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Int mktg

  1. 1. A PROJECT ON ANALYSIS OFINTERNATIONAL MARKETINGWITH REFERENCE TO
  2. 2. GHANSHYAMDAS SARAF COLLEGE OFARTS AND COMMERCE A PROJECT OF INTERNATIONAL MARKETINGSUBMITTED TO:-PROF.SUBMITTED BY:-NAMES ROLL NO.Sanjoli Bhageria 13Rohit Deriya 24Rebecca Fernandes 28Juili Haryan 34Pinky Pan 59Kusum Parmar 60.
  3. 3. INERNATIONAL MARKETINGMarketing activities beyond the political boundaries of the country are termed asinternational marketing.Acc. To Subhash C. Jain: “The term international marketing refers to exchanges across national boundaries forsatisfaction of human needs and wants.”When a business crosses the borders of a nation, it becomes complex.International marketing involves all the activities that form part of domestic marketing. Anenterprise engaged in international marketing has to correctly identify, assess and interpretthe needs of the overseas customers and carry out integrated marketing operations tosatisfy those needs. In other words, the basic functions are the same in internationalmarketing as well as in domestic marketing.At the same time, there are several characteristics that are unique to internationalmarketing. When the business crosses the national borders of a given country, it becomesenormously more complex. The resulting problems and management situations transcendthose of marketing, finance and production. A wide range of legal, political, cultural andsociological dimensions enter the picture, adding a lot of complexity to the task. And, theone factor that contributes maximum to the complexity is the environmental and culturaldynamics of the global markets.Environmental and Cultural Dynamics of Global Markets:The environmental and cultural dynamics of the markets of different countries can beunderstood only by studying the respective people, their patterns of life, their tradition,their social interactions, their sensibilities, their faiths and fancies. In other words, theinternational marketer has to become a native in the foreign land. He has to communicatewith the people of those lands in their lingo and idiom.Multinational enterprise must function in a world of contrasts: old and new, primitive andmodern, pious, and agnostic, unutterably beautiful and sickeningly squalid, educated andignorant, progressive and stagnant, sophisticated and naive – all in constant agitation. Tointerpret this volatile diversity, to make sense of this apparent chaos, we must try to identifythe underlying forces the prime movers which produce the global dynamics.It is obvious that the difference between domestic and international marketing is essentiallyenvironmental and cultural in character. And cultural diversity continues despite the worldgetting closer. Modern communication and transport systems have no doubt brought thenations of the world closer, but the cultural differences continue. So, understanding thecultural variances and nuances, and responding to them in a manner and style that isappealing to the foreign buyer becomes the crucial task. It is not enough if the international
  4. 4. marketer communicates in the buyer’s language. Language is only one aspect of culture.A nation’s history, its social and religious heritage, the value system of its people, thecode of conduct handed down through generations – all these are components of anation’s culture. Moreover culture is not a static entity. It undergoes a continuousevolution. So, sizing up the cultural dynamics of the different markets of the world is quite adifficult exercise. And that explains the difficulty of international marketing.Main Functions in International Marketing:Let us briefly touch upon the main functions involved in International marketing. They are:* Choosing the basic route for global marketing* Market selection and product selection* Selection of distribution channels* Developing pricing strategy* International marketing communication* Mastering the procedural complexities* Organizational adaptations* Handling business ethicsChoosing the basic route:A properly conceived entry strategy is the starting point. There are five basic routes to entera foreign market:* Exports* Licensing of technology and know how* Multinational trading* Joint venture* Full-fledged global operationWe shall mention the salient features of each of these routes.Export is the primary route for entry into the global markets. Many firms stop with this stepin their international marketing endeavor. Some firms, however, go beyond; they licensetheir technology and know how to foreign firms who may be interested in importing it intotheir land.
  5. 5. International marketing for Gems and Jewellery sectorThe Gems and Jewellery sector, being highly export oriented, is a significant contributor toIndia’s foreign exchange earnings. Exports from this sector constituted around 17% of thetotal exports from India during FY00 to FY09. The sector is heavily dependent on importedraw materials as availability and production of raw materials is very low in India. In fact,India has been one of the largest importers of gemstones, rough diamonds and preciousmetals over the years and most of these imports were used for value addition and exports.India is also one of the largest consumers of gold in the world, as it accounts for more than20% of the world gold consumption.Given the export and import dependence of the industry, it remains very susceptible toexternal developments such as fluctuations in international commodity prices, exchangerate or external demand. Evidently, therefore, with the onset of global economic recession,and the consequent slowdown in the global as well as the domestic economy, the sectorhad been severely affected. The sector has not only witnessed deterioration in its exportgrowth rate but also in its share in India’s total exports; the share of the sector in India’stotal exports fell to an average 12.65% over FY08 and FY09. The slowdown in the Indianeconomy coupled with the steep rise in gold prices has also affected the domestic demandfor gold jewellery. Moreover, the global credit crunch has affected the exporters, especiallythe smaller players, as they have to depend heavily on export credit.However, with the recovery in the domestic economy since the second quarter of FY10 andgradual uptake in the external demand conditions, the sector has witnessed some positivedevelopments. Both exports (since September 09) and imports (since October 09), in fact,have experienced an upturn in growth. The stimulus package provided by the governmentto combat the slowdown that included interest rebates, extension of credit periods andexport duty benefits have also aided the sector to weather the effects of slowdown. Thegovernment had also increased the pre-shipment export credit period (from 90 to 180days) and post-shipment export credit period (from 180 to 270 days) to ease the longerinventory cycles faced by the sector.
  6. 6. Exports of Gems and Jewellery SectorThe Gems & Jewellery sector hasexperienced high growth over theyears on the back of a buoyantperformance in its exports. Totalexports of Gems and Jewellery hasregistered an impressive growthfrom US$ 2.99 bn in FY91 to 21.12 bnin FY09 which translates into a CAGRof around 11.47%. However, duringFY01-FY02, the slowdown in the US,which is the largest importer ofIndias gems and jewellery, and someother importer countries, led to ademand contraction and asubsequent decline in the exportgrowth rate for the sector; while thedecline was mainly in exports of cut and polished diamonds (CPD), gold jewellery exportshad remained resilient as it registered a positive growth. Net exports during FY01 and FY02fell to US$ 7.8 bn and US$ 7.6 bn, respectively, as compared with US$ 8.1 bn during FY00.The government took important policy initiatives, including de-licensing of the import ofrough diamonds (with effect from April 1, 2002), which was a long standing need, to give aboost to this sector. This was reflected in the growth in the exports during FY03. Exportsduring FY03 grew by 21.36% as compared to a decline of around 3% during the previousfinancial year.The growth momentum in exports continued during the following two successive financialyears; however, during FY06 and FY07 the sector witnessed a deceleration in the rate ofgrowth (6.5% during FY06 and 2.7% during FY07) in net exports due to the dismalperformance in the cut and polished diamonds segment.Factors such as abolition of the Target Plus Scheme affected the exports during the firstquarter of FY06. Under the above scheme exporters of medallions and coins used toregister their exports in the jewellery category and these exports constituted a significantpart of the jewellery exports due to their size. Besides, the change in the value-addednorms, as per which value addition was to be calculated on the entire piece of jewellery(including diamond and precious stone content) instead of the earlier method, as per whichonly the gold content was considered as the base, also affected the exporters. Besides,heavy rains that flooded Surat and Mumbai affected the diamond exporters and disruptedoffice attendance, production and movement of goods. Further, owing to the marketslowdown in the US, the sector witnessed a decline in exports during the last two quartersof FY06.
  7. 7. Sluggish demand from the US continued during FY07 as well. The exporters also faced delayin payments especially from the US. Moreover, there was a decrease in the diamondtrading activities of bonded warehouses.In FY08 the gems and jewellery sector showed resilience amid turbulent market conditions.The facility of duty-free treatment under the General Scheme of Preferences (GSP) forprecious metals (other than silver) and articles of jewellery enjoyed by the Indian exporterswas terminated by the US from July 1, 2007. The US GSP benefit was terminated on thegrounds that the articles from India were exported in quantities exceeding the applicablecompetitive need limitation during 2006. After the termination of the benefit, a basicimport duty of 5.50% was implemented on the precious metals and jewellery exportedfrom India to the US.However, the sector achieved a commendable export growth rate of 21.47% (y-o-y) duringFY08 in the face of high interest rates, appreciating rupee, termination of GSP benefits andeconomic slowdown in major export markets. This growth could be partially attributed tothe increase in trading activities. Moreover, fiscal measures such as reduction of importduty on cut and polished diamond (CPD) to 0%, reduction of import duty on un-workedcorals and rough synthetic stones from 30% to 10% coupled with various trade facilitationmeasures undertaken by the government provided a boost to the sector. The appreciationof the rupee during FY08, which helped in increasing the competitiveness of gems andjewellery sector by making imports of raw materials cheaper, had also benefitted thesector to some extent.However during FY08, India’s exports of gold jewellery recorded a significant moderation.Due to the volatility in gold prices in FY08 and global economic downturn, a slowdown indemand for gold jewellery was witnessed worldwide. Growth in the exports of goldjewellery moderated to 6.67% during FY08 as compared with a high growth rate of 34.18%during FY07.During FY09, the global economic slowdown, which manifested during the second half ofFY09, severely hindered the purchasing power of the jewellery customers, both external aswell as domestic. In spite of this, the growth in the net exports during FY09 remained in thepositive territory mainly due to the robust performance during the first half of the year.Despite the slump in exports of CPD segment (the CPD segment witnessed a decline ofaround 8% in exports in dollar terms), the sector was able to achieve a marginal growthrate of 1.32% in dollar terms on account of gold jewellery export sales, which clocked ahigh growth rate of 23.29% during FY09. Besides, tightening of foreign currency creditfacilities and high interest rate during the first half of the year also adversely affected theCPD sector, which is heavily dependent on bank financing.The overseas demand erosion, mainly from US led to postponement or cancellation oforders resulting in inventory build up, erosion of profit margins, shutting down ofmanufacturing units and retrenchment in the sector. However, the March 09 export figurespoint out to the fact that the pace at which the exports were declining has been arrested tosome extent. Exports during March 2009 registered a decline of 16.75% on a y-o-y basis,while they were down by about 33.94% (y-o-y) during January 2009.
  8. 8. The contraction in the decline in exports continued during the first five consecutive monthsof FY10 as well. With the stabilising of demand conditions from India’s major tradingpartners, there has been a growth in exports in dollar terms from the sector sinceSeptember 09. However, the export growth in rupee terms had turned positive since July2009 mainly due to the depreciation of the rupee against the US dollar. The variousincentives announced by the government for the sector to combat the slowdown have alsoin part helped the sector in its recovery.Nonetheless, the increase in export growth rates since October 2009 can be partlyattributed to the base effect, as export figures had started declining in absolute valueterms since October 2008 due to the onslaught of the global financial crisis.
  9. 9. Export of CDP (cut & polished diamonds)The growth in Gems and Jewellery exports has beenprimarily driven by the CPD segment over the years.As one of the largest cutting and polishing centre ofdiamonds in the world, the Indian CPD segment hasalways held the largest share in the total exports ofgems and jewellery. India primarily focussed onexports in cut and polished diamonds owing to itstraditional expertise in diamond cutting andpolishing. Growing by around an annual averagegrowth rate of 9%, this segment held an averageshare of around 83% in the net exports of gems andjewellery during FY92 to FY02. However, since, FY03,its share shrank to around 69%. Even though its sharein net exports had fallen, it had continued to registeran average growth rate of around 13% during theabove mentioned period. CPD exports grew from US$7.11 bn in FY03 to US$ 13.02 bn in FY09; however, over the years, the fall in the share ofCPD exports has been increasingly replaced by the growth in exports of gold jewellery.Export of colored gem stones & non-goldjewelleryThe share of exports of coloured gemstonesin India’s net exports is very small.Moreover, India is a net importer of pearlsand synthetic stones. In fact, rough colouredgemstones, synthetic stones and raw pearlsare largely imported for value addition andfor preparation of final products, which arethen sold either in the domestic orinternational market. India has a richresource of highly skilled and low costlabourers which is effectively utilised by theIndian manufacturers in this sector forcreation of highly value added goods.Even though platinum jewellery is highly sought-after in the international markets, Indiadoes not export the same because it lacks natural resources for platinum; however,platinum bars are imported into India, though in very low quantities, as the demand forplatinum jewellery is restricted to high-end customers and is not very robust.
  10. 10. Export of Gold JewelleryRecognising the growing acceptanceof Indian gold jewellery in the worldmarket the government hadinitiated several measures includinga medium term strategy in FY06.The following measures were a partof this medium-term strategy: a. Hallmarking and certification of gold to aid the development of Indian brands in the jewellery market. b. Integration throughout the jewellery supply chain from mining of raw materials to retailing of end products as well as joint venture manufacturing with the leading suppliers of the world. c. Developing market intelligence with a focus on key markets including NRIs.Measures such as gradual liberalisation of gold import in the country and opening of goldtrading in exchanges had also provided a boost to the gold segment.The sustained buoyancy in exports of gems and jewellery over the years reflects the effectsof continuing policy initiatives taken by the government over the years. As raw materialsfor the sector are largely imported, the government has focussed on reducing the barriersto import raw materials. Identified as a thrust sector which has prospects for exportexpansion and for employment generation under the Foreign Trade Policy of 2004-09,special policy initiatives had been announced to increase the competitiveness of the Gemsand Jewellery sector.Under the Market Development Assistance and Market Access Initiative scheme of theGovernment undertaken during the foreign trade policy of 2004-09, steps have also beentaken to encourage: creation of training infrastructure to impart skills to artisans injewellery designing; participation of exporters in international fairs, and arrangement ofbuyerseller meets abroad to showcase the quality and variety of Indian products.
  11. 11. About the BrandGitanjali Group (BSE: 532715, NSE: GITANJALI) is one of the largest branded jewelleryretailers in the world. It is headquartered in Mumbai, India Gitanjali sells its jewellerythrough over 4000 Points of Sale and enjoys a market share of over 50 per cent of theoverall organised jewellery market in India.[5] Prominent brands housed by the group areNakshatra, Ddamas, Gili, Asmi, Sangini, Maya, Giantti, World of Solitaire, Shuddhi, Diya toname a few.Gitanjali is engaged in the cutting and polishing diamonds as well as in jewellerymanufacturing, branding and retailing. It exports its cut and polished diamonds, as well asits diamond and other jewellery products to various international markets such as the USA,Middle East, Japan, China, Hong Kong, Thailand and to markets in Europe such as Antwerpand Italy. The group remains a dominant player in the diamond and jewellery segments. Ithas also recently forayed into the retail and lifestyle space.Gitanjali is headquartered in Mumbai and enjoys a pan India presence with more than 4,000points of sale across a total area of 1.7 million sq ft. The group has 120 outletsinternationally .and a presence in significant jewellery markets such as the United States,the Middle East, Europe as well as markets in Asia, such as Japan, China, Hong Kong andThailand. Best known for......The company has been listed on Bombay Stock Exchange with script code 532715, NationalStock Exchange of India script name GITANJALI [5] It has also recently entered theecommerce market through a marketplace http://www.jewelsouk.in/ and an exclusiveonline store http://www.gitanjaligifts.com/Founded as a single company cutting and polishing diamonds for the jewellery trade atSurat, Gujarat, in 1966, the Gitanjali Group became, many times over, a pioneer amongmajor diamond and jewellery houses.First major diamond and jewellery house to be launched and run by modern entrepreneursrather than dynastic jewellers. An authorised DTC Sightholder and loyal customer – and amodern multinational business run on innovative insights.At the forefront of the global breakthrough in diamond jewellery design and productionbrought about by India’s ability to cut diamonds considered unworkable for jewellery tillthen. Has the distinction of producing the world’s smallest heart shaped diamond (0.03carat) and developing some 25 patented facet patterns.
  12. 12. Besides changing the face of manufacture, broke the mould of traditional jewellerymarketing: it abandoned jewellery trade convention by launching multiple brands formultiple markets and price segments.Opened up distribution via superstores, department stores and other retail outlets at MRP,supported by international certifications of scientifically tested purity and authenticity,across India and in the world’s jewellery capitals. Even markets branded jewellery directlyby mail order catalogue.Business model now integrates all operations, from rough diamond sourcing, cutting,polishing and distribution, and jewellery manufacture, to jewellery branding and retail, aswell as global lifestyle brands, in India and abroad.Brought diamonds within reach of a wide consumer base. The first to offer diamondstudded jewellery at affordable prices, of standardised designs, quality and pricing acrosslocations – progressively precision-producing replicable designs using the latest CAD andCAM processes and equipment.Offers jewellery in diverse styles: traditional, international, classic, and casual. Forconsumers of all age groups, tastes and budgets. With a growing hamper of brands, somealready global, and each targeted to specific consumer and market segments.Having won over 50 Awards from the Ministry of Commerce, India for outstanding exportsof diamond and jewellery, is today over $1000 million multinational group, and a publiclylisted entity.Operations span the globe, all the way from USA, UK, Belgium, Italy and the Middle East toThailand, South East Asia China, and Japan.
  13. 13. Gitanjali Launches Jewel Souk store Chain Mumbai : The Gitanjali Group today launched JewelSouk, a multi-brand, multi-category lifestyle store chain that brings together all major jewellery brands under one roof, marking a new landmark in the development of the modern, organised segment of the Indian retail jewellery trade, which is today estimated to have a turnover of Rs 5,00,000 crore, of which nearly 60 percent is from the burgeoning domestic market. The first of this new category of stores was inaugurated at the International Terminal of the CSIA, Mumbai by Bollywood star, Sonakshi Sinha. Jewelsouk will serve as a platform for leading fine jewellery, fashion jewellery and watches brands tocome together under one roof and offer a wide variety to the consumer. The emphasis inthe new format will be on offering consumers easy access to a wide range of national andinternational brands in a unique ambience that aims to make shopping more pleasurableand more convenient.This new format is being introduced at the International Terminal of the Mumbai airportand will subsequently be extended to other lifestyle and luxury department stores that areemerging in the metros and Tier II cities. This will include premier shopping destinationssuch as Walmart, Centrals, Spencers, Star Bazaar, Kapsons and leading stand alonedepartmental stores.Elaborating on the concept, Mehul Choksi, CMD, Gitanjali Group, says, “The Indianconsumer is demanding a shopping experience that offers both the variety of choice and thehigh levels of quality that she enjoys in other leading international cities. JewelSouk aims tosatisfy that need and boost the modern retail segment of the trade. It will offer exquisitejewellery and a few other branded lifestyle accessories to satisfy every type of taste.”Rahul Vira, CEO – Gili & Head – Retail, Gitanjali Lifestyle, says, “The JewelSouk store at theairport is the perfect place where international travellers can pick up jewellery as a gift ormemento. The luxurious ambience enables them to look at the choices offered by thedifferent brands and choose at leisure.”Airport Store: Exciting Opportunity for International PassengersThe new JewelSouk store at the international terminal of the CSIA is a large format store
  14. 14. spanning 7,000 sq ft. which will offer international passengers an excellent opportunity tochoose gifts from an array of well known jewellery brands.Shekhar Wadke, Business Head- JewelSouk adds, “We are planning to open about 50 suchoutlets this year both as mega shop-in-shops within lifestyle department stores as well asstandalone stores. Going forward we will also be looking to set up mini-malls in locationswhere there is a high footfalls of our target segment.”Speaking at the launch of the CSIA store, Sonakshi Sinha said, “The wide variety of Gitanjalibrands at the new store will give passengers an opportunity to buy jewellery at the airport.This is the perfect place for them to pick up jewellery as gifts for family and friends.”Shirish Kotmire, Vice President – Commercial, MIAL, says, "If passengers are presented witha world-class shopping experience with emphasis on quality and value for money, they areopen to spending time and shopping at CSIA. The opening of the Jewel Souk offerspassengers a variety of jewellery brands across all price points, supported by internationalcertification."Gitanjali Gems is an integrated diamond and jewellery manufacturer having strong presencein Indian and overseas markets which has been made possible with growing retail presence,strong brands bouquet, focus on jewellery business and global acquisitions.The company has strong brands like Nakshatra, Gili, D’ DMas and Asmi and has 50% of itsrevenue coming from domestic market. Gitanjali Gems has been increasing its focus onjewellery business which has an EBIT margin of about 15% against its traditional diamondbusiness, which has an EBIT margin of about 3%. The company also has its domesticjewellery business equal to that of Tanishq, a brand owned by Titan Industries. In quarterending September 08, both the companies had a turnover of close to Rs 750 crores eachfrom jewellery business, with almost same EBIT margin.For FY08 on standalone basis, the total income of the company was at Rs 2,655 crores withnet profit of Rs 138 crores yielding an EPS of 16.25 on equity of Rs 85 crores.For first six months of FY09, on consolidated basis, the total income of the company wasplaced at Rs 2,510 crores with profit after tax of Rs 90 crores, which has resulted in an EPSof Rs 10.70 for first half.Present equity of the company is at Rs 85 crores with face value fo Rs10 per share. As at30.9.08, promoters stake in the company is at 48% while FIIs and Depository ReceiptHolders are holding 31% with 9% held by the banks and mutual funds and 12% by the public.Best part about FII holding is that it is held by three sound ones like Goldman Sachs holding6.5%, HSBC 6.5% and Deutsche Bank about 8%. Promoters of the company have beenraising their stake and have seen buying close to 2% stake in the last 3-4 months.Though there are negative perception for the growth of the company’s business, due toglobal economic slowdown, but still, FY09 should have a topline of Rs 4,500 crores with net
  15. 15. profit of Rs 170 crores, resulting in an EPS of close to Rs 20. Due to fear of slowdown, sharewhich had its 52 week high of Rs 473 had corrected to low of Rs 57 in November 08 and isnow ruling at Rs 75 levels. This is at a PE multiple of about 4 times, based on FY09 workings.Titan Industries, a similar company even today is ruling at a PE of close to 14.The company has been aggressively increasing its footprint in the domestic and globalmarkets by acquisitions of retail chains and brands which will enable to expand at a regularinterval. The company has recently entered into a JV with MMTC to open jewelleryshowrooms in India.The company in the past has entered into realty development mainly with a view to startjewellery SEZ and to have premises for its showrooms.Though the same may not yield animmediate return, in the medium to long term, it will help the company to expand as also toearn extra profit from this business.Share is having a book value of Rs 210 as on date and is ruling at 76.65 which makes it a safeand good buy. Share has potential to breach three digit mark by March 09 with minimaldownside risk. A safe bet at Rs 76.65.Following the acquisitions of two jewellery chains in the US, Samuel Jewels in December2006 and Rogers in November 2007, Gitanjali Gems [ Get Quote ] is eyeing a few morebuyouts in the worlds largest jewellery market. The slowdown in the US economy andconsequently the jewellery market, could throw up opportunities for buyouts, saysChairman Mehul Choksi.For Gitanjali, which today processes and manufactures diamond jewellery, its newerinitiatives to tap the retail and infrastructure development spaces, might well be its keyrevenue drivers in the next few years. The Rs 3,471 crore company, has already forayed intothese segments both in the domestic as well as the international market. Within thejewellery space, the firm is focusing on the high- margin jewellery manufacturing segment,rather than the labour intensive diamond processing operations.Jewellery companies are unable to achieve profitability through manufacturing alone andhave to go downstream for better realisations.Says Choksi, " The company operates across five verticals from jewellery manufacturing toretail. Going forward jewellery will remain the core business but we will explore expansionopportunities in related products as well."Early last year, Gitanjali ventured into luxury retail, through a wholly -owned subsidiaryGitanjali Lifestyle, to introduce international brands in India [ Images ]. Since then thecompany has tied up with Australian salon chain Just Cuts to open 250 outlets in next fouryears.It has also inked a joint venture with Italian jewellery and watch major Morellato and SectorGroup to distribute their brands in the country. Gitanjali already has a portfolio of 12jewellery brands across various price segments, being retailed through nearly 1,000 stores.Internationally, it has entered the American jewellery retail market with a target to operateabout 400 jewellery stores.
  16. 16. Industry sources estimate that by 2009-10, retail is likely to become a Rs 300 crore (Rs 3billion) business for the company, while the American operations are pegged to reach $1billion in next five years. The firm is also scouting for a logistics partner to enter China,which accounts for 3-4 per cent of the global jewellery market. According to analysts,Gitanjali will command better valuations than its industry peers because of strong brandsand better margins due to its presence across value chain and evolution as focused retailplayer. "About 60-70 per cent of the wholesale business will cater to the groups captiverequirements," observesChoksi.Gitanjali Infratech, a wholly owned subsidiary, established to develop luxury malls andinfrastructure for the proposed SEZs to be set up in Hyderabad and Panvel, will enable thecompany to expand margins through rental and lease income. According to sources, theSEZs are expected to generate income from 2009 onwards , with a potential to become a$500 million business.The company also plans to develop SEZs at Nanded, Nagpur and Aurangabad.
  17. 17. SWOT AnalysisStrengths•Large integrated diamond & jewellery player and having an international presence.•Pioneers of branded jewellery in India.•Strong marketing & distribution network. Strong retail presence in India and in U.S. 112distributors and 1246 outlets in India and 143 outlets in U.S.•Strong brand equity and broad product range Such as, Gili, Asmi, Nakshatra, Sangini,D’damas, 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 toaddress increasing demand.•Net Worth is 3,460.37 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 Promoter groupcompanies.•As the major raw material requirements need to be imported, companies normally stockhuge quantities of inventory resulting high inventory carrying costs.•Technology is less improved compared to China and Thailand’s company.Opportunities•New markets in Europe & Latin America.•Growing demand in South Asian & Far East countries.•Industry moving from a phase of consolidation.•Expansion possibilities in lifestyle and luxury products in India like watches, leather goods,Platinum jewellery because increasing disposable income of people.
  18. 18. Threats•International Competition:-China, Sri Lanka and Thailand’s entry in small diamondjewellery.•Increase in the price of Gold & Diamonds.•Other local competitors. According to the data 97% jewellery sales are by family jewelers.•Threat from producing nation like S.A. & Russia.

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