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INTRODUCTION Founded as a single company cutting and polishing diamonds for the jewellery trade at Surat, Gujarat, in 1966, the Gitanjali Group became, many times over, a pioneer among major diamond and jewellery houses. Gitanjali Group is one of the worlds largest integrated branded jewellery manufacturer-retailer with an annual turnover of over $3billion. Established in 1966, today its acti vities are spread across the enti re value chain from rough diamond sourcing, cutting, polishing and distributi on, jewellery manufacturing to branding and retailing gold and diamond jewellery in India and abroad.The Group pioneered the jewellery retail revoluti on in India by launching Gili way back in 1994. It today owns eight out of the top ten jewellery brands and distributes them through its extensive network of own stores, shop-in-shops and franchise outlets span across 300 citi es and 4,000 points of sale. First major diamond and jewellery house to be launched and run by modern entrepreneurs rather than dynastic jewellers. An authorised DTC Sightholder and loyal customer and a modern multinational business run on innovative insights. At the forefront of the global breakthrough in diamond jewellery design and production brought about by Indias ability to cut diamonds considered unworkable for jewellery till then. Has the distinction of producing the worlds smallest heart shaped diamond (0.03 carat), and developing some 25 patented facet patterns. Besides changing the face of manufacture, broke the mould of traditional jewellery marketing: it abandoned jewellery trade convention by launching multiple brands for multiple 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 worlds jewellery capitals. Even markets branded jewellery directly by 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, as well as global lifestyle brands, in India and abroad.

Brought diamonds within reach of a wide consumer base. The first to offer diamond studded jewellery at affordable prices, of standardised designs, quality and pricing across locations progressively precision-producing replicable designs using the latest CAD and CAM processes and equipment. Offers jewellery in diverse styles: traditional, international classic, and casual. For consumers of all age groups, tastes and budgets. With a growing hamper of brands, some already global, and each targeted to specific consumer and market segments.Having won over 50 awards from the Ministry of Commerce, India for outstanding exports of diamond and jewellery, is today over $3000 million multinational group, and a publicly listed entity. Operations span the globe, all the way from USA, UK, Belgium, Italy and the Middle East to Thailand, South East Asia China, and Japan. Values Integrity, Solidarity, Credibility and Perfection these are the fundamentals of Gitanjali's working philosophy as it impacts business and employee relations, transparency of operations and quality assurance, on the way to creating a globally valued organization. These are values painstakingly nurtured and demonstrably proven over 40 years. We live and breathe them. Vision To be the worlds leading manufacturer of diamonds and retailer of branded jewellery, with a strong, globally diversified infrastructure and integrated operations efficiently linking diamonds from rough to retail. Mission To develop, produce and sell high quality jewellery and accessories worldwide and help our customers to get the maximum value for money. To create incremental demand for diamonds through marketing and promotion strategies.

 To create incremental enterprise and brand value to increase the net worth of the group To build in-house resources of unsurpassable skill in design, manufacture and customer response. To protect worker interest and nurture professional growth and to remain a loyal business partner to DTC. THE BUSINESS MODEL Gitanjali is a multi-faceted global organization that operates through an integrated business model spanning the value chain in its entirety. Its activities range from the cutting and polishing of diamonds,the design, manufacture and branding of jewellery through to jewellery distribution and retail. It is aunique model. This model allows for complete operational control over all upstream and downstream activities.Gitanjalis organizational structure also sets it apart from family-owned businesses that throng the jewellery space.Professionalism is at the heart of this organization which is structured so as to be able to respond to market opportunities more rapidly than others. KEY INDIAN BRANDS The Group is the pioneer of branded jewellery in India. Its several well-established brands are positioned strategically to tap the rapidly growing branded jewellery market in India as well as other countries. The Groups portfolio comprises of key brands such as Nakshatra, Gili, Asmi, and DDamas. These major brands are supported by supplementary brands such as Maya, Diya and Sangini to name a few. The Group has also launched new brands such as Amore and GDivas in India as part of its constant endeavour to extend its product range thereby, rapidly filling gaps and addressing an ever-growing demand for branded jewellery in India. GILI Gili jewellery is high quality, fine finished, machine-made, branded,
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diamond-studded, designer jewellery including pendants,earrings, rings and bracelets in 18k gold studded with small, well-cut,good quality diamonds, as matching sets or by themselves.The average sale price is aroundRs.15, 000 NAKSHATRA Nakshatra is a circular cluster comprising six to nine stones, with the central stone larger than the stones surrounding it, signifying a constellation. It is a modern, fashionable rendition of thetraditional seven-stone Thodu and the Kuda Jodi jewellery, which are traditional Indian floral designs. The combination of traditional charisma and contemporary style helped it gain acceptance with women across age groups. ASMI The design styling for the Asmi jewellery has always been that of curvilinear forms around a central stone of and above 5 points. It rightly personifies the woman of today and her inner fire. Asmi has under its patronage a range of distinctive, contemporary yet affordable designs in diamond jewellery. DDMAS Ddamas has multiple sub-brands, each unique in positioning &offering. The brand also has itemsin all categories-rings, earrings, nose pins, pendant, bangles, bracelets, necklaces, Tanmanya, Mangalsutra , half sets and full sets. Each subbrand under D'damas offers stylized and contemporary designs, conceptualized and created by an in-house team of award winning designers. Ddamas is perhaps the only jewellery brand that has offerings in virtually all product categories, across all price points, for all occasions and emotions, thus covering consumers across agegroups and demographic classes

2. HISTORY Founded as a single company cutting and polishing diamonds for the Jewellery trade at Surat, Gujarat, in 1966 headed by Mr. Mehul Choksi.

Incorporated on August 21, 1986 as a private limited company and subsequently converted into Gitanjali Gems Limited. One of largest manufacturer and retailer of diamonds and Jewellery in India. Operations included sourcing of rough diamonds from primary and secondary source suppliers in the international market, cutting and polishing the rough diamonds for exports to international markets and the manufacture and sale of diamond and other Jewellery through retail operations in India as well as in international markets. Gems & jewellery industry One of the fastest growing segments in the Indian economy with an annual growth rate of approximately 15 percent. The current market size of the Indian Gem & Jewellery Industry is US$ 25 Billion Total export of gems & jewellery in the year April-March,2010 was 29081.11 with a 2.36% growth rate & 16.27% share in the total export. The domestic market was guessed to be approximately USD16.1 billion in financial year 2009. Consumes nearly 800 tonnes of gold that accounts for 20 percent of world gold consumption, of which nearly 600 tonnes go into making jewellery India's strength lies in the 2 million highly skilled workforces in the country in the gem & jewellery sector, out of which 1 million are exclusively engaged in export production. The Gem & Jewellery Industry has started showing positive signs of revival and growth.

Diamonds industry Largest diamond cutting and polishing centre in the worldwith 60 per cent value share, 82 per cent carat share and 95 per cent share of the world market in terms of number of pieces. In the period of 9 months from April to December09 exports of rough diamond declined by 37% to 157.09 lakh carats whereas the exports of cut & polished diamonds mounted by 18% to 407.36 lakh carats .Nearly 9 out of 10 diamonds sold worldwide are cut and polished in India.Exported cut and polished diamonds worth US$ 14.18 billion in 2007-08. Manufactures diamonds of all cuts, shapes and sizes of all varieties like round, princess, baguettes and all fancy cuts.Has democratized Diamonds by mastering the art of cutting near gem quality diamond. BUSINESS REVIEW 1. DIAMOND AND JEWELLERY MANUFACTURING SEGMENT The company is engaged in the diamond and jewellery manufacturing.It is present in the entire process right from sourcing rough diamonds, cutting and polishing them to manufacturing jewellery.The diamond cutting and polishing process is labour-intensive and requires specialised skills.Rough (uncut and unpolished)diamonds acquired are sorted or graded on the basis of colour, shape, clarity, cut and weight. In order to ensure optimum recovery of polished stones from the rough diamonds, the cutting process is carefully planned. The key steps in the process are Marking, Cleaving,Sawing, Cutting and Polishing. The final stages of the diamond manufacturing process consists of checking for damage, cleaning by boiling in various acids and the final sorting before marketing to the customer.The branded jewellery that the company manufactures includes diamond studded and other precious metal jewellery. There are currently over 200,000active SKUs. The company has produced branded jewellery in India for approximately 20 years. It started as an outsourcing partner for leading international jewellery brands and then transitioned to cater to its own branded jewellery,distribution and retailing.The majority of the branded jewellery that is produced in-house is used in the companys own distribution and retailing network. The company makes use of sophisticated jewellery manufacturing facilities in India that incorporate CAD (Computer Aided Designing) and CAM (Computer Aided Manufacturing)
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technology, that is overseen by a highly skilled design team. The multiple manufacturing locations mitigate risks associated with a single site manufacturing facility. In addition, the company is situated in strategic locations to take advantage of the supply of skilled labourers that may be specific to a region. Our manufacturing facilities are also located at logistical hubs for efficient supply chain management beginning with raw material sourcing and ending with easier access to consumers.. 2. BRANDED JEWELLERY AND RETAIL SEGMENT The company believes that it has been a pioneer in the branded jewellery segment and is amongst the first few companies to launch its own outlets to sell branded jewellery in India. The Gili brand of jewellery, introduced in 1994, was among the first branded jewellery lines introduced in India. The companys brands and sub-brands are aimed at different customer profiles, various markets and price segments and enjoy significant brand equity and market share.The companys distribution channels include exclusive distributors for jewellery products, direct sales to large department stores and direct sales to end customers through retail operations. The company sells diamond and other jewellery products in India through its nationwide sales and distribution network that consisted of 360 distributors, 259 Company-owned stores, 391 stores set up through franchisee arrangements and 643 shop-in-shops located in department stores. The company is also strongly exploring newer channels of distribution such as e-commerce and e-franchising to capitalize on the trend of consumer preferences changing in favour of modern retail formats and new buying methods. The companys retail operations are carried out through it various subsidaries and are supported by a strong inventory 3. INTERNATIONAL DISTRIBUTION AND RETAIL SEGMENT The company has also established a significant retail and distribution presence in the United States, the Middle East and certain regions in Asia through it overseas subsidiaries.In the United States, the company operates a retail network of 104 stores through its subsidiary Samuels Jewelers, Inc. which was acquired in 2006. The Samuels chain has exclusive designer jewellery collections and a large selection of loose and mounted diamonds under brands such as Samuels

Jewelers, Schubach Jewelers, Samuels Diamonds, Rogers Jewelers and Andrews Jewelers which are primarily targeted at middle and upper middle class consumers in the United States. Headquartered in Austin, Texas, Samuels retail chain is positioned as a wedding jeweller with category focus on bridal collections in the United States.In the Middle East, the company operates four stores in Dubai and also sells to approximately 50 prominent retailers. The company targets the Indian diaspora who are familiar with its brands.The company has incorporated a subsidiary in Singapore, Leading Singapore Jewels Pte. Limited in order to expand its Asian retail presence. In 2012, the company opened its first retail store in Singapore.The Company is also present in Japanese market through it strategic stakeholding in IMACBC and Verite Co. Limited. Aston Luxury Group Limited, a Hong Kong based wholly owned subsidiary of the Company, owns 20% stake in IMACBC and 15.03% stake in Verite Co. Limited.The company has also increased its global presence in Italy through brand acquisitions and increased access to distribution networks on account of strategic acquisitions and investments, in Italy. The company through its subsidiary Alfred Terry, in the United Kingdom has gained access to a strong distribution network in the UK and rest of Europe. The company also acquired Crown Aim Limited, a Hong Kong based company that has strong distribution network to Hong Kong, China, Japan, the US, Middle East and Europe OPERATIONAL HIGHLIGHTS Significant global presence in the top five jewellery markets of the world One of the largest manufacturers of precious jewellery. Largest number of well established jewellery brands under one roof in the world top 6 out of 8 jewellery brands in India and well known internati onal brands One of the strongest and largest retail networks making it the largest jewellery house in terms of number of points of sale globally with over 4000 points. Well balanced and well-diversified business model. Amongst the fastest growing jewellery conglomerates

3. STRATEGIES OF GITANJALI GROUP

1. Multi Branding Strategies Multi Brand Strategy refers to a marketing strategy under which two or more than two similar products of the same firm are marketed under Different and unrelated Brand namesare sold. In most of the cases, these products are competing ones and are marketed under the Brand Names which are completely unrelated. While knowing these brands will eat into each others' sales , multi-brand strategy does have many advantages . Gitanjali group has opt for Multi Branding Strategy in order to generate economies of scale by using the basic advantages of the strategy. But it cannot be denied that Multi Branding Strategy can also fail due to poor management and due to adoption of unprofitable business models. The advantages can be: 1. Gitanjali could obtain greater shelf space and leaving little space for competitors' products in the market. 2. Gitanjali has a strategy to saturate the market by filling all prices and quality gaps to target market by providing huge number of products with their different prices and features serving for different types of customers. 3. Gitanjali caters to brand-switchers users who like to experiment with different brands and accept good one for long time. 4. It helps the firm's brand managers on their toes by generating high degree healthy internal competition amongst all with better efficiency and better overall result. 5. It helped Gitanjali to grow its market share under different brands in the market.
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6. Gitanjali could achieve economies of scale and paases on those benefits to customers finally by giving discounts and offers etc. 7. A diversified business portfolio of Gitanjali group allows it to offset their losses(if any) in division by the profits of another divisions and thereby keeping stable outlook in the market.(channel mix,categeory mix,geographic mix) 2. Expansion strategy Gitanjali Group has a well defined expansion strategy for retail through organic,inorganic and partnership routes. Gitanjali Group plans to expand its retail base from the present 2,000 outlets to almost 5,000 outlets in the next few years. The Company ,which is increasingly focusing on its retail business,is likely to display premium jewellery brands besides its in-store labels in the new outlets. Acquisitions including Samuels, Rogers and Tri-Star demonstrating a cohesive US strategy is to continue.Gitanjali has entered into a JV with state-run trading agency -MMTC Limited . It has plans to open another set of Jewellery stores in India over the next 2 years as a part of the JV. The next phase of growth to come from expansion in the international geographies of US, Middle East, Japan and China Gitanjali has ensured a strong manufacturing base through a contemporary saleable manufacturing setup. It owns seven factories in India across diamond and jewellery manufacturing. A strong product development and design function supports the manufacturing. Gitanjalis foray into lifestyle products has been done with a view to leverage existing customer base and domain knowledge Hyderabad SEZ is being developed to a world class manufacturing facility 3. Strategy of human resources development
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The Company believes investing in people through creating an environment where people are valued as individuals and are given equal opportunities for achieving professional and personal goals. The Companys focus on development of Special Economic Zones includes huge employment opportunities and the Company already initiated through setting up training centre in SEZ Hyderabad which has a capacity to train more than 1500 workers in diamond and jewellery manufacturing. 4. Generic strategies Operatioanl excellence Various distribution channels. Securing suitable locations. Ability to hire, train & retain qualified personnel. Regular Staff Training Programs. Various Leadership & Performance enhancement programs. 26 Distributors, 620 Outlets. 17 Franchise outlets.

Inventory Management System

5. Market development strategy New retail outlets Shop in shop concept Expansion Plans Participation in fashion Shows Various new products for different customer profile International retailing

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6. Product development strategy Product proliferation Focused on quality of growth Replacement of unsold stock melting diamond to mold it into new design on quarterly basis Continuous process of product development as a routine work

7. Marketing and Selling strategy in U.S.A - Jewellery sellers in USA are big on direct marketing even online marketing - They send out catalogues and mailers to actual and potential buyers - An online catalogue is made available which, repeat customers can log on to using a password - Jewellery makers in India rely on a combination of print and TV Ads - About 35% of jewellery sales in USA takes place between thanks giving day the 4th Thursday in November and christmas and 15% of on valentines day - Hence it is important for retailers to be on their toes during this period both in terms of designs and supplies 8. Push and Pull strategies - Gitanjali Gems used contests and freebies as an integral part of marketing programmes to lure customers - It used its marketing mechanism towards making the sale happen - It made available, easy finance and americans are only too happy availing it - A USA customer avails of a long credit period while purchasing jewellery

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- The street stores mostly see planned purchases but malls and department stores typically see impulse buying - In USA, retail stores like Tiffany are brands by themselves. - Gitanjali Gems has retail outlets at Tiffany and earns the goodwill of the store - It has to struggle less to win over the customers 9. Business model and strategy for growth Aggressive expansion and diversification strategy includes a. Expansion of retail presence and brand portfolio b. Re-aligning the business model to focus on the high-margin diamond jewellery business c. Ramping up manufacturing infrastructure to cater to increased demand d. Diversification into distribution of lifestyle and luxury products business e. Setting up of gem and jewellery SEZs f. Achieve higher margins by moving up value chain 10. Other Strategies E-commerce emerging as astrong platform for a groups jewellery retail If the sales dip it reduces working capital available with a jeweller to buy inventory At the same time holding too much inventory for too long is also a drag If a piece does not sell for long management decides to melt it and catches with trendy designs In India, basic understanding of jewellery is good. Designers can forecast and understand different requirements of the market. Gitanjali Gems takes full advantage of it
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 In India Gold dominates jewellery sales that too much mostly for investment purposes. In USA Jewellery is mostly boght for fashion and diamonds account for 70% of Jewellery sales with the balance coming from Gold Americans are matured customers as they have higher disposable incomes A bridal ring is the largest selling jewellery item in the USA followed by fashion jewellery, solitaire and studs Gitanjali Gems uses software to map customer behaviour, trends and manage customer relationship programmes 4. FINANCIAL PERFORMANCE Financial highlights for the year 2012-13 Sales EBITDA PAT 31% 30% 21%

Gitanjali Group announces results for the financial quarter ended June 30th, 2013

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1. Net Sales in Q1FY2014 were Rs. 3,919.2 cr as against Rs. 3,384.7 cr. in the corresponding period last year; up 16% 2. PAT during the quarter was Rs. 35.1 cr as against Rs. 148.9 cr in the similar quarter last year 3. EPS for Q1FY14 was Rs. 3.82 4. Jewellery Sales in the quarter were at Rs. 2,083.8 cr up 13% 5. EBIT in the quarter was Rs. 174.9 cr as against Rs. 269.2 cr in the corresponding period last year. 8.The next phase of growth to come from expansion in the international geographies of US, Middle East, Japan and China

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Ratio analysis Ratios OPM % NPM % EPS Book Value Year 12 5.23 3.28 27.66 277.84 Year 11 6.91 4.38 26.83 264.43 Year 10 6.82 4.23 17.34 241.60 Year 09 7.71 4.7 15.43 222.38 Year 08 6.71 5.2 16.64 209.58

5. RETAIL OPERATION: Leading jewellery retailer Gitanjali Group plans to set up a total of 550 shops in India and abroad by end of this year, a top company official said.

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"Gitanjali are certainly looking at expansion in retail business and aim to set up additional 300 shops in India and 250 in abroad by the end of the current year," Gitanjali Group Chairman and Managing Director Mehul Choksi told PTI (Press Trust Of India). Diverse Retail formats: Multi-format outlets, Multi-Brand Outlets, Exclusive Brand Outlets ranging from 50020,000 sq.ft. They provide multiple channels like Shop-In-Shops, Owned Stores and Franchisees. Multiple Retail formats and channels to ensure effective penetration and wide spread reach Consumer preferences have changed and lifestyles have improved in India. Retailing in India has also undergone a transformation. This has filtered through to the jewellery business creating opportunities for modern retail formats and chains. Gitanjali has been the pioneer in the branded jewellery segment and is amongst the first few companies to launch its own outlets to sell branded jewellery in India. Gitanjali is present across most modern retail formats such as shop-in-shops in large departmental stores and both, multi-brand outlets and exclusive brand outlets under owned and franchised stores. Gitanjali has extended its retail presence across outlets through an increase in the number of doors in order to take advantage of these opportunities. Gitanjali has a retail footprint of 1.7 mn sq. ft. It is focused strategically on expanding through the franchisee channel. This has allowed it an access to markets in smaller Indian towns and cities rapidly. 6.INTERNATIONAL AND DOMESTIC BUSINESS The expansion in the domestic market will be through a franchise route in Tier II and III cities as rents are lower than the tier I cities, he said, adding that about Rs 50 crore will be invested this year for domestic expansion.Besides operations in India, Gitanjali has a strong presence in leading jewellery markets of the world. It has the retail chain of Samuels in USA with 110 stores. In the Middle East, it has four stores in Dubai and over 50 distribution points through leading retail chains of GCC countries. In China, Gitanjali has distribution through a chain of 40 stores and a manufacturing facility for local as well as international supply. In Japan, it has a significant stake in Gems London Company Ltd which owns Gems TV, one of the
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leading Jewellery selling TV Channels of the world as well as a strong distribution network supplying to other leading retail chains of Japan. In the design capital of the world, Italy, Gitanjali owns leading brands such as Stefan Hafner, Nouvelle Bague, Porrati and Valente. The Italian brands and designs are available to penetrate markets such as Russia, Saudi Arabia, China and the Far-east. Through its recent acquisition, Gitanjali also has a well established distribution chain in UK supplying its jewellery to leading retail chains in UK and in the rest of Europe. The Gitanjali group aims to expand presence in the international market, especially in America and Japan this year."Globally, they are looking at expanding further. They plan to add 250 stores in 2013. America is doing extremely well and they would like to expand there, followed by Japan.International market has started improving and now prospects look better, according to the company. "Their target is to increase our global retail sales by 30 per cent this year. Last year, global sales were at USD 800 million". Largest selling brands from the Gitanjali Group include Nakshatra, Gili, D'damas, Asmi, Sangini and others.

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Gitanjali Today- Business Structure (FY 2013 Revenue contribution)

Financial Highlights

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7. LOGISTIC AND SUPPLY MANAGEMENT OF GITANJALI GEMS

Procurement: Operations and revenues were dependent upon availability of rough diamonds. World's know sources were Angola, Australia, Botswana, Brazil, Canada, Ghana, Russia, South Africa. Procurement at competitive prices from Diamond Trading Company (DTC), De Beers, S.A from London and South Africa to a selected groups or Sight Holders Gitanjalis employees attended offerings of rough diamonds held by DTC periodically at London. At Sight, they purchased a series of composite rough diamonds at DTCs stated price.
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 In 2000, DTC announced significant changes in its approach to rough diamond marketing by stopping open market purchases, alter its market control and pricing policies by way of Supplier of choice marketing programs. Gitanjali was able to combat these changes by broadening the sales base and implemented strict inventory, pricing and purchase controls to decrease the impact of price fluctuation. Sophisticated rough diamond evaluation program and inventory utilization programs. Manufacturing: Diamond Manufacturing was a Labor Intensive process requiring specialized knowledge and skills.

Step Involved in Diamond Manufacturing

Polishing Cutting

Sawing Cleaving
Marking

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Steps involving in Diamond Processing:

Material management- sourcing- logistic & scm- inventory management Buying / Sourcing Rough Diamonds from De Beers / DTC ( 85% ) Monopoly earlier and Balance from others. However in recent years USSR production has gone up and De Beers share of rough diamonds are now
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reducing in the global market. Hence sourcing has become now easy with cost of basic raw material going down increasing the profits. Auction based buying the basic raw material Value being very high Needs larger financial investments for rough diamonds and finished diamonds and also gold and jewellery alongwith insurance requirements Plant and Machinery and its location to suit the costing and pricing (ie) feasibility and viablility - Either own land and building or on lease as per financial capacity and if 100 % Export Oriented then select a country and location for SEZ operations

Distribution: Independent sales and distribution network for diamonds and Jewellery products. Promoter group companies outside India played major role in developing strong relationships with customers in the international markets. Wholesalers acted as procurement agents for Jewellery retailers in the international market . Back home gitanjali has a strong sales and distribution channel by way of exclusive distributors, direct sales to large departmental stores and reputed Jewellery lines, and direct sales to and customers through retail operations. 12 retail outlets were established as franchisees. Gili brand was sold though an independent distribution network through regional offices and operations were handed through retail outlets in host stores (Shoppers stop)

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Indian gems and jewellery industry location

8.COMPETITORS OF GITANJALI GEMS: Current and Political Competitors include: Independent Jewellery Stores Retails Jewellery Stores Chains Wholesales Diamond Traders Competition Segmentation Quality Design
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 Availability Price Primary competitors: Mehrasons Jewellers (Delhi) Tribhuvandas Bhimji Zaveri (Mumbai) B.C. Sen and P.C.Chandra (Kolkata) G.R.Thanga Maligai (Chennai) C. Krishnaiah Chetty (Bangalore) Tanishq (Mumbai, Delhi, Banglore) Other competitors and their strives in market Laxmi Dia Jewel Pvt Ltd , Surat was the second largest exporter of polished diamonds. Rajesh Exports Ltd (Bangalore) was the worlds largest gold Jewellery manufacturer and the country largest exporter of gold Jewellery. Swarnmandir Jewel Designer (Karnataka) was known for its exclusive designer series (916) handicraft gold Jewellery. Zirconium Jewellery was gaining popularity by Brand Ishtaa. Tanishq: Started 1995 by Tatan Industries Ltd- Principle Promoter is Tata Group having 110 stores in 78 cities.

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SWOT ANALYSIS: STRENGTHS First mover advantage In its manifold mission, the Gitanjali Group is overall ahead of rivals because it has been the first, or among the first, to make break new ground in many directions an advantage of momentum it continues to build on. Integrated, multilocation operations The Group is active in all stages of the diamond jewellery business, from cutting polishing rough stones, to design and manufacture of finished jewellery. With manufacturing operations in India, China and Thailand, and distribution points across the country, and in the global orbit, on four continents.

Design Strength Gitanjali has dedicated design teams for each brand company. The design teams comprise brilliant, award winning designers who gauge market trends and conceptualize new designs. Gitanjalis 70+ designers introduce around 4,000 new designs each year. Designers continually attend exhibitions, seminars, jewellery shows,subscribe to various design magazines / journals to understand the pulse of the markets in India and the rest of the world. They also collate feedback from distributors /retailers and the companys sales teams to understand consumer needs. Gitanjalis design teams constantly strive to cater to diverse consumer needs by incorporating real time feedback on the markets into their designs. Designs are thecompanys prized assets-these are retained in-house and not outsourced. Based on their characteristics, when translated into jewellery, these designs become part of a brand. Light weight and designed jewellery Skills and technology Gitanjalis core strength is the expertise of its artisans in cutting and polishing diamonds, and its jewellery designers and marketing teams in developing marketfriendly jewellery in tune with shifting user preferences worldwide, to which it gives shape using high precision CAD CAM processes and equipment.
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Product range and innovation Having brought diamonds and diamond-studded jewellery within reach of consumers previously unable to afford them ,the Group offers a wide variety of products in classic, ethnic and modern patterns, suitable for consumers at differing price brackets, in line with market demand in various markets, in India and abroad. At the same time, we continually press ahead with innovations in design and use of various metals gold, silver, platinum and stainless steel: we not only keep up with changing fashions we make fashions. Market access and brand support The Group has quickly secured substantial market share. It has launched a growing hamper of targeted brands, with powerful communications and merchandising support. In line with each brand profile, multilayered distribution right down to the retail level, has ensured product delivery to each targeted consumer segment, whether at up market malls, department stores or exclusive retail jewellers WEAKNESS: 1. Lot of capital is used in brand endorsing via celebrity endorsement. 2. Still measures are being taken for semi urban marketing. Its a hit in capital cities but have not been able to attract semi urban market. 3. Technology absorption, adaptations & innovation : The Company has not carried out any specific research and development activities. The Company uses indigenous technology for its operations. Accordingly, the information related to technology absorption, adaptation and innovation is reported to be NIL. OPPORTUNITY : 1.Expanding geographical presence. 2.Searching for new market around the globe.
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3.Global acquisition is there in large to enhance visibility and acquire knowledge 4 Conversion of diamond into Jeweler before exports. 5.To expand its business in Europe the company has incorporated a wholly owned subsidiary (WOS) in the name of Gitanjali Resources in Belgium with a view to explore in that continent THREAT : 1.Emergence of Low-Cost Brands in the upcoming market. 2.Constant change in consumer preferences 3.Fluctuation in price and gold price Future Strategy Gitanjali Gems is constructing the Rajiv Gems Park, which is intended to become one of the largest Gems and Jewellery SEZs in India. This is the first jewellery SEZ in India that is privately owned and managed by a company. Under this the company has already completed the construction of diamond cutting and polishing units spread over on 1 lakh sqft of area. The company is developing jewellery manufacturing facility spread across on an area of 2 lakh sqft of area.

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