Project Report of Pom

7/27/2019 Project Report of Pom

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PROJECT REPORT ON

GEMS AND JEWELLERY-

RAJESH EXPORTS

SUBMITTED TO:SUBMITTED BY:

PROF.HARISH JAIN GROUP

No. 14

GAURI

MALHOTRA (817)

PALLAVI

TANDON (836)

SAKSHI

CHAWLA (848)


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SUSHANT SAXENA (855)

WHY INDIA?

It is the worlds largest source for trained, skilled and adaptive manpower as it requires

managerial skills in young entrepreneurs for producing Gems and Jewellers. With their help,

Industrial growth has been increased to 8% and growth in infrastructure by 5.6%. Various govt.

policies have been adopted in order to maintain working environment for the young

entrepreneurs to produce maximum at minimum cost.

In financial year 2004-05, Gems and Jewellers exports had been increased to US$15.6 Billion. It

also accounts for 19% of Indias total export in the same year. It has been a huge extension

network which is present in all major markets. Due to its expansion globally, it results in better

understanding between retailers and consumers.

India is a leading player in the global gems and jewellery

market

The gems and jewellery industry occupies an important position in the Indianeconomy. It is a leading foreign exchange

earner, as well as one of the fastest growing industries in the country. The

two major segments of the sector in India are gold jewellery and diamonds.

Gold jewellery forms around 80 per cent

of the Indian jewellery market, with the balance comprising fabricated

studded jewellery that includes diamond studded as well as gemstone

studded jewellery. A predominant portion of the gold jewellery manufactured

in India is consumed in the domestic market. However, a major portion of therough, uncut diamonds processed in India are exported, either in the form of

polished diamonds or finished diamond jewellery. The largest consumer of

gold worldwide, India is also the leading diamond cutting nation.The Indian

gems and jewellery industry

is competitive in the world market due to its low cost of production and the

availability of skilled labour. In addition, the industry has set up a worldwide

distribution network, of more than 3,000


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offices for the promotion and marketing of Indian diamonds. The Indian

diamond industry has the world's largest cutting and polishing industry,

employing around 800,000 people (constituting 94 per cent of global

workers) with more than 500 hi-tech laser machines. The industry is well

supported by government policies and the banking sector with around 50

banks providing nearly $3 billion of credit to the Indian diamond industry.

India is expected

to have its diamond bourse functioning at Mumbai in 2006. India is therefore

a significant player in the world gems and jewellery market both as a source

of processed diamonds as well as a large consuming market.

The sector is largely unorganized at present with a small but

growing organised sector

The Indian gems and jewellery sector is largely unorganised at present.There are over 15,000 players across the country in the gold processing

industry, of which only about 80 players have a

turnover of over $4.15 million (Rs 200 million). There are about 450,000

goldsmiths spread throughout the country. India was one of the first

countries to start making fine jewellery from minerals and metals and even

today, most of the jewellery made in India is hand made. The

industry is dominated by family jewellers, who constitute nearly 96 per cent

of the market. Organised players such as Tata with its Tanishq brand, have,however, been growing steadily to carve a 4 per cent market share.


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The Indian gems and jewellery industry has significant

potential

India offers attractive opportunities across the industry value chain. India's

strengths offer attractive opportunities across each of the elements of the

value chain.

Mining

India has significant reserves of gold, diamond, ruby and other gem stones.

Key states with gem stone reserves and mining potential are Maharashtra,

Madhya Pradesh, Orissa, Chattisgarh, Bihar and Andhra Pradesh. Orissa has

deposits of ruby and has about 20 varieties of various gemstones

such as rhodoline, garnet, aquamarine etc. Andhra Pradesh has gold and

diamond

bearing areas, as well as occurrences of semi-precious and abrasive stones

spread over different districts. Recognising the potential of the large

unexplored gemstone reserves, the Government of India as well as different

state governments have been taking initiatives to open up the sector for

exploration by global players.


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Gemstone processing

India was the first country to introduce diamonds to the world - the first to

mine, cut and polish them as well as trade them. The cutting and polishing of

diamonds and other precious stones is one of the oldest traditions in India

and the country has earned a considerable reputation both in the domesticand international markets for its skills and creativity. In the global diamond

market today, Indian diamonds account for 55 per cent share in value terms,

80 per cent share in

caratage (weight) terms and 90 per cent share in volume terms. Today there

is a ready availability of an entire range of diamonds in nearly every size,

quality and

cut. India offers the twin advantages of skilled labour and low cost in the

area of gemstone processing. India's significance in the global gems and

jewellery industry can be largely

attributed to its strength in diamond processing.Value enhancement by the

Indian diamond processing industry is the highest among other countries,

with a value addition worth $1.48 billion in 2004 compared to $840 million in

2003.

Jewellery manufacturing

India has well-established capabilities in making hand-made jewellery in

traditional as well as modern designs. Indian hand-made jewellery has

always had a large ethnic demand in various

countries with sizeable Indian immigrant populations such as the Middle

East, South-East Asian countries, the USA and Canada. In recent times, India

has also developed capabilities in machine-made jewellery. With imported or

domestic processed studding, Indian machine made

jewellery is expected to generate demand from non-ethnic jewellery markets

as well. The share of gold jewellery in India's exports of gems and jewellery

increased from 9 per cent in 1994 to 22 per cent in 2004, an indication ofgrowing acceptance in the world market. In the area of diamonds, Indian

jewelers have been focusing on moving up the value chain, from being

polishers of rough diamonds to the manufacturing of jewellery. Exports of

diamond jewellery are expected to increase in the future. The central and

various state governments in India have come out with policy incentives to

promote jewellery manufacturing.


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CertificationFollowing the World Diamond Council's statement on adopting credible and

effective measures against the trade in conflict gems, the Indian government

has tightened its certification process for international trade. The Gems &

Jewellery Promotion Council is India's certification

authority. The government's Central Board of Excise and Customs has

banned the import or export of rough diamond shipments, which are not

accompanied by a Kimberley Process certificate launched in Switzerland.

Certification for quality diamonds and jewellery has given

a fillip to exports and has resulted in greater acceptance of Indian products

in the world market.

Technology

The Indian gems and jewellery industry has made rapid strides in design,

powered by a new generation of young, professionally trained, technology

driven designers. Many of India's jewellery manufacturing facilities are


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equipped with the latest CAD / CAM and other advanced design systems.

Technology solutions are also availablefor production control, supply chain

and inventory management in the jewellery industry. The Special Economic

Zones and Gems and Jewellery Parks developed in various states offer

technology-enabled environments that are conductive to growth and quality

production. The gems and jewellery industry in India is a good blend ofmodern manufacturing and design techniques with the traditional skills of

the Indian artisan. The Indian industry is also compliant with international

norms such as the Kimberly

Process and the Patriot Act. With well-established capabilities across the

value chain, India is an attractive potential market in the gems and jewellery

sector.

The domestic industry has been growing at a significant rate

The gems and jewellery sector in India has been growing across all key

segments, as detailed below.

Precious Metals

Gold

The current consumption of gold in India is estimated at over 900 tonnes,

used mostly in 20 / 22 carat jewellery. Nearly 95 per cent of gold is used to

manufacture gold jewellery for the domestic

markets and the remaining 5 per cent is exported. Gold consumption in India

is primarily aimed at investment.

Silver

India annually consumes around 4,000 tonnes of silver. Silver jewellery and

other articles for personal use, account for the bulk of the sales especially in

the rural areas. India is also the third largest industrial user of silver in the

world, after the US and Japan.


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Platinum

Platinum or white gold, targeted at the premium jewellery segment, is

gaining preference among designers and consumers globally. While India's

share in the global platinum jewellery market is growing by 19 per cent

annually, it continues to be less than one per cent in the global platinum

jewellery market. Given the global growth and the maturing of the Indian

market to international trends, this represents an area of potential growth in

India.

Gemstones

Due to the popularity of gemstonestudded jewellery across the globe, India's

gemstone industry has been growing with an estimated turnover of $0.22 -

0.26 billion.

Jewellery

The Indian jewellery market is one of the largest in the world, with a market

size of $13 billion. It is second only to the US market of $ 40 billion and is

followed by China at $11 billion. The gold jewellery market is growing at 15

per cent per annum and the diamond jewellery market at 27 per cent per

annum. The emergence of branded jewellery is a new trend that is shaping

the Indian jewellery market. Branded jewellery is a relatively new concept in

the sector, and has positioned itself on the quality, reliability and wearability


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factors. The branded jewellery market in India is estimated at $111.6 million

per annum. Trends also show that traditional handcrafted jewellery is slowly

giving way to machinemade jewellery.

Future Outlook

The future of the industry is quite promising. More and more buyers across

the world are turning to India as their preferred source for quality jewellery.

The Gems and Jewellery Export Promotion Council (GJEPC) is looking at

exploring new markets, such as Latin

American countries. The industry also plans to make India a trading centre

for cut and polished diamonds, and is closely working with the government

of India in this regard. The long term prospects looks good with jewellery

exports expected to touch $16 billion in 2010 according

to industry estimates.


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COMPANY BACKGROUND

Rajesh Exports Ltd (REL) was established in 1989 as a partnership firm, manufacturing and

exporting gold jewellery and went public in 1995. In 2003, it set up the worlds largest gold

jewellery manufacturing facility at Bangalore with an installed annual capacity of 250 mt. Over

the years, REL has built a strong R&D team in gold jewellery, helping it win national and

international acclaim through introduction of new concepts and procedures in the manufacture of

gold jewellery.

Since inception, REL has achieved many milestones and has emerged as the worlds

largest manufacturer of 22 carat gold jewellery and biggest exporter of gold jewellery from

India. It contributes approximately 25% to the total gold jewellery exports from India and enjoys

the status of countrys premier gold jewellery export house. REL exports jewellery across the

world through its established worldwide distribution network and has strong relationship with

wholesalers in many key cities in the world. RELs catalogue includes 29,000 exclusive designs,

which is incidentally one of the biggest catalogues in the world. It has plans to target all the

segments from value conscious customers to fashionable clients looking for trendy jewellery,

through its Shubh and Laabh retail stores.

Rajesh Exports (REL) is the worlds largest manufacturer and exporter of gold jewellery.RELs

competitive cost structure supported by significant economies of scale have helped it gain

volumes and garner ~3% market share of the global gold jewellery market. After achieving

success in the high volume-low margin bulk exports of gold jewellery, REL is leveraging its

existing manufacturing facility and global distribution.


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COMPANYS OVERVIEW

1. WORLDS LARGEST MANUFACTURER AND EXPORTER OF

GOLD JEWELLERY

REL is the worlds largest manufacturer and exporter of gold jewellery based in India. It

processes approximately 3% of the worlds gold jewellery consumption of 2,366 mt and

accounts for approximately 25% of gold jewellery exports from India. Its fully backward

integrated model, strong bargaining power with raw material suppliers and effective working

capital management creates cost competencies, leading to significant economies of scale.

New business verticals in exports to expand margins To leverage its existing worldwide

distribution network and its large jewellery manufacturing facility, REL has entered into

manufacturing and exports of diamond jewellery and white label jewellery for leading global

retailers. Margins in this business are higher at 15-20% as against 2-3% in traditional gold

jewellery exports. We expect EBITDA contribution from these new verticals to increase from

15.7% in FY08E to 27.5% by FY10E.

Tapping opportunities in growing branded retail jeweller

2. EXPANSION OF RETAIL JEWELLERY STORES

REL has recently entered the branded retail jewellery segment in India. This segment has been

growing at 35-40% annually and commands margins of 8-12%. It has launched Shubh and Laabh

stores to tap value and fashion conscious customers respectively. It has aggressive plans to

increase the number of stores (Shubh + Laabh) from 38 at present to 160 by FY10E. EBITDA

contribution from retail business is expected to increase from 2.8% in 9MFY08 to 25.2% by

FY10E.

3.LAUNCHING OF TWO RETAIL SHOPS


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It has launched two types of retail jewellery shops in the name of 'Shubh' and 'Laabh'. The

company launched 30 mid-size Laabh retail outlets in 23 cities across India in December 2006. It

has developed a portfolio of jewellery designs for its retail outlets. Shubh retail outlets will be

launched in collaboration with south India-based NBFC, Muthoot Pappachan (MP) group

PRODUCTS:

Asian Jewellery Designs

REL specializes in ASIAN JEWELLERY and manufactures almost all types of Asian Jewellery

in 22cts, 21cts and 18ct. REL has over the period of time understood the Asian Jewellery market

in depth. The R&D division analyses various trends and requirements of the Asian Market and

regularly develops new designs to suit the markets. REL has a current Asian design portfolio of

over 20,000 designs. The designs are categorized into various categories and are further

subdivided into sub categories and items. All the designs are digitized and each of the design has

an unique identification number. Under it several categories comes like:

EARRINGS

RINGS

PENDENTS

CHAINS

NECKLACES

BANGLES

BRACELETS

Western Jewellery Designs
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RELs mainline of activity has been manufacture of Asian jewellery. Over the last six years REL

has conducted extensive research in Western jewellery and REL has developed several unique

designs to suit the western taste. These designs are unique because they are a combination of

machine and hand-work skill sets. The fusion designs have become possible as REL has an in-

depth expertise in latest machineries, technologies and also in the best of the hand-work. Due tothis unique capability of REL, it is for the first time that fusion jewellery has been launched on a

mass scale. REL manufactures the western style jewellery in 9, 10, 12, 14 and 18 cts gold. The

following are the different products that REL manufactures in the western jewellery designs :

EARRINGS

RINGS

PENDENTS

CHAINSNECKLACES

BRACELETS

Diamond Jewellery Designs

REL has conducted extensive research to develop a range of diamond jewellery. Some of the

finest designers both in India and abroad have contributed to the range of exclusive diamond

designs. The designs have been perfected and prototyped at REL's manufacturing facility by

senior artisans to achieve the world's best finish.

REL has developed eight diamond design ranges each with distinctive workmanship . In each

of these ranges REL manufactures: Earrings, Rings, Pendants, Bracelets and Necklace Sets. The

diamond jewellery is manufactured in 18 cts gold and VVS quality of diamonds in GH colour

are used in the diamond jewellery. The following are the categories of diamond jewellery

manufactured by REL :
http://www.rajeshindia.com/western-earrings.htmlhttp://www.rajeshindia.com/asian-rings.htmlhttp://www.rajeshindia.com/asian-pendants.htmlhttp://www.rajeshindia.com/asian-chains.htmlhttp://www.rajeshindia.com/asian-necklaces.htmlhttp://www.rajeshindia.com/asian-bracelets.htmlhttp://www.rajeshindia.com/western-earrings.htmlhttp://www.rajeshindia.com/asian-rings.htmlhttp://www.rajeshindia.com/asian-pendants.htmlhttp://www.rajeshindia.com/asian-chains.htmlhttp://www.rajeshindia.com/asian-necklaces.htmlhttp://www.rajeshindia.com/asian-bracelets.html


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EARRINGS

RINGS

PENDENTS

CHAINS

NECKLACESBRACELETS

NECKLACE SETS

GOLD PRODUCTION PROCESS

The process of producing gold

The process of producing gold can be divided into following phases:

finding the orebody;
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creating access to the orebody;

removing the ore by mining or breaking the orebody;

processing; and

refining.

GOLD MINING


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Gold mining consists of the processes and techniques employed in theremoval ofgold from the

ground. There are several techniques by which gold may be extracted from the Earth.

Placer (sediment) mining

PANNING:

Gold panning is a mostly manual technique of sorting gold. Wide, shallow pans are filled with

sand and gravel that may contain gold. Water is added and the pans are shaken, sorting thegold

from the gravel and other material. As gold is much denser than rock, it quickly settles to the

bottom of the pan. The silt is usually removed from stream beds, often at a bend in the stream, or

resting on the bedrock bed of the stream, where the weight of gold causes it to separate out of thewater flow. This type of gold found in streams or dry streams are called placer deposits.

Gold panning is the easiest technique for searching for gold, but is not commercially viable for

extracting gold from large deposits, except where labor costs are very low and/or gold traces are

very substantial. It is often marketed as a tourist attraction on former goldfields. Before

production methods can be used, a new source must be identified and panning is a good way to

identify placer gold deposits so that they may be evaluated for commercial viability.

METAL DETECTING

With a metal detector, a person may walk around area systematically scanning below the surface.

If the meter gives a positive reading a quantity of gold may be present up to a meter below the

surface. This technique is very easy to operate, highly mobile, and very popular among gold

diggers.

SLUICING

Using a sluice box to extract gold from placer deposits has been a common practice in
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prospecting and small-scale mining throughout history to the modern day. A sluice box is

essentially a man-made channel with riffles set in the bottom. The riffles are designed to create

dead zones in the current to allow gold to drop out of suspension. The box is placed in the stream

to catch water-flow and gold bearing material is placed at the top of the box. The material is

carried by water through the box where gold and other heavy material settles out behind theriffles. Lighter material flows out of the box as tailings. Larger commercialplacer mining

operations employ screening plants ortrommels to remove the largeralluvial materials such as

boulders and gravel before concentrating in a sluice box or jig plant. These operations typically

include diesel powered earth moving equipment including excavators, dozers, wheel loaders and

rock trucks.

ROCK MINING

Hard rock gold mining is done when the gold is encased in rock, rather than as particles in loose

sediment. Sometimes open-pit mining is used, such as the Ft. Knox Minein central Alaska.

Barrick Gold Corporation has one of the largest open-pit gold mines in North America, located

on its Goldstrike property in northeasternNevada. Other gold mines use underground mining,

where the ore is extracted through tunnels or shafts. Hard rock mining produces most of the

world's gold

GOLD ORE PROCESSING

The Cyanidation of Gold:

Gold cyanidation (also known as the cyanide process or the MacArthurForrest process) is a

metallurgical technique for extracting gold from lowgrade ore by converting the gold to water
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soluble aurocyanide metallic complex ions. It is the most commonly used process forgold

extraction.

The reaction :

The chemical reaction is called the Elsner Equation as follows :

4Au + 8NaCN+ O2 + 2H2O 4NaAu(CN)2 + 4NaOH

It is an electrochemical process in which oxygen picks up electrons from the gold at a cathodic

area, whilst gold ions are rapidly complexed by the cyanide around the anodic area to form the

soluble aurocyanide complex.

In 1896 Bodlnder confirmed that oxygen was necessary, something that was doubted by

MacArthur, and discovered that hydrogen peroxide was formed as an intermediate .

PROCESS

It includes two grinding circuits, each composed of semi-autogenous grinding (SAG) and ball

mills, which grind the ore into a fine particle slurry. The ore is "refractory" meaning that the gold

is locked in sulphide minerals and thus sulphide pre-treatment is required. To improve the

recovery rate an extra process step,pressure oxidation ("autoclaving"), occurs after the milling

and before leaching. Autoclaving oxidizes the sulphide minerals and exposes the gold particles,

improving gold recovery to 90%. Afterneutralization, a carbon-in-leach system is then used to

extract the gold from the oxidized slurry. In the final gold recovery and refining phase, gold is

stripped from the carbon and poured into dor bars.

Crushing & Grinding
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The objective of milling gold ores is to extract the gold for the highest financial return. To

accomplish this, the ore must be finely ground in order to liberate gold particles. Each ore has its

own gold-liberation characteristics, and wide variables in comminution properties may occur

within large gold deposits. Tests and feasibility studies have to define the optimum milling

circuit that can deliver adequate mill feed at all times. For the grinding and crushing circuit atGoldstrike, Barrick relies on primary grinding in semi-autogenous grinding (SAG) mills,

followed by fine grinding in ball mills. An autogenous mill is, by definition, a mill that employs

coarse ore as the grinding medium while it is itself being ground. In pracice, autogenous grinding

has to be changed to semi-autogenous grinding, since lack of adequately hard ore necessitates the

addition of large steel balls to maintain the required grinding rate

Ball mills accomplish the step of fine grinding. Ball mills are high-throughput, closed-circuit

grinders with steel balls as the grinding medium. They always operate in closed circuit with

classifiers and/or cyclones. All tumbling mills are internally lined; these mill liners, in addition to

protecting the mill shell from weark, reduce the slip between the shell and grinding media, and

have a significant effect on operating costs. After crushing and grinding, the slurry proceeds to

acidulation.
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Grinding mill

Acidulation

From crushing & grinding, the slurry proceeds to thickening to remove excess water, increasing

percentage solids from 40% to 53%. The water is removed because autoclaving is a high

temperature process (210C), requiring heat to raise the temperature from 25C. Reducing the

water content reporting to the autoclave substantially reduces heating costs. Excess water is

returned to the grinding for re-use. Prior to entering the autoclaving circuit, excess carbonates in
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the ore are removed to a maximum level of 2% CO3 by the addition of sulphuric acid. Carbonate

levels are between 3% and 6% in the ore. This pre-treatment improves the efficiency of the

autoclave both from operations and maintenance aspects. From acidulation the slurry moves

forward to autoclaving.

Autoclaving Circuit

From acidulationthe slurry passes to the autoclaving circuit. High-pressure oxidation of

refractory gold ores and concentrates is performed in order to enhance their amenability to

cyanide leaching. Oxidation conditions are critical to the chemistry within the autoclave and can

significantly affect gold extraction. Important paramaters in the oxidation of refractory gold ores

under oxygen pressure are the finess of grinding; the pressure, temperature, density and pH of

the slurry in the autoclave; and the total retention time. The combination of abrasion, low pH,

high temperature, and high pressure restrict the selection of autoclave materials to titanium,

titanium-clad carbon steel, or acid-resistant brick-lined carbon steel. After autoclaving, the slurry

is cooled in flash towers and tube heat exchangers before being sent to the neutralization circuit.
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Neutralization Circuit


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After the autoclaving circuit, the slurry is sent to neutralization to increase the pH from 1.5 to

10.5 in preparation for cyanide leaching. The slurry on discharge from the autoclave has 15 to 20

grams per liter of sulphuric acid. The acid is neutralized with milk of lime. Cyanidation is

practiced above a pH of 9.5, otherwise the cyanide is volatized, thereby increasing costs. Also,

below pH 9.5 copious amounts of HCN is released which is a worker health and safety concern.During neutralization pure oxydgen and/or air is added to convert as much as possible ferous

iron to ferric iron. Ferrous iron amines cyanide, level increasing costs . Also the addition of

oxygen and/or air increases the dissolved oxygen content in the solution. The dissolved oxygen

is necessary for the dissolution of gold according to the equation.

From neutralization the slurry proceeds to the carbon-in-leach (CIL) process for gold dissolution

and adsorbtion.

CIL Circuit
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Activated carbon is a highly porous material with distinct adsorptive properties. Gold complexes

with either chloride or cyanide are strongly adsorbed by activated carbon. Gold recovery from

solution by granular, begins by loading, or adsorbing the gold onto the activated carbon, which is

accomplished in the carbon-in-leach (CIL) circuit. The CIL activated carbon system involves

adding the carbon to the ore slurry in leaching tanks. The carbon adsorbs the gold from thesolution as cyanidation of the ore proceeds. After adsorbtion, the loaded carbon is sent to the

carbon stripping circuit.

Carbon Strip Circuit
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After loading the activated carbon with gold in theCIL circuit, gold recovery proceeds in the

following steps:

1. Elution or stripping of the carbon.

2. Carbon regeneration.

3. Gold production by electrowinning or cementation from the eluate solution.

Steps 1 and 2 are performed in the Carbon Strip Vessel and Carbon Regeneration Kiln,

respectively. Electrowinning (EW) of gold from dilute pregnant solutions is used extensively to

produce metallic gold from cyanide solutions. A modern EW cell is rectangular with pervious

cathodes packed with steel wool and stainless steel mesh anodes. The electrodes are sized to fit

snugly down the sides and along the bottom of the cell, so that the electrolyte has to flow through

the electrodes.

The gold produced from the EW cells is sent to therefinery circuit.

Refinery Circuit
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High purity gold is produced from the electrowinning cells in thecarbon stripping circuit and

sent to the refinery. In addition to gold, the laden cathodes may contain 10-15% silver, as well as

copper and steel wool. The gold passes through a filter press, catch tray, mercury retort, and then

is melted in furnaces (photo at right) to produce gold bullion.
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Jewellery Manufacturing

Methods used in Jewellery manufacturing

Methods that are typically used to make jewellery from gold and silver and its alloys areInvestment Casting, Die casting, cuttle fish casting and hand fabrication. Many jewelers use

CAD/CAM to make jewellery. CAD computer aided designs and CAM i.e. computer aided

manufacturing to reproduce a model piece of jewellery that can be mass produced. Making

jewellery requires knowledge and expertise in gold smithing, stonecutting, engraving, mold

making, fabrication, wax carving, lost wax casting, electroplating, forging, and polishing. These


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are the various steps needed to make jewellery. The first step in making a detailed piece is

making of a mold.

Mold

Jewellery making begins with a mold. A mold is the exact and perfect replica of the piece to be

made, copied either from a design or a piece/object. A mold is shaped around the shape/figure

with the help of casting process. The casting process involves a number of steps. There are two

methods of casting, investment casting or die casting each with its own advantages.

Investment Casting

Investment Casting is also called 'lost wax casting' since the wax is removed by heating in a kiln

or in an autoclave. It is the earliest metal technique evolved by mankind and has a history of

4,000 years. Believed to have been developed by the Mesopotamians, it remains the most

popular process of making gold (metal) jewellery and forms the basis of modern investment

casting process. This process involves dipping a mold into a ceramic mix. Sometimes new

materials like plastic or polystyrene foam is used instead of wax. This process has a number of

steps involved.

1. A primary model is made in hard alloy like nickel silver or just silver.

2. A rubber model is made by surrounding this primary model, using sheet rubber in a mold

frame. It is then vulcanized by placing it in a heated press. On cooling, it is cut with a scalpel

into halves or more and removing the primary model.

3. This rubber mold is used to make many copies of the primary model on wax .


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4. Molten wax is then introduced into the mold cavity by using a wax injector. On cooling the

wax is removed to get an exact copy of the primary model in wax.

5. After the desired number of models has been made the waxes are arranged in a tree all around

a central feeder in the casting machine. The central feeder is also called sprue. The tree placed in

a metal cylinder called flask.

6. A special mixture called investment plaster is mixed with water to form a thick liquid and

poured over the tree covering the wax models. Low vacuum removes air bubbles and then this is

allowed to cool and harden to form stiff and sturdy molds.

7. Then the flask is inverted and placed in a kiln/furnace. The wax is melted by steam or air to


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remove all the wax. The furnace is set in stages and the maximum temperature reached is 750

degrees centigrade. The melting process takes about 12 to 16 hours. This melting down of the

wax is called the 'lost wax process'.

8. The wax is slowly melted and drained out completely and all that is left behind is the

investment plaster mold and this will now be used to pour the required molten metal (to be

cased) into.

9. The casting process begins by putting the flask in a casting machine. The gold metal or itsalloy is melted and then cast into the investment mold. Then it is allowed to cool and solidify.

10. After it has cooled down completely it is immersed into cold water which breaks off the

investment mold, leaving the casts in the tree. The casting are cut off and then made into

jewellery pieces which will then be polished into completion.

Two types of casting machines are used the centrifugal casting machine which is the older

technique or the modern technique of static vacuum assist machines.

Advantages of investment casting: -It is an age old proven method. It allows the

jeweler flexibility to create complex designs. The details can be copied perfectly. The control of

color is better. The finished product can be highly polished. It results in very fine surface finish.

The metallurgical properties are also excellent.


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Disadvantages of investment casting: -this process can result in porosity. Also

the dimensions may not be as accurate as the die struck method.

This process can and is used for almost all gold jewellery and remains a favorite with jewelers

even after 6,000 years later!

Die struck method

Die struck method is a casting method where the metal to be cast is forced under pressure into a

mold which is usually made out of metal. This is a bona fide method of producing complex

shapes. The earliest recorded history of die casting by pressure occurred in 1800's.

Using a plunger or compressed air, molten metal is forced into a metallic die and the pressure is

maintained until the metal settles and solidifies.

The pressure reaches 25 tons per square inch. The intense pressure causes the atoms in the metal

to move closer together and solidify to form dies or molds. Using compressed sheet metal and

steel dies mountings are formed with metal parts mechanically stamped out.

Each part is matched and fitted into the correct portion of halved die and stamped and shaped. A

hydraulic press is used.

CONSISTENT PROFITABILITY:


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STRENGTHS:

Largest gold jewellery manufacturing facility

Lowest cost advantage because of economie of scale

Understanding of various global markets and portfolio of

29000 exclusive jewellery designs

Backward integration supports cost structure

Government recognized trading house in jewellery sector

Experienced team of jewellery professionals


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WEAKNESSES:

New player in retail sector.

No ready retail distribution network

No brand recognition

New entrant in diamond jewellery

RECOMMENDATION:

Tied up with MP Group

Joint venture with US based Fossil Inc.


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REFRENCES

www.rajeshindia.com

www.metsoc.org

www.en.wikipedia.org

www. jewellers.net

www.jewel Info 4 U.com

gold extraction.http://www.cyantists.com/ICMMC

www.ibef.org

Documents

Project Report of Pom