UNIVERSITY OF MUMBAI

PROJECT ON: A STUDY ON DIAMOND MARKET IN INDIA WITH SPECIAL REFERENCE TO SOUTH MUMBAI

LALA LAJPAT RAI COLLEGE OF MANAGEMENT MAHALAXMI, MUMBAI – 400034

SUBMITTED BY: KAVISH SHAH SYBMS B – SEMESTER IV

PROJECT GUIDE: DR. VINAY PANDIT

ACADEMIC YEAR: 2013-2014

CERTIFICATE

I, Dr.Vinay Pandit, hereby certify that Kavish Shah of SYBMS (Div – B) of Lala Lajpat Rai College of Commerce and Economics has successfully completed a Research Project on the topic ―A STUDY ON DIAMOND MARKET IN INDIA WITH SPECIAL REFERENCE O SOUTH MUMBAI‖ in the academic year 2013-2014. The Information submitted is True and original to the best of my knowledge.

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_____________________ Signature of BMS Co-

________________________ Signature of the External Guide

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Date: Place:

DECLARATION

I, Kavish Shah of SYBMS (Div – B) hereby declare that I have completed this project on ―A STUDY ON DIAMOND MARKET IN INDIA WITH SPECIAL REFERENCE OF SOUTH MUMBAI‖ in the academic year 2013-2014. This information provided by me is true and original and to the best of my knowledge.

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Dr. working on this project would not have been so pleasurable and interesting. With their help. I would like to thank a lot of people without whose co-operation and support.ACKNOWLEDGEMENT I would like to thank my professor. the project was done with ease.Vinay Pandit who gave me this opportunity to make this Research project through which I gained valuable information on ―RESEARCH ON DIAMOND MARKET WITH REFERNCE TO SOUTH MUMBAI would also like to thank all my friends for helping me out and making this project successful. . These acknowledgements are one way where I can actually thank the people who have been instrumental in the making of this research project. Lastly.

It includes insights about the remarkable rise. utilized this opportunity to develop indigenous methods of cutting and polishing of diamonds in small factories (CPD units). generally referred to in trade parlance as “roughs”. medium and large sized CPD (cut and polished diamonds) units and has grown to become one of the highest foreign exchange earners for the country. we believe that this success story of long waits to be documented in the business management literature. These were very small pieces of diamonds called as ‘grains of sand’ in diamond terminology. the . In order to excel. growth and the unique working of the industry The Indian diamond industry received significant attention in the media recently because about a hundred thousand workers lost their jobs in Nov 2008 when panic followed due to the impact of recession. this paper is an attempt to draw useful insights for the field of management with a balanced perspective on the industry. The finished product. it resembles a close-knit community composed of thousands of small. they have to overcome necessarily competition from manufacturing and cutting centers in other countries. India is the biggest diamond cutting and polishing centre in the world. as theirs is an export-oriented and importdependent industry. While we acknowledge the sensitivity and gravity of the issues and the need of reforms to address them. The industry depends entirely on imported raw material. The entrepreneurs from Gujarat in India. An in-depth study of the industry reveals that the so called unorganized sector is in fact highly organized and has great potential to offer useful insights to the field of management in terms of new forms of organizing. namely. However. business processing and for doing international business. The diamond exporters have developed a global outlook. Due to the manner in which the Indian diamond industry has organized itself and grown. networking. coupled with the kind of signals of recovery which have followed after the severe recession.EXECUTIVE SUMMARY The Indian diamond industry thrives in the atmosphere of secrecy and informality that envelops the diamond trade and has for long been labelled as an unorganized sector of the economy. The industry exports cut and polished diamonds worth US $ 22 billion annually and enjoy a 93 % market share of the global exports of cut and polished diamond pieces. Diamond is an 'export-led' and 'value added' industry. rough diamonds. Our study revealed that a few enterprising Indians who went to Antwerp agreed to bring to India the left-over’s of diamond rough for polishing.

. This was like outsourcing of low-valued diamond rough to an under developed country in those times. The prices of rough diamonds have increased sharply in the recent times pushing down margins further. Companies have started to look at more technological advance process to reduce manufacturing cost. predict future trends & understand supplier buyer demand. Thus this project will help us to understand how much technology has penetrated in the unorganized sector & how much more can be done to improve it further.processed diamond was then exported to the globally centralized trading market which existed in Antwerp.

NO PATICULARS PAGE NO 1-7 8.1: RESEARCH PROBLEM 3.60 .6: RESEARCH INSTRUMENT 3.46 47 .20 1 2 3 4 5 6 7 8 9 CHAPTER 1: INTRODUCTION CHAPTER 2: REVIEW OF LITERATURE CHAPTER 3: RESEARCH METHODOLOGY 3.9: RESEARCH LIMITATIONS CHAPTER 4: OVERVIEW ON CLIMATE CHANGE 4.2: OBJECTIVE OF STUDY 3.5: DATA COLLECTION 3.3: SCOPE OF STUDY 3.8: SAMPLING PLAN 3.4: HYPOTHESIS FORMULATION 3.16 17 .1: CRITERIA FOR EXTREME RAINFALL CHAPTER 6: DATA ANALYSIS &INTERPRETATION CHAPTER 7: CONCLUSION CHAPTER 8: BIBLIOGRAPHY CHAPTER 9 : ANNEXURE 21.1:CAUSES OF CLIMATE CHANGE CHAPTER 5: OVERVIEW ON RAINFALL 5.55 56 57 58 .7: RESEARCH DESIGN 3.28 28 .INDEX SR .

The Orloff. But how did the Indian diamantaires get the diamonds? The answer to this query lies in the business acumen and core competency of the early Indian diamantaires who migrated from small towns of Gujarat (specifically Palanpur in Surat and other nearby areas) to Antwerpen (in Belgium) which was then the diamond hub of the world. a niche field in which no other country had the mastery in. as major producers. The Great Mogul. which in the past were the exclusive preserve of only the rich and famous. India was the sole producer and supplier of diamonds to the world before the discovery of Brazilian fields till the 17th century and the later emergence of South Africa. which nobody was ready to process (less than two carats. supported by progressive Government policies. From humble beginnings. This achievement of the Indian diamond industry was possible only due to the fortuitous combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires. The visionary Indian diamantaires started their trade with the cutting and manufacturing of diamonds of very small sizes. India rose to become the world leader in a span of just two decades. Regent. were produces of India and many of these world famous diamonds were recovered from India in 16th & 17th centuries. especially one carat and lesser) and gradually made it their core competency.CHAPTER 1: INTRODUCTION From time immemorial. World famous diamonds such as the Koh-i-noor. Diamond production inIndia can be traced back to almost 8th century B.C. Russia and Australia. No other export segment of the country has such a significant share in the world market. India is very well known in the world as the birthplace for diamonds. a market dominated by the orthodox Jews of Israel who claimed expertise in the cutting and processing of large diamonds (sized more than two carats. remained undisputed leader till 18th century when Brazilian fields were discovered in 1725 followed by emergence of South Africa. Nassak. that in the remote past. It is rightly said. It is also said that. that India has indeed 'democratised' diamonds. and coupled with the lowest . It is difficult to trace the origin of diamonds but history says. It has remained the home of diamonds for over two millenniums.2 grams). 1 carat =0. Pitli and the Nizam etc. diamonds were mined only in India. Florentine. The Sancy Hope. The success story of the Indian diamond industry is unique. India in fact. Russia and Australia.

Family-owned businesses play a crucial role in the economy of most countries. The area of study of family owned businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations (not only in India. India assumed greater market presence in the global diamond industry. family-managed businesses employ half the world's workforce and generate well over half the world's GDP. . Worldwide. the analysis of which would help to internalize the attributes that have helped them achieve the stupendous growth. but all the diamond traders globally are family run businesses). In India.manufacturing and labour costs worldwide. it is estimated that 95 per cent of the registered firms are family businesses. In the United States. the small-scale industry. 24 million family businesses employ 62 per cent of the workforce and account for 64 per cent of the GDP. and the service sector is run by family businesses. Much of the retail trade.

―And. Rapaport is the founder of Rapaport Diamond Report and is a member of the World Diamond Council. company founder Govind Dholakia takes a philosophical view when explaining the Indian diamond industry’s exceptional growth through the past year.CHAPTER 2: REVIEW OF LITERATURE AHMEDABAD: American entrepreneur. Dholakia brings his own De Beers experience to illustrate the point. is for the good. ―We couldn’t understand why we lost our sight in 2008. ―If there is a problem. will guide diamond industry of Surat on fighting recession. known as a maverick within the diamond industry. and the subsequent polished was sold at around 75 percent of 2008 prices. explained that while the overall market focused on destocking in 2009.‖ As a former Diamond Trading Company (DTC) sightholder. as we’re a Top 10 manufacturer in India. Akshay Mehta. with the liquidity to do so. Martin Rappaport.‖ With DTC boxes selling at extremely low premiums. The company took the opportunity to buy rough at 42 percent below prices seen in 2008. I’ve never seen anything quite like it. ―In my 46 years in the industry. He will be amongst the main speakers on current global scenario of diamond. at the three day 'Sparkle International Gems and Jewellery Expo' beginning at Surat from tomorrow as part of the Vibrant Gujarat Global Investor's Summit 2009. took advantage of the opportunity to buy high volumes of rough while the getting was good.‖ The company was not alone in this experience. 2009 was a good year for us and we weren’t too affected by the recession. Shree Ramkrishna was able to buy large volumes of rough from sightholders and other sources in the market at cheap prices in the first quarter of 2009. It was a gift from God. we see it as an opportunity to progress. and others.‖ Dholakia quipped. although we were not a DTC sightholder. but we took it positively because we believe that whatever happens in life.‖ he explained. . industry sources said. Sitting in his office in the headquarters of Shree Ramkrishna Export in Surat. a director at Blue Star. ―Problem is progress. those who kept manufacturing were able to profit in the long run.

Gujarat Gems and Jewellery Export Promotion Council(GJEPC). local manufacturers in a strong. Sergey Sivovolenko and Chairman.The result has left many of the larger. Other prominent speakers at the expo will be CEO Octonus Finland. During the three day expo eminent speakers like director World Gold Council Dharmesh Sodah. organisers said." Gujarat region Chairman. Ramat Gan and elsewhere take a far more cautious approach. Global Business Merchandise head of Tanishq Alpana Parida. "Value addition to the polishing industry by setting up jewellery manufacturing units in the upcoming park at Icchapore will open new job avenues and help uplift the trade sentiment. regional head Asia International Diamond and Jewellery Group of ABN-Amro bank Biyananda Pattanayak are expected to deliver lectures on various issues related to diamond industry." state government officials said. Chandrakant Sanghvi." former president Surat Diamond Association Praveen Nanavati said. "The objective is to showcase Surat as an emerging destination of diamond jewellery manufacturing. . Dilip Mehta. Gujarat Chamber of Commerce and Industry and Gem and Jewellery Trade Council of India. liquid position in the current market — able to ramp up production and expand their operations while their counterparts in Antwerp. Rosby Blue Group." Nanavati said adding "The upcoming jewellery park is expected to house 300 units specialising in diamond jewellery manufacturing. which so far has been famous globally as centre of excellence for diamond polishing. "The expo will help assessing the real market position and understand what's in store ahead for the diamantries going forward. said. Gems and Jewellery Export Promotion Council(GJEPC). "The fair is being organised to bring all the players on a common platform and exchange views on how to promote the diamond industry during the time of recession." The expo has been organised by the Government of Gujarat in association with Surat Diamond Association.

recommendations and ultimate actions. 3. miners. H1 -. buyers.  . It also provides information of pricing strategies used to increase the sales.4 FORMULATION OF HYPOTHESIS     H0 -. sellers. The research process provides a systematic.3 SCOPE OF THE STUDY The report signifies the advantages and disadvantages of various exports in different countries during recession. H0 -. The techniques and concepts used during primary research in order to arrive at findings.Current situation of recession will not affect future diamond design. each representing the answer to a key question. agents.2 OBJECTIVE OF STUDY The objective of the report is to study the overall causes behind the current recession and its effects on the diamond participators which include the dealers.Current situation of recession will affect future diamond design. which are also dealt with and lead to a logical deduction towards the analysis and results.1 RESEARCH PROBLEM A research process consists of stages or steps that guide the project from its conception through the final analysis.Recession in diamond market does affect common man.Recession in diamond market does not affect common man. 3. planned approach to the research project and ensures that all aspects of the research project are consistent with each other. etc. This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. and also study the recovery speed after a crush with recession.  3. The further report analysis makes the finding more accurate for the recession effects on diamond market.CHAPTER 3: RESEARCH METHODOLOGY 3. H1 -.Research studies evolve through a series of steps.

There are two types of secondary data: internal and external secondary data.5 RESEARCH METHODOLOGY   Collection of primary data. SECONDARY DATA Information that already exists somewhere. such as a market research company or the U. independent observations and test results. such as existing sales-tracking information. An example is information gathered by a questionnaire. Secondary source of data used consists of books and websites . it can be internal data. Qualitative or quantitative research. which entails the use of data gathered by someone other than the researcher information that is obtained directly from first-hand sources by means of surveys. Data gathered by the researcher in the act of conducting research.S.3. trade publications. Information compiled inside or outside the organization for some purpose other than the current investigation Researching information. which has already been published? Market information compiled for purposes other than the current research effort. Consists information gathered of data that are newly collected in the course of original information that from comes from people and includes surveys. having been collected for another purpose. My proposal is to first conduct a intensive secondary research to understand the full impact and . focus groups. and subscription services.  Collection of secondary data. observation or experimentation. As compared to secondary data which is previously gathered data. Primary data is basically collectedby getting questionnaire filled by the respondents. This is contrasted to secondary data. or it can be research conducted by someone else. Sources include census reports.   PRIMARY DATA New data gathered to help solve the problem at hand. government.

meta-analytic) and sub-type (e. The questionnaire so formed includes both open ended & closed ended questions.g. meta-analytic) and sub-type (e. experimental. semi-experimental. Close ended questionnaire were used so that appropriate statistics could be calculated.: descriptive- longitudinal case study). independent and dependent variables. research question and hypotheses. correlational. The design of a study defines the study type (descriptive. A research design encompasses the methodology and procedure employed to conduct scientific research. to review and critique the industry norms and reports. semi-experimental. independent and dependent variables. experimental. experimental design if applicable. 3.7 Research Design: A research design encompasses the methodology and procedure employed to conduct scientific research. experimental design if applicable. data collection methods and a statistical analysis plan. which I feel remain unanswered or liable to change.8 Sampling Plan: Random Sampling has been adopted as a sampling technique. review. correlational.6 Research Instrument: To collect the appropriate data the researcher has used questionnaire as the research instrument. on which certain issues shall be selected.g. data collection methods and a statistical analysis plan. 3. Open ended questions were used to find out the reviews of the respondents so that proper recommendation can be made by the researcher.: descriptive-longitudinal case study). this shall be further taken up in the next stage of exploratory research 3.implication of the industry. review. The design of a study defines the study type (descriptive. . research question and hypotheses.

The target population represents South Mumbai region. The study was curtailed also due to financial constraints. The study was curtailed due to time factor. The people were from different professional backgrounds. The details of our sample are explained in chapter named primary research where the divisions are explained in demographics section.I have targeted 50 people for the purpose of the research. . 3. The target population influences the sample size.9 RESEARCH LIMITATIONS: Following are the limitations of the present study: The study is limited only within South Mumbai.

CHAPTER 4: OVERVIEW OF DIAMOND MARKET .

Cutting diamond requires specialized knowledge. This has two meanings in relation to diamonds. The second relates to the specific quality of cut within the shape. The first major development in diamond cutting came with the "Point Cut" during the latter half of the 14th century. Often. increasingly. eliminating waste in the cutting process. science of changing a diamond from a rough stone into a faceted gem. and led to the development of various types of 'Cut'. He knows that the best price will be obtained when he negotiates the whole diamond parcel as one transaction . equipment. and the quality and price will vary greatly based on the cut quality. which advanced them some capital in anticipation of a future production. Diamonds are cash money and nobody has problems to dispose of them and certainly not at a bargain price to someone unknown. no business no losses! Diamond cutter Diamond cutting is the art. and techniques because of its extreme hardness. The first guild of diamond cutters and polishers (Diamantaires) was formed in 1375 in Nuremberg. they will have to sale the diamond parcel to a dealer. tools. They will visit as many dealers as they can to get the best price for a miner's parcel. Germany. The miner is not interested to allow a buyer to pick through his diamond parcel. Since diamonds are very hard to cut. special diamond bladed edges are used to cut them.Participators of diamond market Diamond dealer Most of newcomers try to contact directly miners or local diamond dealers not knowing that for miners or diamond dealers the newcomer is a potential confidence trickster or fly-bynight businessman who promises more than usually delivers. Diamond miner All are working hard to make the best profit they can get from diamonds recovered. skill and. I imagine it's like in any trade. oval and so on. He can put a gun to miner's head and walk away with the parcel or pay with a counterfeit currency. an unknown business partner can be more trouble than good. In that case. The first is the shape: round. The Point Cut follows the natural shape of an octahedron shaped raw diamond.

if he is not a victim at a purchase level. The purpose of a diamond broker is to have someone.Diamond buyers The issue of buyers thinking that they will go to mining area with a wad of money and make killer deals. In some cases they will only buy from miners who own money to dealers or suppliers and are dishonest enough to sale on the side. thus saving you time and aggravation. you save money when you surpass them. who’s in the know in the diamond industry. Since diamond retailers jack their prices up on diamonds by 50% to 400%. He is very often a victim of criminals who look for and target him. hunting down the most exquisite diamond for you at the best price. Also. Most often. the broker will do it all for you. . Diamond sellers A "travelling diamond buyer" doesn't have a security and has to deal from hotel rooms or other places where he meets unknown sellers. The authorities don't encourage the "travelling diamond buyers" as this type of practice is counterproductive to the collection of government royalties and the development and stability of diamond business. Diamond brokers Diamond brokers often work with those looking to purchase higher-end diamonds or rare stones such as fancy colored diamonds. in order to find the perfect diamond. rather than having to do all the painstaking research yourself. It will definitely not make these dealers or suppliers happy and could even cost a cash buyer his life as a result. the doggydog's-world. he can loose all his money and land in a jail cell in some faraway country where anything can happen to him. Diamond brokers often go straight to the source for your diamond. In addition. and work directly with either the diamond cutter or wholesaler. In the best case. he can become a victim of crocked officials for trading without the license or exporting diamonds without proper permits. the cash field-buyer will become the easy target of some criminals and loose his money and life in the same time.

industrial quality diamonds in the 1950’s this sector of the market has collapsed. . The value lies in gems. stones which are half of total output. This absorbs the off-colour. but none of them involve diamonds themselves. only the companies which produce and promote them. cutting and polishing medium. industrial diamonds would not be worth mining. Alone. But since the development of artificial. As the hardest substance known.WHY PEOPLE INVEST IN DIAMOND MARKETS? There are compelling reasons for investing in the diamond industry. diamond has long enjoyed an industrial market as an abrasive.

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Trust that invests in high quality diamonds.diamonds are the only international accepted alternative currency which has the same value all over the world Tax free betterment No maintenance costs Very prestigious .INVESTING IN DIAMOND INDUSTRY ADVANTAGEOUS Diamonds are a good investment. because diamonds hold their value and they can actually increase in value over time. because they have the biggest advantages of all tangible assets: Protection from inflation. mysterious. Shares of these trusts are not actively traded and are less liquid at times when the price of diamonds falls. Diamonds are rare. The first diamond investment trusts were created in the early 1980s by Thomas McKinnon. market collapse. But not enough: “Diamonds last forever” and are ―a girl’s best friend‖. luxury. passion and love! No other investment can offer you that much! Diamonds are especially suitable as tangible assets. Diamonds are a secure investment. bank bankruptcy. currency reforms Anonymity (no registration required) World-wide convertibility . Investment trusts allow investors to invest in diamonds without needing to buy and hold the underlying asset. beautiful. precious. but they give you also the feeling of beauty. magical and romantic tokens of love.

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clarity and carat weight are all dictated by nature. the more rare and valuable it is. the more valuable it is. to imperfect. Like colour. The clarity grading is described as follows: . The 4C's relate to a diamond's cut. The quality of a diamond is measured by its cut. Cut A diamond in its natural. Clarity During the formation of a diamond it is possible for minute particles of non-crystallized carbon or non-diamond crystals to be caught within the diamond. Therefore the fewer inclusions a diamond has. through very small and small inclusions. colour. It is the skill of the diamond cutter that unlocks the brilliance for which diamonds are renowned.4’Cs of diamond The quality and value of diamonds are measured by four characteristics known as the 4C's. Of all the 4C's. colour. the fault lies in the cutting. Such a stone cannot demand as high a price as a well-cut diamond. Inclusions may not always be visible to the naked eye. The best way to pinpoint a diamond's true colour is to place it next to another diamond that has previously been graded. Diamonds are graded into categories defined by letters. size and position of the inclusions within the diamond. and clarity and carat weight. Color A diamond's colour is one of the most important factors in determining its value. The colour range from exceptional whites (categories D. uncut state is described as a "rough diamond". colour and clarity. however they do interfere with the passage of light through the diamond. E and F) to tinted colours (categories M to Z). clarity is also categorized using international grading scales. If two identical diamonds are placed side by side and one is less brilliant and fiery than the other. and internally flawless. The carat weight measures the size of the diamond. The categories of clarity are based upon the number. The nearer a white diamond is to being absolutely colorless. cut is the characteristic directly influenced by man. Grading range from flawless. These imperfections are called inclusions and provide each individual diamond with unique characteristics. Its natural appearance so resembles a glass pebble that most people would pass it by without a second glance.

Inclusions in these diamonds cannot be seen through the crown of the diamond. Inclusions in these diamonds cannot be seen through the crown of the diamond. such as small included crystals which are visible using a 10x microscope. VVS1 VVS2 VS1 VS2 SI1 SI2 Very. SI1 SI2 Slightly Included I1 I2 I3 Imperfect 1 Imperfect 2 Imperfect 3 . Blemishes that can be removed by minor repolishing separate the internally flawless from the flawless grade. Very Slightly Minute inclusions. coloured. Inclusions that can be seen easily under a 10x microscope. characteristics such as surface grain lines. and may also be seen with the naked eye using a white background. Inclusions can be seen with the naked eye. or which significantly affects transparency. natural and extra facets on the crown. IF Internally Flawless No internal inclusions but minor surface blemishes which cannot be removed with polishing. and are quite obvious under a 10x microscope. Inclusions can be seen with the naked eye. Diamonds in this category cannot contain internal graining that is reflective whitish. That is. Dark inclusions which are very noticeable to the naked eye. and may interfere with transparency and brilliance. difficult to Included locate using a 10x microscope Very Slightly Included Small inclusions. and which interfere with transparency.FL Flawless No internal or external blemishes when examined under a 10x microscope. such as reflective internal graining. and may also be seen with the naked eye using a white background. Slightly Included Inclusions that can be seen easily under a 10x microscope.

One seed from this tree was equivalent to one carat.Carat A carat is the unit of measure used to determine the weight of a diamond. . The actual weight of one carat is now established at 0. Although the carat weight of a diamond is indicative of its size.2 grams. it is not necessarily indicative of a diamond's quality. Diamonds are usually weighed prior to setting for more accurate measurements. The term "carat" is derived from the original method of using carob tree seeds to weigh diamonds. a 0. For example. the one of better quality will command a higher price per carat. Diamonds of less than one carat in weight are known as "pointers". Therefore. where two diamonds have the same carat weight. To assist in accurately describing the weight of diamonds each carat is divided into 100 points. according to their size and quality.15 carat diamond would be called a "15 pointer". Diamonds are priced per carat.

.Pricing of diamond Diamonds may last forever. A poor cut can ruin the value of a high quality diamond. the diamonds become more tinted. Diamonds labelled flawless are extremely rare. They have no internal or external impurities. Internally Flawless diamonds contain only minute external imperfections that can be removed after a minor repolishing. Colors are graded on a letter scale. a 50 point diamond weights 100 milligrams. The "fire ―and brilliance of a diamond depends solely on the cut quality. such as pinpoint inclusions. A diamond is valued by 4 things. VS1 and VS2 grade diamonds contain imperfections that are slightly larger than those found in VVS1 and VVS2 diamonds. Dust can be mistaken for imperfections in these diamonds. 1 carat is equivalent to 200 milligrams. The clarity of a diamond describes the impurities in a diamond. which will allow maximum brilliancy. pavilion and girdle). cut and. As one moves down the scale towards Z. Carat size describes the weight of a diamond. VVS1 and VVS2 have "very very small ―imperfections that maybe hard to detect even under a 10x magnifier. The cut quality of a diamond describes the proportions (crown. Cut quality is rated on a scale between 010. carat weight. which follows the American Gem Society's Ideal specifications. color. with D being the best. clarity. A 0 cut is a perfectly cut diamond. polish quality and the symmetry of a diamond. but their prices change almost weekly. Therefore. A carat is then divided into 100 points.

CHAPTER 5: OVERVIEW OF THE MARKET SWOT Analysis of the Indian Diamond Industry: SWOT analysis is the overall evaluation of an industry’s Internal Environment(strengths and weaknesses). huge stocking of inventory and thus handling costs and high working capital to be maintained. The Internal Environment: The internal environment analysis comprises of the evaluation of a company’s strengths and weaknesses. with a view to analyse its current status and the areas where it can correct or strengthen itself. The opportunities the Indian diamond industry could utlise include the growing domestic demand for diamond jewellery and tapping potential newer markets in Europe and Latin America. The strong areas of the Indian Diamond Industry include the large workforce of skilled craftsmen (about 800.000). such as low levels of productivity as compared to places like China. and External Environment (opportunities and threats) to understand the present status of the company and use it as an aid in strategic planning. The External Environment: The analysis of the external environment is related to the opportunities and threats that the industry should be prepared for. a well-distributed marketing network and supportive governmental policies Weaknesses of the Indian Diamond Industry include areas where it can correct itself. lowest manufacturing and labour costs. The threats facing the Indian Diamond Industry include the entry of countries .

most of whom hail from the small town of Palanpur in Gujarat. IN DEPTH: Indian Diamond Industry The Indian diamond cutting centers are concentrated in Bombay and Surat. Their nimble fingers and sharp eyes enable them to cut these diamonds in remarkable shapes. Many of them are fabulously rich and divide their time between India. many of Diamond cutting and polishing workshop in Bombay. This entire high-skill. Belgium. But India has a large labor force and this has made the country the biggest diamond cutting center for small roughs. Indeed. the emergence of newer substitutes such as synthetic diamonds (cubic zircon. one of the biggest players in international diamond trade . the marketing arm of the De Beers Group) and most importantly.this represents an almost 25 percent value addition to the imports of roughs. The Indian diamond trade generates over 4 billion dollars in exports every year -. and Argyle of Australia. were it not for Indian workers. Sri Lanka and Thailand in the small-sized diamond segment. the over dependence on single-channel suppliers such as the Diamond Trading Company (DTC.such as China. but while they earn well for these skills many of them find their eyesight getting progressively weaker as they grow older. HPHT etc. sometimes as young as 10 years old. these small diamonds would be put to industrial use rather than jewelry.) which are much cheaper than the real diamonds. high value trade has recently been shaken up by the conflict between the De Beers-Central Selling Organization (CSO) global diamond cartel. Small boys. a small town about five hours away from Bombay. work in hot sheds chiseling roughs which eventually get sold in the fancy shops on Fifth Avenue and Bond Street. The trade itself is controlled by a handful of companies and families. Israel and other western countries.

Alrosa. health and safety as well as environment. This is almost half of the world rough diamond (rough diamond are those from the mine and before they are polished for sale to jewelry manufacturers and diamond dealers around the world). employing fashion designers and other trendsetters . and therefore the ideal jewel for an engagement or wedding ring. Their famously successful advertising campaigns have included such measures as. DeBeers sells almost half of the worlds rough diamonds through this marketing arm. the Kimberley Process Certification Scheme and the industry’s System of Warranties. showing diamonds as wedding gifts in popular romance films. These clients are chosen following assessment against a set of objective selection criteria according to their ability to add value to diamonds as well as their audited adherence to the DTC’s Diamond Best Practice Principles. DTC. are purchased by the world’s leading diamantaires known as Sightholders. labour standards. De Beers product category can be better explained with the help of De Beers 4 C’s chart. Sightholders buy tailored assortments or "parcels" of rough diamonds from a blended “mix” of diamonds from the various mines. This is a company called the Diamond Trading Company (the DTC). However this include diamonds produced by the Russian company. Rough Diamonds DeBeers has its own sales and marketing arm. which DeBeers has an agreement.MARKETING MIX 1) Product: De Beers are in rough diamonds and cut diamonds. De Beers have actively promoted diamonds as being symbolic of eternity and love. which cover business ethics. publishing stories in magazines and newspapers which would emphasize the romantic value of diamonds and associate them with celebrities. The rough diamonds sold by DeBeers through their arm.

television and even enlisting the British Royal Family to directly promote diamonds.to promote the trend on radio and. later. .

Cut Chart Color Chart .

Clarity Chart Carat Chart 2) Place: .

74% owned by DeBeers and 26% by a broad based black economic empowerment partner. Canada. .De Beers is active in every category of industrial diamond mining: open-pit. The various DTCs within the Family of Companies sort. In July 2008 De Beers opened the Victor Mine in Ontario. this is the first De Beers mine outside of Africa. underground. In Namibia it takes place through Namdeb. The Diavik Diamond Mine Trading of rough diamonds takes place through the Diamond Trading Company through whollyowned and joint venture operations in South Africa (DTCSA). value and sell approximately 40% of the world’s rough diamonds by value. Tanzania and Canada. Botswana (DTCB). a 50-50 joint venture with the Government of the Republic of Botswana. Namibia (NDTC) and the United Kingdom (DTC). Mining in South Africa takes place through De Beers Consolidated Mines (DBCM). 25% by the government. In 2007 De Beers began production at the Snap Lake Mine in Northwest Territories. 75% owned by De Beers. coastal and deep sea. largescale alluvial. In Tanzania it occurs through a partnership with the government of Tanzania. Namibia. Canada. South Africa. Mining takes place in Botswana. Mining in Botswana takes place through the mining company Debswana. a 50-50 joint venture with the Government of the Republic of Namibia. Ponahalo Investments.

The Family of Companies employs about 20. Over 7000 people are employes Botswana.000 employees in Africa. Companies are as follows:             De Beers Canada De Beers Consolidated Mines De Beers Diamond Jewellers Debswana Diamdel Diamond Trading Company Diamond Trading Company Botswana Diamond Trading Company South Africa Element Six Namdeb Namibia Diamond Trading Company Williamson Diamonds . The Family of Companies The De Beers Family of Companies is involved in most parts of the diamond value chain. with 17. over 7100 in South Africa. 700 in Canada and over 800 in Group Exploration. 3800 in Namibia.000 people around the world on five continents.

Virginia at Tysons Galleria Dallas at NorthPark Center Paris at Le Printemps Moscow in Russia Kiev in Ukraine Japan . De Beers entered into a retail joint venture with French luxury goods company Louis Vuitton Moet Hennessy (LVMH) to establish an independently managed De Beers diamond jewellery company.Tokyo. The first De Beers store opened on Old Bond Street in London and there are now De Beers retail stores in the following locations:             London at Bond Street. Yokohama.De Beers Diamond Jewellers De Beers retail store on Rodeo Drive in Beverly Hills. Royal Exchange and Harrods New York City at Fifth Avenue Beverly Hills at Rodeo Drive Las Vegas at The Forum Shops Houston at The Galleria McLean. Osaka. Hakata. Kyoto. California In 2001. called De Beers Diamond Jewellers Ltd sells diamond jewellery. The joint venture. Kobe Taiwan in Taipei .

     Korea in Seoul Hong Kong Waikiki Dubai at Mall of the Emirates. International Financial Center. and Wafi City San Francisco in Union Square .

in an effort to keep prices high.and 7 per cent cheaper than DTC goods. Of course. but you can now actually make money on those goods. One can't blame the DTC for the constant change in the market prices of diamonds.which leads to increased competition in those categories. Thus. Those who cut small diamonds have the biggest problems in profitability as rough prices have increased and there is considerable buyer resistance to higher polished prices. Over the last three years.with a view to maintain its profitability De Beers has to charge customers a higher rate for the rough diamonds. Today. most DTC rough would easily fetch a 10 per cent premium.De Beers has lost its market share and worked hard upon setting up its foot again in the market with the continuous variation in its pricing policy.to 7-pointer size range. It must be noted here that the ultra small sizes are doing extremely well with buyers willing to pay spot cash for goods As the diamond business is in rough times all over the world.They are no longer the 80-per-cent-plus dominant force they once were in the market. . the majority of the world’s diamond trade was controlled by De Beers. there is no consistency of supply.technical or strategy-wise . The non-DTC rough is cheaper. so non-sightholders were paying substantially higher prices for rough. The worst-hit categories are the weak colour and clarity goods in the 1.to this and the overall result has been a general migration towards processing larger sizes .3) Price: De Beers sets the price of its boxes in advance and determines the quality and quantity each sightholder receives. The manufacturers have no answer . the field is more level.The sudden emergence of all these producers meant that De Beers.For decades. and that makes it more interesting for non-sightholders. It used its market power to keep the prices high. was forced both to hold back a large portion of its diamonds and to purchase much of the excess supply of its new competitors--often at inflated prices. ever since the DTC implemented the SOC initiative. Some Angolan goods were between 5. A lot of things happen because they really have no control over them. Price and quantity are nonnegotiable.

4) Promotion: (Please refer Advertising Campaign on Page No.G. Data analysis: Customers preference Petrol Diesel L.P.P.G. Which car (fuel based) do u prefer? a) Petrol b) Diesel c) L. No of customers 34 50 16 . 53 ) Chapter 6:DATA ANALYSIS & INTERPRETATION 1.

.

G. Column3 16 34 50 Interpretation: by the result we came to know that the customers go for diesel one with sound quality.60 50 40 30 20 10 0 petrol diesel Column1 Column2 L. .P.

2. What do you feel great about your car when compared to other cars in the market? a) Fuel efficiency b) Durability c) Low maintenance d) Sound quality e) Safety Data analysis: Customers perspective Fuel efficiency Low maintenance Sound quality Safety No of customers 30 18 22 30 .

Many of the VOLKSVAGEN customers are buying the cars by seeing its Brand Name only.40 30 20 10 0 Fuel efficiency Low maintenance Sound quality No of customers 26 22 18 34 Safety Interpretation: From this question we can position the cars according to the customer’s perspectives. . of customers satisfied with the fuel efficiency is very low. The no.

3. What kinds of offers do you like or expect from the dealer? a) Free insurance b) Special discount on sale of cars c) Extending the service period d) Finance availability with 0% interest Data analysis: offers Free insurance Special discount on sale of cars Extending the service period Finance availability with 0% interest No. of customers 16 14 40 30 .

. From the above analysis many customers are expecting the extension in the service period from the various offers given to them.45 40 40 35 30 30 25 20 15 10 5 0 Free insurance Special discount on sale of cars Extending the service Finance availability with period 0% interest 16 14 Interpretation: By the result of this question we come to know about the various promotional techniques/offers which attract the customers.

4. of customers 20 36 20 24 . What more do you expect from your dealer? a) Information about new cars b) Information about service and mileage c) Assistance regarding loans and insurance d) Understanding customer needs Data analysis: Expectations of customer Information about new cars Information about service and mileage Assistance regarding loan & insurance Understanding customer needs No.

40 35 30 25 20 20 15 10 5 0 Information about new cars 36 24 20 Information about service and mileage Assistance regarding loan & insurance Understanding customer needs Interpretation: Most of the customers are expecting the information about service and mileage regarding the cars from the dealer. From the above analysis we come to know about the customer‟s expectations and their post purchase service demands from the dealer. .

5. Where do you get your car serviced regularly? a) At authorized service centre b) At a local workshop near my home Data analysis: Place of service At authorized service centre At a local workshop near home No. of customers 70 30 .

.80 70 70 60 50 40 30 30 20 10 0 At authorized service centreAt a local workshop near home Interpretation: Most of the Volkswagen customers are interested to service their vehicles only at the authorized dealers. From this we come to know what the importance of authorized service centers for car is.

What other brand(s) will you seriously consider before making this car purchase? a) Honda b) MERC c) SKODA d) Volkswagen Data analysis: Brand name Honda MERC Skoda Volkswagen No. of customers 24 30 36 10 .6.

40 36 35 30 30 25 24 20 15 10 10 5 0 Honda merc Skoda Toyota Interpretation: Most of the Volkswagen customers are opting for Skoda when they are asked to consider a brand other than VW. . MERC occupies the second place in their preference.

of customers 10 60 18 12 .7. Can you share your experience with after sale service support? a) Very much satisfied b) Satisfied c) Ok d) Not satisfied Data analysis Post service experience Very much satisfied Satisfied Ok Not satisfied No.

Only a very few customers are very much satisfied with the service. Most of the customers are just telling SATISFIED about the service. . Even some of the customers are not satisfied with the service given by the authorized service men.70 60 50 40 30 20 10 0 Very much satisfied 60 18 10 12 Satisfied Ok Not satisfied Interpretation: This question is prepared to know the service levels of the authorized Dealer.

11 HDFC 3.12 SBI 3. of customers 42 12 40 6 . Which bank do you prefer in getting financial help while purchasing a car? 3.8.10 ICICI 3.13 Others Data analysis Name of the bank ICICI HDFC SBI Others No.

45 40 35 30 25 20 15 10 5 0

42

40

12 6

ICICI

HDFC

SBI

Others

Interpretation: Most of the customers prefer ICICI and SBI banks for taking financial help while purchasing a car. Customers are asking for 0% interest on financial help provided by the banks.

9. How do you feel when an unknown sales person approaches you by knowing your full details to demonstrate about any product? I will not respond Lost my privacy Interested in knowing (if I feel a need of it)

Data analysis:

Customer opinion I will not respond Lost my privacy Interested in knowing (if I feel a need of it)

No. of customers 22 10 68

80 70 60 50 40 30 20 10 10 0 I will not respond Lost my privacy Interested in knowing (if I feel a need
of it)

68

22

Interpretation: This question is prepared indirectly to know about the customer‟s opinion about the Data Bank maintenance by the VOLKSWAGEN. In reply majority of the customers gave a positive reply by showing interest in knowing about the cars when a sales person gives a detailed description about the cars.

10. of customers 86 14 0 . What’s your opinion on a Brand Ambassador for the cars? a) Very necessary b) Not needed c) Waste of money for manufacturer Data analysis: Customer opinion on ambassador Very necessary Not needed Waste of money for manufacturer No.

100 90 80 70 60 50 40 30 20 10 0 86 14 0 Very necessary Not needed Waste of money for manufacturer Interpretation: This question is meant to know about the importance of Brand Ambassador for a car in the customer‟s point of view. . Most of the VOLKSWAGEN customers think that a Brand Ambassador is very necessary for promoting a car.

What’s your opinion on the price list of Volkswagen cars? a) Affordable by common man b) Affordable only by rich man c) Can‟t say Data analysis: Customer opinion Affordable by common man Affordable only by rich man Can‟t say No.11. of customers 12 84 4 .

. These cars are too expensive for an economic/common man of the society.90 80 70 60 50 40 30 20 10 0 12 84 4 Affordable by common manAffordable only by rich man Can’t say Interpretation: More than 80% of customers think that VOLKSWAGEN cars are affordable only by rich men.

by improving its services and providing customer satisfaction .CHAPTER 7: CONCLUSION The present research project on the customer awareness and preference of Volkswagen cars helps to analyze and understand the present market scenario in the city of Lucknow.p. At last I would like to say that Volkswagen should maintain and improve its market share in u. Merc and Skoda are the strongest competitors so Volkswagen is required to work on its weaknesses like offers at the time of convincing customers and giving various financial plans.

economictimes.com/media/2013/jun/18/volkswagen-marketing-lost-way-china http://www.com/2014-03-18/news/48330902_1_polandvolkswagen-leif-oestling http://articles.s.economictimes.indiatimes.indiatimes.economictimes.indiatimes.com/2014-03-13/news/48189402_1_german-automakervolkswagen-porsche-cayenne http://www.indiatimes.com/2005-09-06/news/27506412_1_helmuth-schusterminister-b-satyanarayana-volkswagen http://articles.sales-chief-trivieri http://adage.reuters.theguardian.com/article/2014/02/15/us-autos-vw-election-idUSBREA1D1DP20140215 http://www.autonews.com/article/20140125/RETAIL01/140129881/vw-parts-ways-with-u.economictimes.BIBLIOGRAPHY http://articles.com/2007-07-27/news/27678257_1_strong-salesvolkswagen-unit-sales http://articles.com/article/cmo-strategy/vw-s-marketing-chief-stick-brand-voice-shops/291064/ .

Age     20 and below 21-40 41-60 above 60 Q4. The responses given will be used for the academic purpose to complete my research work.000 10. What is your current Monthly Income?     Below 10.000 40. Gender  Male  Female Q3.QUESTIONNAIRE Please take a few minutes to complete this survey. Your specific answers will be completely anonymous.001-1 Lakh Above 1 Lakh . What is your current occupation?       Student Business Service Housewife Professional Other. but your views.1 Name Q2. please specify Q5. in combination with those of others.001-40. Q. are extremely important. This survey is regarding the comparison of passenger rate in Mumbai with special reference to Western and Central Railway.

What kinds of offers do you like or expect from the dealer? a) Free insurance b) Special discount on sale of cars c) Extending the service period d) Finance availability with 0% interest .P.G. Q6. Which car (fuel based) do u prefer? a) Petrol b) Diesel c) L.Q5. What do you feel great about your car when compared to other cars in the market? a) Fuel efficiency b) Durability c) Low maintenance d) Sound quality e) Safety Q7.

What more do you expect from your dealer? a) Information about new cars b) Information about service and mileage c) Assistance regarding loans and insurance d) Understanding customer needs Q9. What other brand(s) will you seriously consider before making this car purchase? a) Honda b) MERC c) SKODA d) Volkswagen Q11.Q8. Where do you get your car serviced regularly? a) At authorized service centre b) At a local workshop near my home Q10. Can you share your experience with after sale service support? a) Very much satisfied b) Satisfied c) Ok d) Not satisfied .

How do you feel when an unknown sales person approaches you by knowing your full details to demonstrate about any product? a) I will not respond b) Lost my privacy c) Interested in knowing (if I feel a need of it) Q14.Q12. Which bank do you prefer in getting financial help while purchasing a car? a) ICICI b) HDFC c) SBI d) Others Q13. What’s your opinion on a Brand Ambassador for the cars? a) Very necessary b) Not needed c) Waste of money for manufacturer Q15. What’s your opinion on the price list of VOLKSWAGEN cars? a) Affordable by common man b) Affordable only by rich man c) Can‟t say .

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A STUDY ON IMPACT OF CLIMATE CHANGE ON RAINFALL – A SPECIAL REFERENCE TO INDIAN AGRICULTURE 1|Page .