‡GITANJALI-A GEM ON INDIA·S CROWN

‡ 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¶s a desire and vision that has accentuated our growth. - Mehul Choksi (Chairman, Gitanjali gem Ltd.)

MISSION

‡ We understand the emotional needs attached to diamonds and jewellery and celebrate the glory of diamonds, gold and jewellery with our consumers.

VISION
‡ To become the world¶s leading company in diamond manufacturing and retailing of branded jewellery and to have a strong, globally diversified infrastructure for manufacturing and marketing the diamonds.

BUSINESS VALUES
‡ Our business is driven by our focus on the market, identifying the consumer need, gathering resources to fulfill it and an inner urge to excel. ‡ Our integrity is never compromise and we believe in being the best.

GITANJALI GEMS LTD.
‡ Established in 1966, by Mehul choksi, was one of the earliest diamond house in India. ‡ One of the first sight holders in India. ‡ Co. was incorporated on Aug, 21 1986. ‡ Gitanjali gems was integrated diamond in jewellery manufacturing co. ‡ One of the largest manufacturers and retailers of diamonds and jewellery in India. ‡ Initially limited to the manufacture in export of cut and polished diamonds to various international markets. ‡ In 1990, started the production of diamond studded and other jewellery at a facility at Andheri, Mumbai.

GILI FIRST BRANDED JEWELLERY
‡ Gili, the first branded jewellery of India, started in 1994, BY Gitanjali Gems ‡ When jewellery was treated as a possession, Gili with the clear image of future needs, shifted this paradigm "from occasionally... to the need of every occasion". ‡ Awarded a ³Superbrand´ status by Times of india in 2004. ‡ Gili was the first brand to start giving the customer "Certificate of Authenticity" with every piece of jewellery bought. ‡ With a view of introducing a brand in Diamond jewellery, Gili set out to make its mark and offer people something unexpected, unbelievable and unheard of. It is now a name synonymous with youth, love, feelings, and emotions.

THE NEW BRAND AMBASSADOR OF GILI
‡ Gili, a part of the Gitanjali Group, has appointed leading film star, Bipasha Basu, as its new brand ambassador to endorse its products. ‡ Mehul Choksi Chairman Gitanjali Group and Nakshatra feels that Bipasha epitomises what Gili stands for.

CHALLENGES FACED
‡ Traditionally in India, women did not wear diamond jewellery often, apart from special occasions such as marriages and festivals. ‡ Diamond jewellery was not meant for everyone but only a privileged few who could meet the expense of it. ‡ To possess a diamond was a real privilege. ‡ Indians were only aware of 22karat jewellery in the market. The notion of 18karat jewellery was completely unheard of. The longstanding beliefs, practices and customary conventions needed to change and Gili believed it could be the change it envisioned to bring about.

ACQUISITIONS AND ALLIANCES

‡ The company had strategic alliances with the world gold counsel for promoting gold Sale in India. ‡ In 2001, firm entered 50% JV in the firm of D¶damas jewelry private ltd. with Damas jewelry LLC(U.A.E. based co.) ‡ On 30, Sep. 2005 three of their group companies Gemplus, Prism, Giantti were amalgamated into the company.

MANUFACTURING FACILITIES
‡ The co. manufactured the most précised and ideal cut diamond in the world. ‡ It has specialized factory in different parts of the world (China, Thailand, Vietnam India etc.) ‡ It has 2 modern diamond manufacturing facilities located in Mumbai and Surat. ‡ Sophisticated manufacturing facilities, strong design capabilities and focus on stringent quality control enabled them to produce quality certified diamond and jewellery. ‡ The design and quality of diamond and a large customer based outside India, enable them to develop strong credentials in International markets.

DISTRIBUTION NETWORK
‡ The success in the growth of retail operations depend upon, the opening of new stores in capitalizing on existing marketing and distribution network. ‡ Gitanjali gem has an independent sales and distribution network for diamond and jewellery product. ‡ To increase visibility of branded jewellery lines, they operated through extensive distribution network. ‡ They also sell directly to end customers through retail operations. ‡ They entered into arrangements with Shopper¶s Stop, to operate ³Facet shops´ within Shopper¶s Stop stores to provide custom made jewellery for customers.

HR AT GITANJALI
‡ The co. has a strong belief that a motivator and empowered employees are the key to competitor advantage. ‡ Management with a significant industry experience was instrumental in the continuous growth in revenues and operations. ‡ Gitanjali gems provided regular staff training programs, leadership programs and performance enhancement programs for employees ‡ Also planned to set up a training centre for employees. ‡ Engaged outside consultants to assist in training employees to enhance their performance.

MARKETING STRATEGIES
‡ To develop customer loyalty they provide branded diamond and jewellery product which were certified for carat age, authenticity and quality and carried a suggested MRP. ‡ Development of new products and design is a key element of the business strategy. ‡ Innovative designs and product lines enabled them to develop the brands an increased retail sales. ‡ Designs are upgraded regularly to service the changing preferences of consumers. ‡ The co. strengthen the brand portfolio with the launch of new brands aimed at different customer profiles, various market and price segments and for various uses and occasions.

‡ Believe in Aggressive advertising and marketing campaigns which give the company a competitive advantage over competitors. ‡ In 2001, launched Buy-Back scheme for diamonds ‡ GITANJALI Group, has embarked upon a new strategy for product differentiation signifying a shift from the routine diamond polishing practice. ‡ According to the company press release, the group has applied for patents for 25 new cuts that have been developed by its own R&D team.

BUY-BACK FOR DIAMONDS
‡ Under this scheme, Gitanjali offered 5% below purchase MRP if the diamond sold within a year of purchase. ‡ 5% above purchase MRP for diamond sold between the second and third year. ‡ 10% above purchase MRP between fourth and fifth year. ‡ 15% above from the sixth year onwards.

CUSTOMER RELATIONSHIP MANAGEMENT
‡ Diamond processing business is dependent on developing and maintaining continuing relationship with customer. ‡ CRM is important for Gitanjali as they did not have any long term contracts with customers, nor the customers are subjected to any contractual provisions. ‡ Firm identified specific customer requirement and deliver efficiently within the shortest possible time frame. ‡ Continuing relationship with customers enabled them to identify the customers requirement and supply diamonds in accordance with their specifications. ‡ CRM also enables them to reduce payment risk.

THE FUTURE
‡ ‡
1)

Gitanjali Gems poised to become a leading integrated diamond and jewelry manufacturing and retailing co. To achieve this, they took several initiative:
Increase market shares in the diamonds and jewelry business in India (planned to capitalize shift of consumer preferences from traditional unbranded to branded jewelry) Maintain focus on International markets. Develop branded jewelry lines (such as nakshatra, gili, asmi and D¶damas) To expand retail operations (from 620 in 2006 to 1300 in 2008) Expand product offering and maintain high quality customer service.

2) 3) 4) 5)

6) Pursue strategic acquisitions and alliances (Gitanjali Gems has acquired US jewellery retail chain Rogers, a move that will boost the company¶s retail presence in India and abroad)

‡ The company launched MISSION MARS to create a range of customized branded jewelry that provide better value preposition. ‡ The emphasis is on originality and exquisite finish of the product.

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