1. A PROJECT
ON
ANALYSIS
OF
INTERNATIONAL
MARKETING
WITH REFERENCE
TO

2. GHANSHYAMDAS SARAF COLLEGE OF
ARTS AND COMMERCE
A PROJECT OF
INTERNATIONAL MARKETING
SUBMITTED TO:-
PROF.
SUBMITTED BY:-
NAMES ROLL NO.
Sanjoli Bhageria 13
Rohit Deriya 24
Rebecca Fernandes 28
Juili Haryan 34
Pinky Pan 59
Kusum Parmar 60.

3. INERNATIONAL MARKETING
Marketing activities beyond the political boundaries of the country are termed as
international marketing.
Acc. To Subhash C. Jain:
“The term international marketing refers to exchanges across national boundaries for
satisfaction of human needs and wants.”
When a business crosses the borders of a nation, it becomes complex.
International marketing involves all the activities that form part of domestic marketing. An
enterprise engaged in international marketing has to correctly identify, assess and interpret
the needs of the overseas customers and carry out integrated marketing operations to
satisfy those needs. In other words, the basic functions are the same in international
marketing as well as in domestic marketing.
At the same time, there are several characteristics that are unique to international
marketing. When the business crosses the national borders of a given country, it becomes
enormously more complex. The resulting problems and management situations transcend
those of marketing, finance and production. A wide range of legal, political, cultural and
sociological dimensions enter the picture, adding a lot of complexity to the task. And, the
one factor that contributes maximum to the complexity is the environmental and cultural
dynamics of the global markets.
Environmental and Cultural Dynamics of Global Markets:
The environmental and cultural dynamics of the markets of different countries can be
understood only by studying the respective people, their patterns of life, their tradition,
their social interactions, their sensibilities, their faiths and fancies. In other words, the
international marketer has to become a native in the foreign land. He has to communicate
with the people of those lands in their lingo and idiom.
Multinational enterprise must function in a world of contrasts: old and new, primitive and
modern, pious, and agnostic, unutterably beautiful and sickeningly squalid, educated and
ignorant, progressive and stagnant, sophisticated and naive – all in constant agitation. To
interpret this volatile diversity, to make sense of this apparent chaos, we must try to identify
the underlying forces the prime movers which produce the global dynamics.
It is obvious that the difference between domestic and international marketing is essentially
environmental and cultural in character. And cultural diversity continues despite the world
getting closer. Modern communication and transport systems have no doubt brought the
nations of the world closer, but the cultural differences continue. So, understanding the
cultural variances and nuances, and responding to them in a manner and style that is
appealing to the foreign buyer becomes the crucial task. It is not enough if the international

4. marketer communicates in the buyer’s language. Language is only one aspect of culture.
A nation’s history, its social and religious heritage, the value system of its people, the
code of conduct handed down through generations – all these are components of a
nation’s culture. Moreover culture is not a static entity. It undergoes a continuous
evolution. So, sizing up the cultural dynamics of the different markets of the world is quite a
difficult exercise. And that explains the difficulty of international marketing.
Main Functions in International Marketing:
Let us briefly touch upon the main functions involved in International marketing. They are:
* Choosing the basic route for global marketing
* Market selection and product selection
* Selection of distribution channels
* Developing pricing strategy
* International marketing communication
* Mastering the procedural complexities
* Organizational adaptations
* Handling business ethics
Choosing the basic route:
A properly conceived entry strategy is the starting point. There are five basic routes to enter
a foreign market:
* Exports
* Licensing of technology and know how
* Multinational trading
* Joint venture
* Full-fledged global operation
We shall mention the salient features of each of these routes.
Export is the primary route for entry into the global markets. Many firms stop with this step
in their international marketing endeavor. Some firms, however, go beyond; they license
their technology and know how to foreign firms who may be interested in importing it into
their land.

5. International marketing for Gems and Jewellery
sector
The Gems and Jewellery sector, being highly export oriented, is a significant contributor to
India’s foreign exchange earnings. Exports from this sector constituted around 17% of the
total exports from India during FY00 to FY09. The sector is heavily dependent on imported
raw materials as availability and production of raw materials is very low in India. In fact,
India has been one of the largest importers of gemstones, rough diamonds and precious
metals over the years and most of these imports were used for value addition and exports.
India is also one of the largest consumers of gold in the world, as it accounts for more than
20% of the world gold consumption.
Given the export and import dependence of the industry, it remains very susceptible to
external developments such as fluctuations in international commodity prices, exchange
rate or external demand. Evidently, therefore, with the onset of global economic recession,
and the consequent slowdown in the global as well as the domestic economy, the sector
had been severely affected. The sector has not only witnessed deterioration in its export
growth rate but also in its share in India’s total exports; the share of the sector in India’s
total exports fell to an average 12.65% over FY08 and FY09. The slowdown in the Indian
economy coupled with the steep rise in gold prices has also affected the domestic demand
for gold jewellery. Moreover, the global credit crunch has affected the exporters, especially
the smaller players, as they have to depend heavily on export credit.
However, with the recovery in the domestic economy since the second quarter of FY10 and
gradual uptake in the external demand conditions, the sector has witnessed some positive
developments. Both exports (since September 09) and imports (since October 09), in fact,
have experienced an upturn in growth. The stimulus package provided by the government
to combat the slowdown that included interest rebates, extension of credit periods and
export duty benefits have also aided the sector to weather the effects of slowdown. The
government had also increased the pre-shipment export credit period (from 90 to 180
days) and post-shipment export credit period (from 180 to 270 days) to ease the longer
inventory cycles faced by the sector.

6. Exports of Gems and Jewellery Sector
The Gems & Jewellery sector has
experienced high growth over the
years on the back of a buoyant
performance in its exports. Total
exports of Gems and Jewellery has
registered an impressive growth
from US$ 2.99 bn in FY91 to 21.12 bn
in FY09 which translates into a CAGR
of around 11.47%. However, during
FY01-FY02, the slowdown in the US,
which is the largest importer of
India's gems and jewellery, and some
other importer countries, led to a
demand contraction and a
subsequent decline in the export
growth rate for the sector; while the
decline was mainly in exports of cut and polished diamonds (CPD), gold jewellery exports
had remained resilient as it registered a positive growth. Net exports during FY01 and FY02
fell to US$ 7.8 bn and US$ 7.6 bn, respectively, as compared with US$ 8.1 bn during FY00.
The government took important policy initiatives, including de-licensing of the import of
rough diamonds (with effect from April 1, 2002), which was a long standing need, to give a
boost to this sector. This was reflected in the growth in the exports during FY03. Exports
during FY03 grew by 21.36% as compared to a decline of around 3% during the previous
financial year.
The growth momentum in exports continued during the following two successive financial
years; however, during FY06 and FY07 the sector witnessed a deceleration in the rate of
growth (6.5% during FY06 and 2.7% during FY07) in net exports due to the dismal
performance in the cut and polished diamonds segment.
Factors such as abolition of the Target Plus Scheme affected the exports during the first
quarter of FY06. Under the above scheme exporters of medallions and coins used to
register their exports in the jewellery category and these exports constituted a significant
part of the jewellery exports due to their size. Besides, the change in the value-added
norms, as per which value addition was to be calculated on the entire piece of jewellery
(including diamond and precious stone content) instead of the earlier method, as per which
only the gold content was considered as the base, also affected the exporters. Besides,
heavy rains that flooded Surat and Mumbai affected the diamond exporters and disrupted
office attendance, production and movement of goods. Further, owing to the market
slowdown in the US, the sector witnessed a decline in exports during the last two quarters
of FY06.

7. Sluggish demand from the US continued during FY07 as well. The exporters also faced delay
in payments especially from the US. Moreover, there was a decrease in the diamond
trading activities of bonded warehouses.
In FY08 the gems and jewellery sector showed resilience amid turbulent market conditions.
The facility of duty-free treatment under the General Scheme of Preferences (GSP) for
precious metals (other than silver) and articles of jewellery enjoyed by the Indian exporters
was terminated by the US from July 1, 2007. The US GSP benefit was terminated on the
grounds that the articles from India were exported in quantities exceeding the applicable
competitive need limitation during 2006. After the termination of the benefit, a basic
import duty of 5.50% was implemented on the precious metals and jewellery exported
from India to the US.
However, the sector achieved a commendable export growth rate of 21.47% (y-o-y) during
FY08 in the face of high interest rates, appreciating rupee, termination of GSP benefits and
economic slowdown in major export markets. This growth could be partially attributed to
the increase in trading activities. Moreover, fiscal measures such as reduction of import
duty on cut and polished diamond (CPD) to 0%, reduction of import duty on un-worked
corals and rough synthetic stones from 30% to 10% coupled with various trade facilitation
measures undertaken by the government provided a boost to the sector. The appreciation
of the rupee during FY08, which helped in increasing the competitiveness of gems and
jewellery sector by making imports of raw materials cheaper, had also benefitted the
sector to some extent.
However during FY08, India’s exports of gold jewellery recorded a significant moderation.
Due to the volatility in gold prices in FY08 and global economic downturn, a slowdown in
demand for gold jewellery was witnessed worldwide. Growth in the exports of gold
jewellery moderated to 6.67% during FY08 as compared with a high growth rate of 34.18%
during FY07.
During FY09, the global economic slowdown, which manifested during the second half of
FY09, severely hindered the purchasing power of the jewellery customers, both external as
well as domestic. In spite of this, the growth in the net exports during FY09 remained in the
positive territory mainly due to the robust performance during the first half of the year.
Despite the slump in exports of CPD segment (the CPD segment witnessed a decline of
around 8% in exports in dollar terms), the sector was able to achieve a marginal growth
rate of 1.32% in dollar terms on account of gold jewellery export sales, which clocked a
high growth rate of 23.29% during FY09. Besides, tightening of foreign currency credit
facilities and high interest rate during the first half of the year also adversely affected the
CPD sector, which is heavily dependent on bank financing.
The overseas demand erosion, mainly from US led to postponement or cancellation of
orders resulting in inventory build up, erosion of profit margins, shutting down of
manufacturing units and retrenchment in the sector. However, the March 09 export figures
point out to the fact that the pace at which the exports were declining has been arrested to
some extent. Exports during March 2009 registered a decline of 16.75% on a y-o-y basis,
while they were down by about 33.94% (y-o-y) during January 2009.

8. The contraction in the decline in exports continued during the first five consecutive months
of FY10 as well. With the stabilising of demand conditions from India’s major trading
partners, there has been a growth in exports in dollar terms from the sector since
September 09. However, the export growth in rupee terms had turned positive since July
2009 mainly due to the depreciation of the rupee against the US dollar. The various
incentives announced by the government for the sector to combat the slowdown have also
in part helped the sector in its recovery.
Nonetheless, the increase in export growth rates since October 2009 can be partly
attributed to the base effect, as export figures had started declining in absolute value
terms since October 2008 due to the onslaught of the global financial crisis.

9. Export of CDP (cut & polished diamonds)
The growth in Gems and Jewellery exports has been
primarily driven by the CPD segment over the years.
As one of the largest cutting and polishing centre of
diamonds in the world, the Indian CPD segment has
always held the largest share in the total exports of
gems and jewellery. India primarily focussed on
exports in cut and polished diamonds owing to its
traditional expertise in diamond cutting and
polishing. Growing by around an annual average
growth rate of 9%, this segment held an average
share of around 83% in the net exports of gems and
jewellery during FY92 to FY02. However, since, FY03,
its share shrank to around 69%. Even though its share
in net exports had fallen, it had continued to register
an average growth rate of around 13% during the
above mentioned period. CPD exports grew from US$
7.11 bn in FY03 to US$ 13.02 bn in FY09; however, over the years, the fall in the share of
CPD exports has been increasingly replaced by the growth in exports of gold jewellery.
Export of colored gem stones & non-gold
jewellery
The share of exports of coloured gemstones
in India’s net exports is very small.
Moreover, India is a net importer of pearls
and synthetic stones. In fact, rough coloured
gemstones, synthetic stones and raw pearls
are largely imported for value addition and
for preparation of final products, which are
then sold either in the domestic or
international market. India has a rich
resource of highly skilled and low cost
labourers which is effectively utilised by the
Indian manufacturers in this sector for
creation of highly value added goods.
Even though platinum jewellery is highly sought-after in the international markets, India
does not export the same because it lacks natural resources for platinum; however,
platinum bars are imported into India, though in very low quantities, as the demand for
platinum jewellery is restricted to high-end customers and is not very robust.

10. Export of Gold Jewellery
Recognising the growing acceptance
of Indian gold jewellery in the world
market the government had
initiated several measures including
a medium term strategy in FY06.
The following measures were a part
of this medium-term strategy:
a. Hallmarking and certification
of gold to aid the
development of Indian
brands in the jewellery
market.
b. Integration throughout the jewellery supply chain from mining of raw materials to
retailing of end products as well as joint venture manufacturing with the leading
suppliers of the world.
c. Developing market intelligence with a focus on key markets including NRIs.
Measures such as gradual liberalisation of gold import in the country and opening of gold
trading in exchanges had also provided a boost to the gold segment.
The sustained buoyancy in exports of gems and jewellery over the years reflects the effects
of continuing policy initiatives taken by the government over the years. As raw materials
for the sector are largely imported, the government has focussed on reducing the barriers
to import raw materials. Identified as a thrust sector which has prospects for export
expansion and for employment generation under the Foreign Trade Policy of 2004-09,
special policy initiatives had been announced to increase the competitiveness of the Gems
and Jewellery sector.
Under the Market Development Assistance and Market Access Initiative scheme of the
Government undertaken during the foreign trade policy of 2004-09, steps have also been
taken to encourage: creation of training infrastructure to impart skills to artisans in
jewellery designing; participation of exporters in international fairs, and arrangement of
buyerseller meets abroad to showcase the quality and variety of Indian products.

11. About the Brand
Gitanjali Group (BSE: 532715, NSE: GITANJALI) is one of the largest branded jewellery
retailers in the world. It is headquartered in Mumbai, India Gitanjali sells its jewellery
through over 4000 Points of Sale and enjoys a market share of over 50 per cent of the
overall organised jewellery market in India.[5] Prominent brands housed by the group are
Nakshatra, D'damas, Gili, Asmi, Sangini, Maya, Giantti, World of Solitaire, Shuddhi, Diya to
name a few.
Gitanjali is engaged in the cutting and polishing diamonds as well as in jewellery
manufacturing, branding and retailing. It exports its cut and polished diamonds, as well as
its diamond and other jewellery products to various international markets such as the USA,
Middle East, Japan, China, Hong Kong, Thailand and to markets in Europe such as Antwerp
and Italy. The group remains a dominant player in the diamond and jewellery segments. It
has also recently forayed into the retail and lifestyle space.
Gitanjali is headquartered in Mumbai and enjoys a pan India presence with more than 4,000
points of sale across a total area of 1.7 million sq ft. The group has 120 outlets
internationally .and a presence in significant jewellery markets such as the United States,
the Middle East, Europe as well as markets in Asia, such as Japan, China, Hong Kong and
Thailand.
Best known for......
The company has been listed on Bombay Stock Exchange with script code 532715, National
Stock Exchange of India script name GITANJALI [5] It has also recently entered the
ecommerce market through a marketplace http://www.jewelsouk.in/ and an exclusive
online store http://www.gitanjaligifts.com/
Founded as a single company cutting and polishing diamonds for the jewellery trade at
Surat, Gujarat, in 1966, the Gitanjali Group became, many times over, a pioneer among
major diamond and jewellery houses.
First major diamond and jewellery house to be launched and run by modern entrepreneurs
rather than dynastic jewellers. An authorised DTC Sightholder and loyal customer – and a
modern multinational business run on innovative insights.
At the forefront of the global breakthrough in diamond jewellery design and production
brought about by India’s ability to cut diamonds considered unworkable for jewellery till
then. Has the distinction of producing the world’s smallest heart shaped diamond (0.03
carat) and developing some 25 patented facet patterns.

12. Besides changing the face of manufacture, broke the mould of traditional jewellery
marketing: it abandoned jewellery trade convention by launching multiple brands for
multiple markets and price segments.
Opened up distribution via superstores, department stores and other retail outlets at MRP,
supported by international certifications of scientifically tested purity and authenticity,
across India and in the world’s jewellery capitals. Even markets branded jewellery directly
by mail order catalogue.
Business model now integrates all operations, from rough diamond sourcing, cutting,
polishing and distribution, and jewellery manufacture, to jewellery branding and retail, as
well as global lifestyle brands, in India and abroad.
Brought diamonds within reach of a wide consumer base. The first to offer diamond
studded jewellery at affordable prices, of standardised designs, quality and pricing across
locations – progressively precision-producing replicable designs using the latest CAD and
CAM processes and equipment.
Offers jewellery in diverse styles: traditional, international, classic, and casual. For
consumers of all age groups, tastes and budgets. With a growing hamper of brands, some
already global, and each targeted to specific consumer and market segments.
Having won over 50 Awards from the Ministry of Commerce, India for outstanding exports
of diamond and jewellery, is today over $1000 million multinational group, and a publicly
listed entity.
Operations span the globe, all the way from USA, UK, Belgium, Italy and the Middle East to
Thailand, South East Asia China, and Japan.

13. Gitanjali Launches Jewel Souk store Chain
Mumbai : The Gitanjali Group today launched
JewelSouk, a multi-brand, multi-category lifestyle
store chain that brings together all major jewellery
brands under one roof, marking a new landmark in
the development of the modern, organised
segment of the Indian retail jewellery trade, which
is today estimated to have a turnover of Rs
5,00,000 crore, of which nearly 60 percent is from
the burgeoning domestic market.
The first of this new category of stores was
inaugurated at the International Terminal of the
CSIA, Mumbai by Bollywood star, Sonakshi Sinha.
Jewelsouk will serve as a platform for leading fine
jewellery, fashion jewellery and watches brands to
come together under one roof and offer a wide variety to the consumer. The emphasis in
the new format will be on offering consumers easy access to a wide range of national and
international brands in a unique ambience that aims to make shopping more pleasurable
and more convenient.
This new format is being introduced at the International Terminal of the Mumbai airport
and will subsequently be extended to other lifestyle and luxury department stores that are
emerging in the metros and Tier II cities. This will include premier shopping destinations
such as Walmart, Centrals, Spencers, Star Bazaar, Kapsons and leading stand alone
departmental stores.
Elaborating on the concept, Mehul Choksi, CMD, Gitanjali Group, says, “The Indian
consumer is demanding a shopping experience that offers both the variety of choice and the
high levels of quality that she enjoys in other leading international cities. JewelSouk aims to
satisfy that need and boost the modern retail segment of the trade. It will offer exquisite
jewellery and a few other branded lifestyle accessories to satisfy every type of taste.”
Rahul Vira, CEO – Gili & Head – Retail, Gitanjali Lifestyle, says, “The JewelSouk store at the
airport is the perfect place where international travellers can pick up jewellery as a gift or
memento. The luxurious ambience enables them to look at the choices offered by the
different brands and choose at leisure.”
Airport Store: Exciting Opportunity for International Passengers
The new JewelSouk store at the international terminal of the CSIA is a large format store

14. spanning 7,000 sq ft. which will offer international passengers an excellent opportunity to
choose gifts from an array of well known jewellery brands.
Shekhar Wadke, Business Head- JewelSouk adds, “We are planning to open about 50 such
outlets this year both as mega shop-in-shops within lifestyle department stores as well as
standalone stores. Going forward we will also be looking to set up mini-malls in locations
where there is a high footfalls of our target segment.”
Speaking at the launch of the CSIA store, Sonakshi Sinha said, “The wide variety of Gitanjali
brands at the new store will give passengers an opportunity to buy jewellery at the airport.
This is the perfect place for them to pick up jewellery as gifts for family and friends.”
Shirish Kotmire, Vice President – Commercial, MIAL, says, "If passengers are presented with
a world-class shopping experience with emphasis on quality and value for money, they are
open to spending time and shopping at CSIA. The opening of the Jewel Souk offers
passengers a variety of jewellery brands across all price points, supported by international
certification."
Gitanjali Gems is an integrated diamond and jewellery manufacturer having strong presence
in Indian and overseas markets which has been made possible with growing retail presence,
strong brands bouquet, focus on jewellery business and global acquisitions.
The company has strong brands like Nakshatra, Gili, D’ DMas and Asmi and has 50% of its
revenue coming from domestic market. Gitanjali Gems has been increasing its focus on
jewellery business which has an EBIT margin of about 15% against its traditional diamond
business, which has an EBIT margin of about 3%. The company also has its domestic
jewellery business equal to that of Tanishq, a brand owned by Titan Industries. In quarter
ending September 08, both the companies had a turnover of close to Rs 750 crores each
from jewellery business, with almost same EBIT margin.
For FY08 on standalone basis, the total income of the company was at Rs 2,655 crores with
net profit of Rs 138 crores yielding an EPS of 16.25 on equity of Rs 85 crores.
For first six months of FY09, on consolidated basis, the total income of the company was
placed at Rs 2,510 crores with profit after tax of Rs 90 crores, which has resulted in an EPS
of Rs 10.70 for first half.
Present equity of the company is at Rs 85 crores with face value fo Rs10 per share. As at
30.9.08, promoters stake in the company is at 48% while FIIs and Depository Receipt
Holders are holding 31% with 9% held by the banks and mutual funds and 12% by the public.
Best part about FII holding is that it is held by three sound ones like Goldman Sachs holding
6.5%, HSBC 6.5% and Deutsche Bank about 8%. Promoters of the company have been
raising their stake and have seen buying close to 2% stake in the last 3-4 months.
Though there are negative perception for the growth of the company’s business, due to
global economic slowdown, but still, FY09 should have a topline of Rs 4,500 crores with net

15. profit of Rs 170 crores, resulting in an EPS of close to Rs 20. Due to fear of slowdown, share
which had its 52 week high of Rs 473 had corrected to low of Rs 57 in November 08 and is
now ruling at Rs 75 levels. This is at a PE multiple of about 4 times, based on FY09 workings.
Titan Industries, a similar company even today is ruling at a PE of close to 14.
The company has been aggressively increasing its footprint in the domestic and global
markets by acquisitions of retail chains and brands which will enable to expand at a regular
interval. The company has recently entered into a JV with MMTC to open jewellery
showrooms in India.
The company in the past has entered into realty development mainly with a view to start
jewellery SEZ and to have premises for its showrooms.Though the same may not yield an
immediate return, in the medium to long term, it will help the company to expand as also to
earn extra profit from this business.
Share is having a book value of Rs 210 as on date and is ruling at 76.65 which makes it a safe
and good buy. Share has potential to breach three digit mark by March '09 with minimal
downside risk. A safe bet at Rs 76.65.
Following the acquisitions of two jewellery chains in the US, Samuel Jewels in December
2006 and Rogers in November 2007, Gitanjali Gems [ Get Quote ] is eyeing a few more
buyouts in the world's largest jewellery market. The slowdown in the US economy and
consequently the jewellery market, could throw up opportunities for buyouts, says
Chairman Mehul Choksi.
For Gitanjali, which today processes and manufactures diamond jewellery, its newer
initiatives to tap the retail and infrastructure development spaces, might well be its key
revenue drivers in the next few years. The Rs 3,471 crore company, has already forayed into
these segments both in the domestic as well as the international market. Within the
jewellery space, the firm is focusing on the high- margin jewellery manufacturing segment,
rather than the labour intensive diamond processing operations.
Jewellery companies are unable to achieve profitability through manufacturing alone and
have to go downstream for better realisations.
Says Choksi, " The company operates across five verticals from jewellery manufacturing to
retail. Going forward jewellery will remain the core business but we will explore expansion
opportunities in related products as well."
Early last year, Gitanjali ventured into luxury retail, through a wholly -owned subsidiary
Gitanjali Lifestyle, to introduce international brands in India [ Images ]. Since then the
company has tied up with Australian salon chain Just Cuts to open 250 outlets in next four
years.
It has also inked a joint venture with Italian jewellery and watch major Morellato and Sector
Group to distribute their brands in the country. Gitanjali already has a portfolio of 12
jewellery brands across various price segments, being retailed through nearly 1,000 stores.
Internationally, it has entered the American jewellery retail market with a target to operate
about 400 jewellery stores.

16. Industry sources estimate that by 2009-10, retail is likely to become a Rs 300 crore (Rs 3
billion) business for the company, while the American operations are pegged to reach $1
billion in next five years. The firm is also scouting for a logistics partner to enter China,
which accounts for 3-4 per cent of the global jewellery market. According to analysts,
Gitanjali will command better valuations than its industry peers because of strong brands
and better margins due to its presence across value chain and evolution as focused retail
player. "About 60-70 per cent of the wholesale business will cater to the group's captive
requirements," observes
Choksi.
Gitanjali Infratech, a wholly owned subsidiary, established to develop luxury malls and
infrastructure for the proposed SEZs to be set up in Hyderabad and Panvel, will enable the
company to expand margins through rental and lease income. According to sources, the
SEZs are expected to generate income from 2009 onwards , with a potential to become a
$500 million business.
The company also plans to develop SEZs at Nanded, Nagpur and Aurangabad.

17. SWOT Analysis
Strengths
•Large integrated diamond & jewellery player and having an international presence.
•Pioneers of branded jewellery in India.
•Strong marketing & distribution network. Strong retail presence in India and in U.S. 112
distributors and 1246 outlets in India and 143 outlets in U.S.
•Strong brand equity and broad product range Such as, Gili, Asmi, Nakshatra, Sangini,
D’damas, Vivaaha, Maya, Giantti, Desire, Samuels etc.
•Visionary leadership (Acquiring Nakshatra, Samuels, Rogers etc.)
•Expanding manufacturing capabilities in Mumbai and at special economic zone in Surat to
address increasing demand.
•Net Worth is 3,460.37 million Rs. So we can say that it is financially very strong company.
•Sight holder status with DTC through a promoter group company.
•Highly skilled, qualified and motivated employee.
Weaknesses
•There may be conflicts of interest between them and certain of their Promoter group
companies.
•As the major raw material requirements need to be imported, companies normally stock
huge quantities of inventory resulting high inventory carrying costs.
•Technology is less improved compared to China and Thailand’s company.
Opportunities
•New markets in Europe & Latin America.
•Growing demand in South Asian & Far East countries.
•Industry moving from a phase of consolidation.
•Expansion possibilities in lifestyle and luxury products in India like watches, leather goods,
Platinum jewellery because increasing disposable income of people.

18. Threats
•International Competition:-China, Sri Lanka and Thailand’s entry in small diamond
jewellery.
•Increase in the price of Gold & Diamonds.
•Other local competitors. According to the data 97% jewellery sales are by family jewelers.
•Threat from producing nation like S.A. & Russia.