A

PROJECT REPORT ON

“A STUDY OF GEMS AND

JEWELLERY EXPORT”
Bachelor of Business
Administration
[B.B.A]
Semester – 6th

By
Upadhyay Punit R
T.Y.B.B.A
Roll No: 34

Supervising Teacher
[Aatish Patel]

AMBABA COMMERCE COLLEGE &

MANIBA INSTITUTE OF BUSINESS
MANAGEMENT
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 SABARGAM
[MARCH - 2010]

This is to certify that the project entitled ‘ A

STUDY OF GEMS AND JEWELLARY EXPORT’
submitted for the partial fulfillment of the
requirement of VEER NARMAD SOUTH GUJARAT
UNIVERSITY, SURAT in record of bonofide
general study work carried out by ‘PUNIT
UPADHYAY’ under my supervision. The project
or any part of it has not been previously
submitted for any degree.

I/c Principal

Dr. Yogesh N Vansiya

Ambaba Commerce College & MIBM,

Sabargam

Date:

Place:

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 I declare that the project entitled ‘A
STUDY OF GEMS AND JEWELLARY EXPORT’
submitted for the partial fulfillment of the
requirement of VEER NARMAD SOUTH GUJARAT
UNIVERSITY, SURAT in record of bonofide
general study work carried out at Ambaba
Commerce College & Maniba institute of
Business Management, Sabargam.

The project or any part of it has not been

previously submitted for any degree.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Signature of the Student

Punit Upadhyay

Date:

Place

Being the student of management

programme, only theoretical knowledge is not
necessary but practical knowledge also required
and because of that reason we have to visit an
industry and have to take practical knowledge
and prepare report about the visit in the
industry.

I would like to thank the Dy.CEO of

the unit Mr. AJAY SHARMA and VIPUL PARMAR
(Executive HR), Premshankar ojha (P.R.O) other
members of the unit who co-operate with me
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 not as a student but as a friend and provide me
all required information about their company as
well as their department. I am also thankful to
the Professors of Maniba Institute of Business
Management who gave valuable support during
the training and contributed in my progress. I
am also thankful to my parents for their best
support. I continue to acknowledge with
gratitude the constant support and assistance
received from staff persons.

Last but not the least; I thank all

my friends for helping me directly or indirectly
in getting exposure of real time work
environment, without which this project would
not have been accomplished successfully.

TABLE CONTENT

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 EXECUTIVE SUMMARY

Diamonds, gems and Jewellery have been a part of the

Indian civilization since its recorded history, the significance
of the gems and Jewellery industry in the Indian economic
scenario is a development of the last three or four decades.
In 1966-67, the export turnover of the Gems & Jewellery
industry was just Rs 220 m representing a 3 per cent of total
merchandise exports. However, it has now grown to become
one of the leading export oriented industries in India
recording an export turnover of around Rs 91617.53 Crore
during 2008-09, making it a significant foreign exchange
earner for the country.

The gems and jewellery sector, which has seen a substantial

fall in exports since 2007 due to the withdrawal of a 6 per
cent duty concession under the Generalized System 7 of
Preferences on jewellery exports to the US, has been
severely affected by the economic meltdown.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 As a result, India’s share of gems and jewellery exports to
the US has come down from 36 per cent in 2006 to 20 per
cent in 2009.
The UAE was the largest importer of gems and jewellery
from India in 2008-09, with a share of 31 per cent.
This was followed by Hong Kong with a 25 per cent and the
US with 20 per cent. The gems and jewellery sector
accounted for 13 per cent of India’s total merchandise
exports.
During April 2009, the total gems and jewellery exports of
the country was $1,144 million, as against $1,740 million
during the same period last fiscal, a fall of about 34 per cent.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 INTRODUCTION

Gems & Jewellery Sector

Diamonds, gems and Jewellery have been a part of the

Indian civilisation sinceits recorded history, the significance
of the gems and Jewellery industry in the Indian economic
scenario is a development of the last three or four decades.
In 1966-67, the export turnover of the Gems & Jewellery
industry was just Rs 220 m representing a 38 per cent of
total merchandise exports. However, it has now grown to
become one of the leading export oriented industries in India
recording an export turnover of around Rs 875 bn during
2006-07 and contributing 16 per cent of total exports,

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 making it a significant foreign exchange earner for the
country.

Classification:
Gems & Jewellery Sector

1. Polished Diamonds: India is one of the best markets in

the world in the polished diamonds for its world-class
quality of diamonds as well as exquisite cutting skills. Over
83 per cent of India's Gems & Jewellery cut and polished
diamonds account for exports. Jaipur and Surat are famous
as world class polishing and designing centers.

2. Gem Stones: This category refers to the stones other than

diamonds, these stones comes under two basic categories
that are precious stones and Semi precious stones. There is a

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 huge demand for these gemstones especially of Sapphire,
Emerald and Ruby. India's exports of gems have crossed
5000000 carats this year.

3. Gold and Jewellery: This category represents the gold

and Jewellery, which is used in the manufacturing of various
ornaments. Indian is the country that is the 9 largest
consumer of gold in the world, In the year 2007 gold
consumption in India was 850 tons 33% up from the last
year.

4. Synthetic Stones: Synthetic diamond is diamond

produced through chemical or physical processes in a
laboratory. Like naturally occurring diamond it is composed
of a three-dimensional carbon crystal. Synthetic diamonds
are also called cultured diamonds. Synthetic diamond is not
the same as diamond imitation, which can be made of other
material. This is an upcoming market in India.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 STATEMENT ABOUT THE PROBLEM

India has been one of the most important countries for the
production of Gems And Jewellery. One of the highlights is
the production of Studded Jewllery. Studded Jewellery
trading in India is age old as it is established by the fact that
in 1650 A.D., sources report the employment of more than
60,000 workers in the Eluru mines, where they dug and
washed the precious stones. Today though India has almost
no raw Studded Jewllery left within her own soil still we
produce 70% of the World gems in terms of quantity and
45% in terms of value. India is the original country which
discovered gems and initiated gem craft. The gems produced
here gave birth to a fabulous industry and global trade.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Indian Gems and Jewellery Industry have achieved a
premier position in the International market. Today India has
been recognized as a significant manufacturing exporting
center apart from its traditional strengths in handmade
jewellery, the country has niche for itself in machine made
commercial jewellery arena.

The export industry has come of age and is now entering a

new phase of development. Gearing up to achieve further
growth, the industry has already captured a 55% share of
world market by the turn of this century.
India is a primary source of imports for the developed
countries, mainly because of abundant availability of skilled
and cheap labor, but now this no longer remains the
competitive edge for India as heavy competition is faced by
various countries like China, Thailand and Sri Lanka. But at
the same time, India has managed to keep its position
healthy and have brighter prospects ahead.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 LITERATURE REVIEW
GEMS & JEWELLERY SECTOR IN INDIA

Gems and jewellery play a significant role in Indian customs

and traditions, making this sector integral to the economy
and one of the fastest growing industries in the country.
Worldwide, the gems and jewellery industry has been
growing at a good pace and is currently estimated at over
US$ 130 billion. In India, it accounts for nearly 20 per cent
of total Indian exports. It provides employment to 1.3
million people directly and indirectly.
Apart form being the world’s largest diamond processing
(cutting and polishing) country with an 80 per cent share in
world market India’s favorable trade policies have made
India the hub for gems and jewellery.
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Leading Branded jewellery is the new mantra in the market,
having rapidly acquired a niche over the past few years.
Increasing purchasing power and disposable incomes of
India’s middle class has resulted in consumption growth of
this industry by about 11 per cent in the five-year period
preceding 2006-07. Add to that the insatiable Indian craving
for gems and jewellery, and the demand will skyrocket to
US$ 20 billion by 2010 and US$ 30 billion in 2015,
according to industry experts.

India’s gems and jewellery industry has been allowed 51 per

cent foreign direct investments by the government in single
brand retail stores attracting both global and domestic
players to this sector. The burgeoning retail industry in India
is instrumental in innovatively marketing and branding
diamonds and traditional jewellery, making inroads in this
sector and contributing to the nation’s economy. According
to a report released by Technopak Advisors on Changing
Retail Landscape in India, the jewellery and watches market
is pegged at about US$ 13.52 billion. It is expected to
register a 12 per cent growth by 2012, touching US$ 23.54
billion. India’s economic boom in the country has translated
into a large consumer market for jewellery and other luxury

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 products, offering a lucrative opportunity for major brands
to make their foray into the Indian market and establish their
presence. Experts believe that by 2013, India will become
the biggest consumer of jewellery.

The history of the Indian gem and jewellery, a $30-billion

industry, began and flourished in the two leading States of
Maharashtra and Gujarat. Exports from the industry fetched
$17.1 billion in 2006-07 against $16.64 billion in 2005-06,
showing a growth of 26 per cent. But in past 1 year we have
seen some decline due to recession. The journey of a
diamond is said to begin with mining of roughs followed by
sourcing them by trading firms after which they trade it with
the processors who then process the rough diamonds to
manufacture cut and polished diamonds which then end with
the trade of the polished diamonds.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Diamond processing
Today, India houses the worlds’ largest diamond processing
(cutting and polishing) industry with an estimated 1,000,000
processors. India processes over 57 per cent of the world’s
rough diamonds by value. It is said that 11 out of 12 stones
(diamonds) set in jewellery are cut and polished in India.
Surat in Gujarat is home to a majority of these diamond
processors. India’s exports of cut and polished diamonds in
calendar year 2008 stood at Rs 48,905.57 crore or 349.389
lakh carats down 9.25 per cent from Rs 53,892.02 crore or
419.9 lakh carats during same period in 2007.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Processing is done on rough diamonds in full range of sizes
and qualities, including stones larger than 10 carats.

Diamond trading hub

After making its mark in the world diamond processing
industry, the industryfraternity has taken up the motto to
make ‘India the diamond trading hub’. Thus Mumbai, the
financial capital of the country, is said to be Indian Antwerp
in the making.

The current format of diamond trade has four different types

of channels involved in the sourcing and trading of
diamonds namely, centralised distribution, direct selling,
rough trade and brokerage.
Bharat Diamond Bourse, a service oriented non-profit
guarantee company, is an 18 lakh sq. ft. complex in
Mumbai. It was set up with the primary objective of
establishing necessary infrastructural facilities for promotion
of export of diamonds, including jewellery from India and to
make India an international trading centre. Instituted to cater
to all the needs of the diamond trade, the bourse is
anticipated to deal with over 30,000 people a day. The
facilities here will include offices of diamond traders, strong

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 rooms, lockers, customs clearance facilities with all the
modern facilities required to carry day-to-day business.

High-end jewellery
As the gem and jewellery companies are based out of
Mumbai, the city is home to various types of jewellery from
the traditional to the high-end designer fashion jewellery. It
is one of the largest producers and exporters of jewellery,
which is estimated to be over $13 billion. Prominently, it
accounts for over 15 per cent of the world jewellery
fabrication pie.

Not only this, India is one of the fastest growing markets for
jewellery, growing at the rate of 10.20 per cent per annum
over the last five years. Today, the Indian consumer market
for jewellery is said to be $13.1 billion, an increase of close
to 8 per cent over the previous year.
A study by KPMG says that India is set to realise total
jewellery sales of $21 billion by 2010 and $37 billion by
2015. Currently, out of the eight key world retail markets,
the US is number one accounting for 31 per cent of the
jewellery sales. India and China follow with 8.3 and 8.9 per
cent respectively. According to the KPMG study, India’s

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 growing importance in the global jewellery market is only
expected to increase in the future. The total demand is
expected to reach $18.25 billion in 2010 and to $ 28.28
billion in 2015. Diamond jewellery consumption in India is
estimated to jump by 78 per cent in 2010.

Forecast
India and China together are predicted to emerge as a market
equivalent to that of the US by 2015, according to the
KPMG report on the global gems and jewellery industry
– Vision 2015: Transformation for Growth. The industry can
see capital infusion of around $ 10 billion, according to
experts.
As per forecasts, by the year 2015, the industry will witness
a good fragmentation in the jewellery retail business while
keeping the area of diamond mining, sourcing, processing
within the confines of either niche or mass players. Mining
is at the heart of the gem and jewellery industry as the

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 activity is the only natural source of raw material for the
industry. The Geological Survey of India has stated that
India has a great potential for diamond deposits.
Based on this and independent analyses, some of the
diamond exploration companies are making efforts to make
India another target destination for diamond exploration.
Maharashtra features on the list of potential states for
diamond exploration.

The Gem and Jewellery Export Promotion Council (GJEPC)

is primarily involved in introducing the Indian gem &
jewellery products to the international market and promoting
exports. To achieve this, the Council provides market
information to its members regarding foreign trade inquiries,
trade and tariff regulations, import duties, and information
about jewellery fairs and exhibitions. It also takes up
relevant issueswith government and agencies connected with
exports and submit documents for

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 consideration and inclusion in the EXIM Policy. There are a
lot of opportunities from setting up factories to retailing
through showrooms for a prospective investor

Gems and Jewellery/ Background

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 The two major segments of the gems & jewellery (GJ)
business in India are gold and diamond jewellery. The GJ
industry has an important role in the Indian economy. While
a predominant portion of gold jewellery manufactured in
India is for domestic consumption, a large portion of rough,
uncut diamonds processed in the form of either polished
diamonds or finished diamond jewellery is exported. With
an estimated consumption of around 800 tonnes during 2007
(including jewellery consumption),

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 India is the largest consumer of gold in the world. India is
also estimated to hold nearly 14,000 tonnes of gold,
accounting for nearly 9% of the world’s cumulative mine
production. Apart from its historical religious significance,
gold is valued as an important savings and investment
vehicle.

Gold in Indian families remains the Indian bride’s

`Streedhan’, the wealth she takes with her when she marries
and which remains hers. Gold jewellery is the preferred
jewellery worn by women in India irrespective of their
religious beliefs. Gold jewellery is very popular among
farmers, with an upsurge in gold sales after a good
agricultural season. Buying of gold is also an important part
of every stage of an Indian citizen’s life—at birth, marriage,
construction of home, festivals, religious ceremonies, setting
up of new business, and death.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 SIZE
Large market for Gems & Jewellery with domestic sales of
over $10 billion
4% of the global Gems and Jewellery market
Exports of over US $15.5 billion; over 18% of India’s
exports. According to recent statistics of the Gems &
Jewellery Export Promotion Council (GJEPC), India's
exports of gems & jewellery (GJ) aggregated
Rs. 18787.09Crores
(US$4558.64million) during the month April-May-
09.
India is the largest consumer of gold jewellery in the world
Accounts for about 20% of world consumption
India is the largest diamond cutting and polishing centre in
the world, i.e., 60% value share, 85% volume share and 92%
share of the world market by number of pieces
The Indian domestic diamond jewellery market was
estimated at around Rs. 76 billion during 2005.
China ranks sixth in the world in terms of diamond
jewellery retail value, ahead of India which is in seventh
place. India ranks third in terms of diamond value, while
China holds the seventh position.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Indian diamond jewellery industry is the third largest
consumer of polished diamonds after USA and Japan

Structural Characteristics
The Indian Gems & Jewellery industry is highly fragmented
with a large.
number of domestic private sector companies. The bulk of
the GJ industry in India is concentrated in the unorganised
sector.
The majority of India’s diamond workforce is employed by
small units thatprocess diamonds on a job-lot basis. The
number of gold jewellery manufacturing units is put at 0.1
million.
India is the largest diamond cutting & polishing centre in the
world, followed by Israel and employs an estimated 2
million workers serving over 0.45 million goldsmiths, and
around 0.1 million diamond processing units.
India has several well recognised strengths which have made
it a significant force in the global Gems and Jewellery
business, like i) highly skilled, yet lowcost labour, and ii)
established manufacturing excellence in jewellery and
diamond polishing.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 POLICY
In 1990, the Gold (Control) Act was abolished, which had
forbidden the
holding of gold in bar form.
In 1993, the GOI also permitted non-resident Indians (NRIs)
to bring 5 kg of gold into the country twice yearly on the
payment of import tax of Rs. 250 per 10 grams; this
allowance was raised to 10 kg per trip in January 1997. In
1997, the GOI also permitted import and export of gold
under Open General Licence.
In the trade policy (2004-09) issued in April 2006, the GOI
has allowed
import of precious metal scrap and used jewellery for
melting, refining and reexport of jewellery for higher
utilisation of melting, refining and jewellerymaking
production capacity.
Jewellery is permitted to be exported on a consignment
basis, allowing.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 exporters who have had to deal with the problem of unsold
jewellery in foreign markets to now re-import the unsold
pieces. steps taken include allowing exporters to re-import
the rejected precious metal jewellery subject to refund of
duty exemption benefits on the inputs only and not the duty
on jewellery as was being done earlier; reduction in value
addition norms for export of gold & silver jewellery from
7% to 4.5%.

100% FDI is permitted in the Gems & Jewellery sector

through the automaticroute

SEZs and Gems and Jewellery Parks have been set up to

promote investments in the sector
Cutting and polishing of gems and jewellery treated as
manufacturing for the purposes of exemption under Section
10A of the Income Tax Act

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Outlook
India is the fastest-growing jewellery market in the world
Branded jewellery likely to be the fastest-growing segment
in domestic sales
The sector is expected to grow at 40% p.a. to $2.2 billion by
2010
Exports expected to grow from $15.5 billion in 2005 to over
$25 billion by 2010
India is the most technologically advanced diamond cutting
centre in the
world and has the opportunity to address one of the world’s
largest and fastestgrowing Gems and Jewellery markets
Indian industry has been gaining prominence as an
international sourcing
destination for high quality designer jewellery
Wal-Mart, JC Penney etc. are increasingly procuring
jewellery from India.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 About Surat special Economic Zone
(SurSez):-

Surat Special Economic Zone was established in 1st

November 2000 and is the first and so far only SEZ in non-
Govt.sector in operating form in the country. Chances have
placed it to remain so for the next 4 years. SURSEZ is
located in Surat city with respect to communication and
logistics is highly favorable. It is next to Sachin railway
station and is within 25 minutes by road to the National

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Highway, Magdella seaport and Surat airport. Mumbai is
just 3½ hours journey by train. Telecommunication system
is good.

The Key Plan Location Map SuRseZ

The Zone and the unit-owners therein, enjoy effective and

efficient patronage and support of the Developers who being
in private sector have the ability to take on the spot decisions
and for whom this Zone is the most prestigious project. The
success of the Zone is their success and vice-versa and
hence, their full commitment is guaranteed.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 For the effective management of the Zone there is a team of
professional managers headed by the Chief Executive
Officer in the Zone. SURSEZ has got full-fledged office to
render all possible help to the prospective unit holder.

SURSEZ is an operational Zone with infrastructure like

roads, water supply, drainage, power supply etc. already in
position over a major part of the Zone. For the remaining,
process is on for completion. Around 50 units are in
operation, 161 more units got approval (as on 31.3.2004)
Exports in first 4 years is more than Rs 1600 Crores.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 SURSEZ has open developed plots for entrepreneurs to set
up their units. It has also ready buildings to be given on
long-term lease or rental Already, a large number of units
are operating. They are in various types of activities -
diamond cutting and polishing, jewellery manufacturing,
textile machinery, etc. Then, there are large numbers of units
in the process of being set up. Trading units in big numbers
are also operating and many more are in the process to
commence their business. The export performance from the
Zone has been already rate excellent. Rs.862 crores exports
have been recorded during the last financial year (2003-04).
SURSEZ is the main strategic business unit of Diamond and
Gem Development Corporation Limited (DGDC).

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 The organization is endowed with multi-faceted
characteristics. Mr.S.N.Sharma, Chairman and Managing
Director of the group is strongly supported by experienced
pillars in their respective fields. The organization practices
customer orientation at every stage and at all times. The
organization structure defines the functional responsibilities
of Managerial, Technical and non-technical resources.

Surat Special Economic Zone is a multi product zone. All

types of non polluting industries are welcome to set up units
in Zone. A Manufacturing, Trading and Service unit can be
set up in the zone. At present more than 100 units are
operating and exporting to various countries all across the
globe. Major categories of units in operation are from
Textiles, Garments, Made ups (pillows, quilts, bed sheets,
etc), IT Hardware, Engineering Goods, Pharmaceuticals,
Chemicals, Gems & Jewellery, Diamond, Tobacco, etc.

Various industries are flourishing because of the location

advantages, Cost effective peaceful industrial friendly labor
available in abundance for all industrial sectors and
excellent infrastructure provided in the Zone.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Since the Special Economic Zone is still at an infant stage,
every one is to be trained. Realizing the importance, the
organization recruits professionals and intensive training
facilities are extended to every one in the areas of policies,
incentives, customer relations and time management. In
short, the whole team is constantly forging ahead in order to
reach excellence in its mission.

Supporting facilities are given special attention. For

example: Off-shore Banking Units are in the process of
being set up .For Gold Supply to jewellery manufacturers,
MMTC has an operating unit. A Jewellery Training Centre
is set up, is to provide trained artisans to jewellery units.

SURSEZ also is conscious of the social life of the people.

For that, there is an English-medium School. Shopping
Complex and residential houses are already in position. Club
and other social amenities are in the process of being set up.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Board of Director

Board of

Mr. S.N Sharma

( CHAIRMAN)

Mr. N.K Maheswari

(Executive Director)

Mr. Praveen Mr. G.L Mathur Mr.C.S Acharya

Sharma (Director) (Director)
(Director)

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Facilities Of SurSez
Facilities of Surat SEZ has been a real patronage to those
who aspired to set up their units in the sectors in Surat
special economic zone. By providing the maximum
beneficiary programs, Surat SEZ has acquired few most
effective and efficient large-scale units funded by various
industries.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Surat SEZ is an ISO 9001:2000 certified zone. One of the
biggest facilities of the Surat special economic zone is that,
it renders duty-free enclave to the proposed units in the zone
as thereby is claimed to be known as foreign territory in
terms of trading operations as well as other duties and
tariffs.

All the units in Surat special economic zone is absolutely

exempted from central sales tax and service tax and sales in
the Surat SEZ are eligible for draw back and the benefits
offered by DEPB. The units in the special economic zone of
Surat are also privileged to estimate the cost of capital
goods. Another very important incentive offered by Surat
SEZ to the investors is that, the units are allowed to
undertake any job work or activities related to export
production on behalf of the domestic exporters and export
them directly to the deserved places from the special
economic zone on behalf of domestic exporters itself.

The units in Surat SEZ are enjoys total exemption from

duties, levies, industrial license requirement, and also input

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 or output rules and regulations. SEZ unit in Surat permits the
work from DTA units as well. The capital goods that are
being imported by Surat special economic zone units enjoy
capitalization after every 10 years.

Some of the benefits offered by section 10 AA of IT Act

include Corporate Tax holiday on export profits for 15
years which can be classified as, 100 percent for first 5
years, 50 percent for the next 5 years and up to 50 percent
for the remaining 5 years which equals the profits for
investment.
The import of capital goods, raw materials, consumables
supplies, and many more enjoys the maximum benefits
among all other activities as they are absolutely excluded
from paying any customs duty and central excise duty at the
procurement of the same from local market. Setting up of
units and maintenance of the same also enjoys the benefits
of these tax exemptions on the sector. The import and export
transactions are permitted for the self-certification benefit.
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 The state government has also designed a number of
beneficiary acts as one of the Facilities of Surat SEZ.

A special SEZ Act is enacted by the state government that

determines exemption from payment of stamp duty and
registration fees on all its activities as well as on the
agreements concerning Surat SEZ. The unit does not have to
pay any electricity duty as well and is subjected to public
utility services.

One of the best facilities of Surat SEZ is its infrastructural

balance. The zone is located in an eco-friendly area that has
helped the zone to remain connected with the major
commercial corners of the state. It renders all kinds of
infrastructural facilities possible such as sufficient water and
power supply, electricity and street lights, clear water
drainage system and so on. 100 percent foreign direct
investment is entitled to the manufacturing sector in the
Surat SEZ and this has been a major benefit for the
upcoming units in the Surat special economic zone.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Surat SEZ Units

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 SuRSEZ is a multi product SEZ.
It houses industrial units from a wide range of
industries - both Manufacturing and Service
Providing companies.

Some of our esteemed clients are:

I) Diamond & Jewellery:

i) Adorn Gioielli

ii) Adani Exports

iii)Allianza Jewels

iv) Gitanjali Gems

v) Gem Star Co Pvt Ltd

vi) Kiran Jewellry

vii) Sheetal Jewellry

viii) Zaveri Exports

i) Flexit Laboratories Pvt

Ltd. (High Performance
SPE Product)

ii) Himson International

(Textile Machinery)

iii) PEASS Exports Ltd

(Textile Machinery)

vi) Schurter
Electronics(Glass Fuses)
III) Textiles :
i) Ginza Industries
(knitted Fabrics)

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 ii) Priyank Cord &
Tassels Ind.Ltd (Cords &
Tassels)

iii) Sky Industries Ltd

(Woven / knitted Elastic)

iv) Tabrez Impex

v) Textrade Intl. Pvt.Ltd.

(Bed sheets & Towels)

IV) Others :
i) Flair Impex
Corporation (Writing
Instruments, Pencils etc)

ii) Mc Coy Drugs Pvt

Ltd.(Quinine
Sulphate,Quinine Bi
Sulphate)

iii) Pidilite Industies

(FMCG)

iii) Repro India Ltd

( Books Manufacturing)

iv) Waaree Energies Pvt

Ltd (Solar photovoltaic
panels)

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Surat SEZ Units deals with all kinds of non-polluting units
and this has made it a multi-product zone. Surat special
economic zone is one having the most efficient and revenue
earning zones in the state. The units in Surat SEZ enjoy the
maximum benefits and no hazards at the time of its operation
A wide range of industries can be set up in the special
economic zone of Surat if it is non-pollutant. Surat special
economic zone renders duty-free enclave to the proposed
units in the zone as thereby is claimed to be known as foreign
territory in terms of trading operations as well as other duties
and tariffs. All the units in Surat special economic zone enjoy
total exemption from central sales tax and service tax and the
sales units in Surat special economic zone are eligible for
draw back and the benefits offered by DEPB. The units in
Surat SEZ can estimate the cost of capital goods and also it
can take up any job work for domestic exportation from the
special economic zone in Surat. The three kinds of units that
can be set up in Surat SEZ include manufacturing, trading,
and service unit.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 The major categories of units in Surat special economic zone
that are in operation of late range from textiles, garments,
Made ups which comprise of pillows, quilts, bedsheets, etc,
Information technology components such as Hardware,
goods on technology and engineering, pharmacy and
pharmaceuticals, Chemical substances, Gems & Jewelery,
Diamond processing, Tobacco production, and etc. Currently,
the Surat special economic zone is operating around 120
units along with the export production all across the world.

The huge number of benefits that are being offered to the

Surat SEZ Units both by the SEZ as well as the state
government have made it a flourishing zone for all the units
especially in the industrial sector. The location of the Surat
SEZ is highly beneficial for the units in Surat SEZ as it is
being placed in an area, which is very near to the center of
the Surat city.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Cost-effectiveness is another very important facility enjoyed
by the units of Surat SEZ along with an eco-friendly
environment and highly skilled working class for the
execution of various industrial projects. The labor unit in the
Surat SEZ is filled with highly potential workers who are not
only hard working but also intellectually strong. Surat SEZ
Units are known to be one of the most flourishing units in the
state and this has contributed in the fame of the special
economic zone of the state. Furthermore, the huge number of
welfare programs designed for the Surat SEZ has been
playing a major role in its booming success.

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 Export Procedure:

Export procedure consist of several commercial

and regulatory formalities which an exporter is required to
complete during the course of trade transactions. These
formalities are very complex and time consuming and
involve considerable documentation. Hence , exporter must
have adequate knowledge of such formalities. At the same
time, it should be ensured that rules and regulations of not
only exporting country but also imported country are duly
complied with it should be ensure that all the required
documents whether commercial or regulatory are prepared
and field with appropriate authority.

An export procedure can be studied under the following

areas;

a) Registration stage
b) Pre- shipment stage
c) Shipment stage
d) Post-shipment stage

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 A) Registration stage :-

The exporter is require to register his organization

with number of institutions and authorities which
directly help him in the smooth operation of export

The registration stage include;

Registration of the organization

Opening bank account
Obtaining IEC number
Obtaining PAN number
Obtaining Sales Tax number
Registration with export promotion council
Registration with ECGC
Registration with other authority

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 A) Pre-shipment stage :
Pre-shipment stage consist of following steps;

Approaching foreign Buyers

Inquiry and offer
Confirmation of the order
Opening Letter of credit
Arrangement of Pri-shipment finance
Production of goods
Packing and marking
Pri-shipment inspection
Central excise clearance
Obtaining insurance cover
Appointment of C & F (clearance
&forwarding)

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 A) Shipment stage
Export cargo can be exported to the
overseas buyer by sea, air land. However ,
shipment by sea is most popular and generally use
method because it is comparatively cheaper.
Beside, the ship capacity is far greater than other
mode of transportation. Transportation by Air is
utilized for export of expensive products like..
Diamond, Gold etc.
the shipment stage includes following steps

Reservation of shipping space

Arrangement of internal transport up to port
Preparation & processing of shipping
documents
Customs clearance
Obtaining carting order from the port trust
authority
Custom’s examination & issue of “ late
export order”

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 A) Post-shipment stage:

Submission of documents by C & F agent to

exporter
Shipment advice to importer
Presentation of document to the bank for
Negotiation
Dispatch of documents
Letter of Indemnity
Realization of Export proceed
Processing of GR form
Realization of export Incentive
Export Documentation :

The following Document Need for export The product

Which are as follow..;

➢ Performa invoice
➢ Packing list
➢ Shipping instruction bill
➢ G.R form

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 ➢ Intimation of inspection
➢ Certification of inspection quality control
➢ Insurance certificate
➢ Mat receipt
➢ Certificate of origin

The some Detail about Document of Export process

Which explain as follow with detail…

1) Performa invoice:-
The starting point of the export contract is in
the form of offer made by exporter to the
foreign customer. The offer made by exporter is
in the form of performa invoice, it is a
quotation given as a reply to inquiry . it
normally forms the basis off all trade
transaction.

Contant of proforma invoice:-

• Name & address of exporter

• Name & address of Importer
• Made of transportation
• Name of port of loading

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 • Name of port of discharge & final destination
• Provisional invoice no. & date
• Exporter reference number
• Importer reference number
• Name of the county or origin of goods
• Name of country of final destination
• Marks & container number
• Number of packing disription

The following formate…..

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 ➢ Same above shipping bill formate copy
triplicate…

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
 SurSez Export Product

Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)
Page
MANIBA INSTITUDE OF BUSINESS
MANIBA MANAGEMENT
INSTITUDE (SABARGAM)
OF BUSINESS SURAT
MANAGEMENT,
SABARGAM (SURAT)