Namrata Deewan1

TABLE OF CONTENTS

Survey on small scale bussiness of Gold Market in sagar citySUBMITTED TO

For the partial fulfillment of the degree

Of

Masters of Business AdministrationBy

NAMRATA DEEWAN

(Y142820142)MBA-2stsemesterUndre the Guidance of

Mr. Ashish Gupta

Assistant ProfessorDepartment of Business Management

Dr. Hari Singh Gour Central University

Sagar (M.P.) India

Year 20114-15

DECLARATION BY CANDIDATE

I hereby declare that the project report titled Survey on small scale bussiness of Gold Market in sagar city is my own work under the supervision of Mr. Ashish Gupta (Assistant Professor), Department of Business Management, Dr. Hari Singh Gour central university, Sagar. To the best of my knowledge the report does not contain any work which has been submitted for the award of any degree anywhere.

Namrata Deewan MBA 2st sem. 34Batch

Roll No:-Y1428203

Department of Business Management

Dr H.S Gour central university, Sagar (M.P.)

CERTIFICATE

This is to certify that the Project Report entitled Survey on small scale business of Gold Market in sagar city has been successfully completed by Namrata Deewan, student of MBA 2st sem. which is presented for the partial fulfilment of Degree of Master of Business Administration.

The work done has been carried to our entire satisfaction.

Signature of Supervisor

Signature of H.O.D

Signature of Examiner

ACKNOWLEDGEMENT

It is indeed of a great moment and pleasure to express my sense of profound gratitude & in difference to all the people who have been instrumental in making my project work a rich experience.

In the making of this project report, I have relied upon the valuable assistance and help of several people without whom this report has not been possible.

I would like to pay my sincere thanks to Prof. Y.S.Thakur, Head of the Department of Business management, Dr. Hari singh Gour Central University Sagar for providing me the opportunity to work on project.I also pay my heartiest thanks to my project guide Mr. Ashish Gupta (Assistant Professor) for her valuable guidance & support. Without her help I would not have completed my project report successfully.

I pay my heartiest thanks to my parents and friends for their kind support and suggestion.

Preface

The Project work is field which uses tools and techniques to transfer subjectivity in the environment into objectives, also the findings of the research, when applied show results, which can be measured and evaluated so there is feedback this is what makes it a dynamic activity.

This survey is an analytical study of different facts of the product versus price. The focus is given on the Brand profile. This project isSurvey on small scale business of Gold Market in sagar city for the partial fulfilment of the degree of Masters of Business Administration.

The idea behind this project is to give practical knowledge and to make them to face real life situation. The project survey is commonly used for the collection from the respondents through questionnaire. In this method statistical techniques have been used systematically. This project survey is not only with my own efforts but also that of others.

Namrata Deewan MBA 2stsem

TABLE OF CONTENTS

COVER PAGE

PAGE NO. DELCELARATION

I CERTIFICATE

II ACKNOWLEDGEMENT

III PREFACE

IV

TABLE OF CONTENTS

V CHAPTER 1 INTRODUCTION

1-61.1. SMALL SCALE INDUSTRY

1.2. SMALL SCALE BUSINESS IN SAGAR CITY

1.3. BRICK KILNS INTRODUCTION AND OVERVIEW

CHAPTER II BUSINESS LOCATION AND PROFIT MARGIN

7-122.1 BRICK MAKING PROCESS

2.2 MARKETING MIX

CHAPTER III RESEARCH METHODOLOGY

13(A) OBJECTIVE OF THE STUDY

14(B) SAMPLING PLAN

15(C) TYPE OF SOURCE OF DATA

16(D) DATA COLLECTION METHOD

17(E) LIMITATION OF THE STUDY

18CHAPTER IV DATA ANALYSIS AND INTERPRETATION

19-28CHAPTER V FINDING AND SUGGESTIONS

29CHAPTER VI CONCLUSION

30BIBILIOGRAPHY

31ANEXURE

32-52CHAPTER -1 1. INTRODUCTION

Trading on derivatives first started to protect farmers from the risk of their values against fluctuations in the price of their crop. From the time it was sown to the time it was ready for harvest, farmers would face price uncertainty. Through the use of simple derivative products the farmers can transfer their risk (i.e. fully or partially) by locking the price of their products. This was developed to reduce the risk of the farmers. Lets take an example when a farmer who sowed his crop in June which he would receive his harvest in September may face uncertainty in prices over the period because of the oversupply they are selling at a very low cost.

In 1848, the Chicago Board of Trade (CBOT) was established to bring farmers and merchants together. A group of traders got together and created the `to-arrive' contract that permitted farmers to lock in to price upfront and deliver the grain later. Today, derivative contracts exist on a variety of commodities such as corn, pepper, cotton, wheat, silver, etc. Besides commodities, derivatives contracts also exist on a lot of financial underlying like stocks, interest rate, exchange rate, etc.

Due to the high volatility in Financial Market with high risk & low rate of return had made investors to choose alternate investments such as Bullion market in Commodity market. In India Gold Market has traditionally played a multi-faceted role. Apart from being used for armament purpose, it has also served as an asset of the last resort and a hedge against inflation and currency depreciation. But most importantly, it has most often been treated as an investment.

Many people have become very rich in commodity markets. It is one of the areas where people can make extraordinary profits within a short span of time. For example, Richard Dennis borrowed $1600 and turned it into a $200 million fortune in about ten years.

Definition of Derivatives: A derivative is a product whose value is derived from value of one or more underlying assets or variables in a contractual manner. The underlying asset can be equity, forex, commodity or any other assets.

For example: A wheat farmers may wish to sell their harvest at a future date to eliminate the risk of a change in prices by that date.

The Forwards Contracts (Regulation) Act, 1952, regulates the forward/ futures contracts in commodities all over India. However when derivatives trading in securities was introduced in 2001, the term security in the Securities Contracts Regulation Act, 1956 (SCRA), was amended to include derivative contracts in securities.

Products and participants:

Derivative contracts are of different types. The most common ones are forwards, futures, options and swaps. Participants who trade in the derivatives market can be classified under the following three broad categories - Hedgers, Speculators, and Arbitragers.

1. Hedgers: Hedgers face risk associated with the price of an asset. They use the futures or options markets to reduce or eliminate this risk.

2. Speculators: Speculators are participants who wish to bet on future movements in the price of an asset. Futures and options contracts can give them leverage; that is, by putting in small amounts of money upfront, they can take large positions on the market. As a result of this leveraged speculative position, they increase the potential for large gains as well as large losses.

3. Arbitragers: Arbitragers work at making profits by taking advantage of discrepancy between prices of the same product across different markets. If, for example, they see the futures price of an asset getting out of line with the cash price, they would take offsetting positions in the two markets to lock in the profit.

Spot versus forward transaction:

Let us try to understand the difference between spot and derivatives contract. Every transaction has three components like trading, clearing and settlement. A buyer and seller come together, negotiate and arrive at a price this is trading. Clearing involves finding out the net outstanding, that is exactly how much of goods and money the two should exchange.

For example A buys goods worth Rs.1000 from B and sells goods worth Rs.400 to B. On a net basis A has to pay Rs.600 to B. Settlement is the actual process of exchanging money and goods.

In a spot transaction, the trading, clearing and settlement happens immediately, i.e. on the spot. For example on 1March 2009, Suman wants to buy some Gold Market . The Gold Market smith quotes Rs.15000 per 10 grams. They agree upon this price and Suman buys 20grams of Gold Market . He pays Rs.30000 to the Gold Market smith and collects his Gold Market . This is a spot transaction.

Now suppose Suman does not want to buy the Gold Market on the 1 March, but wants to buy it a month later. Then the Gold Market smith quotes Rs.15050 per 10 grams. They agree upon the forward price for 20 grams of Gold Market that Suman wants to buy and Suman leaves. A month later, he pays the Gold Market smith Rs.30100 and collects his Gold Market . This is a forward contract, a contract by which two parties permanently agree to settle a trade at a future date, for a stated price and quantity. No money changes hands when the contract is signed. The exchange of money and the underlying goods only happens at the future date as specified in the contract. In a forward contract the process of trading, clearing and settlement does not happen immediately. The trading happens today, but the clearing and settlement happens at the end of the specified period.

A forward is the most basic derivative contract. We call it a derivative because it derives value from the price of the asset underlying the contract, in this case Gold Market . If on the

1st of April, Gold Market trades for Rs.15100 in the spot market, the contract becomes more valuable to Suman because it now enables him to buy Gold Market at Rs.15050. If however, the price of Gold Market drops down to Rs.15000, he is worse off because as per the terms of the contract, he is bound to pay Rs.15050 for the same Gold Market . The contract has now lost value from Sumans point of view. Note that the value of the forward contract to the Gold Market smith varies exactly in an opposite manner to its value for Suman.

Commodity trading in India:

The history of organized commodity derivatives in India goes back to the nineteenth century when the Cotton Trade Association started futures trading in 1875, barely about a decade after the commodity derivatives started in Chicago. Over time the derivatives market developed in several other commodities in India. Following cotton, derivatives trading started in oilseeds in Bombay (1900), raw jute and jute goods in Calcutta (1912), wheat in Hapur (1913) and in Bullion in Bombay (1920). However, many feared that derivatives lead to unnecessary speculation in essential commodities, and were harmful to the healthy functioning of the markets for the underlying commodities, and also to the farmers.

With a view to restricting speculative activity in cotton market, the Government of Bombay prohibited options business in cotton in 1939. Later in 1943, forward trading was prohibited in oilseeds and some other commodities including food-grains, spices, vegetable oils, sugar And cloth. After Independence, the Parliament passed Forward Contracts (Regulation) Act, 1952 which Regulated forward contracts in commodities all over India. The Act applies to goods, which are defined as any movable property other than security, currency and actionable claims. The Act prohibited Options trading in goods.

The Act envisages (imagine) three-tier regulation:

1) The Exchange which organizes forward trading in commodities can regulate trading on a day-to-day basis,2) The Forward Markets Commission provides regulatory oversight under the powers delegated to it by the central Government,3) The Central Government - Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution - is the ultimate regulatory authority.In 1970s and 1980s the Government relaxed forward trading rules for some commodities.

I. Multi-Commodity Exchange of India Limited (MCX)

MCX an independent multi-commodity exchange has permanent recognition from Government of India for facilitating online trading, clearing and settlement operations for commodity futures markets across the country. Key shareholders of MCX are Financial Technologies (India) Ltd., State Bank of India, NABARD, NSE, HDFC Bank, State Bank of Indore, State Bank of Hyderabad, State Bank of Saurashtra, SBI Life Insurance Co. Ltd., Union Bank of India, Bank Of India, Bank Of Baroda, Canara Bank, Corporation Bank. Headquartered in Mumbai, MCX is led by an expert management team with deep domain knowledge of the commodity futures markets. Through the integration of dedicated resources, robust technology and scalable infrastructure, since inception MCX has recorded many first to its credit.

Inaugurated in November 2003 by Shri Mukesh Ambani, Chairman & Managing Director, Reliance Industries Ltd, MCX offers futures trading in the following commodity categories: Agri Commodities, Bullion, Metals- Ferrous & Non-ferrous, Pulses, Oils & Oilseeds, Energy, Plantations, Spices and other soft commodities. MCX has built strategic alliances with some of the largest players in commodities eco-system, namely, Bombay Bullion Association, Bombay Metal Exchange, Solvent Extractors' Association of India, Pulses Importers Association, Shetkari Sanghatana, United Planters Association of India and India Pepper and Spice Trade Association.

Today MCX is offering spectacular growth opportunities and advantages to a large cross section of the participants including Producers / Processors, Traders, Corporate, Regional Trading Centers, Importers, Exporters, Cooperatives, Industry Associations, amongst others MCX being nation-wide commodity exchange, offering multiple commodities for trading with wide reach and penetration and robust infrastructure, is well placed to tap this vast potential.

Active Contracts Traded in MCX

S.NOCOMMODITIY NAMEPrice/UnitTrading LotDelivery CenterMultiplierInitial Margin %

1GOLD MARKET Rs / 10Gms1 KGMUMBAI1007

2GOLD MARKET MRs / 10Gms100GmsMUMBAI105

3GOLD MARKET GUINEARs/ 8Gms 8GmsMUMBAI /AHMEDABAD114.5

4SILVERRS/ KG30 KGAHMEDABAD308

5SIVERMRs / 1 KG5 KGSAHMEDABAD58

6MENTHA OILRs/KG360 KGCHANDAUSI36011

7KAPASIA KHALLIRs/50 KG10 MTAKOLA2006.5

8ALUMINIUMRs/KG5 MTMUMBAI50007

9COPPERRs/KG1 MTMUMBAI100012

10NICKELRS/KG250 KGMUMBAI25015.5

11ZINCRS/KG5000 KGMUMBAI500011

12LIGHT SWEET CRUDE OILRs/Barrel100/BarrelJNPT-MUMBAI10012

Definition:The official definitions of a small scale unit are as follows:

(i) Small-Scale Industries:These are the industrial undertakings having fixed investment in plant and machinery, whether held on ownership basis or lease basis or hire purchase basis not exceeding Rs. 1 crore.

Characteristics of Small-Scale Industries:(i) Ownership:Ownership of small scale unit is with one individual in sole-proprietorship or it can be with a few individuals in partnership.

(ii) Management and control:A small-scale unit is normally a one man show and even in case of partnership the activities are mainly carried out by the active partner and the rest are generally sleeping partners. These units are managed in a personalized fashion. The owner is activity involved in all the decisions concerning business.

(iii) Area of operation:The area of operation of small units is generally localized catering to the local or regional demand. The overall resources at the disposal of small scale units are limited and as a result of this, it is forced to confine its activities to the local level.

(iv) Technology:Small industries are fairly labour intensive with comparatively smaller capital investment than the larger units. Therefore, these units are more suited for economics where capital is scarce and there is abundant supply of labour.

(v) Gestation period:Gestation period is that period after which teething problems are over and return on investment starts. Gestation period of small scale unit is less as compared to large scale unit.

(vi) Flexibility:Small scale units as compared to large scale units are more change susceptible and highly reactive and responsive to socio-economic conditions.

They are more flexible to adopt changes like new method of production, introduction of new products etc.

(vii) Resources:Small scale units use local or indigenous resources and as such can be located anywhere subject to the availability of these resources like labour and raw materials.

(viii) Dispersal of units:Small scale units use local resources and can be dispersed over a wide territory. The development of small scale units in rural and backward areas promotes more balanced regional development and can prevent the influx of job seekers from rural areas to cities.

Objectives of Small Scale Industries:The objectives of small scale industries are:

1. To create more employment opportunities with less investment.

2. To remove economic backwardness of rural and less developed regions of the economy.

3. To reduce regional imbalances.

4. To mobilise and ensure optimum utilisation of unexploited resources of the country.

5. To improve standard of living of people.

6. To ensure equitable distribution of income and wealth.

7. To solve unemployment problem.

8. To attain self-reliance.

9. To adopt latest technology aimed at producing better quality products at lower costs.

1.2 Small business

Small businessesare normally privately ownedcorporations,partnerships, orsole proprietorships. What businesses are defined as "small" in terms of government support and tax policy varies depending on the country and industry. Small businesses range from 15 employees under theAustralianFair Work Act 2009, 50 employees according to the definition used by theEuropean Union, and fewer than 500 employees to qualify for many U.S.Small Business Administrationprograms. Small businesses can also be classified according to other methods such as sales, assets, or net profits.

Small businesses are common in many countries, depending on the economic system in operation. Typical examples include: convenience stores, other small shops (such as abakeryordelicatessen), hairdressers, tradesmen, lawyers, accountants,restaurants,guest houses,photographers, small-scalemanufacturing, and online businesses, such as web design and programming, etc.

Characteristics of small businessesResearchers and analysts of small or owner-managed businesses generally behave as if nominal organizational forms (e.g., partnership, sole-trader or corporation) and the consequent legal and accounting boundaries of owner-managed firms are consistently meaningful. However, owner-managers often do not delineate their behavior to accord with the implied separation between their personal and business interests. Lenders also often contract around organizational (corporate) boundaries by seeking personal guarantees or accepting privately held assets as collateral.[1]Because of this behavior, researchers and analysts should reject the relevance of the organizational types and implied boundaries in many contexts relating to owner-managed firms. These include analyses that use traditional accounting disclosures, and studies that view the firm as defined by some formal organizational structure.

Active Contracts Traded in NCDEX

S.NOCOMMODITIY NAMEPrice/UnitTrading LotDelivery CenterMultiplierInitial Margin %

1PURE KILO GOLD MARKET Rs / 10Gms1 KGMUMBAI1008

2PURE SILVER Rs / 1 KG30 KGSDELHI3018

3SILVER 5 (mini Lot)Rs / 1 KG5 KGDELHI59

4GOLD MARKET 100 (mini Lot)Rs / 10 Gms100 GmsMUMBAI108

5JEERARs / Quintal 3 MTUNJHA308

6PEPPER Rs / Quintal1 MTKOCHI1015

7TURMERIC FINGERS Rs / Quintal10 MTNIZAMABAD10012

8CHILLI LCA 334Rs / Quintal5 MTGUNTUR5033

9MAIZERs / Quintal50 MTNIZAMABAD50021

10GUAR SEED Rs / Quintal10 MTJODHPUR10015

11GUARGUM Rs / Quintal5 MTJODHPUR5015

CHAPTER 2 2 BUSINESS LOCATION AND PROFIT MARGINThe process of arriving a figure at which a person buys and another sells a futures contract for a specific expiration date is called price discovery. The process of price discovery continues from the market's opening until its close and also free flow of information is also very important in an active future market. Futures exchanges act as a focal point for the collection and distribution of statistics on supplies, transportation, storage, purchases, exports, imports, currency values, interest rates and other relevant formation. As a result of this free flow of information, the market determines the best estimate of today and tomorrow's prices and it is considered to be the accurate reflection of the supply and demand for the underlying commodity. Price discovery facilitates this free flow of information, which is essential to the effective functioning of futures market.

We try to understand the pricing of commodity futures contracts and look at how the futures price is related to the spot price of the underlying asset. We study the cost - of - carry model to understand the dynamics of pricing that constitute the estimation of fair value of futures.

Investment assets versus consumption assets

When we are studying futures contracts, it is essential to distinguish between investment assets and consumption assets. An investment asset is an asset that is held for investment purposes by most investors. Stocks, bonds, Gold Market and silver are examples of investment assets. However investment assets do not always have to be held entirely for investment. As we saw earlier silver for example, have a number of industrial uses. However to classify as investment assets, these assets have to satisfy the requirement that they are held by a large number of investors solely for investment. A consumption asset is an asset that is held primarily for consumption. It is not usually held for investment. Examples of consumption assets are commodities such as copper, oil, and pork bellies.

We can use arbitrage arguments to determine the futures prices of an investment asset from its spot price and other observable market variables. For pricing consumption assets, we need to review the arbitrage arguments a little differently. We look at the cost of carry model and try to understand the pricing of futures contracts on investment assets.

The above table gives the indicative warehouse charges for qualified warehouses that will function as delivery centers for contracts that trade on the NCDEX. Warehouse charges include a fixed charge per deposit of commodity into the warehouse, and as per unit per week charge. Per unit charges include storage costs and insurance charges. We saw that in the absence of storage costs, the futures price of a commodity that is an investment asset is given by F = S erT Storage

Costs add to the cost of carry. If U is the present value of all the storage costs that will be incurred during the life of a futures contract, it follows that the futures price will be equal to

Where:

r = Cost of financing (annualized)

T = Time till expiration

U = Present value of all storage costs

For understanding the above formula let us consider a one year future contract of Gold Market . Suppose the fixed charge is Rs.310 per deposit up to 500kgs and the variable storage costs are Rs.55 per week, it costs Rs.3170 to store one kg of Gold Market for a year (52 weeks). Assume that the payment is made at the beginning of the year. Assume further that the spot Gold Market price is Rs.13763 per 10 grams and the risk free rate is 7% per annum. What would the price of one year Gold Market futures be if the delivery unit is one kg?

We see that the one year futures price of a kg of Gold Market would be Rs.1479493. The one year futures price for 10 grams of Gold Market would be about Rs.14794.93.

Now let us consider a three month futures contract on Gold Market . We make the same assumptions that the fixed charge is Rs.310 per deposit up to 500kgs, and the variable storage costs are Rs.55 per week. It costs Rs.1025 to store one kg of Gold Market for three months (13 weeks). Assume that the storage costs are paid at the time of deposit. Assume further that the spot Gold Market price is Rs 13763per 10 grams and the risk free rate is 7% per annum. What would the price of three month Gold Market futures if the delivery unit is one kg?

We see that the three month futures price of a kg of Gold Market would be Rs. 1401640.30. The three month futures price for 10 grams of Gold Market would be about Rs. 14016.40

Pricing futures contracts on consumption commodities

We used the arbitrage argument to price futures on investment commodities. For commodities that are consumption commodities rather than investment assets, the arbitrage arguments used to determine futures prices need to be reviewed carefully. Suppose we have

To take advantage of this opportunity, an arbitrager can implement the following strategy:

I. Borrow an amount S + U. at the risk free interest rate and use it to purchase one unit of the commodity.II. Short a forward contract on one unit of the commodity.If we regard the futures contract as a forward contract, this strategy leads to a profit of

F - (S+U) erT at the expiration of the futures contract. As arbitragers exploit this opportunity, the spot price will increase and the futures price will decrease until Equation (5) does not hold good.

Suppose next that

In case of investment assets such as Gold Market and silver, many investors hold the commodity purely for investment. When they observe the inequality in equation 6, they will find it profitable to trade in the following manner:

I. Sell the commodity, save the storage costs, and invest the proceeds at the risk free interest rate.

II. Take a long position in a forward contract.

This would result in a profit at maturity of (S+U) erT F relative to the position that the investors would have been in had they held the underlying commodity. As arbitragers exploit this opportunity, the spot price will decrease and the futures price will increase until equation 6 does not hold well. This means that for investment assets, equation 4 holds good. However, for commodities like cotton or wheat that are held for consumption purpose, this argument cannot be used. Individuals and companies who keep such a commodity in inventory, do so, because of its consumption value not because of its value as an investment. They are reluctant to sell these commodities and buy forward or futures contracts because these contracts cannot be consumed. Therefore there is unlikely to be arbitrage when equation 6 holds good. In short, for a consumption commodity therefore

That is the futures price is less than or equal to the spot price plus the cost of carry.

2.2 MARKETING MIX

Gold Market produced from different sources and demanded for consumption in form of Jewellery, Industrial applications, Government & Central bank Investment and Private investor, which has been worth US$ 38 billion on average over the past five years in world.

Total of world Gold Market produced is mostly consumed by different sectors are Jewelers 80%, Industrial application 11.5% and rest of Gold Market is used as investment purpose 8.5%. Considering the situation in India, the demand for Gold Market consumption is far more ahead than its availability through production, scrap or recycled Gold Market . Where Gold Market production in India is only 2tonnes, where demand is 18.7% of world Gold Market consumption, which make India a leading consumer of Gold Market followed by Italy, Turkey, USA, China, Japan. According to Countries wise demand, the following graph shows the demand in each country. Large part constitute by Jewelry consumption with 85.56% during 2004 by Indian consumers, who seem to spend a disproportionate percentage of their disposable income on Gold Market and Gold Market jewelry.

Gold Market fabrication for domestic and international market, also formed large part of business in India with 527 tonnes of Gold Market fabricated in India in 2004, making world largest fabricator which is 60% more than its closest competitor Italy, Turkey, USA. But this Jeweler Fabrication is unable to generate much revenue, as most of its consumed in India (479 tonnes).

Consumption of Gold Market GOLD MARKET CONSUMPTION IN INDIA

India consumed around 18% of world Gold Market produced. Even though it only contribute 1.6% of Global GDP.

Traditionally, Gold Market has been a good safety net for Indian households. However, the sharp rise in Gold Market imports over the last three years when the rupee has started appreciating, inflation is relatively low, banking facilities are improving And economic can confidence has picked up, is surprising say Market watchers.(Source: -Economic Times, Article, Forget sensex, the Gold Market rush is on, July 18 05)

The demand is much that it consumed more than 1.5 times of US consumption of Gold Market . Increasing by nearly 60% in 2003-04, but during this fiscal Gold Market imports increased by another 58%, with Import of Gold Market and silver account around $11 billion consumption increased by 88% during March05quarter.

Uses of Gold Market 1. Jewellery fabrication: The largest source of demand is the jewelry industry. In new years, demand from the jewelry industry alone has exceeded Western mine production. This shortfall has been bridged by supplies from reclaimed jewelry and other industrial scrap, as well as the release of official sector reserves. Gold Market 's workability, unique beauty, and universal appeal make this rare precious metal the favorite of jewelers all over the world.

India is the world's foremost Gold Market jewellery fabricator and consumer with fabricator and consumption annually of over 600 tons according to GFMS. Measures of consumption and fabrication are made more difficult because Indian jewellery often involves the re-making by Gold Market smiths of old family ornaments into lighter or fashionable designs and the amount of Gold Market thus recycled is impossible to gauge. Estimates for this recycled jewellery vary between 80 tons and 300 tons a year. GFMS estimates are that official Gold Market bullion imports in 2001 were 654 tons. Exports have increased dramatically since 1996, and in 2001 stood at over 60 tons. The US accounted for about one third of total official exports. Manufacturers located in Special Export Zones can import Gold Market tax-free through various registered banks under an Export Replenishment scheme.

2. Industrial applications: Besides jewelry, Gold Market has many applications in a variety of industries including aerospace, medicine, electronics and dentistry. The electronics industry needs Gold Market for the manufacture of computers, telephones, televisions, and other equipment. Gold Market 's unique properties provide superior electrical conducting qualities and corrosion resistance, which are required in the manufacture of sophisticated electronic circuitry. In dentistry, Gold Market alloys are popular because they are highly resistant to corrosion and tarnish. For this reason Gold Market alloys are used for crowns, bridges, Gold Market inlays, and partial debenture.

3. Governments and central banks: The third source of Gold Market demand is governments and central banks that buy Gold Market to increase their official reserves. Central banks holds 28,225.4 tons, the holdings of Reserve Bank of India are only a modest 397.5 tons.

4. Private investors: Finally, there are private investors. Depending upon market circumstances, the investment component of demand can vary substantially from year to year.

11 Days Highest, Lowest and Closing prices of Silver

Highest PriceLowest PriceClosing Price

183581720418200

184321800018129

182081795318062

181931797518014

179901694117060

173451683717124

172031688417062

172001690017061

171161650016770

177781655617422

173801700117203

Bar Chart

10Days Highest, Lowest and closing prices of Gold Market Highest PriceLowest PriceClosing Price

120301177911903

119901178011885

121001192411997

122001208012141

128201222512797

131551283012941

132261278513105

132881300413145

131921300013051

131791298513125

Bar Chart

India is the worlds largest Gold Market consumer market and in 2010, Indian Gold Market demand is likely to recover near to its pre-credit crunch level following the fall in demand in 2009. This should drive Gold Market imports up from the relatively low levels experienced last year. In 2009, total Indian Gold Market demand reached US$19bn, or Rs874bn, accounting for 15% of the global Gold Market market. Over the past ten years, the value of Gold Market demand in India has increased at an average rate of 13% per year,

invested in Gold Market . Continued rapid economic growth and urbanization will create greater wealth but also inflationary pressures stimulating Gold Market demand.Asian demand for Gold Market will be a key driver of the Gold Market market for decades to come. Currently, India and China together account for approximately 25% of annual Gold Market outpacing the countrys real GDP growth by almost 6%.In India, Gold Market is seen as a symbol of security and as a sign of prosperity. Unlike other Gold Market markets, the love for Gold Market has not only spread across many generations but also across all social strata within the country. Indian consumers regard Gold Market jewellery as an investment and are well aware of Gold Market s benefits as a store of value. Gold Market is also recognized as a form of money in India, a tradable liquid asset. It is one of the foundation assets for Indian households and a means to accumulate wealth. At the end of 2009, Indian consumers price expectations were strengthened by the Reserve Bank of Indias purchase of 200 tonnes of Gold Market from the IMF and the transaction reinforced the perception among local consumers that Gold Market is reliable and safe as a monetary asset.India will remain pivotal to the global Gold Market market. In the Indian culture, Gold Market is an integral part of daily life where purchases of Gold Market jewellery are considered as a form of a liquid and tradable investment for the accumulation of wealth. It is important to highlight that in analyzing the Gold Market market in India, traditional perceptions of the division between jewellery and investment demand and demand drivers do not apply.As consumers have adjusted their price expectations upwards, a further rise in Gold Market jewellery and investment demand could be anticipated and this trend is projected to continue over thelong-run as local investors are buying Gold Market driven by wealth accumulation motives.

The fact that Indian Gold Market jewellery and investment demand remains robust, despite the rising price emphasizes the enduring desire among local consumers to purchase Gold Market driven mainly by its allure as a jewellery and its properties as a hedge to offset the effects of depreciation and erosion of both savings and income. The country currently has one of the highest saving rates in the world; estimated at around 30% of total income, of which 10% is demand. They are likely to grow further as a proportion of demand in years to come

In the longer term, we are confident that Indias favourable demographic trends, the growing affluent middle classes and declining age profile, should ensure buoyant consumption growth. The investment sector exhibits great potential for further growth and will play an increasingly important role in the domestic Gold Market market as it overlaps with Gold Market jewellery consumption, boosted by increasing accessibility and opportunities in new Gold Market investment products. Despite being the largest global Gold Market consumer, Indian jewellery consumption intensity is still relatively low. Its consumption of jewellery on a per capita basis of 0.4 grams in 2009 remains below countries such as Italy and the US. This is a reflection of both the countrys large population and low incomes. The strategic outlook for India will be the subject of a subsequent report in Q1 2011.JEWELLERY CONSUMPTION

Gold Market jewellery accounted for around 75% of total Indian Gold Market demand in 2009, the remainder being investment (23%) and decorative and industrial (2%). Indian consumers also regard Gold Market jewellery as an investment and are well aware of Gold Market s benefit as a store of value.Gold Market plays a fundamental role in the marriage ceremony, and when it comes to Indian weddings, Gold Market is said to be considered a necessity rather than a luxury. The Gold Market (and other gifts) the bride receives are called her Streedhan (Stree meaning woman and dhan meaning wealth) and are a means of passing on some inheritance to daughters, as Hindu tradition dictates that the familys assets are only passed down.

Gold Market is especially important in this respect as it remains directly under a wifes control, whereas she may not be privy to the familys other financial affairs.

Wedding-related demand accounts for a substantial proportion of overall jewellery demand. This is particularly true in the south of India, where the most popular wedding jewellery sets tend to be the more traditional, intricate but bulky styles in heavier weights. In the northern cities there has been a trend towards more western styles, and lighter wedding sets, as well as diamond-set pieces, are becoming increasingly popular.

CHAPTER - 3RESEARCH METHODOLOGY

Research Methodology is a careful investigation or inquiry specially to search new facts in any branch of knowledge the research word is combined word to words, first is re and second is search means to search again. It is also systematically way to solve the research problem.

The main function of research is to add new knowledge. In simple word research can be defined as critical investigation search for truth facts or for certainty.

Research Methodology, it is a way to systematically solve the research Problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally used by the researcher in studying his research problem along with the logic behind them. In this Project Report ,Descriptive and Exploratory research design is used.

Descriptive research design is the one that simply describes something such as demographic characteristics of consumer who use the product. This study is typically guided by an initial hypothesis.

OBJECTIVES OF THE STUDY 1. To know the scope of small scale business of Gold Market in sagar city.

2. To study channel of distribution and services of Gold Market businessmans.

3. To know the market position of small scale business of sagar city.

4. To study the problems and challenges faced by the Gold Market businessmans.

5. To study the promotional schemes followed by the Gold Market owners.

SAMPLING PLAN

10 respondents were considered for data collection i.e. Gold Market owners.

Sampling Techniqe Deliberate sampling technique is used in the report. Deliberate sampling method involves purposive or deliberate selection of particular units of the universe for constituting a sample which represents the universe.

Different Types Of Sample DesignThere are different types of sample designs based on two factors, i.e., the representation basis and the element selection technique. On representation basis, the sample may be probability sampling or it may be non-probability sampling. On element selection basis, the sample may be either unrestricted selection technique or restricted selection technique.

Thus, the sample designs are basically of two types, i.e., non-probability sampling and probability sampling.

Sample size: -

I have taken sample size of 10 respondents. Because the population is too large so it is difficult to survey.The Marketing Research Process:

As marketing research is a systemic and formalized process, it follows a certain sequence of research action. The marketing process has the following steps:

Formulating the problems

Developing objectives of the research

Designing an effective research plan Data collection techniques Evaluating the data and preparing a research report

TYPES AND SOURCE OF DATA

After identifying and defining the research problem and determining specific information required to solve the problem the researcher will look for the type and sources of data which may yield the desired results, while deciding about the method of data collection to be used for the study, there are two types of data.

Primary Data:

Primary data are those, which are collected for the first time. Primary data is collected by framing questionnaires. The questionnaire contained questions, which are both open ended and closed-ended. Open-ended questions are questions requiring answers in there spenders own words. Closed-ended questions are those wherein the respondent has to merely check the appropriate answer from a list of options available. Any doubts raised by the respondents were clarified to get the perfect answers from the distributors. Open ended questions yielded more insightful information, whereas closed-Ended questions were relatively simple to tabulate and analyze.

Secondary Data:

Secondary data means data that are already available i.e. they refer to the data which have been collected and analyzed by someone and can save both money and time of there searcher. Secondary data sources are as follows:

Daily Newspaper

Various Websites

DATA COLLECTION METHOD

The collection of data required through:

SCHEDULE QUESTIONNAIRE

PERSONAL DIRECT INTERVIEWS The most important part of any research is collection of data. The task of data collection begins after the research problem has been defined. While deciding about the method of data collection to be used for the study, the researcher should keep in mind that the data are of two types:

Primary Data: Primary may be described as those data that have been observed and recorded by the researchers for the first time to their knowledge, and thus happen to be original in character for ex:-questionnaires, personal direct interviews .

Secondary Data: Secondary data are statistics not gathered for the immediate study at hand but for some other purposes for ex :- newspapers, magazines.

Research Design

There are three types of research

*Exploratory Research

*Descriptive Research

* Casual Research

The Descriptive research designThe basis of my research was primary data which I collected from 10 peoples i.e. sample size in the service centre through Questionnaire.Limitations of the study1. Some of the persons were not so responsive.

2. Difficulty in getting primary data .

3. Some respondents were reluctant to divulge personal information which can hinder the validity of all responses.

4. Industry is in remote area.

5. The research study was confined to SAGAR city only.

CHAPTER - 4

DATA ANALYSIS AND INTERPRETATION 5- Excellent 4- Very Good 3- Good 2- Fair 1- Bad

I. Rate of interest

Table 5.2

OpinionMuthoot ResponseManappuram Response% of Muthoot% of Manappuram

Excellent662020

Very good10633.3320

Good9113036.67

Fair5716.6723.33

Bad0000

fig. 5.2

INTERPRETATION

The above chart was designed to understand the satisfaction of the customers with the interest rate on Gold Market loan offered by Muthoot and Manappuram.II. Location of the institute

Table 5.3


Excellent8526.6716.66

Very good171156.6736.67

Good5816.6626.67

Fair05016.67

Bad0103.33

fig. 5.3

INTERPRETATION

The above chart shows the customer response on the location of both the institutes.

Here, Muthoot has a superior lead over Manappuram. This is easily recognisable as 26.67% of Muthoots respondents believe that location of the institutes is excellent while 56.67% of them believe it is very good.

III. Staff behavior

Table 5.4



Very good9123040

Good10733.3323.33

Fair4413.3413.34

Bad0000

fig. 5.4

INTERPRETATION

Staff behavior is interpreted in the above chart. About 23.33% of both the organizations thought that the behavior of staff is excellent.

IV. Gold Market loan application procedure

Table 5.5


Excellent1263020

Very good371023.33

Good111436.6746.67

Fair4313.3310

Bad0000

fig. 5.5

INTERPRETATION

The above chart was designed to interpret the response of customers to Muthoots and Manappurams Gold Market loan procedure.

V. Infrastructure facilities

Table 5.6



Very good14646.6720

Good51216.6640

Fair371023.34

Bad0103.33

fig. 5.6

INTERPRETATION

The above chart represents the rating given by the customers on the infrastructure facilities of both institutes.

26.67% was the share of Muthoot customers who thought that these facilities were excellent and almost half of the total respondents (47.67%) believed it is very good.

1. Time taken for the whole Gold Market loan procedure?

Table 5.7


Less than 5 minutes4013.330

5- 10 minutes963020

11- 30 minutes15195063.33

31- 60 minutes256.6716.67

Others (Please mention)0000

fig. 5.7

fig. 5.8

INTERPRETATION

The above pie diagrams represents one of the main factors which decides the fate of any Gold Market loan financing company i.e. time taken for clearing a Gold Market loan.

13.33% of Muthoots respondents believed that it takes less than 5 minutes for the whole Gold Market loan procedure. But this option was not at all selected by any of the Manappurams respondents.

Those respondents who thinks the whole Gold Market loan procedure takes 5- 10 minutes stands at 30% (Muthoot) and 20% (Manappuram).

The option 11-30 minutes was selected by 50% (Muthoot) and 63.33% (Manappuram) respectively.

CHAPTER -5FINDINGS AND SUGGESTIONS

1) 50% of the Gold Market owners operate for 9months of year. So as to maximise their profit the owners must try to increase their working months.

2) 70% of the Gold Market owners produce Gold Market and from times point of view they must try to produce cement bricks as now they are being preferred by the customers.

3) 30% of owners produce 1,50,000 of units per month and they must try to

Increase the production units to maximise their profit.

4) 30% of owners sales a batch of 1000 bricks for Rs.5000 (cement bricks) 30% of the owners sales a batch of 1000 bricks for Rs.3000 (Gold Market ) .the owners must make strategies for reducing the price of bricks.

5) 40% of the owners have individuals with small construction projects as their main customers. the owners must try to increase their customer by adopting new promotional techniques.

6) 48% from the total workers of all the Gold Market are permanent workers and 52% are daily wages workers.

7) 40% of the owners recruit labour by their own self so therefore majority of owners must try to recruit efficient workers in order to improve quality of production.

8) 40% of the owners have invested Rs. 20 lacks so the owners must try to increase their rate of investment.

9) 40% of the owners promotional tool are brokers so the owners must try to increase their contact with other customer.

10) 40% of the owners face problem due to rainfall loss. So the owners must try to improve their sight of production.

CHAPTER-VIConclusion

The objective of the project of studying the scope and marketing strategies used by different business units has been achieved during the course of time. Gold Market industry is a rapidly growing sector.

After analyzing the responses of the various Gold Market owners about the scope and marketing strategies used by the marketer, the result shows that most targeted market preferred by the various units are government projects ,construction companies, small construction projects and local households.

In my survey it is found that now a days costumers are purchasing cement bricks because of the good quality and the size of the brick. Gold Market are not good in quality and can be get broken easily but the cement bricks are of very good quality and made up of the mixture ofANNEXURE

Survey on small scale business of Gold Market Business in sagar city[For Answers Put Tick Mark in the boxes ]

Name the owner:

______________________________Address:______________________________

Age:______________________________

1. How many months out of the year does this Gold Market operate?:

(a). 6 months (b).9 months (c.) 12 months

2. Which type of bricks do you make?

a) Gold Market

b) Cement bricks

3. How many bricks do you produce per month?:

(a) 50000 (b) 75000 (c) 100000

(d) 150000

4. On average, how much do you sell a batch of 1000 bricks for?:-

(a) RS.2500 (b) RS.2700

(c)RS.3000 (d) RS.5000

5. Who are your main customers?:

(a) Individuals with small construction projects

(b) Construction companies

(c) Local households

(d) Others

6. How many workers do you have?:

a) Permanent workers

b) Daily Wages

7. How do you recruit workers?:

a) Recruit myself

b) Recruit through other employees

c) Purchase contracts from other kilns

d) Other

8. How much do you invest :

a) 10 lacks

b) 20 lacks

c) 30 lacks

d) 40 lacks

1. Who serves you as a promotional tool?:-

a) Contractors

b) Builders

c) Brokers

d) Others

2. Which problems do you face?:-

a) Labour turnover

b) Low sales

c) Investment

d) Loss due to rainfall

BIBLIOGRAPHY

www.dcmsme.gov.in www.udyogmitrabihar.com www.undp.org www.teriin.org www.cosmile.org www.firedGold Market .com

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