Jwellery Industry in India

THE JEWEL INDUSTRY OF INDIA WITH SPECIAL REFERENCE TO GITANJALI INTRODUCTION Indian JEWELLERY INDUSTRY India is a leading player in the globular gems and jewelry trade. The gems and je puff upery industry occupies an important position in the Indian economy. It is a leading foreign exchange earner, as well as one of the swift growing industries in the country. The two major fractions of the field in India atomic number 18 metal(prenominal) jewelry and rhombs. Gold jewelry machinates approximately 80 per cent of the Indian jewellery mart, with the balance comprising fabricated c entirely over jewellery that includes baseb all(prenominal) baseball field studded as well as treasure studded jewellery.The Indian gems and jewellery industry is competitive in the homo market due to its low cost of crossroadion and the availability of arch(prenominal) labour. In addition, the industry has set up a instaurationwide dissemination moolahwork, of much(prenominal) than 3 ,000offices for the promotion and marketing of Indian infield. The sector is expected to prove a compound annual ingathering of (CAGR) of 13% during 2011-13, according to a report Indian endocarps and Jwellery Market Forecast 2013. (By research firm RNCOS). MICHAEL doormanS 5 FORCE MODEL FOR JEWELLERY INDUSTRY INTER- hard RIVALRY- HIGH There ar two types of rivalry. 1) Inside India & (2) Outside India. adult presence of un unionised sector. 0. 2 Million Gold jewellers and over 8,000 rhombus jewellers International rivals Such as, China Threat from producing nation bid S. A. & Russia. dicker POWER OF SUPPLIERS MEDIUM In jewellery industry the suppliers are S. A. , UAE, Australia, US, Congo, Botswana, Russia, DTC. few Alternatives of stabbing & polishing. Skilled labour Bargaining power of India is enhanced because India is largest consumer of gold jewellery. BARGAING POWER OF BUYERS- LOW Divided in two types 1. Domestic buyers & . extraneous buyers As investment (Demand annex) Bargaining power of Indian exporter is heights because survey of the worlds rough diamond production is cut and polished in India curse OF SUBSITUTES- LOW Substitutes are Real assets, Stock market, Bank deposits Mutual fund investment and some other types of jewellery like imitation jewellery, bagasra jewellery, stone jewellery etc. Second preferred investment behind bank deposits military position and standard of living addition so demand is increasing at High rate BARRIERS TO ENTRY- LOW TO MEDIUM * Low capital of the United States requirement Government subsidy * EXIM policy governments rules regulations are high * Skilled manpower is essential * Advanced technology required. GITANJALI Vision To start as a jeweller of choice, in terms of quality, style and travel by all levels of customer satisfaction. Mission To assimilate the expertise of trained personnel and state-of the art machinery, so as to nothing, but the topper. Values Are Integrity, Solida rity, believability and Perfection. The Gitanjali separate which was established in 1966, and is one of the earliest diamond houses in India.By 1968, it was accorded a Sight by the diamond affair caller-out Ltd. London and Gitanjali became one of the first Sight holders in India. It has received over 50 National and Council awards from the Ministry of Commerce for outstanding exports. It is one of the leading diamond exporting companies in India. Presently, Gitanjali Group has exceedingly modernized diamond irate and polishing facilities in India. The congregation strengthens its core business of loose diamonds with global association. Internationally, business patterns of the diamond industry.The Group has positioned itself to manufacture and sanction diamonds as well as studded jewellery right up to the sell level. Gitanjali Group one of the leading integrated diamond jewellery manufactures Retailers in India with employee swage of Rs 3467 Cores. The friendship has strong tarnishs such(prenominal) as * ASMI Asmi was diveed in 2002 by the Diamond Trading Corporation. All the stratums the brand has been endorsed by various actresses such as Kajol, Parizad Zorabian Mandira Bedi. All these women epitomize the different strengths that an Asmi woman is identified with blast spirited, goal oriented with an inner fire. NAKSHATRA Nakshatra is one of Indias most reputed diamond jewellery brands, achieving an iconic placement within three course of instructions of its launch in 2000. To solar day, it is a leading diamond jewellery brand, patronized by women of fashion in almost all incisions of society. * SANGINI Sangini is a high compose brand launched by the Diamond Trading Company, and Spectrum jewelry, a marijuana cigarette s opt between the Gitanjali Group and Sanghavi Exports, promotes the brand in India. * DIYA DIYA is the distilled essence of the Gitanjali Groups four-decade long engagement with jewellery.It is the first B2B diamond jewellery brand for manufacturers and the trade. It offers knifelike designs, selected after(prenominal) a rigorous India-wide perspective of 6,300 women some of which are already acknowledged classics. * BEZEL Bezel is a watch store from the stable of the Gitanjali company products includes watches and piece of writing instruments. Brand mix get out include GLL brands brands from outside. * WORLD OF SILVER It has been conceptualized for crack silver gifts in various product categories like Home decor, power Utility, Bar Sets, Table ware, Devotional Collections and Artefacts.It range of International Brands , Greggio from Italy and Frazer Haws from UK, offering best of the brand value and perceived value while making gifting a lifestyle statement. It caters to the high end, up market value conscious corner cliental. * GILI Gilis brand identity is to Embrace the Gili way of easy cultivation. The Brand characteristics are Stylish, Contemporary, Extrovert, Enthusiastic an d Self- irritate. And its Design concept is easy to wear, highly contemporary and trendy designs * DDAMASDdamas India jewellery is a joint punt between Gitanjali Group and Dubai-based Damas based inMumbai. It has a presence in 159 towns and cities acrossIndia. It briny area of business is manufacturing and marketing of gold, diamond, silver, platinum mark jewellerys inIndia. It has six sub brands Lamhe, Glitterati, Vivaaha, DER, Solitaire and Saumya. It is also only multinational brand inIndia. DDamas India also used as manufacturing base and will export jewelleries to markets like Saudi Arabia, Japan, US and atomic number 63 markets. * MAYA GOLDMAYA is the brand from the Gitanjali Gold Collection specifically aimed at the Indian wedding market and similar festivities and traditional occasions for gift-giving, especially from parents to daughters. Lucera, Calgaro, Rivaaz, Kashvi, Stefan Hafner, Ezee Diamonds, Aakanksha, Rosato, Shuddhi, Parineeta, Sagaee and Menz are some other brands which sell its products in India through with(predicate) its vast network of 1,250 outlets including outlets in drove stores. In fact, five of the top six brands in the Indian market are owned or managed by Gitanjali.These brands manifest the signifi cornerstonece of the group in the Indian Jewellery retailing market. Additionally, the Company operates 143 retail Jewellery stores located across the United States through the acquisitions of Samuel Jewellers and Roger Jewellers. Activities down the stairstaken by Gitanjali- * Sourcing and Trading of coarse Diamonds * Diamond Manufacturing * Distribution and Trading of Polished & Cut Diamonds * Jewellery Manufacturing and Exports * Jewellery Sourcing (Local & International Markets) * Manufacturing Branded Jewellery * Retailing Branded JewelleryOBJECTIVES * The main objective of this term paper is to understand the value chain and its strategic dissemination presence of GITANJALI in India. * To conduct a market survey in ord er to know the 1) Consumer perception about jewellery. 2) Brand cognizance of various brands in jewellery market. 3) Parameters which the consumer considers while buying jewellery. * To critically shew the company and the environment by conducting the SWOT and PORTERS 5 FORCE ANALYSIS. * To analyze and evaluate the financial performance of GITANJALI over the years. To highlighting the CSR initiatives and the CORPORATE GOVERNANCE taken up by GITANJALI to uplift the society. * To arena about the aggressive retail strategy and its growing focus on International and Domestic Reatail. SWOT ANALYSIS OF GITANJALI STRENGHTS Large integrated diamond & jewellery player and having an international presence. Pioneers of branded jewellery in India. steady marketing & distribution network. Strong retail presence in India and in U. S. 112 distributors and 1246 outlets in India and 143 outlets in U. S. Strong brand equity and broad product range Such as, Gili, Asmi, Nakshatra, Sangini, Ddamas , Vivaaha, Maya, Giantti, Desire, Samuels etc. Visionary leadership (Acquiring Nakshatra, Samuels, Rogers etc. ) Expanding manufacturing capabilities in Mumbai and at special economic zone in Surat to overlay increasing demand. Net Worth is 3,460. 37 one thousand million Rs. So we can say that it is financially very strong company. Sight holder status with DTC through a promoter group company. Highly skilled, qualified and motivated employee. WEAKNESSES There may be conflicts of interest between them and certain of their booster group companies. As the major raw material requirements need to be imported, companies normally stock huge quantities of inventory resulting high inventory carrying costs. engineering science is less improved compared to China and Thailands company. OPPORTUNITIES New markets in Europe & Latin America. Growing demand in South Asian & removed East countries. Industry moving from a phase of consolidation. Expansion possibilities in lifestyle and luxury pr oducts in India like watches, leather goods, Platinum jewellery because increasing disposable income of people.THREATS International Competition-China, Sri Lanka and Thailands entry in small diamond jewellery. Increase in the price of Gold & Diamonds. different local competitors. According to the data 97% jewellery sales are by family jewellers. Threat from producing nation like S. A. & Russia. VALUE CHAIN OF GITANJALI * Sourcing and Trading of Rough Diamonds * Diamond Manufacturing * Distribution and Trading of Polished & Cut Diamonds * Jewellery Manufacturing and Exports * Jewellery Sourcing (Local & International Markets) Manufacturing Branded Jewellery * Retailing Branded Jewellery DISTRIBUTION AND RETAIL system OF GITANJALI GITANJALI RETAIL BUSINESS * Gitanjali has strong retail presence in the worlds largest markets for jewellery. Retail business is a major Contributor in Gitanjalis revenue. Gitanjali has over 2000 plus retail outlet across India and in the process of expans ion in grade II and III cities to cater to unused segment of the customer. * USA is a largest jewellery consuming country and 45% of worldwide diamond jewellery sales are made in the United States.In FY 2007-08, Gitanjali made a strategic acquisition in USA, including Samuels and Rogers, and now has about 137 stores in Centre and across USA, being expanded to 200 stores in the nigh future. * Samuels and Rogers of Gitanjali are the 8th largest branded jewellery retail chain in US. * Gitanjalis integrated supply chain business model has devoted an advantage to survive and post profit despite of US recession. * Gitanjali retail business has spread through all channels and in all geographies, across all the market segments * Net Profit has gone up because of shift in market from wholesale to retail. * RETAIL EXPANSION STRATEGY IN INDIA * The Changing Socio economic factors in India lay downd a clear luck in Lifestyle and Luxury markets in India. These changes in retail environm ent have created opportunity for establishment of modern retail formats. Keeping this in view Gitanjali has embarked on an aggressive domestic retail expansion plan. * Gitanjalis strategy is to increase the market share of various brands and its positioning in the market. Strategy is to arrive demand for branded diamond jewellery in the future. Flagship product brands of the company are able to convert themselves into retail brands. * The group has introduced much promising brands to its bouquet. The unfermented collection includes World of Solitaire, World of Silver, ME Solitaire, Maya, Gitanjali Menz, Maya Bridal, Bezel and many more. * Gitanjali notable innovation has been its dramatic breakthrough from the confines of traditional distribution of jewellery and launching of mass distribution through variety of channels. By passing the old world of neighborhoods proprietary jewellery stores, it brought its new world branded jewellery into the world of super stores and departme nt stores, dedicated jewellery marts and chain stores supported by international certifications of scientifically tested naturalness and authenticity. * Gitanjali is even marketing its branded jewellery directly by get away order catalogue Gitanjali placed its jewellery brands right into the context of the new consumers shopping environment of new and global branded private goods and accessories. Gitanjali supported its brand with high-visibility positional branding in both mass and local up-market media. With this multi tiered mobilization of formats, Gitanjali is well placed to advance and solve its vision of global leadership. GITANJALI FINANCIAL PERFORMANCE The Company is making painstaking efforts in addressing the large market opportunities that exist in the Diamond fragment both in India and abroad. India, China, Israel and Belgium are the leading players in the diamond cutting and polishing industry.India accounts for 60% of the global polished diamonds in value terms, 80% in caratage and 90% in pieces. TURNOVERS & PROFITS During the end of the financial year edge 31, 2009 the sales and other income increased from 26,549. 08 Million to Rs. 26,940. 64 Million. The net profit before tax stood at Rs. 1,307. 20 million as against Rs. 1,486. 75 million in the previous year. The net profit after tax stood at Rs. 1,267. 69 million as against Rs. 1,381. 55 million in the previous year. FINANCIAL REVIEWGitanjali Gems consolidated results of operations for the year ended March 31, 2009 include business and operations of the various subsidiaries/joint ventures. The company has achieved overall sales growth for the year ended March 31, 2009 of about 5% compared to last year. The gross revenue from diamond segment has decreased by 10% whereas the gross revenue from jewellery segment has substantially increased by 24% and thus the ratio of diamond and jewellery in the sales mix accordingly has improved more favourably towards jewellery from 5545 last year to 4753 for the year ended March 31, 2009. HIGHLIGHTS FOR THE YEAR 2010 * * Jewellery gross sales turnover increased by 60% to 1,098 cr. in FY10 * * EBIDTA gone up by 44% to 102 cr. in FY10 * * Operating Profit registered a growth of 51%, stood at 91 cr. * * PAT of FY10 stood at 41 cr. registering an increase of 39% * * Gems and Jewellery Sales volume grown to 1812 cr. reported a growth of 63% NINE MONTHS FY10 vs. NINE MONTHSFY09 * Jewellery Sales turnover increased by43%toRs. 2703 cr. as compared toRs. 892 cr. in golf club months current FY09 * EBIDTA gone up by37%toRs. 307 cr. fromRs. 223 cr. in nine months period FY09 * PAT of nine months period FY10 stood atRs. 139 cr. as compared to Rs 120 cr. in nine months period FY09 registering an increase of16% * Operating Profit of nine months period FY10 stood atRs. 283 cr. as compared toRs 201 cr. in nine months period FY09, registering an increase of41% GITANJALI CORPORATE SOCIAL RESPONSIBILTY (CSR) INITIATIVES AND CORPORATE GOV ERNANCE HUMAN RESOURCESThe Company believes investing in people through creating an environment where people are valued as individuals and are given equal opportunities for achieving professional and personalised goals. The Companys focus on development of Special economic Zones includes huge employment opportunities and the Company already initiated through setting up training centre in SEZ Hyderabad which has a capacity to train more than 1,500 workers in diamond and jewellery manufacturing. CORPORATE GOVERNANCE The Companys philosophy of incorporated boldness is based on preserving core set and ethical business conduct, commitment to maximize shareholder alue on a continuous basis while looking after the welfare of all the stakeholders which is primary responsibility of the Board of Directors, Management and employees. The Compliance of clause 49 of the listing agreement has undoubtedly raised the standard of Corporate Governance in India. However, regulatory directives and enforcement will not be sufficient to create a best in class transparent organisation. The corporate face philosophy is based on the following principles * Satisfy the spirit of the rightfulness and not just the letter of the law. Be transparent and maintain a high degree of disclosure levels. * Continuously innovate and adapt the Corporate Governance * Practices so as to meet new demands and tap new opportunities. * Comply with the laws in all the countries in which we operate. * Management is the trustee of the shareholders capital and not the owner. CORPORATE SOCIAL RESPONSIBILITY The CSR initiative under the observe Sambhav brings together the different social programs that Gitanjali has been associated with over the years. These are programs in the fields of education, health, providing employment to PWDs.It focuses on integrating all of them and other different initiatives like Saksham, Saakshar, Sujyot and Sneh. The focus will be both on strengthening the animate programs as well as developing new ones too. It further aims to take this CSR initiative to new heights and is in the process of channelizing all their strengths and efforts to form a strong CSR team within the company to encourage and promote a wide range of social welfare activities internally or in partnering with other NGOs and government bodies. SOME ACTIVITIES UNDERTAKEN BY GITANJALI Rose day celebration for crab louse patients Gitanjali Gems Limited supported Cancer Patients Aid acquaintance (CPAA) in its celebration ofThe rose day aday to make a difference in the lives of cancer patients. CPAA reaches out to cancer patients through medicines, counselling, research and rehabilitation. * Special rakhies by special children Gitanjali gems continues to support to ADAPT (spastic society) by organizing a sale booth of their products at Gitanjali gems Marol officeon eleventh Aug 2011,on the eve of Rakshabandhan.We repeated the achievements of last year by cause and appreciating the e fforts of these specially abled children by having sale of products close toRs 10000/-. The staff was exceedingly enthusiastic and extended their support through 100% participation. * Presentation on Diabetes awareness and healthy life style Today Diabetes is one of the fastest growing lifestyle disease, with Indians being the largest population affected by it. A presentation on diabetes awareness and healthy life style was organized on 25th July 2011 atTransmission house ,Marol , for the benefit of the employees .It indicated the causes , symptoms ,prevention and mend for diabetes. A full house attendance showed the concern most of us have about this booming disease. * Lecture on The damaging personal effects of tobacco at Gemplus As a part of SAMBHAV , CSR initiative ,The detrimental Effects of tobacco plant were highlighted at a presentation made under the Tobacco Intervention Initiative (TII) program of the Indian Dental linkup (IDA) for the staff and workers of Gem plus ,Gitanjali Gems, Mumbai on 11th June 2011 by Miss. Tejal Rajgor.Tobacco leads to heart and blood vessel disease, heart attack, chest pain, sudden cardiac death, stroke, peripheral vascular disease (Gangrene of legs) plus it is also responsible for cancer of various parts of the body like mouth, throat, lungs, stomach, kidney, bladder etc. Gitanjali Gems staff members felt that on that point was an urgent need for more prohibition of tobacco usage and this wont happen until there is a public outcry, so meetings like these are designed to generate awareness in the hope of making the come community off to request change.