INDIAN JEWELLERY INDUSTRY

Prepared By
Dalal Chintan Dalal Nirav Khushva Anand Pipali a !anisha #hah !auli$ (05) (06) (18) ("5) (50)

Submitted To
Prof. Jinal Nagad

Ag%nda
&ntrodu'tion (%n%ri' )usin%ss *%v%l #trat%g Port%r+s ,iv% ,or'% !od%l #-./ Anal sis 0alu% Chain K% #u''%ss ,a'tor

&ntrodu'tion
&ndia is a l%ading pla %r in th% glo1al g%2s and 3%4%ll%r 2ar$%t /h% g%2s and 3%4%ll%r industr o''upi%s an i2portant position in th% &ndian %'ono2 . &t is a l%ading for%ign %5'hang% %arn%r6 as 4%ll as on% of th% fast%st gro4ing industri%s in th% 'ountr /h% t4o 2a3or s%g2%nts of th% s%'tor in &ndia ar% gold 3%4%ll%r and

dia2onds. (old 3%4%ll%r for2s around 80 p%r '%nt of th% &ndian 3%4%ll%r 2ar$%t6 4ith th% 1alan'% 'o2prising fa1ri'at%d studd%d 3%4%ll%r that in'lud%s dia2ond studd%d as 4%ll as g%2ston% studd%d 3%4%ll%r . /h% &ndian g%2s and 3%4%ll%r industr is 'o2p%titiv% in th% 4orld 2ar$%t du% to its lo4 'ost of produ'tion and th% availa1ilit of s$ill%d la1or. &n addition6 th% industr has s%t up a 4orld4id% distri1ution n%t4or$6 of 2or% than 76000 offi'%s for th% pro2otion and 2ar$%ting of &ndian dia2onds.

&ndian r%tail 3%4%ll%r ov%rvi%4

Yesterday 8n1rand%d #ilv%r 9 (old 3%4%ll%r &nv%st2%nt /raditional d%sign Today )rand%d (old 9 Dia2ond 3%4%ll%r &nv%st2%nt : ,ashion ,ashiona1l% 9 innovativ% d%sign

!arriag% 9 f%stival is p%a$ s%ason -%ara1ilit and gifts J%4%ll%r sold on 'o22odit 1asis J%4%ll%r 1%ing sold on a p%r pi%'% 4ith la1our 'harg%s 1asis

Conti;
Major P ayers! 0ai1hav (%2s *td. Classi' Dia2ond (&ndia) *td. #hr%nu3 9 Co2pan *td. (oldia2 int%rnational *td. #u<ra3 Dia2onds 9 J%4%ll%r *td. =a3%sh >5ports Pvt. *td (itan3ali (%2s *td

"ITANJALI "EMS LTD# Busi$ess %&er&ie'

Estab is(ed prese$)e /h% 'o2pan 3%4%ll%r is on% of &ndia+s larg%st int%grat%d dia2ond and 'o2pani%s >sta1lish%d in 1?86. #ight hold%r status 4ith 2anufa'turing

D/C through a pro2ot%r group 'o2pan #ophisti'at%d and s'ala1l% dia2ond and 3%4%ll%r fa'iliti%s Appro5i2at%l 16@"6 r%tail outl%ts in &ndia and 1"7 outl%ts in th% 8.#. Leadi$* bra$ds

E+pa$sio$s =a2ping up th% r%tail 'hain >5panding stor%s in &ndia A'Auisitions in'luding #a2u%ls6 =og%rs and /ri<#tar Plans to 2a$% furth%r inorgani' gro4th in th% 8.#. 9 ,ar<%ast >5panding 2anufa'turing 'apa1iliti%s to addr%ss in'r%asing d%2and

Di&ersi,i)atio$ (itan3ali *if%st l%s to fo'us on !anufa'tur% and distri1ution .f lu5ur and lif%st l% produ'ts D%v%loping @00 a'r%s g%2s 9 J%4%ll%r #>B in C d%ra1ad Plans to d%v%lop 2or% #>Bs fo'us%d on g%2s 9 3%4%ll%r a'ross &ndia /o partn%r for d%v%loping r%al %stat% infrastru'tur%

,urth%r

int%gration 4ithin th% 3%4%ll%r valu% 'hain Cigh%r 2argins in r%tail 1usin%ss Cigh%r valu% addition

*%v%rag% its $% str%ngths *arg% opportunit for in'r%2%ntal r%v%nu% Div%rsif 1usin%ss 2od%l

"e$eri) Busi$ess Le&e Strate*y

Mi)(ae Porter-s .i&e .or)e Mode ,or Je'e ery I$dustry

P./>N/&A* N>- >N/=D

&ND8#/=D C.!P>/&/.=# #8PP*&>= )8D>=#

=&0A=D A!.N( >E&#/&N( ,&=!#

#8)#/&/8/>#

I$ter/.irm Ri&a ry
&ndia.

0i*(

F /4o t p%s of rivalr . (1) &nsid% &ndia 9 (@) .utsid%

F *arg% pr%s%n'% of unorganiG%d s%'tor. 0.@ !illion (old 3%4%l%rs and ov%r 86000 Dia2ond 3%4%l%rs F &nt%rnational rivals #u'h as6 China F /hr%at fro2 produ'ing nation li$% #.A. 9 =ussia.

Bar*ai$i$* Po'er o, Supp iers F

Medium

I$ je'e ery i$dustry t(e supp iers are S#A#1 UAE1 Austra ia1 US1 2o$*o1 Bots'a$a1 Russia1 DT2#

F F F

.e' A ter$ati&es o, )utti$* 3 po is(i$*# S4i ed abor Bar*ai$i$* po'er o, I$dia is e$(a$)ed be)ause I$dia is ar*est )o$sumer o, *o d je'e ery#

Bar*ai$i$* Po'er o, Buyers Lo' F Di&ided i$ t'o types 6# .orei*$ buyers F F As i$&estme$t 7Dema$d i$)rease8 Bar*ai$i$* po'er o, I$dia$ e+porter is (i*( be)ause Majority o, t(e 'or d9s rou*( diamo$d produ)tio$ is )ut a$d po is(ed i$ I$dia. 5# Domesti) buyers 3

T(reat o, Substitutes! F

Lo'

Substitutes are Rea assets1 Sto)4 mar4et1 3 Ba$4 deposits 3 mutua ,u$d i$&estme$t a$d %t(er types o, je'e ery i4e imitatio$ je'e ery1 ba*asra je'e ery1 sto$e je'e ery et)# Se)o$d pre,erred i$&estme$t be(i$d ba$4 deposits Status a$d sta$dard o, i&i$* i$)rease so dema$d is i$)reasi$* at (i*( rate# Lo' to Medium Lo' )apita re:uireme$t "o&er$me$t subsidy E;IM po i)y 3 *o&er$me$t-s ru es/re*u atio$s are (i*( S4i ed ma$po'er is esse$tia Ad&a$)ed te)($o o*y re:uired

F F

Barriers to e$try F F F F F

SW%T ANALYSIS %. "ITANJALI JEWELLERY LTD Strengths

F F F

*arg% int%grat%d dia2ond 9 3%4%ll%r int%rnational pr%s%n'%. Pion%%rs of 1rand%d 3%4%ll%r in &ndia.

pla %r and having an

#trong 2ar$%ting 9 distri1ution n%t4or$. #trong r%tail pr%s%n'% in &ndia and in 8.#. 11@ distri1utors and 1@"6 outl%ts in &ndia and 1"7 outl%ts in 8.#. #trong 1rand %Auit and 1road produ't rang% #u'h as6 (ili6 As2i6 Na$shatra6 #angini6 D+da2as6 0ivaaha6 !a a6 (iantti6 D%sir%6 #a2u%ls %t'. 0isionar l%ad%rship (A'Auiring Na$shatra6 #a2u%ls6 =og%rs %t'.) >5panding 2anufa'turing 'apa1iliti%s in !u21ai and at sp%'ial %'ono2i' Gon% in #urat to addr%ss in'r%asing d%2and. N%t -orth is 76"60.7H 2illion =s. #o 4% 'an sa that it is finan'iall v%r strong 'o2pan . #ight hold%r status 4ith D/C through a pro2ot%r group 'o2pan . Cighl s$ill%d6 Aualifi%d and 2otivat%d %2plo %%.

F F F F F

Wea4$esses F /h%r% 2a 1% 'onfli'ts of int%r%st 1%t4%%n th%2 and '%rtain of th%ir Pro2ot%r group 'o2pani%s. F As th% 2a3or ra4 2at%rial r%Auir%2%nts n%%d to 1% i2port%d6 'o2pani%s nor2all sto'$ hug% Auantiti%s of inv%ntor r%sulting high inv%ntor 'arr ing 'osts. F /%'hnolog is l%ss i2prov%d 'o2par%d to China and /hailand+s 'o2pan . %pportu$ities F N%4 2ar$%ts in >urop% 9 *atin A2%ri'a. F (ro4ing d%2and in #outh Asian 9 ,ar >ast 'ountri%s. F &ndustr 2oving fro2 a phas% of 'onsolidation. F >5pansion possi1iliti%s in lif%st l% and lu5ur produ'ts in &ndia li$% 4at'h%s6 l%ath%r goods6 Platinu2 3%4%ll%r 1%'aus% in'r%asing disposa1l% in'o2% of p%opl%. T(reats F I$ter$atio$a 2ompetitio$I<China6 #ri *an$a and /hailandJs %ntr in s2all dia2ond 3%4%ll%r . F &n'r%as% in th% pri'% of (old 9 Dia2onds. F .th%r lo'al 'o2p%titors. A''ording to th% data ?HK 3%4%ll%r sal%s ar% 1 fa2il 3%4%l%rs. F /hr%at fro2 produ'ing nation li$% #.A. 9 =ussia.

<ALUE 20AIN
Dia2ond polishing Dia2ond Distri1ution #hopping >5p%ri%n'%

=ough Distri1ution

J%4%ll%r !anufa'turing

J%4%ll%r =%tailing

Dir%'t ,ro2 !in%s

J%4%ll%r 4hol% s%lling

J%4%ll%r )randing

.i$a$)e F /h% 'o2pan +s op%rations running a'ross th% 4hol% valu% 'hain so finan'% is th% v%r 2u'h i2portant fa'tor. -or$ing 'apital r%Auir%2%nt is 2u'h 2or%. /h% 'o2pan is having finan'% fro2 various sour'%s li$% shar%s6 1an$ loan6 and 'r%dit lin%. /h% 'o2pan is having lat%st t%'hnologi'al 2anufa'turing plants. &ts 1rand%d sho4roo2s 9 oth%r outl%ts ar% having good infrastru'tur%. &t is also having plants in sp%'ial %'ono2i' Gon% at various pla'%s /h% 'o2pan pro'ur%s its ra4 2at%rials6 2a'hin%r 9 oth%r an'illar things fro2 r%'ogniG%d sour'%s. /h% 'o2pan is having good 'r%dita1ilit 4ith suppli%r. &t has to 2aintain its r%lations 4ith diff%r%nt sight hold%r for pro'ur%2%nt of dia2ond for 3%4%ll%r 2a$ing.

I$,rastru)ture F

Pro)ureme$t F

Te)($o o*y F /h% 'o2pan is using lat%st t%'hnolog in pro'%ssing 2%ans 3%4%ll%r 2anufa'turing 9 also in d%signing. /h% 'o2pan is having 1usin%ss in so 2an 'ountri%s so that it has to pa att%ntion ov%r th% d%signing6 2anufa'turing %t'. 4ith th% high t%'hnolog to satisf 1u %r+s n%%ds . 0uma$ resour)es F As of #%pt%21%r 706 @0056 th% Co2pan had "10 full<ti2% %2plo %%s6 of 4hi'h appro5i2at%l 11H %2plo %%s 4%r% %2plo %d at its 'orporat% offi'%s in !u21ai. &n addition6 as of #%pt%21%r 706 @0056 its su1sidiari%s6 3oint v%ntur%s and asso'iat% 'o2pani%s %2plo %d in th% aggr%gat% 2or% than H"0 %2plo %%s6 in'luding @50 %2plo %%s in its r%tail op%rations.

=EY SU22ESS .A2T%R 7=S.8

Mar4eti$* 3 Distributio$ re ated ,a)tor! #trong r%tail pr%s%n'% in &ndia and th% 8.#.I /h% 'o2pan is o''up ing good position in r%tail 3%4%ll%r provid%r in 1oth &ndia as 4%ll as 8.#. (itan3ali has a strong n%t4or$ of distri1ution. C%r% #trong r%tail pr%s%n'% in &ndia and in 8#. &t has 11@ distri1utors and 1@"6 outl%ts in &ndia and 1"7 outl%ts in 8#. #trong 1rand %Auit and 1road produ't rang%I &t is th% pion%%r of 1rand%d 3%4%ll%r in &ndia. &t 1rand %Auit is too high. #ignifi'ant fo'us on r%tail and distri1ution n%t4or$ to driv% gro4thI &t also $%%ps in 2ind distri1ution n%t4or$ 4hi'h provid% th% produ't to %nd us%rs. /h% 'o2pan is having its r%tail outl%ts also. Ma$u,a)turi$* re ated ,a)tor! #ophisti'at%d 2anufa'turing fa'iliti%s in'luding up'o2ing C d%ra1ad #>BI /h% 'o2pan is having good infrastru'tur% fa'ilit in various sp%'ial %'ono2i' Gon%s. (itan3ali has 1%%n a'hi%v%d %'ono2i%s of s'al% and l%arning 'urv% %ff%'ts 4hi'h is 1%n%fit%d in lo4 'ost produ'tion 1%'aus% in &ndia s$ill%d la1or is availa1l% at 'h%ap%r rat%.

Te)($o o*y Re ated ,a)tor! F (itan3ali has %5p%rtis% in 'utting6 polishing th% dia2onds and in d%signing th% 3%4%ll%r (sp%'ifi'all in s2all d%sign). F Pr%s%n'% a'ross th% 4hol% valu% 'hain I /h% first 9 for%2ost su''%ss fa'tor for th% 'o2pan is of its pr%s%n'% a'ross th% %ntir% valu% 'hain 0uma$ Resour)e a$d Top Ma$a*eme$t re ated ,a)tor! F 0isionar l%ad%rship and a d%%p 2anag%2%nt t%a2 F #trat%gi' A'Auisition of /ri<#tar I !anufa'tur%r and glo1al distri1utor of CanadiaL 1rand dia2onds and dia2ond 3%4%ll%r in various 'ountri%s6 su'h as Australia6 Canada6 >ngland6 &r%land6 North%rn &r%land6 N%4 B%aland6 #'otland6 and th% 8nit%d #tat%s

/han$ ou;..