As per the government norms by early next year gold jewellery products will be sold under the hallmark regulation guidelines.
By January 2018, the government plans to make the Hallmarking regulations compulsory for all gold jewellery sold in the country. All gold products to be sold in India should be under Hallmarking regulations from January. We spoke to a few biggies in the gold jewellery business and asked them how the hallmarking of gold jewellery will influence the market dynamics?
Union Minister for Consumer Affairs, Ram Vilas Paswan had also mentioned in a seminar that as most Indians understand purity of gold in terms of carat, gold ornaments bear not just the Hallmarking value (such as 916 or 958) but also their carat value too.
The brands that follow the hallmarking process dutifully are as it is clear to get more franchisees as compared to others. One such brand that is operating and offering money spinning opportunities via franchise model is Waman Hari Pethe Jewellers. With a legacy of 107 years, Waman Hari Pethe Jewellers is expanding fast and reaching to the smaller towns too. We asked Aditya Pethe, Director of Waman Hari Pethe Jewellers his views on the hallmarking of the Gold jewellery on which he said: ‘We already have 100% hallmarked jewellery and setting a gold standard will definitely build and reinforce consumer’s confidence. Hallmarking is a mandate in many western countries and if executed well with a seamless channel it will benefit the industry at large.’
What is Hallmaking?
Hallmarking is a process of certification of the purity of gold jewellery, in accordance with specifications determined by the Bureau of Indian Standards. Gold articles are to be evaluated and tested at an official assaying and hallmarking centre, which then certifies that the metal used conforms to the national and international standards of purity and fineness.
Who provides the hallmark in India?
The Bureau of Indian Standards is involved in the development of technical standards (popularly known as Indian Standards), product quality and management system certifications and consumer affairs in all matters concerning standardisation, certification and quality.
A positive move
Established in 1857, Lala Jugal Kishore Jewellers takes pride in being of the most sought-after jewellery brands in India. The brand is renowned for creating exquisite designs in silver, gold, diamond and jadau-polki-kundan jewellery. Speaking to us on the mandate of hallmarking of gold jewellery from January, Tanya Rastogi, Director, Lala Jugal Kishore Jewellers said: ‘It’s a positive move and the industry supports it. Majority of jewellers anyway deal in hallmarked and responsible goods. But a small pool which may indulge in malpractices then maligns the entire industry. Anything in the direction of transparency and ease of business is highly beneficial for the industry.’
Founded in 1986, Mumbai based, Anmol Jewellers too supports the decision. ‘Hallmarking of Gold jewellery will help the organised sector work better. The unorganised sector will either have to get organised or they will lose out. The consumer will benefit as the safety of the consumer is being safeguarded.’ said Ishu Datwani, Founder of the brand.
BIS Certification scheme
Government of India has identified BIS, a sole agency in India to operate this scheme. BIS hallmarking Scheme is voluntary in nature and is operating under BIS Act, Rules and Regulations. It operates on the basis of trust and thus it is desirable that aspects of quality control are in built in the system responsible for managing quality. As per this scheme the jewellery retailer/manufacturer desirous of obtaining a licence, apply to BIS for use of Standard Mark (Hallmark) on their jewellery. After grant of licence, the jeweller (retailer/manufacturer) has to follow a BIS approved Scheme for certification. A BIS certified jewellers (retailer/manufacturers) has right to register himself with any of the BIS recognized Assaying and Hallmarking Centres to get his jewellery hallmarked. BIS maintains surveillance on the certified jewellers, at a defined periodicity. Market surveillance involves collection of hallmarked gold jewellery from licensee's retail outlet/manufacturing premises and having it tested for conformity in BIS recognized Hallmarking Centre.
Benefits to certified jewellers
The jewellers with BIS license of Hallmark Gold Jewellery are trusted by people and franchisees too. They have strong confirmation of their commitment to quality of their services and of the gold jewellery they sell. Not only does hallmarking provide complete satisfaction for the customer, but also for the prospective investors for their brands.