INDUSTRY OVERVIEW
• Worldwide, the gems and jewellery industry is estimated at over US$ 130 billion.
• The Indian gems and jewellery industry grows at the rate of 15 % annually. • Domestic market is estimated to be around US$ 16.1 billion. • India is the largest diamond processor .
• India’s gems and jewellery industry has been allowed 51 per cent foreign direct investments.
Indian Retail Jewellery
Overview
Yesterday
Today
Unbranded Branded
Silver & Gold jewellery Gold & Diamond jewellery Investment Investment + Fashion
Traditional design Fashionable & innovative design Marriage & festival is peak season Wearability and gifts
Jewellery sold on commodity basis
GITANJALI GEMS
Established presence
§ The company is one of India s largest integrated diamond and’
.
jewellery companies Established in 1966 Sight holder
status with DTC through a promoter group company
§ Sophisticated and scalable diamond and jewellery manufacturing facilities
§ Approximately 1 246 retail outlets in India and 143 outlets in , . .
the U S
VISION
• To be globally diversified in infrastructure and integrated operations efficiently linking diamonds from rough to retail.
• To create a single value chain that spans the distance from mines to the market stand in doing so transform the
Indian jewellery market into one dominated by brands offering certified and trustworthy jewellery through a contemporary shopping experience.
•
•
MISSION
To develop produce and sell high quality jewellery and, accessories worldwide and help our customers to get the
. maximum value for money
To create incremental enterprise and brand value to increase .
BUSINESS MAP
Gitanjali Gems
Diamond and Jewellery Lifestyle Infrastructure
Manufacturing and whole selling Diamond Processing
Retail
LINE OF BUSINESSES
The Diamond and Jewellery arm of Gitanjali Gems is
divided further:
Diamond processing
Jewellery manufacturing
Jewellery retailing in India and Aboard
Branded jewellery
STRATEGIES USED FOR
MARKETING
•
The company has various exhibitions all throughout the
world.
•
Leading Jewellers of the World (LJW)
•
The company has taken various famous personalities to
endorse and promote their brands eg. Katrina Kaif,
Kareena Kapoor, Bipasha Basu and so on.
•
The company sponsors various Fashion Weeks for the
promotion and visibility of their brand.
•
The company partners with Force India for
BRANDS RECALL
KEY FACTS
•
Has won many awards from the Ministry of
Commerce.
•
•
Today its a $900 million multinational group.
•
•
Integrated multi-location operations.
•
MERGERS AND
ACQUISITIONS
• Gitanjali Gems acquires Samuels Jewellers Inc, USA.
• Gitanjali USA Inc acquires 70% equity stakes in Tri-Star worldwide LLC.
• Gitanjali Gems acquires 100% stakes in Rogers Limited,Inc. • Gitanjali Group Acquires "LUCERA" - Flagship Jewellery
Brand of Renaissance Retail - Buys over the Retail business of Renaissance for Rs. 25 Crores.
• The Company’s wholly owned subsidiary Gitanjali USA Inc., has acquired 51% stake in Diamlink Inc. Diamlink, a US based Company is engaged in the business of diamond and diamond studded jewellery.
• GGL has acquired 100% shares of Decent Securities & Finance Pvt. Ltd. and Eureka Finstock Pvt. Ltd.
• The company has acquired the balance stake in its Gili brand to make it a wholly owned subsidiary.
• The company has acquired the balance stake in Modali Gems to make it a wholly owned subsidiary.
VALUE CHAIN
Diamond Polishing
Direct From Mines Rough Distribution
Diamond Distribution
Jewellery Manufacturing
Jewellery Whole Selling Jewellery Branding Jewellery Retailing Shopping Experience
CURRENT HAPPENINGS
•
The company divested its stake in Ivida technologies
pvt.ltd with a view to concentrate on its core
business.
•
The government approved 180 cores of investment
proposal of damas LLC for setting up a retail joint
venture with gitanjali lifestyles for opening
jewellery and lifestyle store.
•
Launch of luxury lifestyle brand Giantti
•
The Company’s wholly owned subsidiary, Gitanjali
Lifestyle Limited has entered into an agreement for
70% stake in MobileNXT Teleservices Pvt. Lt
Expanding stores in India
Acquisitions including Samuels, Rogers and Tri-Star
Plans to make further inorganic growth in the U.S. & Far-east.
Expanding manufacturing capabilities to address increasing demand
Gitanjali Lifestyles to focus on Manufacture and distribution Of luxury and lifestyle products
Developing 200 acres gems & Jewellery SEZ in Hyderabad
Plans to develop more SEZs at Panvel, , , ,
Nanden Nashik Nagpur Aurangabad and Calcutta.
Expansions Diversification
FUTURE
•
Gitanjali plans to open 60 stores
•
Gitanjali to open 150 stores in Tier II cities
-•
Gitanjali to foray into apparel biz
•
Gitanjali Gems to add 150 stores in US
•
Gitanjali Group to invest $30 m to expand retail
presence in China
•
Moralleto Gitanjali Group to set up assembly plant
,
in Himachal
•
Training institute to be set up at the Mani
Kanchan SEZ
•
Gitanjali Group Plans Tie up With Japanese
-Designer
•
Gitanjali Lifestyle to hold stake in MobileNXT
‘
’
%
Targets 70
stake in MobileNXT
CHALLENGES
• Increase in the price of Gold & Diamonds.
•
• Other local competitors. According to the data 94%
jewellery sales are by family jewelers.
•
•
Emergence of Low-Cost Brands in the
upcoming market.
•
• International Competition:China, Sri Lanka and
Thailand's entry in small diamond jewellery.
•
• Threat from producing nation like S.A. & Russia.
RECOMENDATIONS
• 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. •
