1

PROFILE OF JEWELLERY INDUSTRY

INTRODUCTION:
 2

EVOLUTION OF JEWELLERY INDUSRTY IN INDIA

The Indian subcontinent has the longest continuous legacy of jewellery making anywhere since
Ramayana and Mahabharata times. While Western traditions were heavily influenced by waxing
and waning empires, India enjoyed a continuous development of art forms for some 5000 years.
One of the first to start jewellery making were the peoples of the Indus Valley Civilization. By
1,500 BC the peoples of the Indus Valley were creating gold earrings and necklaces, bead
necklaces and metallic bangles. Before 2,100 BC, prior to the period when metals were widely
used, the largest jewellery trade in the Indus Valley region was the bead trade. Beads in the Indus
Valley were made using simple techniques. First, a bead maker would need a rough stone, which
would be bought from an eastern stone trader. The stone would then be placed into a hot oven
where it would be heated until it turned deep red, a colour highly prized by people of the Indus
Valley. The red stone would then be chipped to the right size and a hole drilled through it with
primitive drills. The beads were then polished. Some beads were also painted with designs. This
art form was often passed down through family; children of bead makers often learnt how to
work beads from a young age.

Jewellery in the Indus Valley was worn predominantly by females, who wore numerous clay or
shell bracelets on their wrists. They were often shaped like doughnuts and painted black. Over
time, clay bangles were discarded for more durable ones. In India today, bangles are made out of
metal or glass. Other pieces that women frequently wore were thin bands of gold that would be
worn on the forehead, earrings, primitive brooches, chokers and gold rings. Although women
wore jewellery the most, some men in the Indus Valley wore beads. Small beads were often
crafted to be placed in men and women’s hair. The beads were about one millimetre long.

A female skeleton (presently on display at the National Museum, New Delhi, India) wears a
carline an bangle (a bracelet) on her left hand.

India was the first country to mine diamonds, with some mines dating back to 296 BC. India
traded the diamonds, realising their valuable qualities. This trade almost vanished 1,000 years
after Christianity grew as a religion, as Christians rejected the diamonds which were used in
Indian religious amulets. Along with Arabians from the Middle East restricting the trade, India’s
diamond jewellery trade lulled.

Today, many of the jewellery designs and traditions are still used and jewellery is commonplace
in Indian ceremonies and weddings.
 3

INTRODUCTION TO INDIAN JEWELLERY INDUSTRY

India is a leading player in the global gems and jewellery market. The gems and jewellery
industry occupies an important position in the Indian economy. It is a leading foreign exchange
earner, as well as one of the fastest growing industries in the country.

The two major segments of the sector in India are gold jewellery and diamonds. Gold jewellery
forms around 80 per cent of the Indian jewellery market, with the balance comprising fabricated
studded jewellery that includes diamond studded as well as gemstone studded jewellery.

The Indian gems and jewellery industry is competitive in the world market due to its low cost of
production and the availability of skilled labor. In addition, the industry has set up a worldwide
distribution network, of more than 3,000 offices for the promotion and marketing of Indian
diamonds.

YESTERDAY TODAY

Unbranded Branded

Silver & Gold jewellery Gold & Diamond jewellery

Investment Investment + Fashion

Traditional design Fashionable & innovative design

Marriage & festival is peak Wearability and gifts

season

HISTORY:

The 'Sanghavi Group' was founded by the four Sanghavi brothers, Vasant, Kirti, Ramesh and
Chandrakant in the late 70s, with a great vision of achieving major success & reaching the top in
the Diamond Industry. With clear aim to capture the diamond market, the Sanghavi brothers
established one company 'Sanghavi Exports' in 1984. Clear picture in mind of developing export
of polished diamonds to various countries, they started developing their sales offices worldwide.
With sheer determination and grit, the brothers have steered the company to its present stature.
 4

Under the flagship company, Sanghavi Exports, the group has developed extensively in the
Diamond industry. Today, the group's core business is exporting polished diamonds & diamond
studded jewellery & manufacturing diamonds & jewellery. Sanghavi Exports is ISO 9001:2000
complaint and also a Government Recognized Star Trading House, Top Export Award Winner
for seven consecutive years and a Diamond Trading Company Sightholder. Today more than
6250 highly skilled employees are working under the 'Sanghavi Exports' banner.

The group boasts of a large network of marketing offices all over the world, right from USA to
Hong Kong, from Belgium to Japan, from Australia to Canada and from Singapore to the
European nations.

The group's well equipped Hi-tech diamond manufacturing factory, Sanghavi Diamond Mfg.
Pvt. Ltd. at Surat, is one of the largest such units in Asia. Having commenced production in the
year 1992, the company today employs more than 4725 highly trained workers, producing
quality polished goods of all size, cut and purity. The group has three jewellery factories at
SEEPZ, Mumbai and one factory at Andheri MIDC, Mumbai, all engaged in manufacturing of
world class diamond studded jewellery.

A combination of age-old tradition and cutting edge technology results in the group's dazzling
finished products that boast of a consistent quality finish, with sizes ranging from 0.01 points to
3.00 carats with a fire and beauty par excellence. The ultimate beneficiaries of the unique &
wholesome business practices of Sanghavi Exports are the company's customers. The company
constantly delivers the world's finest diamonds that are unrivalled at international level and are
available at the most competitive prices in terms of value for money and product excellence.
Sanghavi Exports is known for the best cut & consistency in assortment and also for its
commitment to stringent quality and perfection for more than 30 years. Sanghavi Exports is
presently gearing up towards a major modernization and expansion drive of all their current
business activities.

SANGHAVI JEWEL:

A rising star-Just three years ago in 1994 at Santacruz electronics Export Processing Zone
(SEEPZ) in Mumbai, a new star was born in the galaxy of the jewellery market for exports. The
Sanghavi jewellery manufacturing company Pvt, Ltd., as part of the world renowned Sanghavi
Group.
 5

The "Sanghavi Group" is engaged in the business of diamonds - the most precious and
incomparable of stones, valuable & valued in all its forms. Established way back in the 70's, the
group has today set up diamond manufacturing & processing facilities all over Gujarat and a
state of the art factory at Surat.

Diamond trading still remains one of its major businesses. "Sanghavi Exports" the parent
company of the group, started making waves right from its inception in exports during the year
1989-90. "Sanghavi Exports" has consistently maintained its top position among the group of
diamond Exporters in India.

Today, Sanghavi Exports has emerged as a force to reckon with in the Indian Diamond Industry.
With time, the company has also started influencing the international diamond markets and is
constantly in the process of spreading its wings in all possible directions at the best time.

The factory at Surat commenced production in the year 1994 under the name, "Sanghavi
Diamond Manufacturing Pvt Ltd" & is recognized worldwide today for its quality diamond
production. This well established and facilitative diamond manufacturing factory is one of the
largest such units in Asia. In line with the manufacturing and processing of diamonds, the group
has also made a foray into studded jewellery by setting up three ultra modern jewellery
manufacturing units at SEEPZ, Mumbai and a similar unit at Andheri MIDC.

MARKET SIZE:

The company mostly concentrates for the sale in the international market. Most of its products
are sold overseas and most of the share in the market it holds in the international. There are many
competitors’ of the product in the international market. The company got itself well placed in the
international market after the certificate of DTC which makes it the most reliable jewellery in the
market. The company does its production in India at Sanghavi Jewel Pvt Ltd but its major and
exports the product to the many countries. So it has many shares in many different countries.
Mostly it holds a less number of shares in the international market. As due to the competition as
it is very difficult to hold the competition as many other countries like China which also have
 6

cheap labor cost but it doesn’t have less diamond cost it will make it the lager earner of the share.
So the market size of the sanghavi product is quite less but there are some clients who have the
products continuously buying it from India.

CURRENT SCENARIO THE DIAMOND INDUSTRY

Today, India is the leader in importing, processing and exporting of diamonds. India has a
virtually complete dominance in small sized diamonds. India now accounts for nearly 55 percent
of world net exports of cut & polished diamonds in value terms, 90 per cent in terms of pieces
and 80 per cent by cartage. No other export segment of the country has such a significant share
in the world market. India accounts for over 70% of the world exports of cut and polished
diamonds in cartage. In other words, roughly 7 out of every 10 diamonds set in jewellery
worldwide are from India.

In the current scenario, apprehensions have been expressed in some quarters that a number of the
small producers would find it difficult to sustain operations on current margins, which would
lead to some turmoil. Industry analysts believe that as the industry matures and takes its next step
forward, many of the smaller independent producers may find themselves being absorbed by the
larger players. The number of firms may reduce in the process, but neither the size of the
industry, nor even the levels of activity.Much have been said about the rising bank debt of the
 7

Indian industry and there were a couple of disturbing cases of bankruptcy. Yet overall the
industry has ridden out the threat and as analysts point out, with manufacturing on the rise and
the number of banks providing finance to the trade on the upswing, it is only natural that debt
figures will show an increase as well. What is significant however and a sign of the maturity of
the players is the process of self-regulation adopted by the industry, in the form of a pact on
trading norms. Signed by all major trade bodies in the country, these will be implemented
through a consensus in the trade and interaction with the banks to encourage them to accept these
as well has also got underway.

Michael Porter’s Five Force Model for Jewellery Industry

 8

SUPPL
SUBSTITUT
POTENTIA
BUYERINDUSTRY
IER
LCOMPETITORS
SNEW
ES
ENTRY

RIVARY AMONG
EXISTING FIRMS

Inter-Firm Rivalry -HIGH

• Two types of rivalry. (1) Inside India & (2) Outside India.
• Large presence of unorganized sector. 0.2 Million Gold jewelers and over 8,000
Diamond jewelers
• International rivals Such as, China
• Threat from producing nation like S.A. & Russia.
Bargaining Power of Suppliers - Medium

• In jewellery industry the suppliers are S.A., UAE, Australia, US, Congo, Botswana,
Russia, DTC.
• Few Alternatives of cutting & polishing.
 9

• Skilled labor
• Bargaining power of India is enhanced because India is largest consumer of gold
jewellery.

Bargaining Power of Buyers - Low

• Divided in two types 1. Domestic buyers & 2. Foreign buyers
• As investment (Demand increase)
• Bargaining power of Indian exporter is high because Majority of the world's rough
diamond production is cut and polished in India.
Threat of Substitutes: - Low

• Substitutes are Real assets, Stock market, & Bank deposits & mutual fund investment and
Other types of jewellery like imitation jewellery, bagasra jewellery, stone jewellery etc.
• Second preferred investment behind bank deposits
• Status and standard of living increase so demand is increasing at high rate.
Barriers to entry - Low to Medium

• Low capital requirement

• Government subsidy
• EXIM policy & government’s rules-regulations are high
• Skilled manpower is essential
• Advanced technology required
 10

FACTORS AFFECTING THE PRICE OF THE JEWELLERY:

The value of impact analysis is mainly jewelry are:

The first is jewelry own reasons. Different types of jewelry, because of its own in the value
differences, as well as its objective and how much output the natural environment, often
affecting the price level of the important reasons. One volume of production, whether rare, the
impact of the price of the jewelry is particularly remarkable. Such as the amethyst in the Middle
Ages was a more precious gem, enough with rubies, sapphires from parity levels. This is because
the production of scarce time, amethyst, Europe and Asia are only some small parts of the veins.
Northbound century later, however, people in Brazil, Uruguay border found a large amethyst
deposits, so that a rapid increase in production of amethyst. Amethyst adequate supply, the price
plummeted on to make amethyst and precious stones from the original status of falling into a
mid-range gems. The size value is also an important reason for the price impact of jewelry. Such
as diamonds and crystal is a kind of colorless gems. But compared to crystal, diamond has a
higher refractive index, it seems more bright and dazzling, diamond also has a large dispersion
rate, will be shown in the light of being called "out of fire" colors; diamonds and more rigid, less
susceptible to wear. This makes the diamond has a better decorative effect than the crystal.
Diamonds are a variety of high-tech fields can be used for good quality. Precisely because the
value is much higher than the diamond crystal, plus it is also far more scarce crystal, decided to
have a disparity in the prices of both. The level of value, is also reflected in the same kinds of
individual differences on the jewelry. The same kind of jewelry, due to the quality of pros and
cons of the differences, it will make it have a different price.

Another factor affecting the price of jewelry is an objective of the socio-cultural economic
environment. Different communities have different values. Especially the jewelry, is non-
essential commodity of life, its value is evident by the level of social ideologies. For example,
jade, Chinese culture in our country and affected the minds of affected people in East Asia has
always held a very lofty position, was widely thought to cherish; while in the West, because of
different cultural backgrounds, people have a lack of understanding of jade, which makes the
same a jade, in the East, and this would have a completely different price, a regional economic
conditions on the price of jewelry will be very in and. Poverty-stricken areas in the economically
 11

backward people's hard to guarantee food and clothing, natural to attend to jewelry, lack of social
demand to make jewelry prices will inevitably remained at low levels. On the contrary, in the
economic prosperity of the society, people have more spare cash, the interest in jewelry are
bound to increasing the price of jewelry will be prompted steadily increased. It is also charged
with jewelry prices continued to innovate and provide us with a good investment opportunity for
objective reasons. In addition, jewelry sales to the distance from the origin, traffic conditions, the
external environment sales market, sales in the circulation (which is single-handedly or two, and
the wholesale, or retail), etc. These social objective conditions, but also on jewelry prices in
different degrees.

Affect the price of jewelry jewelry lovers the third factor is the individual situation. As we all
know, everyone is a result of their own social, economic and cultural background is different,
they have different interests and hobbies. The same thing, for its fans, will be willing to buy at
higher prices that this is value for money; while for another it is not loving people who would
think the price is too high, not worth the money. This situation can best jewelry auction to be
reflected. Individual's perception jewelry, often will affect the price of jewelry. If people
understand the intrinsic value of the jewelry more thoroughly to know the value that it is willing
to buy the equivalent. Conversely, some people do not understand the connotation of jewelry to
an expensive jewelry regarded as a general, therefore, he would give it out of a relatively low
price. For example, we have heard such a story: a farmer to sold for 9000 yuan a jade plate refers
to ancestral. A few days later, the acquirer sold 10 million price of a Hong Kong businessmen.
The businessmen returned to Hong Kong after he alleged the price of 300,000 yuan resold to
another collector. This is with a jeweler's such a change in the price fully reflects the result of
cognitive differences between the impact on prices. Another individual's economic situation,
purchase state of mind, the purpose of purchasing jewelry, etc., will affect the price level of
jewelry.Condensation in the jewelry on the individual human factors on the jewelry prices have
an important impact. One jewelry processing method, processing level and different levels of
processing technology on the jewelry prices are particularly notable. We can see, two similar to
jewelry, a delicate process, a process flat, has a handy gap between the two prices. As in 1978,
held in Hong Kong at a Chinese handicraft jewelry exhibition, Beijing artist Wang Shusen old
jade produced a pair of "Dragon and Phoenix" emerald jade, even though each is only a city of
high rain more than seven points wide, 2 pm Multi-thick (a city of rain = 10 Fen = 0.03 m), but
because of processing fine, make fine, went so far as to sell 1.8 million yuan (in today, its price
 12

is likely to have gained supremacy million), becoming a sensation news. Human factors affect
the price of jewelry is also reflected in the times, some age-old production of ancient jade,
ancient stones, and contemporary production than the same kinds of jewelry with a much higher
price. Also, if the jewelry to a celebrity who have owned, or have some special commemorative
significance, or has been processed by a teacher, etc., will be the price of the jewelry have a
positive impact.

FACTORS THAT MAKE THE INDUSTRY ATTRATIVE:

 13

• The Designs is the main thing that makes the industry attractive.
• The designs that the industry can prepare according to the requirements of the client.
• The timely delivery of goods that make it more attractive.
• The process of production that make it attractive.
• The coming up of the new technology and the accepting of this new technology by the
company.
• The different ranges of product according to the client.
• The cost of production makes the cost of the total production low so it attracts the
customer.
• The company also has a designing department which is involved in the new designs that
helps the customers to define the needed design.
• Investments in upgrading the technology
• Long standing relationship with dealers in US, Hong Kong, Dubai etc.
• Strong relationships with suppliers as well as galleries.
• A comprehensive distribution network from a robust website and a network of galleries.
• The company can make the product as per the different countries in the international
market requires. The different Karats which it is made in.
• As US has a popular standard of karat that it requires that is 09,14,18 karats. So the purity
will be as the different countries require.

OVERALL CONCLUSION OF THE INDUSTRY

 14

Way back in the mid 1990s, when the Indian diamond industry first claimed its rightful status as
the world’s largest manufacturer of polished stones, there were more than a fair share of skeptics,
who refused to accept what the numbers were saying. Not anymore. In fact industry analysts are
now voicing their opinion that many of the Israeli sight holders have actually been
manufacturing their goods outside the country over the past two years and that Israel was being
used only as a transit point in the supply chain .The entire diamond world knows that India has a
virtually complete dominance in smalls, and that the country has for long been the world’s
leading manufacturer of cut and polished diamonds. But behind the scenes, the India centre has
been moving confidently to take over a sizeable chunk of the manufacturing of medium and
larger stones from other competing centers, particularly Israel. Some manufacturers took a step
forward in the mid-‘90s and entered jewellery manufacturing. India has a definite cost advantage
and our strength is diamonds today. Profit margins are also higher in the competitive retail
business. Selling cut and polished diamonds yields margins of just 5 per cent to 10 per cent but
selling finished diamond jewellery pieces to wholesaler’s overseas yields margins of between 20
per cent to 40 per cent. And retailing overseas offers margins of between 40 per cent and 60 per
cent depending on the value of the diamonds. But there are challenges ahead. One is the lack of
skilled manpower and technology to create and produce designs for the international markets.
The council is hoping to tackle his by setting up a training institute. Indian firms will have to
tightly control costs and prices.
 15

COMPANY PROFILE
The Sanghavi Group Comprises of a group of companies, engaged in the manufacturing, import
and exports of polished diamonds as well as manufacturing and exports of precious studded
jewellery.
 16

Today the group operates with a worldwide marketing network, with offices in almost all the
major consuming international market.

A major player in the Gem and Jewellery industry, the groups have over the years, registered
spectacular growth, establishing its presence in the world diamond scenarios.

Way back in the late 70s the Sanghavi brothers Vasanthbhai R.Sanghavi, Kirtibhai R. Sanghavi,
Ramesh R. Sanghavi and Chandrakantbhai R.Sanghavi established a diamond trading company.
With sheer determination and gift, the brothers steered the company to its present stature.

The Group today owns manufacturing facilities all over Gujarat for producing diamonds
including a state of the art factory at Surat.Also,morden jewellery manufacturing unit was set up
at SPEEZ,Mumbai in the year 1994,as a step in vertical integration .Sanghavi Group is at present
consolidating towards a major modernization and expansion program of their business activities.

Sanghavi Exports:

The flagship company of the group, Sanghavi Exports has grown from strength to strength and
has established itself as one of the leading diamond manufactures and exporters is a DTC
Sigtholder and a government recognized Star Trading House, presently exporting to USA, Hong
Kong, Australia, Belgium, Singapore, Malaysia and some of the European countries.

Sanghavi Exports has been felicitated for excellent performance in exports and awarded for
seven consecutive years by The Gem and Jewellery Export Promotion Council, India.

The diamond manufacturing units employ more than 3000 artisans in all and are into production
of all sizes and shapes of diamonds, specializing in production of upper end fancy cuts like
princess, baguettes etc.

Product Ranges & Price list:

FULL CUT /SINGLE CUT

 17

DESCRITION PRICE PER

CARAT(US$)

• WHITE .005-1 cts 50-2500

• OWLC-TTLC-TLC-LC
• OWLB-TTLB-TLB-LB-OB .005-1 cts 50-1500
• WHITE NATTS .005-1 cts 50-1500
• OWLB NATTS
• MARQUISE .005-1 cts 50-1200
• TAPERS/BANGUETTE
• SINGLE CUT .005-1 cts 200-600

.005-.50 50-450

.003-.10 20-300

Sanghavi Jewellery:

An offshoot of the Sanghavi Group, Sanghavi Jewellery Mfg. Co. Pvt. Ltd. Was established as
late as 1994, but has already made its mark in the Indian Jewellery sector. The company
manufactures and exports exquisites precious studded jewellery, both diamond and colored
stones.

The manufacturing Unit is established in SEEPZ, Mumbai and is equipped with the most modern
machinery capable of producing the most intricate designs on par with the world markets. The
unit is also manned by the best talent in the industry and its designers and artisans are capable of
providing you the latest designs, as per your choice.

Sanghavi Jwellery is an exclusive member of the Indo-Argyle Diamond Council. At Present,

Sanghavi Jewellery is exporting to USA, Japan, Germany, Hong Kong and Australia. The
product range includes bracelets, rings, pendents, necklaces and earrings in the price range from
US$ 10 to US$ 1000 per piece.

Sourcing its requirement of diamonds from its parent, Sanghavi Jewellery manufactures world-
class jewellery fit for a connoisseur. With all shapes and sizes of diamonds available in-house
 18

Sanghavi Jewellery is in an advantageous position to offer you the best quality at competitive
prices.

• Evolution.

Sanghavi group of companies is a member of Sanghavi Diamonds, which has been in the
diamond business for the last 30 years. Sanghavi Diamond is a DTC sight holder.

• Inception.

Sanghavi have been incorporated in 1994 with objective of export of Diamand Studded Jewelry.

• Business Highlights.

The group turnover has grown from a million dollars in 1994to a whooping billion dollars as on
the financial year ended 31st March 2009.

• Manpower Strength

At the stage of inception the company commenced manufacturing of jewelry, with the employee
strength of 40, currently as on 31st March, 2009 it is around 1500.

• Range of products and Market Segment.

Presently we cater to USA, Europe, Japan and Asian markets and the range of products are
Rings, Bangles, Pendants, Bracelets, Necklace and Ear-Rings etc.

A MULTIFACETED BUSINESS APPROACH:

The Sanghavi Groups strength can be attributed to its 360-degree approach. From manufacturing
to delivering each business aspect is planned and treated with equal importance. The Groups core
competencies speak volumes about its versatility.
 19

It Includes:

• Corporate Social Responsibility.

• Best Practices Principle.
• Human Resource Trading and Development.
• Specialized IT Systems
• State of the art Manufacturing Technology.
• Customer Focus.

APPRECIATED BY CUSTOMERS ACROSS THE WORLD:

Over the last 30 years the Sanghavi Group has carved an enviable position for itself in the
business. Worldwide, diamonds and diamond jewelry sporting the Sanghavi Label are the
benchmarks of supreme quality and commitment. The brand loyalty it enjoys across the global is
evidence to the fact.

THE SUN NEVER SETS FOR SANGHAVIS:

Operating with an established marketing network, Sanghavi Exports have carved a distinct mark
in the International Markets. Having a wide distribution channel makes the processes and
delivery an easy task as per the requirements of the client in any corner of the world at any point
of time. Sanghavi is approachable 24*7 due to the effective distribution system.

VISION

Our Vision is to be the most trusted and admired company delivering finest jewellery and
services to the world.

MISSION
 20

To improve and enrich lives everywhere by offering extraordinary lifestyle solutions backed by
incomparable value-additions, adhering to globally approved processes and norms and creating a
successful value- chain for our associates.

List of Directors:

Mr.KP Sanghavi -Chairman

Mr.Jayesh Sanghavi -Managing Director

Mr.Jinendra Jain -Director Production/Q.C/Q.A

Mr.Bhupendra Das -Director Technical

List of Senior Management:

Mr.Nitin Shah -General Manager Admin

Mr.Rajesh Singh -General Manager Diamond

Mr.Chittaranjan Mhadadalkar -General Manager Finance

Mr.Bhim Sardar - General Manager Sales

Mr.Anil Kanade - General Manager Production

Mr.Santosh Nair - General Manager H.R

Mr.Vishwanath Sawant - General Manager Q.C/Q.A/P.P.C

SERVICES OFFERED BY THE FIRM:

• We welcome, salute and desire harmonious and ever growing relations with the often
mysterious and artistic creators of beautiful jewels. We proudly offer to provide you.
• Natural polished diamonds in all sizes (one cent to one carat) and all cuts (rounds,
princess, heart, square, pears, and marquise).
• Special cut diamonds and repair for broken and mutilated diamonds on demand.
• Most competitive rates ever in the markets with special offers for lot buyers.
 21

• Special sales promotions & support approved by De Beers to retail jewellers.

• Super specialization and manufacturing with latest technology.
• Excellent Cut & Brilliance to give diamonds scintillating light & fire.
• Facility for onsite inspection and approval.
• Special cut for best studding.
• Fast and Secure Delivery.
• Full buy back Guarantee.
• Sale on cash or credit.

POLICIES OF THE FIRM:

Sanghavi Exports is committed to rewarding, empowering and enabling its employees. Company
is also constantly engaged in employment creation opportunities.

Training and development form an important part of our management strategy. Technical,
Management and Supervisory skills of employees will be advanced through trainers within the
company as well as external exposure.

The best technology will be used to improve company's output and efficiency to make it the best.

The entire country, local communities, individuals and environment are all part of the company's
responsibility. The company cares deeply about people and the communities in which they live.
The health and safety of our employees and their families is a priority for the company.
Company will endeavor to leave natural environment healthy for our children and the future
generations.

The company will follow the best principles issued by the world's largest diamond rough
supplier (A Diamond Trading Company). These are as follows:
1) Consumer Confidence 2) Business Practices 3) Commitment

1. Consumer confidence
 22

It is committed to operating its businesses with a view to ensuring that consumers buying
diamond jewelry are able to rely with confidence on the professional and ethical
standards and technical skills of the gem diamond industry, taking account of the
following:

“Natural diamonds are objects of prestige, a luxury good, generally acquired for
sentimental reasons and are regarded as items of value by the consumer

“Diamonds are a unique item about which the consumer has limited expertise and
consequently, in order to make an informed choice, the consumer is reliant on (i) the
standards and integrity of the diamond industry, and (ii) information from the diamond
industry as to cut, color, clarity and carat weight and other attributes, including the
application of any treatment

“Consumers expect to purchase diamonds in their natural state, without any treatment,
beyond the accepted skills of craftsmanship associated with their cutting and polishing
and therefore the danger of non-disclosure of treatment of natural diamonds, and the
passing off of partly or wholly synthetic diamonds and simulates as natural diamonds, is
contrary to the interests of consumers

“The injury and hardship suffered by local populations (and the potential for it) when
conflicts arise in diamond producing areas are unacceptable, as is seeking to profit from
such conflicts.
POLICIES

2. Business Practices

Company is committed to operating its businesses in such a way that it neither engage in,
nor encourage in any manner, the following practices which are regarded as unacceptable
and against the public interest and that of the diamond industry:
 23

“Buying and trading rough diamonds from areas where this would encourage or support
conflict and human suffering.

“The use of child labor Practices, which intentionally or recklessly endanger or harm the
health or welfare of individuals.

“The highest professional and ethical standards and technical skills are necessary to
ensure that consumer trust is not misplaced and that the reputation of the gem diamond
industry is maintained and enhanced

“Conduct which conflicts with the principles set out in (1) above, thereby bringing the
diamond industry into serious disrepute.

3. Commitment

Company is committed to the highest industry ethics including the following:

" Action to address concerns arising out of the misuse of rough diamonds in support of
conflict and regular discussions on other issues relevant to the gem diamond industry to
enable appropriate and timely industry responses.

“The provision of proper working conditions (including the health, safety and well-being
of workers).
“The dignity of individuals and best practices to ensure the fair treatment of individuals.

“Full compliance with international best practice and the related regulatory framework
with respect to the environment.
 24

“MAJOR CUSTOMER LISTING:”

25
 26

“ORGANISATION STRUCTURE”
27
28
 29

PUBLICITY:

The company is very conscious about its public image and regularly uses promotional publicity
to reach its target customers. This publicity is in the form of brochures, flyers as well as display
backgrounds & banners.

To start with the brochures, these are targeted at the local B2B markets of India, the markets of
the Indian Sub continent like Dubai, Nepal, Sri Lanka etc. and also at national trade shows.

Sanghavi Exports covers the entire Asia Arabia region through these brochures. The imagery as
well as text part of these brochures is kept at a certain level of consistency with necessary
changes made when required. The company logo, punch line, factory photo, export award image
as well as technology part of the brochures remain entirely unchanged.

A new corporate brochure has recently been designed to promote the new corporate identity of
the group and highlighting the company's new logo, punch line as well as the DTC signature.
This new design is likely to remain constant for the next round of promotions. This brochure
highlights details of the Sanghavi Exports group of companies and is expected to be distributed
to customers worldwide.
 30

The company also regularly partners with its business affiliates and customers in creation of
publicity materials through cost & ideas sharing.

GOVERNMENT INITIATIVES:

In the New Annual Supplement to Foreign Trade Policy (2004-2009) announced on April 19,
2007, the Government has extended the following facilities to this sector:

• Service Tax on services (related to exports), which are rendered abroad have been
exempted.
• Re-import of Diamonds & Jewellery (either in complete or partial lot) exported on
consignment basis have been allowed.
• In the light of increase in global prices of precious metal, duty free entitlement for
consumables for export of rhodium plated silver jewellery has been increased to 3 per
cent.
• To reduce the transaction cost for the diamond sector, testing facility at International
Diamond Laboratory (IDL), Dubai, has been incorporated in the list of
laboratory/certifying agencies.
• Duty free import entitlement of tools, machinery & equipment has been allowed. For
metals other than gold, platinum, it will be 2 per cent and for gold and platinum, it will be
1 per cent of FOB value of exports during the previous financial year.
 31

• Categorization of exporters as One to Five Star Export Houses has been changed to
Export Houses and Trading Houses with rationalization and change in export
performance parameters.
• In addition, the Government has decided to make gold hallmarking mandatory from
January 1, 2008. It has also made the import of polished diamonds completely duty free.
This will facilitate the sector towards evolving from being just a manufacturing centered
to becoming a global trading hub for diamonds, gems and jewellery.
• The committee appointed to study India's National Design Policy is likely to recommend
the setting up of four additional National Institutes of Design (NIDs), along the lines of
the existing Ahmadabad-based NID, whose curriculum includes, among other disciplines,
jewellery design.

DETAIL OF DEPARTMENTS AND FUNCTION OF VARIOUS DEPARTMENTS:

• ADMINISTARTIVE DEPARTMENT:

Major functions of administration department include:

○ Provides support and service for the activities of the Board of Directors
○ Expanding and reorganization of Bank market network.
○ Transfer posting of staff within the Office.
○ Currency control of Bank branches.
○ Control of money transfer in foreign currency
○ Preparation of pension papers etc in respect of retiring staff of this office.
○ Control over the budget allotted to this office.
○ Coordination of Bank branch activities and provision of interaction between
branches.
○ Coordination of construction, maintenance, rent and keeping buildings issues.
○ Nomination of staff for various training courses to Regional Training Institute.
○ Holding of Department meetings.
○ Conducting all Departmental Examinations.
○ Pay fixation and releasing of increments.
○ Submission of returns/reports relating these functions to various authorities.
 32

• HUMAN RESOURSE DEPARTMENT:

Human resource is a term used to describe the individuals who comprise the workforce
of an organization. The use of the term 'human resources' by organizations to describe the
workforce capacity available to devote to the achievement of its strategies has drawn upon
concepts developed in Industrial/Organizational.

ROLE OF PERSONNEL MANAGEMENT IN HOSPITAL:

• Effective utilization of human resources.

• Desirable working relationship among all employees.
• Maximum employee development.
• High morale in the organization.
• Continuous development and appreciation of human assets.

HUMAN RESOURCE ACCOUNTING:

Human resource accounting in the company is related to accounting of investment in personnel

in the form of recruitment, selection, orientation, training, development and their placement.

Human resource auditing is related to the strength and weakness of the organization and
development and need of the organization.

Human resource accounting here deals with the accounts for the amount that the organization is
investing in the human resource development. This process involves identifying the human
resource accounting and developing human resource accounting measurement.

Human resource auditing in the firm is concerned with its need which emerges from increasing
demand for high quality product to be provided to the production department or the other
departments and an increasing demand for training and development of its personnel as well.

Human resource auditing in the firm points out deficiency in human resource management and
can forecast future needs and priorities of an organization and can certainly update human
resource development plan keeping in view the emerging need for the people.
 33

WAGES AND SALARY ADMINISTRATION IN HOSPITAL:

Wages and salary administration in the firm is a function of personnel management. Its
importance is evident from the fact that a majority of union management problems and disputes
relate to the question of wage payment.

Fair and equitable compensation for each hospital is the objective of the wage and salary
administration programme.This function is discharged on the basis of policies, size and other
characteristics of the firm.

PURPOSE OF WAGE AND SALARY ADMINISTRATION PROGRAMME:

The purpose of wage and salary administration in the firm:-

• To define the duties and responsibilities involved in each position in the firm and
determining the qualifications and training requirements of the employee
occupying the position.
• To compare the positions according to mental and physical requirements, skill,
responsibilities and working conditions.
• To establish common titles for jobs which have similar duties and responsibilities,
to facilitate dependable salary comparisons?
• To establish the wage levels comparable to that prevailing in the community for
similar work.
• To establish a periodic salary review.

THE MEANING OF WAGE AND SALARY ADMINISTRATION:

• Fair and equitable wages and salaries to the employees.

• A basis for establishing, developing and maintaining good employee’s relations.
• Development and maintenance of good employee morale.
• A guide for administrative action concerning wages and salaries.
• A mean for clarifying opportunities for development and channels of promotion.
 34

• Greater job satisfaction and feeling of security, helping the individual attaining his
occupational objectives.
• To give the customers a better product for which they are looking forward.
• To give the customers what they really want with good designs.
• So that the customer can get new ideas from the skilled and experienced workers.

BUILDING OF WAGE AND SALARY STRUCTURE:

The building of wages and salary is done by the HR department they calculate the total salary of
the employ on the basis of the following:

• Establishing the job to be performed, describing their content and the duties and
responsibilities of employee assigned to them.
• Studying and analyzing each job to determine the standard of performance necessary for
its successful completion and the qualities which the person should possess.
• Evaluating each job to determine the relative value in relation to all other job performed
in Firm.
• Classifying the job into groups which possess similar characteristics and establishing a
wage level for each group.
• ESIC is taken from the basis salary ie: 1.75% of the basic salary. If the basic salary is
10000 then my ESIC will be 1.75% of the 10000 that will be 4000.
• Provident fund calculation is also done on the basis of the Gross salary and not on the
basic salary.
• Overtime is calculated according to the extra hour worked ie: the normal working time
9:00 to 5:30 a day from Monday to Friday and if the person works one hour extra in the
day then he will be paid for two hours extra.

RECRUITMENT:
 35

One of the most important responsibilities of the personnel department in firm is to recruit and
select the right person at right job. In case of recruitment they match the man and the job.
Whether it is a new post or a vacancy to be filled, the management reviews the job and its
requirement. Search the need of the firm. Finding out the need can help in a better choice. Often,
enough thought is not given to the recruitment of personnel. More thought is given in the
purchase of machinery and equipment. They devote a lot of time in the selection of a monitor-
defibrillator costing, say Rs 40,000/- and with a useful lifespan of 5 years. Getting a wrong
person can be a colossal waste and detrimental to the realization of the objectives. For recruiting
the people each department give there requirement in the written form to the personal department
requesting for number of employees required for the firm. Each departmental head will specify
their own requirement.

Sources of recruitment:

The moment the personnel department gets a job requisition slip from any department, it starts
looking for prospective candidates using various source of recruitment. There are various sources
established but their effectiveness varies in different situation.

• Existing employee.
• From other firms.
• Teaching institution.
• Internal circular for vacancies.

There are two major sources of recruitment in the firm:

• Internal Sources.
• External Sources.

Internal recruitment implies the promotion and transfer of employees within the organization to
fill the vacancy.

External recruitment implies recruitment of employee from outside the organization.

Both these methods are applied and both of them have their merits and demerits. Both these
sources are used in varying degrees depending upon the recruitment policy of the management.
 36

For external recruitment the firm also gives the agencies the chance to recruit for the firm for that
the agencies will charge the firm. The major functions such as advertisement for the job openings
and contacting the agencies is done by the HR department. Advertisement is mostly done in the
news papers, hoardings put up on the streets. Also by the other sources such as the friends or
relatives of the employee already working in the firm.

SELECTION:

Selection process in firm is most important. Selection of the right person is one of the most
important activities on which depends the future of the firm. Their task is to search and find the
right person.

Selection may be made by promotion (wherever possible, higher level jobs are given to current
employees, a promotion is to be considered in same manner as new employment), or by
advertisement or other methods, (such an invitation of a person whose name has been suggested
by knowledgeable person).The selection will also include the companies polices of selecting the
employee who is minimum of 18 years of age.

For the production it is necessary that the employee is an experienced person and have at least
some knowledge in the process he is working. For the selection of the manager it is done by the
top management.

INTERVIEW:

Selection is carried out usually after an interview. From the applications received, a short list is
prepared in some cases written and practical tests are given(these are ideals in case of
technicians, radiographers, stenographers and others where the number of applicant is sizeable
and skills are important.

The interview must be utilized more to bring out the potential. The application form helps to
bring out the information about the candidate. Clarification is obtained during interview.
 37

Interviewing is the main method of appraising an applicant’s suitability of post. The interviewer
has the thorough knowledge about the requirement of the successful firms work. Interview is
aimed at obtaining certain basic information about the employee. It is normally conducted by the
personnel manager and the concerned department head. The candidate is asked about his
education, job experience, minimum salary acceptable, etc.

After completing selection formalities, the candidates are informed about their selection. At this
stage the manager disclose the terms and conditions of appointment to the candidate who has
been selected.

APPOINTMENT:

If the candidate is selected, an appointment letter, setting forth full detail of the appointment, job
descriptions, salary and other conditions like employee’s service rule is given. All appointments
are preceded by a medical examination and the person should be fit found fit for the job.

Appointment should be on trial so that the performance can be evaluated. The period of trial is
usually six months for workers and one year for office staffs.

FURNISHING BIO-DATA:

Every employee should furnish at the time of joining, in writing his/her correct bio-data;
subsequent changes if any, must be intimated and included promptly. The personnel department
must verify them with the certificates in original.

An important entry will be the record of age. The best proof of age is the entry in the school
leaving certificate. Other certificate may be accepted at the discretion of the management and an
entry made at the earliest possible. According to the company the minimum age of the employee
should be 18 years of age. The company maintains a complete record of the employee in manual
ie: in files as well as in database in the system. Every employee has its own files in which all the
data about the complete record about the employee is recorded in it. It is also entered in the
system.

TRAINING:

Once recruitment of a appropriate person has been made, then they are trained. He/she must be
kept up to date with proper training. Such training programs may be different kinds for different
 38

categories of personnel and conducted under different sponsorship. But it is necessary that the
employee continues to update knowledge, skills and attitudes.

Induction program is also carried out by the HR department it will give the entire detail of the
work or it will tell him the entire details about the organization. About the location of the
different departments and the interlink age between the different departments. This process of
induction is called as orientation process this will be decided by the HR department it will
prepare a schedule for the employee’s orientation. The orientation process will be different for
different employees selected for different departments.

• PRODUCTION DEPARTMENT:

Our company is located at Mumbai, India in a Special Economic Zone (SEZ) developed for
Exports & is in the business of manufacturing plain & studded gold & platinum jewelry since
June, 2005. The company exports jewelry to many countries in the world such as USA, Europe,
and Japan amongst others. The company buys fine pure gold from the Govt. nominated
agencies. The gold for the reference export had been purchased from Union Bank of India. A
reference copy of the gold purchase invoice is attached in Annexure-4. The company buys loose
diamonds from the local diamond market as well as it imports diamonds. Our main suppliers
are Sanghvi Export, Super Diamond, Sanghvi Diamond Ltd. To the best of our knowledge the
diamond are procured from legitimate sources, not involved in funding conflict & in compliance
with United Nations Resolutions. In the concern exports, we have used diamonds supplied by
local as well as foreign suppliers. A reference copy of the diamond purchase invoice is attached
in Annexure-5. The company manufactures the jewelry via Lost was casting process from raw
gold & loose diamonds, where in there is substantial transformation of the raw material
consumed. M/s. Sanghavi Jewel Inc. New York, to whom the company shipped the merchandise
in the reference export invoice, is one of the company’s clients in United States of America. The
customer had placed a purchase order of the exported merchandise / jewelry with the company.
A copy of reference purchase order from the customer is attached Annexure -1. A copy of the
Export invoice & Airway Bill in reference herewith is attached in Annexure-2, against which
this request for information is being provided.
 39

WORK ORDER /

PRODUCTION
SCHEDULE

↓
RECEIVED MOULDS /

RECEIVED
DIAMONDS

↓
PRODUCTION

↓
Q.C.D.

↓
PACKING
 40

PROCESS FLOW CHART:

P.P.C. INFORMATION

WAXING

BAGGING ------- WAXSETTING --------- CHANGING

TREEMAKING

INVESTMENT

CASTING

CENTRAL GOLD

MECHNICL FINISH DEPT

(SPRUE GRINDING/DISC FINISHING/BOMBING/EP)

FILING / MAGNETIC TUMBLING

PREPOLISH (IF METALSET DESIGN)

METALSETTING / SRD

POLISHING ------------------------ CHANGING

 41

FINAL Q.C.

FINISH GOOD

EXPORT

Production planning information:

1. Release schedule for 30 day basis. Update every week, for urgent orders received during
week, release annexure.

2. Detail schedule as per capacity and dates in detail from bagging to export (for D.A.D.,
P.D.A.D. Wax setting, and filing, Polish, Q.C., and Customer Q.C.)

3. Required detail order sheet with below mentioned information.

1) Diamond quality

2) Weight Tolerance instructions for metal as well as diamond

3) Stamping / Color / Karat / Sizes

4) Bio-data updating with all necessary process involved

5) Setting type instruction

6) Rhodium instruction with marked on design chart

7) Color stone details

8) Finding specifications, (also imported / local or customer supplied details)

9) Tag, Chains, Pads, details

10) Design category

11) Two tone specification and other special / specific instructions

1. Details about availability of sample

2. In-house sample
 42

3. Marketing confirmation date and bagging confirm date required.

4. Bagging date will not match with confirmed date then extension for the same.

Detailed production process is as below:-

Step: 1 Rubber Mould.

Castaldo Silicon Rubber is used for making the mould, which
is used for mass production, as required in the particular order. Rubber
pressed on silver model in metal frame, which is then put under vulcanization
process. This process makes the rubber hard, so that it does not loose shape.
After it is cooled down for 15 – 20 minutes, the rubber is cut open to remove
the silver model, Once the model is separated from rubber, there lies as empty
cavity exactly same as silver model with in the two halves of the rubber part.
This is used as mould for commercial production by using liquid was for large
scale production of the desired model

Step 2: Waxing:

By using rubber mould of desired model required numbers of wax pieces are
produced using wax injectors. Wax injector melt wax and injects the same at
predefined pressure in rubber mould cavity. After sufficient hold time &
cooling, to let the liquid wax solidify, wax patterns removed from rubber,
which are in the exact form as the silver model.

Step 3: Bagging:

Loose diamonds purchased from the diamond suppliers are assorted to match
the desired diamond quality parameters. Such assorted diamonds are
 43

segregated into separate bags of diamonds of required size as required in the

reference style in each unit item. These diamond bags are then transferred to
Wax Setting Department for consumption in jewelry items.

Step 4: Wax Setting:

Each bag of diamonds, as required in this style, is used on one wax piece. The
Diamonds are set by hand into a clean wax piece. After setting 49 diamonds in
a single wax piece, the wax set piece is then checked for quality parameters,
before being transferred further. This is also a substantial transformation,
wherein loose diamonds, classified as a separate article, are transformed into
diamond jewelry, starting from this process wax setting.

Step 5: Casting:

Casting involves three processes i.e. Investment, Alloying & Casting. This is
the process where substantial double transformation takes place. One via
transformation of pure gold & alloy into alloy gold & then wax set diamonds
via casting into diamond studded gold jewelry. This double transformation is
substantial & hence changes, the article to a difference category of articles,
different from the articles which are used as raw materials.

(a) Investment :

Wax set pieces are collected in lots & mounted on wax rod fixed on rubber
base to form a tree of each lot called a Wax tree. This is then transferred
for investment process. In this process the wax tree is mounted inside an
open cylindrical flask along with rubber base. Which seals one end of the
open flask? The investment powder (which is similar to plaster of paris,
though not exactly) in slurry form is poured into flask & is allowed settle
 44

down. After sufficient time interval investment power hardens. This

flask is then put into furnace for bourn out process, wherein the
investment powder further hardens. Also during this heating process the
wax part of the was set piece burns out & evaporates. The diamond set in
the wax set pieces remains in the place embedded in the investment
powder. The burn out of the wax leaves behind an empty cavity wax tree.
This burn out process is usually conducted overnight. This flask is ready
for casting. Several such flasks are prepared to complete the order of
reference style as in this purchase order.
a. Alloying:

Alloying is a process wherein 25 KT pure gold is converted to the desired

karat ages of gold by adding another metal named as on alloy. In this
order the desired gold karat age is 14 KT, where in 585 parts of pure gold
& 415 parts of alloy are mixed homogeneously to form 14 KT Gold. The
alloy is used to make 14 KT gold. This alloy is imported from Leach &
Garner – for Green Gold & Progold – For White Gold. The cost of this
alloy however is not significant compared to the cost of the other raw
materials, gold & diamond. 24 KT pure gold purchased directly form
bank locally. Gold requirement is calculated based on wax gold
conversion factor, based on their individual specific gravities & weight of
wax tree. Based on the required gold & 415 parts of alloy are both poured
in a flask of the casting machine. The mixture is heated to over 700
degrees centigrade where in pure gold & the alloy melt & mix
homogeneously to form 14 KT gold in a molten form. This molten 14 KT
gold is then slowly poured out into a small tray of water, where in the
gold solidifies into small granules of 15 KT gold. These granules are
9then used for casting below. This is the first stage of substantial
transformation into alloyed gold, which is further used for jewelry
manufacturing.

b. Casting:
 45

14 KT alloyed gold granules are placed in a crucible in a casting machine

& heated at high temperatures so that it melts into a liquid form. The
burn out flask is taken out of the furnace, as explained, in the investment
procedure above & placed in another chamber of casting machine.
Which is below the chamber where the 14 KT gold is melted. The two
chambers are one above another. When the desired temperature is
reached, such that all the 14 KT granules are in molten form, which the
empty flask below (separated by stopper), a vacuum is created in the
casting machine, to take out air from the empty cavity of the flask & the
stopper is released for the molten gold to flow into the empty cavity of the
flask within split seconds. The flask is then let to cool down for 15 – 30
minutes, so that the gold also solidifies within it. Once the flask in cooled
down to room temperature, the flask is then put under the water jet. The
water with high force is aimed at the flask, by which investment powder
breaks down & is washed away, leaving behind the gold tree (with
diamonds studded in it) is left back in the same form as the original wax
set tree. This cleaning process takes a few minutes. This gold tree is then
transferred out & the individual jewelry pieces are cut with manual cutter
from the tree. The stem of the tree is then recycled to use the gold grain
for another process once more, before being sent to refiner for refining the
14 KT gold into pure gold. The gold pieces cut out are then send further
for the next process.
Step 6: Sprue Grinding:

Some part of sprue (Feeder) remains at one end of the gold piece, after cutting
which is polished out with help of grinding wheel. The left out piece of gold
is exactly is the same form as the original silver model, used to make the
rubber mould with the diamonds set in it. This is still in the soft form & is
then transferred further for finishing it into a fine jewelry piece. Each piece is
checked for its quality before being transferred.
 46

Step – 7: Filling:

Rough casting skin on gold piece is removed with the help of rubber buff
manually to give the gold piece its basic form. Once this is done the gold is
then transferred further. Each piece is then checked for quality issues and / or
missing / broken diamonds.

Step 8: Setting & Setting Repair:

If there are any missing / broken diamonds in the gold pieces, they are reset in
this department by hand. Also if any diamond is set in an improper manner
such as tilted etc. They removed & reset into the filed gold jewelry piece by
hand, as desired to achieve the quality standards for the jewelry piece.

Step 9: Polish:

Finally each piece reaching this stage manually polished using high speed
polishing motors and polishing wheels of various kinds along with the
polishing wheels of various kinds along with the polishing agents to give the
gold its shine & light.

Step – 10: Rhodium:

This is an electro plating process where in a metal namely Rhodium is used

for plating on gold to give it white metallic look. This also enhances the
brilliance of diamonds set on gold areas which are rhodium plated. In this
process the metal surface of yellow gold, other than the diamond areas, are
covered with masking solution (which resists the rhodium plating.) The
jewelry pieces is then dipped in an electroplate bath which has the rhodium
 47

solution in it, to undergo the electroplating process. The gold in the diamond
areas are thus electroplated with rhodium which make the diamonds shine
brighter & look more brilliant.
Step 11: Quality Check:

Final gold pieces are checked by trained Quality check personnel who
approve the piece based on standard Quality parameters for the customers.

Step 12: Customer QC:

Final quality approved pieces are then offered to the QC personnel of the
customer who reconfirm the quality of the piece prior to shipping.

• Packing & Export :

1. The packing department is also called as the finished goods department which is
after the Customer QC after the goods are approved by the QC department it will
be sent to the packing department which will enter the goods that are ready in the
list of finished goods in the system. Then as the marketing people check out the
list of their products they will get information about their product in the list then
they will pick it as information to the export and packing department saying that
the product is ready for shipment. The quality approved pieces are chained &
pack into separate zip-lock bags in lots which consists of necessary information
(PO No. Style No. Quantity, Gold KT/Col, Invoice No.) This bag is then seal by
authorization customer QC person. The above process is followed & conducted
by the company for the reference Purchase order placed by customer. The above
manufacturing process explains the double transformation substantial enough for
the product to meet the requirement of GSP benefits.
2. 35% Value Rule:
 48

a. A detailed cost break down of the jewelry shipped by the company with the
relevant weights & costs with the value addition is attached herewith in
Annexure – 6
b. From the Annexure-6 the total value of raw material consumed which is
purchased locally in India & or imported doubly transformed materials,
amount to 67.40% which is higher than the minimum 35% value rule for
acquiring GSP beneficiary status.
c. Direct Importation: The jewelry has been shipped directly from the company
to the customer in United States of America, thereby complying with the
direct importation requirement of GSP.

1. Summary:

a. The jewelry exported by the company to the customer in reference herewith

against which the request for information is provided herewith, via export
invoice No. SJL 587/06-07 is of Indian origin.
b. The jewelry stand in all the requirements listed for acquiring the GSP
beneficiary status is higher than the 35% requirement.
c. The jewelry is shipped by the company directly to the customer in United
States of America.
A copy of the request for information, dated 03/05/07 is attached herewith in for ready
reference. Should any further information be needed please feel free to approach us?

• FINANCE DEPARTMENT:

Finance department is the backbone of the firm it maintains all the detailed report of all the
processing of funds done in the firm. The major purpose of this department is keeping track of
transactions and recording revenue and expenses are important business processes often assigned
to an accounting department or a financial manager. Accounting is a business discipline that
allows companies to record analyze and retrieve critical financial information that can be used to
determine a company's financial status and provide reports and insights needed to make sound
 49

financial decisions. Accountants develop systems and processes to evaluate and analyze different
types of transactions. Each transaction that involves the acquisition or sale of goods and services
must be reported in the general ledger and posted to relevant accounts. Bookkeeping is the
function of accounting that helps maintain these types of transactions as debits and credits; this
data can then be used to create accurate and timely financial reports. The department is using
software called OJSJL it is software that takes an entry of all the funds payment and gives out its
entry in the final output. It accepts the direct entry of the data. It maintains the data of the entire
fund that will take payment and balance of all the loans that is taken from the bank. The
company takes loans from three different banks Bank of India, Union Bank, Bank of Patiala. It
also deals with the payment that will be done by the client to whom the product where sold. The
finance department is responsible for taking the payment from the bank. The client will specify
the details of the bank in which it will make its payment. It can be paid in USD or in INR it’s
based on the client. After the order is shipped from the company the client has the date of
payment within 180 days. The OJSJL software will take all the entries such as Sales/Purchase,
Bank Facilities, Financial Accounting. Sales/Purchase, it will take all the invoice entry that has
created all the import invoice, stock details, and local purchases. Bank Facilities it will include
all the bill loans limit, pc limits etc. it will take all the facilities provided by the bank for the firm.
Financial accounting will include all the journal entries, petty cash paid, and trial balance,
balance sheet entries etc.All these above entries are done after the customer raises the order and
the materials required for the production that has to be paid by the department.

The primary purpose of accounting is to identify and record all activities that impact the
organization financially. All activities, including purchases, sales, the acquisition of capital and
interest earned from investments, can be classified in monetary terms and posted to a specified
account as an accounting record. These transactions typically are recorded in ledgers and
journals and are part of the process known as the accounting cycle. When any purchase is made
by any department or any material is purchased it will have to have a challan copy and a invoice
copy that the order was made by the department so we have all this details is given to the bank
for entry it will check and make an entry in the software and it will take the sign on the issued
goods for the payment and it will be paid as per the request from the in charge.
 50

• PURCHASE DEPARTMENT:

The major functions of purchase department are keeping the stock filled or available all the time
for the production. It maintains the stock for the product such as dresses of the workers, solutions
which is necessary for the production to make the product look good. It checks out the
requirements that come from the several departments. The requirements of the different
departments will come in a challan and the requirements will signed by the department head. The
requirements that come can be of materials that are not available in stock or it’s not in the
company. So the requisition for the requirements would come for the departments and the
purchase department would check into the requirements and will check whether it is there in
stock or not if it’s not it will check out with the local suppliers that can give the material on time.
For product requirements from the department they have to fill a requisition slip which will have
a slip no. and will also include all the description of the product required and the quantity. It will
also include all signatures of all the department head and the remark.

After the requisition is made by the department the purchase department will check out with
local suppliers it’s also applicable for the machineries requirements and then the local customers
will give a quotation and the date they can issue there product and also the price. Like that there
will be many quotations from many suppliers so the best quotation will be taken keeping the
main thing the date of delivery in mind and they will accept the quotation this would be done by
the purchase manager. Most commonly bought products are the solutions that are necessary to
make the product look good.

• EDP DEPARTMENT:

The major functions of the EDP department is,

Developing the new software that can help the company to grow more in a better way as well as
it would help the different departments to coordinate well. So that the new software can develop
the company any help the production use the new software to develop well.

Researching on the software that will help them to develop a new one with better quality. It also
checks out what is the current problem in the software how the problems can be removed.
 51

Maintaining the existing software with proper process helping it adjust and solve the current
issues also troubleshooting the current software if any issues occur in it.

It also keep the company’s Internet services intact all the local Lan cables and also keeping and
maintain the server update and also tracking and scanning up to date for viruses in the system.

Maintain the company’s database with the entire card punching of the employees and other
major issues. Submit the details of the employees daily in and out report to the HR for further
processing.

Implementing the newly developed software and also and also provide training in that newly
developed software to the employees.

• CENTRAL DEPARTMENT:

The Central department is the heart of the production department as its major function:

• Is to keep the stock of the gold in hand.

• It keeps the data according to the requirements of the product.
• It purchases the gold from the bank.
• It also takes the gold from the refinery that was collected in the dust bags and which
was again pured and differentiated by the refinery.
• It also calculates the mixture of the percentage of alloy and pure gold to be inserted in
the final product.
• It takes the requirements that comes from the entire department and processes it as it
should be.
• It issues the gold and the alloy that has to be mixed with it to the casting department.
• It maintains the record of all the intake and outgoing gold stock.
• It also includes the findings that has to be attached in the product there are different
types of findings that can be attached into it fosters, butterfly, head, top etc. all this
will be sent by the central department for the further processing.
• It also includes the material that come return because of some problem that the
customer have noticed in it.
• The calculation for the alloy mixture for the pure gold will be as follow
24 kt gold means 0.995 is its ratio.
 52

09 kt-2.654 ratio
10 kt-2.388 ratio
14 kt-1.706 ratio
18kt-1.321 ratio
We always receive the gold in grams from the bank so now we have to convert it in to
the Kt of gold that can be done by the formula: Pure gold * Ratio = Kt of gold.
For Eg: If we receive 200 grams of gold from the bank and we need to make it into
09kt so the calculation will be as follows 200 * 2.654 = 530.8 it is the Kt of gold in it.

• MARKETING DEPARTMENT:

There is not much role the marketing department in the firm its major task is to be a back
office for the client. As the major client is the US & EUROPE market it just provides a back
office job from the firm. The major marketing department is in the overseas where they
perform the major roles for the sale of the product. Here in India the major function is to
provide a back up to the actual market people of the firm who is doing the sales abroad.
These people are also called as the middle man to whom the people from firm in India
contact and these middle man are the people who directly contact the clients.

The major functions of this middle man are to take the appointment from the client, arrange
meetings with the client and take the requirements from the client and also arrange for the
exhibitions overseas. In the meeting they introduce the company with the company profile
and also show them the designs that the company make. And they take the order and they
send the processing for the requirements to the firm in India. But there are some clients the
company interacts directly. So now the company is changing it strategies to directly meet the
requirements from the client without including the middle man.

Business Strategy
 53

A Multi-pronged approach

Capacity & Network Expansion:

To increase market share & competitive strength in the US & Europe market
Achieve dominance in core markets (US/UK/Gulf)
Increase market access through strategic alliances

Production / Technological Up gradation:

Introduce and develop the new technology to increase the decrease the production time.
Improve the quality of work and take more skilled laborers who have the ability to develop
new designs because it is the only new success of the firm.

Product Up gradation:
Developing new designs for the customers or modifying the designs as per the requirements
of the customer.

INTERRELATIONSHIP BETWEEN DIFFERENT DEPARTMENTS:

All the different departments of the company are interrelated with each other in the form that
they will have to work. First the overseas department of the marketing will bring the order and
 54

they will send the purchase order to the marketing team in the main office and this order once
raised by the marketing department then they will enter into the system and from there one copy
will be sent to the Product planning department and one copy will be sent to the Diamond
department this will happen if the client selects from the exiting list of the product. If the client
give a design of his own then the marketing department will forward it to the design department
and the design department will make a hand design of it first and then it will use CCD (computer
aided design) and it will prepare all the design. And the modified design will be sent again to the
client if he satisfied he will ask for the model making of it. So it will be forwarded to the model
making department. Otherwise as the second option goes forward to PPC department PPC will
be able to tell the exact delivery of the product and it will prepare a bag of the product with all
it’s detailed about the diamond and alloy inclusion and all the things. It will also include
diamond bag all the collection of diamonds in it. Then this will be passed on to the wax setting
department and all the diamonds will be inserted in the wax and then a wax tree would be made
in the wax tree department. Then this wax tree department would forward it to the casting
department then all the investment cycle and burn out cycle. Then the central departments will
also issues the gold required in it and it will all be sent to the casting department and it will make
the product in the casting department. After the product is issued it will pass from all the other
departments such as the sprue cutting and filing and pre polishing, metal setting and then rodium
and after this the product will included and then final Q/C department will include all the checks
and then the final Q/C will check the quality of the product. Then the packing department will
take the product from the Q/C and include it in the finished goods list then marketing people will
select the completed product and tell them to send it for shipment and it will pass on the copy of
the invoice to the export department for shipment.

HR department maintains the wages and salary of the people working in the firm and also
recruiting new employees for the firm and also motivation programs for the employees.
Accounts department maintains the list of gold purchase and also buying of gold from the bank
and the collection of payments from the client.

OBSERVATIONS:

Review of company’s performance year (2008-09):

• Decrease in the operating incomes.

 55

• Decline in the stock rate difference as income for the firm.

• Expenses for the raw materials have been increased.
• Decrease in the Wages and salary of the employee.
• Decrease in the employee remuneration and other benefits.
• Decrease in the depreciation cost.
• Decrease in the operating and administration expenses of the firm.

Financial Performance of the year (2008-2009):

Profit and Loss Account for the year ended 31st March, 2010

Particulars Schedule For the Year Ended For the Year Ended
31.03.2010 Rupees 31.03.2009 Rupees
 56

Income:

Operating Income 12 1,611,075,561 1,822,055,887

Other Income 13 1,968,861 11,594,748

Stock Differential 14 48,594,570 (70,589,036)

Total 1,661,638,992 1,763,061,599

Expenditure:

Raw Materials Consumed 15 1,392,270,141 1,338,808,109

Employees remuneration and other 16 85,446,922 92,801,225

Benefits

Operating and Administration

Expenses 17 100,564,701 165,720,586

Financial Charges 18 58,825,488 77,547,187

Depreciation 5 9,365,282 11,370,437

1,646,472,534 1,686,247,544

Total
Profit before Tax 15,166,458 76,814,055

Less: Tax Expenses (8,667,396)

Profit after Tax 15,166,458 85,481,451

Add: Surplus brought forward from 467,815,435 382,297,261

previous year
482,981,893 467,778,712
Balance carried to Balance Sheet

Earnings Per Share(basic) 19.B.12 17.45 82.42

Balance Sheet as at 31st March, 2010

 57

Development in the year 2008-2009:

• Distribution Strengths

We have long established distribution offices in all the major consuming markets and in most of
the markets where we have identified a strong potential for growth in the coming years. This
facility makes our processes and delivery an easy task as per the requirement of our clients. Our
sales and distribution channel encompass associate offices at New York, Los Angeles, Hong
 58

Kong, Belgium, Japan, China, and Singapore. The company is fully compliant with the DTCs’
Best Practice Principles and is 100% committed to the Kimberly Process.

• Manufacturing Strength:

The group has had a modern and well equipped Hi-tech diamond manufacturing factory since
1992, Sanghavi Diamond Mfg. Pvt. Ltd. at Surat, which is one of the largest such units in Asia
having 1,70,000 sq ft of capacity.

Sanghavi Exports are currently engaged in developing a new diamond manufacturing factory
– “The Lighthouse”. This 75,000 sq.ft. Factory will increase the Groups diamond
manufacturing capacity by 25% by value.

The group’s ultra modern jewellery manufacturing factory Sanghavi Jewel Pvt. Ltd., located in
SEEPZ has a workforce of 1500 workers and is engaged in manufacturing of world class
diamond studded jewellery. The turnover from this unit is more than US $ 55 million.

• Branded Jewellery

In 2007 Sanghavi acquired the Sangini brand from the DTC and re launched it in the
domestic market. This brand is currently distributed through number of outlets and is already
considered to be one of the top jewellery brands in India. The brand is promoted by various
brand ambassadors drawn from the ranks of India’s leading film personalities.

Mr. Chandrakant R. Sanghavi who is one of the directors of Sanghavi exports is well
renowned face in the Indian Diamond Industry and occupies several positions of responsibility in
the Indian diamond trade.

• He is the Chairman of Indian Diamond Institute, which is jointly run by Government of

India & Gems & Jewelry Exports Promotion Council of India.
• President of Gujarat Diamond Bourse which is coming up Special Economic Zone for
Diamond & Jewellery in Surat.
• He is Regional Chairman for Gems & Jewellery exports Promotion Council for Gujarat
Region.
Additionally, Mr.Chandrakant Sanghavi has been a member of several Central and State
Government sponsored delegations that have visited Singapore, China and Moscow to develop
 59

contact between the Indian diamond trade and those markets. In Moscow he has met with the
President and Vice president of the Moscow diamond bourse to develop contacts between the
diamond industries of the two countries.

The strength of our market position is reflected by the fact that 95% of our current
customers are repeat customers and we have several customers who have been with us
since the inception of our business.

To us, our famous advertising promise, “Aura of Radiance” is more than just words; it
represents our commitment to diamonds and to our customers.

Supply Chain:

• Product Manufacturing:

The manufacturing of the product is done in the company when the order comes from the
client.

• Export department:

When the export department have the request from the production to import the product
then they will sent it to overseas office.
 60

• Overseas office:

They will send the products to the client that is the middle man ie: the wholesalers.

• Wholesalers:

The whole sellers will distribute it to the actual clients or so called retailers.

The process starts from the production of the product that is done in the company and then the
production goes on to export the goods the export department will export the goods to the
oversea office that can also be a whole seller and that whole seller will distribute it to the client.

The company is now trying to modify it by not giving the middle man the commission and
directly giving it to the actual client so that the commission given to the middle man can be
washed off. And in this way the client will get the products in much cheaper way.

GROUP ACHIVEMENTS:

Over the last 33 years the Sanghavi Exports Group has carved an enviable position for itself in
the business. Worldwide, diamonds and diamond jewelry sporting the Sanghavi label have
become the benchmarks of high quality and commitment towards client service. The company’s
efforts have been rewarded by the following recognition awards.

• Receiver of ISO 9001 2000 certification

• Winner of the Export Award from GJEPC for seven consecutive years, 1989 to
1995, in the Non - DTC category
 61

• Receiver of the esteemed status of ‘A Government Recognized Star Trading

House’ in 1996.

• Recognized as DTC Sight holder in 1997

• Established the diamond jewellery brand “Sangini” in India in 2006, which is counted
amongst one of the best brand in India.
• Sanghavi Diamonds Inc - New York received Highest Importer of Cut & Polished
Diamonds from India Importers (USA), for three consecutive years from Gem &
Jewellery Export promotion Council (GJEPC) during 2006 to 2008.
• Sanghavi Exports International Pvt Ltd have received Highest Export Award from Gem
& Jewellery Export promotion Council (GJEPC) in 2008.

SWOT ANALYSIS:

STRENGTHS

1. Strong Reserves and Surplus backed by an additional Rs. 10 cr. to Foreign Exchange and
metal price fluctuation reserve.
2. Strong risk management focuses as part of strategy.
 62

3. Investments in upgrading the technology.

4. Manufacturing capacity of diamond is increased by 25%.
5. It has long established distribution offices in all the major consuming markets.
6. Manufacture handicraft jewellery along with branded jewellery to cater to diverse
markets.
7. Long standing relationship with dealers in New York, Los Angeles, Hong Kong,
Belgium, Japan, China, and Singapore etc.
8. It has more than 1500 workers involved in the manufacturing of the diamond.

WEEKNESS:

1. A smaller player in size compared to the rest of the competitors such as Rajesh Exports
and Gitanjali Gems and Jewellery, and therefore would not be able to enjoy the same
benefits of returns to scale as the others.
2. No well established brand like other firms (e.g. Gili from Gitanjali Gems and Jewellery
or Tanishq from Tata).
3. A large portion of target market is unaware of contemporary design’s products.
4. The struggle to constantly create new designs.
5. Gold not seen as s source of investment. (Luxury is needed).
6. Low market share.
7. Not very well known among common people or among the local buyers as it concentrates
only on international market.
8. The marketing channels are not properly described and the roles of different people are
not properly described.
9. Lacked infrastructure to cater to the retail customers abroad. Company sells most of its
product to the wholesalers in which case they have much of the bargaining power. Such
power with the consumer puts pressure on the margins of a firm and Su-Raj diamond
does not have bargaining power here.

OPPORTUNITIES:
 63

1. Better advertising and marketing strategies.

2. Global market.
3. Low cost jewellery in the international market.
4. Variety of jewellery designs.
5. A growing market that to a large degree, is unaware of contemporary designs.
6. The possibility to grow the size of the company so the management is spending its time
creating and allowing others to deal with the administrative details.
7. The injection of fresh, creative designs in a somewhat stagnant industry.
8. Global Silver to Gold ratio is improved to 15:3 from 7:3 in 2000 in the world market; this
is mainly because of a younger generation’s preference for a white metal than gold.
9. Increase demand in Middle East and North American countries, forming the largest
segment and offering the highest growth in the previous financial year.

a. North America Increase of 23.25 %

b. Europe Increase of 6.02%
c. Middle East Increase of 51.67%
d. Asia Increase of 19.02%
10. Availability of high skilled labor in production of gold jewellery.

THREATS:

1. Emergence of China as a competitor.

2. Unusual increase in the price of gold and rough diamonds.
3. Fluctuation in currency, especially appreciation of rupee against the dollar.
4. Change in fashion trends.
5. Substitution of gold and other banking products as a better source of investment has lead
to the decline in the consumption of silver.
6. The reduction of consumption of silver in the Indian market. Witnessed a decrease of
53.1% from 1996 to 2005 in consumption.
7. Low availability of skilled labor in processing of diamonds.
 64

8. Infrastructure bottlenecks, absence of latest technology.

9. China, Sri Lanka and Thailand's entry in small diamond segment.

IMPORT AND EXPORT OF THE YEAR (2008-2009):

Style Shape

MONTH BS BG ET NK Pend. Ring RBS BR/LK SET TOTAL

April-08 404 26 4955.5 552 5993 10393 22323.50

May-08 431 90 3938.0 865 4662 7436 17422.00

June-08 478 51 3902.0 406 3018 4740 12595.00

July-08 145 23 2676.0 272 7781 10473 21370.00

August-08 119 63 3696.0 145 8182 12901 25106.00

 65

September-
120 45 3082.5 174 12467 18257 34145.50
08

October-08 346 96 7169.00 259 26806 23963 2 58641.00

November-08 667 95 8215.00 237 18848 13978 42040.00

December-08 468 66 2816.00 492 7794 7310 18946.00

January-09 28 4 2305.00 30 3718 2994 9079.00

February-09 166 3 2746.50 45 5890 6313 965 16128.50

March-09 59 26 13509.50 72 17257 16655 220 47798.50

TOTAL 3431 588 59011.00 3549 122416 135413 2 0 1185 325595.00

 66

PARTYWISE IMPORT AND EXPORT FOR THE YEAR (2008-2009):

NET NET
TOTAL COST TOTAL COST
CUSTOMER NAME QTY. REALISATION REALISATION
IN US $ IN RS. IN US $ IN RS.
ANDIN INTERNATIONAL $ $
99478.5 300308423.94 308676221.44
INC. 6,528,078.75 6,721,974.61
LOK FOOK JEWELLERY $ $
1267.0 236358144.00 236358144.00
CO. 5,424,542.68 5,424,542.68
$ $
MASTERPIECE LLC 55019.0 191503000.00 210331531.00
4,201,849.04 4,620,658.39
DYNAMIC DESIGN $ $
27497.0 121665565.59 121668650.59
GROUP INC. 2,662,359.05 2,662,421.49
WORLDS GOLD & $ $
32495.0 120102918.90 122978472.90
DIAMONDS INC. 2,762,719.80 2,823,157.73
FACTORY DIRECT $ $
37378.5 82841001.68 235887394.08
JEWELRY LLC 1,811,759.67 5,092,897.50
$ $
SANGHAVI JEWELS,INC. 6980.0 73081201.40 73786587.40
1,630,622.74 1,647,220.05
SANGHAVI JEWELLERY $ $
9516.0 67400927.20 67667925.20
TOKYO CO.LTD. 1,474,374.98 1,480,172.98
SANGHAVI DIAMOND $ $
9735.5 64115029.28 65142625.00
INC.NY 1,433,000.47 1,454,782.20
$ $
SANGHAVI JEWELS BVBA 5651.5 63242550.50 63413343.50
1,459,536.50 1,463,517.44
$ $
CAN 11708.0 53073369.00 53073369.00
1,083,780.85 1,083,780.85
SANGHAVI DIAMOND INC $ $
4288.0 41170741.60 41170742.10
L.A. 989,626.60 989,626.60
$ $
IDUNA AB 5843.0 36405544.00 36445959.00
826,067.12 826,881.12
$ $
BIDZ.COM 3551.0 35215307.00 35215307.00
816,113.71 816,113.71
THE JEWELLERY $ $
1324.0 13632368.06 13640188.06
CHANNEL LIMITED 311,847.39 312,004.89
STAR JEWELERY $ $
1870.0 12496611.00 12496611.00
PVT.LTD 294,037.92 294,037.92
MASTERPIECE $ $
3925.0 10384795.50 11732347.50
DIAMONDS LTD. 247,067.69 279,139.37
$ $
ACE JEWELS LTD. 1229.0 8870556.00 8873520.00
195,687.94 195,747.94
$ $
AB BUREAU S.L. 330.0 8712450.00 8712450.00
207,686.53 207,686.53
$ $
BJB IMPORT LTD. 760.0 7641234.50 7641234.50
168,310.59 168,310.59
$ $
CANDID JAPAN INC. 450.0 5595168.50 5608961.50
128,842.72 129,167.25
MALANI JEWELERS 117.0 $ 5270285.50 $ 5448608.50
 67

114,447.03 118,319.40
ANDIN (HONG KONG) $ $
1589.0 5122427.50 5158172.50
CO.LTD. 125,004.16 125,901.16
FINE FACET DIAMONDS $ $
1296.0 4365257.00 4965780.00
INC. 99,374.85 112,454.11
DER SCHMUCKKANAL $ $
526.0 4343230.00 4343230.00
DEUTSCHLAND GMBH 106,956.12 106,956.12
UNITED JEWELLERY $ $
494.0 4322951.50 4345281.50
TRADING LTD. 97,306.85 97,791.75
$ $
QVC UNITED KINGDOM 283.0 4299107.00 4299107.00
101,774.87 101,774.87
LONDON DIAMOND $ $
96.0 2021531.00 2021531.00
JEWELLERY CO.LTD. 42,482.58 42,482.58
EXPRESSIONS DIAMOND $ $
148.0 1610897.50 1610897.50
COPORATION 40,373.37 40,373.37
$ $
CJW JEWELLERY LTD. 68.0 1275065.00 1275065.00
29,919.60 29,919.60
$ $
JEWEL 99.COM 163.0 1233681.50 1233681.50
30,321.48 30,321.48
DYNAMIC DESIGN $ $
242.0 1185389.00 1185389.00
GROUP INC./VIRGO 29,709.00 29,709.00
MISHRAF
$
INTERNATIONAL 6.0 345475.00 $ 7,288.50 345475.00
7,288.50
GEN.TRAD.& CONTRACT
$
ULTIMA DIAMONDS 42.0 324872.00 $ 7,608.25 324872.00
7,608.25
$
JDESIGNS SHINE INC. 65.0 220008.00 $ 4,447.92 220008.00
4,447.92
$
BEVILLES JEWELLERS 41.0 209028.00 $ 4,409.88 209028.00
4,409.88
$
BOAS & FARRO LTD. 14.0 151520.50 $ 3,051.78 151520.50
3,051.78
MIZUHO BANK / CANDID $
11.0 132496.50 $ 2,877.23 132496.50
JAPAN 2,877.23
OPTIMA
$
MANUFACTURING 37.0 130474.00 $ 3,066.93 130474.00
3,066.93
JEWELLERS
$
MED ART(TURKEY) 3.0 55029.00 $ 1,113.94 55029.00
1,113.94
$
BH MULTI COM 2.0 54448.00 $ 1,281.14 54448.00
1,281.14
$
V3 DESIGNS. INC. 36.0 50094.00 $ 1,022.49 50094.00
1,022.49
$
STS JEWELS INC, 10.0 37015.00 $ 927.70 37015.00
927.70
ALARAMA $
10.0 33574.00 $ 679.64 33574.00
JEWELLERY,INC 679.64
$ $39,567,620.6
TOTAL 325595.0 1590610764.15 1778152362.27
35,513,358.05 8
 68

STP ANALYSIS FOR SANGHAVI JEWEL

• Segmentation
– Wedding Segment
– Non Bridal Segment
– Elite Segment
– Corporate Accessory

• Targeting
– Teenage and youth
– Employees of big firms
– Addressing Newly Wed
– Single & post Marital Acquisition

• Positioning
– Modern
– Special
– Young
– Ultimate Gift of Love
– And Lots of else
 69

CONCLUSION
 70

Sanghavi jewel Pvt Ltd is a jewellery company which deals with the total jewellery making as
well as marketing of the jewellery it mostly concentrates on the international market and less on
the local market. It also has its own diamond manufacturing industry from which it gets the
diamonds as the requirements as this company also deals with the manufacturing of the diamond
as well it is the most essential part as when the order come its easy to fulfill the requirement soon
as an when required and the processing can be completed soon and the delivery can be done on
time.

There are several departments which work together to create one product. All the marketing as
well as production works well to create product. The company mainly concentrates on the
production as its marketing is done overseas. The production is the main part of the firm. There
are actually many production levels at which all the products located .Its very much easy to
locate a product you need to just enter the product code and you can just locate it in which
department the product it . It’s very easy to be located as every department needs to enter the
details and the completion in the software well so it will help to locate the product.

The company has well differentiated departments which have differentiated limits or it has well
specified limits. Each department work in a coordination to make a product. There are several
customers who are common so everybody over there knows about the customer well and it
importance so if the order is for that customer it will be done at first hand and the remaining
customer will also be managed well. The company never takes any of the customer lately all are
equal valued customer at on the eyes of the company. The person who gives one order and the
person who gives thousands of order all are equal.

They have several designs which are of their own they have a well mentioned production way for
each product and which can also be tracked easily. They have a well skilled workers working for
the design and to modify the design well. They also work to improve the design well that also
also includes the current design.

Observation:
 71

The HR department is the main department it maintains all the detailed record of all the
employees which is in the manual form as well as the data is also maintained in the database all
the complaints regarding the employee are taken care by the HR department all the motivation
programs are also done by the HR department. The environment around the firm is very
energetic all work in coordination to complete the product. The marketing department also works
well in coordination with all the other departments. The central department also works and
coordinates with the other departments as its very much necessary as this department has to issue
the raw gold and diamond for the making of the product. The people in the different departments
are very cooperative. They took efforts to make me understand all the different function of the of
the firm.

BIBLIOGRAPHY:

www.sanghavijewellery.com
www.search.ebscohost.com
www.dgca.nic.in
www.sanghaviexport.com
www.google.com
www.sanghavijewel.com
www.gemjewellery.com
www.indianjewellry.com
www.wikipedia.org