Swiss co Signity set for Indian foray

The Switzerland-based Signity, a player in exact-cut gemstones, is making a foray into the Indian jewellery market.

It has approached the Foreign Investment Promotion Board for setting up a wholly owned subsidiary to carry out wholesale cash and carry trading in gemstones, cubic zirconia (American stones), synthetic stones, alpinites and components.

Signity is a joint venture between machine-cut gems companies Swarovski International and Golay Buchel. The move to set up a subsidiary follows the burgeoning growth in the jewellery segment. Signity has a liaison office in India.

The Swarovski group entered the Indian market in 2001 through a wholly owned subsidiary, which deals in crystal, textile components and branded consumer goods.

It has a facility in Pune and an application centre in Delhi. The Swarovski brand of crystals currently have 31 points of sale counters in the country.

The jewellery component business vests with Signity. Sources close to Swarovski group said the India plans are part of Signity's expansion strategy.

At present, Indian jewellery wholesalers and manufacturers import Signity's products. The precision-cut gemstones are utilised to manufacture jewellery for both domestic and export markets.

The Indian jewellery market is estimated to be Rs 60,000 crore (Rs 600 billion), of which the retail market is growing at 22 per cent. This is despite the rising diamond and gold prices.

Gemstones are approximately account for 20 per cent of the total gold jewellery market in India. As China accounts for 60-70 per cent of the total cut and polished gemstones, Indian exporters find it difficult to get it at competitive prices.