that sales at the show had been slack as buyers have yet to adapt to their couture offerings. “Our jewellery is very expensive and we would like the buyer to understand and appreciate what he or she is buying,” Sethi noted.

In order to move ahead and stay insulated vis-à-vis gold and diamond prices, the industry should come up with unique designs that work in the market.

Abhishek Sand of Savio Jewellery, Jaipur, was extremely happy with the show results. “Our necklaces and earrings are one-of-a-kind and we got so many orders that we are now booked for the next six months. We have modular jewellery and we don’t compromise on quality of diamonds and gemstones. We focus on design, cost effectiveness, and excellent finishing. Our earring pairs between R70,000 and R2.5 lakh were best-sellers, and necklaces between R2 lakh and R8 lakh were booked by many.”

Loose diamonds move slowlyIf gold jewellery generated positive sentiments at the show, loose stone dealers saw the opposite trend, which they

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said was expected due to the prevailing uncertainty in diamond prices. The buying was cautious and demand was minimal, but this is seen as a good sign by some industry experts.

Bakul Mehta, convenor – Diamond Panel Committee, GJEPC, was of the view that the slow movement of buying was good for the health of the diamond pipeline which, as of now, was choked. “Growth will happen in the near future, but first, the pipeline has to be de-clogged.”

As expected, many exhibitors echoed the same sentiments on the show floor. Anant Mehta, AJ Mehta & Co, Mumbai, said that the slow movement did not come as a surprise. The company specialises in diamonds ranging from 0.50 carat to 3 carats with fancy cuts like taveez, briolettes, diamond beads, rose (cuts) and modified old mine (cuts) in the range of higher colour and clarity. “We got a few inquiries, some were from abroad but the majority were from India. There is no demand for any particular kind of stone, but buyers want good deals. Solitaire prices have gone down and so people are expecting the prices of fancy-shaped diamonds to be lower too. Since we procure rough at premium prices, and those prices have remained constant, we did not lower our rates.”

Piyush Patani of Ketan Brothers, Mumbai doubted whether the enquiries received at the fair would translate into actual orders. “There is a 50:50 chance of that happening. We deal in small goods with a sieve size of -2 upwards in all colour clarities with the main focus being on white goods. Diamond prices have been stable but there has been a negative bias and people expect them to go down further because of low demand. This is the best time for the market to turn around but we will have to wait another 15-30 days to see such a turnaround taking place.”

Even so, domestic market was buzzing with some activity with demand for lower colour and clarity goods. Rajesh Shah, partner, Venus Jewel, Mumbai, remarked that the market’s temperament had

improved at the IIJS. They got several enquiries at the show since buyers had been holding back purchases due to market instability. More and more people are looking for fancy shapes these days. Cushion cuts and heart shapes are very popular. We noticed a scant flow of foreign visitors as the overall global economic situation is not good.”

Perry Impex Pvt Ltd, Mumbai, specialises in sieve sizes of -11 in all colours and clarity and these goods, in particular, were the hottest selling items at the IIJS this year. Rasik Mangukiya, the firm’s managing director, informed, “Our product range is commercial grade and the price structure is suitable for today's market scenario. High-end goods sell only when the economy is robust. Our prices are $250 and below per carat and we have seen good business from the northern parts of the country, and from Turkey and Dubai. The market for small size diamonds will improve further in the next month as its prices are steady and expected to remain so in the near term.”

The Belgium Pavilion was buzzing with activity as orders poured in for goods of a slightly lower quality. Stars and melees did well in terms of enquiries, although buyers are a bit sceptical about finalising deals mainly due to the instability of diamond prices. A representative from Soradiam NV felt that though the walk-ins were good this year, the prices are forcing the prospective clients to move away from expensive items and settle for regular goods.

Kassim Seyed, director, Bella Damas, said: “We targeted wholesalers with a variety of loose diamonds right from very small to large-size diamonds. But the purchasers were interested in goods ranging from 1 carat to 3 carats and rounds.” He shared that compared to last year, consumers were less quality conscious and willing to buy goods that fit their budgets.

Demand for colourThe coloured stone section received mixed responses. Some complained that the

Diamond prices have been stable but there has been a negative bias and people expect them to go down further because of low demand.”


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movement was slow, while others saw a robust demand for their goods. However, commercial quality goods seemed to be preferred more than high-end ones.

Singhvi Gems and JPS, Beirut, Lebanon specialises in fine quality rubies from Burma and Mozambique between 4 carats and 50 carats; emeralds from Zambia and Columbia between 4 carats and 70 carats; and blue sapphires from Sri Lanka, Kashmir and Burma between 4 carats and 80 carats. The second-time IIJS exhibitor received a few enquiries mostly from Mumbai. Company spokesperson Ritesh Jain informed that this time, buyers were asking for commercial to low quality goods. “There doesn't seem to be much demand or understanding about fine quality gemstones. Prices for our products have gone up in the recent past as raw material is not available in the market. Our customers are primarily from Europe whom we have met at various trade shows. I believe there are two kinds of customers, those that travel and are aware of world

markets and trends and values, and those that operate within a small sphere and for whom coloured stones are just fillers in jewellery. Fortunately, the former segment is growing and they realise the value of fine quality stones in jewellery.”

Chandu Jain of RMC, Jaipur, commented that the firm fared very well at the show which surpassed their expectations. Fancy colours in gemstones are the pick of the season even though their rates have shot up by 30-40% due to the shortage of raw materials. “Tourmaline and blue topaz are in demand. We have also seen an increased demand for rose cut and polki gemstones. Since the price of gold and diamonds has gone up considerably, people have increased the use of gemstones in their jewellery. This is a good opportunity for us but we are not able to take advantage of this demand due to the price rise in coloured stones caused by dwindling output from mines in Africa and Brazil.”

Salahuddin of HR Brothers, Jaipur, too, concurred that the supply of raw material

supply has been erratic. “We have been in the business for over four decades, but thankfully did not lose business due to short supply. Rutile quartz, rose quartz, multi tourmaline and aquamarine have seen good movement. Also, flat pairs of gemstones have been bestsellers this year.”

Loose stone dealer Anil Panjabi of Tahilram Tirthdas, revealed, “Although we have been exhibiting regularly at IIJS Signature, this is our first time at IIJS. We are very happy as buyers are picking up emeralds, blue sapphires and rubies in various cuts. Clients also want sting ray cuffs and bangles and strings of freshwater pearls.

IIJS this year under-promised and over-delivered. Exhibitors who gauged market sentiments correctly brought in inventory that suited their clients. Domestic buyers didn’t disappoint either, reposing their full faith in gold and lightweight diamond jewellery. All eyes are now on the crucial wedding and festival seasons which will be the litmus test for a successful 2012.

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Kindly elaborate on the Indo-Thai Free Trade Agreement (FTA) which is seen as detrimental for the Indian trade.Yes, the Thailand FTA is a matter of great concern and we have raised this issue with the commerce ministry. When you are allowing gold jewellery imports from Thailand at 1% duty, and duty on the same raw material (gold) for manufacturers here is 4%, then it is not a level playing

field. We understand there are compulsions for the countries to sign FTAs. There should be some kind of ad valorem duty to compensate for the duty we are paying on raw material. Otherwise that will lead to the smuggling of gold officially. One can import gold jewellery from Thailand by paying 1% duty and melt it. Even if the other expenses are 1%, you still save 2%. We have also learnt that goods from other countries like Italy, China, etc. are being routed via Thailand to India.

So what is the solution that the industry is seeking?If you cannot do away with the FTA, at least give us a level playing field. When we are doing a value addition of 3%, we are paying a duty of 4.3%. So at least the Thai import duty should be 7%, so that goods produced in India and Thailand can compete at the same level. For all other countries, the jewellery import duty is 11%, which still gives Thailand an edge over the other countries.

Despite the FTA, we have not been able to send even a single shipment to Thailand because the VAT in Thailand is 7%, while it is only 1% in India. So all the traffic has been only one way. We are not opposed to FTAs in general. In fact, we would be in favour of FTAs where we also have a chance to sell our goods. Sign FTAs with countries like China, Europe and Russia, where there are heavy duties and VAT.

Will the gem and jewellery industry be able to meet the government’s expectations of doubling exports?

Although the government has been expecting the industry to double its export figures, it would be a Herculean task. The major constraint for doubling exports is raw material. Another issue is that we have been asking for presumptive tax for a long time; if that happens, then maybe more investment can flow into the country. But even if all these demands are met, I don’t think exports can be doubled. If we achieve $43 billion this year, that will be a great achievement for the industry.

I don’t think we will be able to achieve that level this year because out of $43 billion, $20 billion was polished import. And that was re-exported due to circular trading. That has now stopped after the imposition of 2% import duty on polished diamonds. Instead we need to concentrate on value addition and the sustainability of the workers. It is a wrong notion to look at export figures. For instance, if I am exporting $1 billion and giving a value addition of $200 million, it is better than exporting $3 billion and not giving value addition. That is what we believe and the government also supports.

Are there any plans to promote diamond jewellery in India?We have earmarked approximately $10 million which we plan to spend over the next three years on business-to-consumer (B2C) diamond jewellery promotion activities. We don’t have deep pockets to market diamonds everywhere in the world. But we are looking at markets like India and China which have tremendous potential for growth. The next few months will go into the planning of that, and we expect to roll out the campaign by 2013. That was the reason we started IIJW and it has been successful for three years. When the whole world is looking at India as a market, then why shouldn’t we. Ultimately, the consumer should walk into the jewellery store and if that doesn’t happen, then all our B2B activities will lead to no ught.

Tell us about the “Designed in UK, Made in India" initiative?The GJEPC and the UK trade delegation discussed a possible project to showcase India’s manufacturing prowess by inviting UK designers to get their jewellery produced here. This will bolster the image of India across the world as a leading jewellery manufacturing hub.

Thailand FTA and Other ConcernsSolitaire caught up with GJEPC chairman Rajiv Jain on the sidelines of the IIJS to discuss some burning issues.


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IIJS is literally bursting at the seams. In spite of utilising over 46,000 sq m, the waiting list of exhibitors continues to grow year-on-year. Is the BEC planning to cater to this growing demand? What is the response from organisers and visitors?We are considering and willing to expand and modernise BEC from its existing area of 4,50,000 sq ft to 20,00,000 sq ft, and provide adequate parking space so as to

make Mumbai a premier destination for conventions and exhibitions in Asia. Ours is a unique location on the Western Express Highway and is easily accessible and connected to all parts of the city. Moreover, the Oshiwara railway station is shortly coming up; and the rail overbridge is almost completed.

The BEC complex is spacious and is covered with over 1,000 trees. We have adequate car parking space; and a non-polluting environment as the only other organisation in the complex is the Nesco IT Park.

About 17 lakh people visited our centre in 2011-12 for various conventions and exhibitions, out of which 7.5 lakh were from outside Mumbai. The majority of hotels in the vicinity are

full when large conventions and exhibitions are held at BEC. Our venue brings more visitors to Mumbai than any other. Trade fairs held each year generate employment for almost 200,000 or more local people, and local industries finalise large exports and conclude technology agreements. The government of Maharashtra earns a good amount of revenue because of these activities.

Your roadmap for the expansion of the BEC sounds exciting and something that the IIJS hopes to witness at the earliest. When do you propose to start this development?Our plans are ready and we propose to commence on the expansion work as soon as we receive support from the state government, which should in all probability, happen in the latter part of 2012. We will expand in a phased manner so that it doesn’t affect the current IIJS exhibition format.

Exhibition space in Mumbai city has been the need of the hour for a while now. Why are no private sector companies coming forward to set up world-class exhibition/convention centres?As convention and exhibition centres lie idle for many days, they are not economically viable and hence private sector companies do not want to get into this business. This is quite evident from the fact that in spite of reserving about 100 acres of land for an exhibition centre in 1991, this facility has not been developed to date. Leela, Oberoi, Indian Hotels and Larsen & Toubro (situated in the Bandra Kurla Complex) initially showed interest but later withdrew, despite the support the state government was willing to extend. For instance in Germany, the government provides land and finance as it brings enormous revenues to the city and state by drawing a large number of tourists and visitors.

What kinds of benefits do world-class exhibition centres provide to the city and the state?Visitors to conventions and exhibitions generate good business for hotels. More business for hotels means more taxes and revenues for the state. For conventions and exhibitions, hundreds of stalls have to be built, demonstration machinery has to be installed, machinery and other items have to be transported to and fro which generate both employment and revenue.

Large numbers of visitors come from out of Mumbai by plane, which means more business for airlines, airports, taxis and buses. These days, an increasing number of foreigners visit every exhibition and this helps promote technology transfers

‘BEC Going For Major Expansion’In an exclusive interview with Solitaire, Nesco Ltd. executive director, Krishna Patel, a young and dynamic entrepreneur, speaks about his plans for the future expansion of the Bombay Exhibition Centre (BEC) fair grounds, the permanent destination of the IIJS exhibition as of today.

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and exports. Which is why having a world-class convention and exhibition centre in Mumbai is vital for the growth of business.

What kind of support do you expect from the government of Maharashtra?To make this activity economically viable, the state government should consider granting support to those companies who are willing to set up world-class convention and exhibition centres in Mumbai, similar to what the state is already granting to the hotel industry.

If you get an okay from the government for expansion in December, what would be your next plan of action?We have engaged a leading US-based architectural firm which has already designed an excellent master plan for our complex. We are now in the process of taking initial steps for designing a world-class convention and exhibition centre. Once the government of Maharashtra clears our proposal for expansion, we will start construction which we hope should begin by January 2013.

Will the expansion benefit the IIJS exhibitors in terms of extended floor space, parking area, modern amenities, security, infrastructure and so on? After expansion, IIJS exhibitors will have about 20,00,000 sq ft exhibition space as against 4,50,000 sq ft now. The IIJS is unable to house hundreds of exhibitors who want to participate, while existing exhibitors are given lesser space than they have demanded. After the expansion, the IIJS will be able to bring in several more firms. An expanded BEC will also accommodate 6,000 cars in the parking area, business hotels, several meeting halls, fine dining restaurants, boutique service apartments, etc. besides amenities such as creches, food courts, prayer rooms, baggage drops, transport centres, gymnasiums, etc.

Larger floor plates, lesser columns and better services would help the exhibitors to move around with greater ease, set up and dismantle stalls, and enjoy generous grid expanses and working environments.

As security is also a growing concern, the latest surveillance and monitoring systems would be installed.

During the modernisation/expansion of the BEC, will the current format of IIJS exhibition be affected in any way?We have devised an optimal phasing plan where at no point in time will there be any reduction of exhibition space. This would be achieved by commencing our first phase of development from our southern-most boundary where there are vacant structures as well as some open grounds. After completion of Phase 1, we shall demolish a part of the existing capacity to execute Phase 2, and similarly Phase 3 in this modular fashion.

What is the time frame that you are giving yourself for the expansion plan?Each phase is estimated to take almost 18 months. This would include three basement parking floors, loading ramps and high loading-capacity slabs.

Mumbai has been sorely lacking a world-class convention centre. Will the upgraded BEC be able to match those standards? Our new centre will be built with latest designs, trends and services. Hence, we are very confident that the BEC will be able to match worldwide standards, perhaps exceed them.

Having visited IIJS shows on an annual basis, what is your overall evaluation of the show with respect to its quality, stalls and facilities?IIJS is becoming better year after year. The quality of stall designs is improving, and some exhibitors have experimented with mezzanine stalls which have been a grand success. The overall layout with easy access to facilities, refreshment areas, coffee shops and other amenities is so well-organised that IIJS can be compared with some of the leading jewellery shows the world over.

And on a lighter side, does the IIJS impact you personally with respect to the financial outlay for yourself or your spouse?Although I am learning a lot about gems and jewellery, I personally do not wear any. I currently do not have a spouse, so there is no financial impact as of now, what the future brings, let us wait and see. n

Nesco Site Master Plan, Mumbai, India 35

The master plan for NESCO complex incorporates multiple uses like IT park, Exhibition Center and Hotels and amenities within the site. These diverse uses create opportunities for synergy between different uses within the site. In addition to this synergy they also create potential conflicts between the different uses of the site. These conflicts arise due to the potential all year round operation of the IT park as an office complex with regular daily users as well as peak season visitors for the exhibition centers when the exhibitions held generate large capacity crowds visiting the exhibition centers.

The concept of the master plan is driven by this idea of creating synergy as well as defining a clear distinction between different uses. The site is organized around spine of an existing verdant central boulevard. Towards the north, the IT campus with a North Park anchors this NS spine. Towards the south, the exhibition center with the south plaza anchors the development. Different zones of these uses are defined by an East West internal street which is also a central entry point into the site. In addition to this entry point a park system weaved around the existing Nallah also creates that much needed pivot point between the north IT park zone and a south exhibition center zone. The hospitality uses sandwiched in between the IT park and the Exhibition center create the central zone which is used by both the IT park visitors to entertain guests as well as by the exhibition center guests/organizers/exhibitors who visit for short to long term during the exhibitions. Various amenities are interspersed within the site along the park system to take advantage of the outdoor landscaped areas of the park system.

2.2 Concept

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COVERSTORY

INTERNATIONAL SEpTEmbER 201248

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