Professional Documents
Culture Documents
Group No. 03 Abhijit Sharma Harshvardhan Koushik Kumar Md. Zia Raman Pathak Roll No. 01 Roll No. 21 Roll No. 23 Roll No. 26 Roll No. 34
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Chairmans Desk
Since 1966, Gitanjali has come a long way. Our strength and success can be attributed to our efficient management, modern operation systems, uncompromising quality control and dynamic workforce; but above all, it is our desire and vision that has accentuated our growth.
Company Overview
Founded as a single company cutting and polishing diamonds for the Jewellery trade at Surat, Gujarat, in 1966 headed by Mr. Mehul Choksi . Incorporated on August 21, 1986 as a private limited company and subsequently converted into Gitanjali Gems Limited. One of largest manufacturer and retailer of diamonds and Jewellery in India. Operations included sourcing of rough diamonds from primary and secondary source suppliers in the international market, cutting and polishing the rough diamonds for exports to international markets and the manufacture and sale of diamond and other Jewellery through retail operations in India as well as in international markets.
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External Factors
The Diamond Manufacturing Industry Gems and Jewellery Industry (India) Structure of Gems and Jewellery Industry in India Retailing of Diamond Jewellery Gold Jewellery Branded Jewellery in India Government Initiatives and Regulations Gems and Jewellery Export Promotion Council Demand Conditions Supply Conditions Competition
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Gold Jewellery
In India, gold is a preferred form of Jewellery and a popular investment vehicle for savings after gold deposits. Majority of gold demands are met through imports In 2004, India accounted for 0.4% of total gold production making it the largest importer of gold in the world. Indian export of gold Jewellery were Rs. 17.3 billion in FY 2004 2005. Gold export from India increased at a CAGR of 34.4%. UAE & USA were the major export destination and constituted approx 85% of gold Jewellery exports from India in FY 2005. 13
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Demand Conditions
Demand depends on various factors such as Economic growth Employment levels Income levels Tax rates Credit availability Styles offered by various gems and Jewellery producers also effects market demand. Promotion is the key success factor for various brands.
Supply Conditions
Price fluctuations in process of precious metals and precious and semi precious stones. Monopolistic approach to restrict supply of rough diamonds throughout the world (i.e., Cartels). Increase in price of diamonds adversely affected consumer demand causing decline in sale. Changes in currency exchanges influence cost of inputs and outputs. ($).
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Competition (1/3)
Current & Political Competitors Include:
Independent Jewellery Stores Retail Jewellery Store Chains Wholesale diamond traders
Competition (2/3)
Primary Competitors:
Mehrasons Jewellers (Delhi) Tribhuvandas Bhimji Zaveri (Mumbai) B.C. Sen and P.C.Chandra (Kolkata) G.R.Thanga Maligai (Chennai) C. Krishnaiah Chetty (Bangalore) Tanishq (set up in 1994 gave tough competition by way of reducing manufacturing costs, quick deliveries, reduced inventory holding, quicker communication and elimination of logistics costs and quicker lead time.
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Competition (3/3)
Laxmi Dia Jewel Pvt Ltd , Surat was the second largest exporter of polished diamonds. Rajesh Exports Ltd (Bangalore) was the worlds largest gold Jewellery manufacturer and the country largest exporter of gold Jewellery. Swarnmandir Jewel Designer (Karnataka) was known for its exclusive designer series (916) handicraft gold Jewellery. Platinum Guild International (Platinum Jewellery Brands) (Dew Drops). Zirconium Jewellery was gaining popularity by Brand Ishtaa.
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Internal Factors
Infrastructure Human Resources Technology Procurement Manufacturing Marketing Distribution Customer Relationship Management Acquisitions & Alliances
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Gitanjali Gems
Integrated diamond and Jewellery manufacturing company and one of the largest manufacturers and retailers in India. Accorded a sightholder status with DTC in 1968, one of the first in India. Initially limited to manufacturing and export of cut and polished diamonds to various international markets. In 1990 commenced production and in 1994 opened retail sales of Gili, one of the first branded Jewellery lines introduced and awarded a superbrand status by Times Of India in 2004.
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Infrastructure
Specialized factories in different parts of the world.
Diminco Pacific Manufacturing Co Ltd (China) Gemsiam Manufacturing Co Ltd (Thailand) Hai Duong Diamond Factory (Vietnam) Special Economic Zone (Gujarat) Diamond Cutting & Polishing (Mumbai) Santacruz Electronic Export Processing Unit (Mumbai) Two Modern Jewellery Manufacturing Facilities (Mumbai, Hyderabad) Sophisticated manufacturing facilities, strong design capabilities and focus on stringent quality control. Large customer-base outside India, including jewelry manufacturing , large deparmental store chains, retail store and wholesalers.
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Human Resource
2,300 employees as on 2005 Out of which 1,800 employees at manufacturing facilities More than 250 employees in retail operations 410 full time employees Out of which 117 employees at Corporate office Senior Management with significant Industry experience was instrumental in the consistent growth in revenues and operations. Employee motivation and empowerment were the key to competitive advantage. Regular Staff Training Programs Leadership Programs Performance Enhancement Programs Benefits to employees included medical expenses, housing or rent assistance, annual leave and travel allowance, PF, healthcare, schooling, pension and group gratuity .
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Technology
Achieved an International first by perforating heart cut diamonds and making them available in affordable process between Rs. 1,000 to 6,000. It took two years and 250 carats value at Rs. 2 crore for Gitanjali Laser House to perfect the technology.
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Procurement (1/2)
Operations and revenues were dependent upon availability of rough diamonds. World's know sources were Angola, Australia, Botswana, Brazil, Canada, Ghana, Russia, South Africa. Procurement at competitive prices from Diamond Trading Company (DTC), De Beers, S.A from London and South Africa to a selected groups or Sight Holders Gitanjalis employees attended offerings of rough diamonds held by DTC periodically at London. At Sight, they purchased a series of composite rough diamonds at DTCs stated price.
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Procurement (2/2)
In 2000, DTC announced significant changes in its approach to rough diamond marketing by stopping open market purchases, alter its market control and pricing policies by way of Supplier of choice marketing programs. Gitanjali was able to combat these changes by broadening the sales base and implemented strict inventory, pricing and purchase controls to decrease the impact of price fluctuation. Sophisticated rough diamond evaluation program and inventory utilization programs.
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Manufacturing
Diamond Manufacturing was a Labor Intensive process requiring specialized knowledge and skills. Steps Involved in Diamond Manufacturing
Polishing
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Marketing (1/2)
Offering a comprehensive range of diamonds and other Jewellery products aimed at: Various Jewellery categories. Different customers and price segments. During various festive and social occasions by offering custom made Jewellery. Branded Jewellery enjoyed significant brand equity which gave Gitanjali a competitive edge. The sub collection D Damas was particularly noted for Wedding and general collection.
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Marketing (2/2)
The company was under the process of registering 24 trademarks in India in connection with braded Jewellery lines. Innovative designs and product lines enabled Getanjali to develop brand and increase retail sales. Gili brand was introduced in 1994 and was among the first branded Jewellery introduced in India. DTC permitted Gitanjali another three site holders and this paved way for launching the new products under the Nakshatra brand. In 2004, Gili was selected as the Super Brand by the Indian Consumer Super brand Council. In 2004, the company began selling branded gold Jewellery to different consumer segments (in association with World Gold Council) under the brand names Collection G, Gold expressions, and vivaha Gold. In 2001, Gitanjali launched the buy back scheme for diamonds. Aggressive Marketing Campaigns by way of Advertising.
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Distribution
Independent sales and distribution network for diamonds and Jewellery products. Promoter group companies outside India played major role in developing strong relationships with customers in the international markets. Wholesalers acted as procurement agents for Jewellery retailers in the international market . Back home gitanjali has a strong sales and distribution channel by way of exclusive distributors, direct sales to large departmental stores and reputed Jewellery lines, and direct sales to and customers through retail operations. 12 retail outlets were established as franchisees. Gili brand was sold though an independent distribution network through regional offices and operations were handed through retail outlets in host stores (Shoppers stop)
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Today
Marriage & festivals - peak season Gifts & Personal use Jewellery sold on commodity basis Jewellery being sold on a per piece with labor charges basis
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Some Advantages
Forward Integration Unique Production houses for Retail & Wholesale. Low labor has helped GITANJALI GEM LTD. to sustain in the market (Capital Intensive) Recruitment of technologist have helped them in attaining the point of difference. Consumption of jewellery is affected by Culture. (Diwali, Akshya Tritya, Christmas)
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Value Chain
Diamond Polishing Diamond Distribution Shopping Experience
Rough Distribution
Jewellery Manufacturing
Jewellery Retailing
Jewellery Branding
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Market Development
Product Development Product poliferation Replacement of unsold stock on quarterly basis Continuous process of product development
Product Development
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