1
EXECUTIVE SUMMARY
The business opportunity identified is “Custom made
jeweler ”, in which the main product are rings ,bangles,
bracelets ,earrings, chains etc. which will be made to order in
the design approved by the customer and made of gold or
platinum containing diamonds or gems as per the customers
wish. Custom made jewelry business represents a huge
untapped market – both domestic and international.
This basic strategic business plan provides information
necessary for initial establishment and operation of the firm.
The bplan outlines the plans for business growth, methods,
procedures for operation and industry analysis. The firm is to be
formed in Thrissur, Kerala, as a partnership firm under the
Laws of Government of India.
The dynamic management team responsible for the
design, building, development of company policy, and hands-on-
management of the daily operations are Fazin Bin Ummer and
Sakeer Hussain. In addition, a team-oriented and customer-
focused staff will support the management team. The firm will
2
hire the services of a CPA firm to perform professional company
audits, prepare taxes and payroll, and serve as a business
consultant to assist in setting achievable long-range strategic
goals.
The Indian gems and jewellery industry is the fastest
growing jewellery market in the world. Recognized as the
diamond polishing capital of the world, the country is gaining
prominence as an international sourcing destination for high
quality designer jewellery with global retail majors such as Wal-
Mart and JC Penney procuring jewellery from India. The
presence of highly skilled, low-cost labour enables India to
design and make high volumes of exquisite jewellery at relatively
low cost. According to Credit Analysis and Research Limited
(CARE), the domestic jewellery market in India is pegged at US$
16 billion.
The Indian gems and jewellery industry is the fastest
growing jewellery market in the world. The product has a good
demand in the Indian market but has very less players in the
market with most of them catering only to the very higher end
strata of people. The major hurdle initially will be to bring in
awareness and build trust among customers. Since most of the
3
people in India have a habit of sticking on to one favourite
jeweler who they prefer, it is going to be a little difficult initially
to break peoples’ mindset to purchase from a custom jewellery
manufacturer.
The prices are set for the product based on the “Market
based pricing strategy” although a bit premium would be
charged owing to high level of customization wherein economies
of scale aren’t achieved due to each order being unique. During
the initial stages of the company, the promotional measure
would be aimed at increasing the brand awareness and would
go in for mass adverting campaign since it’s a new brand.
.
The cost of the project is estimated to be Rupees Twelve
Lakh and the start-up will break even in three years. The capital
structure for the project would be comprised of Personal
Investment and Term Loans in the ratio of 1:1.
4
1. BUSINESS
1.1 ABOUT THE OPPORTUNITY
The business opportunity identified is a “Custom made
Jeweler”, in which the service going to be offered to the
customer is designing and making of a ring, bracelet, bangle,
earring or chain according to the customer’s choice.
Custom jewelry is personalized jewelry, which a customer
gets it made on her interest and fancy. This happens
particularly in cases where readymade jewelry does not match
the taste of person. Custom jewelry gives total freedom to
customer about the specifics. The customer can ask for various
personal touches and get everything made as per the client’s
ideas. In fact, it gives ample space for personal choice and taste
to customer, which is not available in case of readymade
jewelry. The customer and craftsman together decide what
design is to be made. Often, the customer knows what he or she
desires and takes this idea to the jeweler, in the form of a sketch
or picture or sample. The popularity of custom jewelry is
increasing because of the fact that in it the customer gets
specially crafted jewelry suitable to his needs and taste. Custom
5
jewelry or personalized jewelry is particularly suitable for those
who have a fairly clear idea of what they want and are unable to
find it in jewelry stores. This form of designing jewelry gives a
person completes freedom over his or her jewelry particulars.
The demand is immense as the consumer consciousness
is increasing rapidly and the future of organized retail in India is
very bright with the Indian culture always having an unending
interest toward gold.
6
1.2 S-W-O-T ANALYSIS
The following table gives an overview of the SWOT analysis
about the service
Strengths
There is almost negligible amount of branded players
giving similar service.
Even if a family jeweler or a goldsmith does so he doesn’t
allow to this possible extent of customization.
Gold industry in India is booming at a very fast pace and
the industry is very promising and decline in demand was
not there even with increasing gold prices.
Weaknesses
Lack of awareness about the product among people.
Marketing and brand creation challenges.
Difficult to lure customers away from family jeweler who
have immense goodwill.
Opportunities
Has a huge untapped domestic and export market.
First mover advantage will be gained if properly marketed
7
Increase in disposable income of consumers and change
in lifestyle.
Threats
If venture successful then it might trigger competitive
reaction from existing branded jewelers also to provide
similar service.
8
1.3 PORTERS DIAMOND
1.3.1. The threat of substitute products or services
A close substitute product constraints the ability of firms in
an industry to raise prices. The firm has a medium to strong
threat of substitute in the form of ready to buy off the shelf
jewellery from any jeweler across India. The advantage the buyer
gets is that he has the good in hand immediately and does not
have to wait for the delivery as is in the case of custom made
jewelry. There is high risk of buyers propensity to substitute
with traditional off the counter jewelry due to lack of time as
well as due to preconceived notion that custom made jewelry is
way to premium priced. The only way in which this threat of
substitute can be confronted is by reinforcing the advantage of
product differentiation over traditional jewellery.
1.3.2. The threat of entry of new competitors
The threat from new competitors is very high as the entry
barriers are not strong and anyone with prior experience in gold
business who has contacts with vendors and a bit of capital can
venture into this business. Another problem is since the
industry is very lucrative and poised to improve steadily it will
9
definitely invite new players. Therefore the only way to block
this risk is to have a good brand name being the first mover and
also have access to vendors and distribution channels so
effective that even if a new entrant comes it should not harm the
business.
1.3.3. The bargaining power of customers (Buyers)
The bargaining power of the customer is medium to weak
due to the reason that the competitors providing the same
service is les or negligible, and also since the buyers are
fragmented no particular buyer has particular influence on
price. As in normal niche services the customers bargaining
power is generally low.
1.3.4. The bargaining power of suppliers
The suppliers with reference to this business refer to the
vendors who supply the finished the ordered jewelry i.e. the gold
smith. They do not normally have a strong bargaining power
owing to the fact that many competitive suppliers are there in
the market and there isn’t any significant high switching cost.
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1.3.5. The intensity of competitor rivalry
For most industries, the intensity of competitive rivalry is
the major determinant of the competitiveness of the industry.
Since the intensity among jewelers are high the only way to
block this is to improve your product differentiation, innovate,
have a high presence as both an offline and online company
,spend a lot on advertising to increase awareness and build
brand equity and identify and improve on a competitive
advantage.
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1.4 BUSINESS DESCRIPTION
The business is proposed to be established as a supplier
of Custom made Jewellery especially to high net worth
individuals, wedding brides etc. the firm will not be
manufacturing the jewellery itself. It will just help in designing
the jewellery with the input from the customer and then
outsource this work to their regular craftsmen. Once the work is
finished the firm will deliver it to the customer at his residence.
Since the supply of finished goods can be easily obtained
by the company with the existing gold business background
who have a good relation with goldsmiths, the main area of
concentration during the initial stages would be the creation of
awareness of such a service in the cities chosen for launch and
creating a database of High net worth Individuals who will be
the potential customers.
The presence of the firm would be generally on the
internet and initial phase there would be no retail outlet like a
traditional jeweler since the company executives will be meeting
the clients at their place for discussions. In the initial stage the
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business would be catering to only 1 Class-A city and 1 Class-B
city. As and when the firm expands and grows steadily more
cities will be added and the long term objective will be to cover
all Class A-1 and Class A cities where immense potential is
there compared to Class B and C.
Classification City
A-1 Mumbai
A-1 Delhi
A-1 Kolkata
A-1 Chennai
A-1 Bangalore
A-1 Hyderabad
A Ahmedabad
A Pune
A Surat
A Kanpur
A Coimbatore
A Lucknow
A Nagpur
A Jaipur
A Visakhapatnam
A Vijayawada
B-1 Kochi
B-1 Patna
B-1 Indore
B-1 Bhopal
B-1 Guntur
B-1 Vadodara
B-1 Ludhiana
B-1 Agra
B-1 Nashik
B-1 Kakinada
B-1 Raipur
After the company is established and financially
stabilized, opening up of retail outlets in the main dominant
markets would be launched as a second phase. This would be
during the fourth or fifth year of operations by when there
13
would be a considerable amount of goodwill because of word of
mouth publicity form satisfied clients..
Since there is no barrier to entry for the service and the
only competitive advantage is the first mover advantage and a
niche market catering to specific needs it does not provide a
sustainable competitive advantage to the company and hence
the channel of distribution and human resource advantage
needs to be developed as a sustainable competitive advantage
for the firm.
Ways to minimize risk factors to the firm success include:
i. Obtain sufficient capital to build and cover expenses of initial
operation.
ii. Maintain low overhead cost, which increases the bottom line
profit. Skilled personnel will be made available for the
marketing and sales team and a continual training program for
the sales team will ensure they deliver consistent, superior
service, where customer satisfaction is paramount.
iii. Build a sufficient customer base by aggressive marketing
program.
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1.5. START-UP SUMMARY
During the start-up phase of this project, the following major
events will occur, some of them simultaneously:
Obtain significant investment
Obtain all required permits with regard to Partnership and
Taxes department.
Register the website
Rent the back office site
Design the Site and test it
Order PC’s ,Laptops and Other devices needed for the
designers and sales team
Hire Key Personnel
Finalize operating procedures
Intensify marketing campaign
Enter Into strategic alliances with vendors, Goldsmiths, and
Logistics Companies
Open for business
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1.6 OPERATIONS PLAN
16
Design team sends designs to sales.
Sales team shows customer the designs and gets concurrence.
Sales team communicates the design changes required to
design team.
Once confirmed with customer, sales team gets the
commitment from the follow up team and places a firm order to
both design team and follow up team (Supply Chain) after
getting advance from the customer.
The design team releases production drawings and quality
check list to the SCM team.
The follow up team places orders to the suppliers and gets the
job done.
In process audit is done for the jewels based on criticality and
the final jewels are taken to the HO.
QC is done in-house and certification requirements are taken
care of (Hallmarking Process etc ) .
The Jewels are send through secure packages based on value
through premium service providers like DHL.
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2. INDUSTRY ANALYSIS
The Indian gems and jewellery industry is the fastest
growing jewellery market in the world. Recognized as the
diamond polishing capital of the world, the country is gaining
prominence as an international sourcing destination for high
quality designer jewellery with global retail majors such as Wal-
Mart and JC Penney procuring jewellery from India. The
presence of highly skilled, low-cost labour enables India to
design and make high volumes of exquisite jewellery at relatively
low cost. According to Credit Analysis and Research Limited
(CARE), the domestic jewellery market in India is pegged at US$
16 billion.
With consumer consciousness increasing, the future of
organized retail in India is very bright. The organised sector of
the gems and jewellery industry in India is estimated to grow at
40 per cent per annum to US$ 2.2 billion by 2010. The
increasingly savvy Indian consumer is becoming partial to
branded jewellery which is associated with better services,
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premium quality products and attractive exchange policy. The
growing popularity of machine-made jewellery over traditional
handcrafted jewellery is also spurring the growth of the
organised retail segment.
A study released by the Bullion Association of India in
March 2009, stated that the share of branded jewellery in the
total market was growing at a pace of 20-30 per cent annually.
The number of gold retailers in the country has increased by 40
per cent since the year 2000, with 150 domestic and over 65
international established brands, the study said. According to
the CARE report on the Indian gems and jewellery industry,
India dominates the diamond processing trade with 11 out of 12
diamonds being cut and polished in India. India also dominates
the gold and silver consumption globally with consumption of
about 800 tonnes per annum. The industry provides
employment to 1.3 million people.
According to the World Gold Council's latest, "Gold Demand
Trends Report", gold tonnage off-take in the fourth quarter of
2009 totalled 180.7 tonnes worth US$ 6.39 billion, up 17 per
cent from 154.4 tonnes in the previous quarter and up 13 per
cent from 159.6 tonnes in the fourth quarter of 2008.
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India is the largest consumer of gold jewellery in the world,
accounting for about 20 per cent of global gold consumption
Surat is India's diamond processing hub, contributing over
80 per cent of the country's diamond processing industry with
annual revenue of around US$ 13.03 billion. In recent years,
Dubai, being a port location, had developed into a diamond
distribution centre in West Asia. According to industry
estimates, 10-15 per cent of India's total polished diamond
exports go through Dubai.
According to a new report by RNCOS on the Indian jewellery
market, the cost per carat for cutting and polishing diamond is
US$ 10 in India as compared to US$ 17 in China and US$ 150
in Belgium.
India is the largest resource hub in diamond cutting and
processing. Low cost of labour involved in the production of
finished diamonds has lured global attention, thereby resulting
in the growth of the industry. India is the largest diamond
cutting and polishing centre in the world
It accounts for 60 per cent value share, 82 per cent by carats
and 95 per cent share of the world market by number of pieces.
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It is the third largest consumer of polished diamonds after the
US and Japan.
Exports
According to The Gem and Jewellery Export Promotion
Council, exports of gems and jewellery from India, rose 45 per
cent over December 2008 to touch US$ 1.89 billion in December
2009.
Exports during the April-December 2009 period, increased to
US$ 19.6 billion from US$ 19.1 billion a year earlier. Exports of
cut and polished diamonds in the April-December 2009 period
stood at US$ 12.06 billion as compared to US$ 11.5 billion in
the corresponding period in the previous year.
The UAE, led by Dubai, is the largest destination for India's
gems and jewellery, accounting for 31 per cent of the country's
total exports, followed by Hong Kong (25 per cent) and the US
(20 per cent).
Moreover, The Gem And Jewellery Export Promotion Council
is looking at tapping newer markets for diamonds and diamond
jewellery, such as China, the Middle East and Russia.
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The Road Ahead
The Indian gems and jewellery sector is excepted to cross
US$ 26 billion by 2012, driven by availability of a huge base of
skilled labour and improving lifestyle, according to a new report
called "Indian Gems and Jewellery Market - Future Prospects to
2011", by RNCOS, published in September 2009.
According to the same report, the Indian gems and jewellery
sector is expected to grow at a compound annual growth rate
(CAGR) of around 14 per cent from 2009 to 2012.
According to industry experts the consumption of diamond
jewellery in India is expected to touch US$ 6.41 billion in 2012.
Presence of Traditional Pockets of Jewellery Manufacture
Jewellery crafting by traditional goldsmiths is confined to a
few regions in India. These pockets are widely separated and
involve craftsmen whose skills have been handed down over
generations.
Surat is an important diamond processing centre, which
exports around 80% of the production and has more than 3,500
diamond processing units.
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Jaipur is a key centre for polishing precious and semi-
precious gemstones.
Delhi and its neighbouring states are famous for
manufacturing silver jewellery and articles.
Calcutta is popular for its lightweight plain gold jewelry. This
category of jewellery finds a large market in Tamil Nadu.
Hyderabad is the centre for precious and semi-precious
studded jewellery.
Nellore is a source for hand made jewellery that has been
supplying the Chennai market for quite a few decades. Belgaum
in Karnataka and Nellore together specialise in studded
jewellery using synthetic or imitation stones.
Coimbatore in Tamil Nadu specialises in casting jewellery.
Trichur in Kerala is another source for lightweight gold
jewellery and diamond cutting.
Mumbai is the centre for machine made jewellery. The city is
also India’s largest wholesale market in terms of volume.
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The unorganized sector
The sector is largely unorganised at present with a small but
growing organised sector. The Indian gems and jewellery sector
is largely unorganised at present. There are more than 15,000
players across the country in the gold processing industry, of
which only about 80 players have a turnover of over $4.15
million.
There are about 450,000 goldsmiths spread throughout the
country. India was one of the first countries to start making fine
jewellery from minerals and metals and even today, most of the
jewellery made in India is hand-made.
The industry is dominated by family jewellers, who constitute
nearly 96% of the market. Organised players such as Tata with
its Tanishq brand, have, however, been growing steadily carving
a 4% market share. As India’s jewellery market matures, it is
expected to get more organised and the share of family jewellers
is expected to decline.
There are more than 6,000 players in domestic diamond
processing industry. The average gestation period for setting up
a diamond cutting and polishing unit is 15 months. The low
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gestation period, coupled with low capital cost allows easy entry
into the sector.
This has led to the industry being largely characterised by a
large number of small scale players. However, just as in the
case of jewellery, the share of the organised sector has increased
significantly in recent years due to an increase in demand for
better and finer quality finished goods.
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3. COMPANY STRUCTURE
3.1 LEGAL STRUCTURE
The company is to be established as a partnership firm
including the following promoters, who would form the
management team of the company
Fazin Bin Ummer, Managing Partner
Sakeer Hussain Partner
3.2 MANAGEMENT TEAM
The following are the qualifications and the experiences of
the promoters along with the areas of concentration in the
company
Fazin Bin Ummer, MBA(Marketing) would be involved in
Marketing and sales
Sakeer Hussain has 10 years of experience in the the
Gold Industry having worked closely with goldsmiths as
well as in a Jewellery hence would be involved with
operations and would co-ordinate with the
vendors/goldsmiths.
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3.3. NON-MANAGEMENT TEAM
The other employees needed to run the company are the
following:-
Designers-they will be having experience in designing
jewellery and will be skilled in software like Matrix 3d, ,
3design, Jcad, Jewelcad, DelCAM, ArtCAm etc
Marketing/sales team-they will be having experience in
working in the gold industry and there would be specialist
dealing in various areas like Gold, platinum, Diamonds,
Gems, Rings etc.
Follow up team - This team has to co-ordinate with the
sales team once an order has been placed. They get in
touch with the vendors for price estimation , deliver
period etc and revert with this information to the sales
team. They make sure that the product is finished on time
by the vendor and couriered to the salesmen and he
delivers it personally to the customer.
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4. MARKETING PLAN
4.1.PRODUCT DESCRIPTION
Necklaces
Necklaces are bands or chains looped continuously to adorn
and accentuate the neck. Our range of necklaces is diverse and
we don’t just give the client a choice of designs but custom
make it to suit and enhance your personality. Everything from
the design of the loops and links to the design itself is
customizable, even right down to the choice of materials used.
The metals used in the necklaces are usually gold & silver and
precious stones are used to break up the monotony.
Pendants
Everything from color, design and detail goes through intense
scrutiny to ensure that the pendants you wear are exclusive and
individual. Pendants are extremely popular and though designs
can be traditional and ethnic, the ornaments themselves are
light and can be worn to match any occasion. These custom
designed, handmade pendants bring sophistication and verve to
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the wearer’s personality. Ornately designed pendants that will
display the intricacies of its designer’s vision and the skill of its
craftsman or simply stunning subtle sparkles, whatever is your
fancy we have the perfect pendant to swing around your neck.
Earrings
Off late traditional styles of jewelry design are making way for
newer schools of thought and more contemporary design. We
design understanding the global trends and accordingly design
exquisite jewelry keeping in view both the traditional as well as
contemporary influences.
We offer an astounding range of elegant earrings that speak
eloquently of the workmanship that goes into each and every
unique pair of them. Whether you like to wear the jewels on long
strings or prefer them fitting squarely in place, we design with
you in mind. Our range of uniquely designed earrings are
crafted in different metals with rare stones embedded in them
as embellishments in various permutations.
Rings
The designs used for making rings are simple and subtle to
enamor people of all age groups. Each ring is made strong and
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the wearer’s comfort is formost in our minds. Which is why we
create exclusive designs that are unique to the individual. The
rings are made in the noble metal; gold but are also available in
silver and platinum should the customer otherwise. Originally a
traditional ornament especially in the west, where a ring is a
symbol of matrimony, today it is widely used as a fashion
accessory that can be worn in various designs and details on
any or all finger(s).
Bracelets
Bracelets have been in use since ancient times as bands or
chains encircling the wrist or arm. Fashion today dictates
bracelets created in enticing forms to accentuate feminine
elegance. Traditional craftsmen, who have learnt the art from a
long line of descendants are employed to create designs that
make each bracelet unique, contemporary and yet possessing a
sense of timelessness.
Bangles are just bracelets without clasps. Worn in multiples
usually, they are also used singularly or in doubles. In India the
bride is almost paranoid about her bangles which are
considered by many communities to be a symbol of well-being of
her spouse. Today it is worn with style unlike the dictates of
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ritual and tradition. The design philosophy we follow enables us
to experiment with influences both traditional and
contemporary, enabling you to wear your personality on your
arm.
Bangles and bracelets are created using the best grade metals
engraved with designs ranging from traditional motifs like
celestial bodies to vivid flora and fauna patterns.
Embellishments such as precious stones and other metals can
be embedded for a stunning effect. Motifs and emblems can be
carved out or embossed in to the metal be it gold, silver or
platinum. There are many different types of crafting gold and
gold studded jewelry.
4.2 PRICE
The prices are set for the product based on the “Market
based pricing strategy”, but at most of the times a bit premium
is charged owing to high levels of customization but that’s
common and acceptable for most niche market products and
services.
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4.3 PLACE / DISTRIBUTION CHANNEL
The presence would be there both as an online presence
initially and after the business getting stability will have retail
presence also in cities with high demand. The base for the
operation would be in Thrissur where the team of designers will
be due to the registered office being there. Thrissur is chosen
owing to logistical advantages because of availability of very
highly skilled goldsmiths in the region.
4.4 PROMOTION
During the initial stages of the company, the promotional
measure would be aimed at the objective of awareness
generation and to gather as much publicity as possible and
thereby increase brand equity. For this purpose the following
media will be used
Cable ads
Radio spots
Internet website
Direct mail
Print ads
mobile advertising
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5. FINANCIAL PLANS
Table 1-Operational Expenses
2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15
Office Expense
Salaries
12,60,000
22,62,000
28,64,400
34,37,280
41,24,736
Selling Expenses
12,60,000
31,92,000
55,10,400
80,82,480
99,08,976
Office Rent
96,000
1,05,600
1,16,160
1,27,776
1,40,554
Office Electricity
12,000
12,200
12,400
12,600
12,800
Phone
36,000
36,600
37,200
37,800
38,400
Internet
24,000
24,400
24,800
25,200
25,600
IT
30,000
30,500
31,000
31,500
32,000
Stationeries
24,000
24,000
24,000
24,000
24,000
Misc
24,000
24,000
24,000
24,000
24,000
Branding & Marketing
Website
50,000
-
-
-
-
Catalogue
20,000
10,000
10,000
10,000
10,000
Website Maintenance
8,000
8,000
8,000
8,000
8,000
ERP Maintenance
30,000
30,000
30,000
30,000
30,000
Total Expenses
28,74,000
57,59,300
86,92,360
1,18,50,636
1,43,79,066
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Table 2 - Sales Projection
Particulars 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15
Sales Reps In Metro 6 12 15 15 15
Sales Reps in Tier 1 6 12 15 15 15
Sales Value Gold 1,49,33,333 3,28,53,333 5,25,65,333 8,41,04,533 13,45,67,253
Sales Value 1,400 3,080 4,928 7,885 12,616
Per Sales
Rep 117 128 164 263 421
Gem sales Value 8,16,667 11,22,917 14,37,333 22,99,733 36,79,573
Total Sales Value 1,57,50,000 3,39,76,250 5,40,02,667 8,64,04,267 13,82,46,827
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Table 3- Projected Income Statement
PARTICULARS 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 – 15
INFLOWS
SALES 1,57,50,000 3,39,76,250 5,40,02,667 8,64,04,267 13,82,46,827
TOTAL REVENUE 1,57,50,000 3,39,76,250 5,40,02,667 8,64,04,267 13,82,46,827
OUTFLOW
Raw material & purchases 1,32,30,000 2,85,40,050 4,53,62,240 7,25,79,584 11,61,27,334
Power 12,000 12,200 12,400 12,600 12,800
Wages and salaries 12,60,000 22,62,000 28,64,400 34,37,280 41,24,736
Rent & others 3,42,000 2,45,100 2,57,160 2,70,276 2,84,554
Depreciation plant & office eq - 1,53,000 1,98,400 2,70,720 3,00,576
Interest 66,000 66,000 60,500 46,750 30,250
Selling expenses 12,60,000 31,92,000 55,10,400 80,82,480 99,08,976
TOTAL EXPENDITURE 1,61,70,000 3,44,70,350 5,42,65,500 8,46,99,690 13,07,89,226
Difference -4,20,000 -4,94,100 -2,62,833 17,04,577 74,57,601
Tax - - - 5,96,602 26,10,160
Pat -4,20,000 -4,94,100 -2,62,833 11,07,975 48,47,440
Add depreciation - 1,53,000 1,98,400 2,70,720 3,00,576
NET PROFIT -4,20,000 -3,41,100 -64,433 13,78,695 51,48,016
LOAN REPAYMENT - 50,000 1,25,000 1,50,000 2,82,000
RETURNS AFTER LOAN REPAYMENT -4,20,000 -3,91,100 -1,89,433 12,28,695 48,66,016
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Table 4 - Projected Balance sheets
Particulars Initial 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15
LIABILITIES
Capital 7,35,000 7,35,000 7,35,000 7,35,000 7,35,000 7,35,000
Borrowings 6,00,000 6,00,000 5,50,000 4,25,000 2,75,000 -
Transferred from P & l - -4,20,000 -3,91,100 -1,89,433 12,28,695 48,66,016
Creditors - 11,81,250 14,17,500 14,17,500 15,35,625 14,17,500
Total 13,35,000 20,96,250 23,11,400 23,88,067 37,74,320 70,18,516
ASSETS
Office assets 7,65,000 9,92,000 13,53,600 15,02,880 12,02,304 9,61,843
Building advance 40,000 40,000 40,000 40,000 40,000 40,000
Debtors - 6,56,250 7,87,500 7,87,500 8,53,125 7,87,500
Cash with bank 5,30,000 4,08,000 1,30,300 57,687 16,78,891 52,29,173
Inventory - - - - -
Total 13,35,000 20,96,250 23,11,400 23,88,067 37,74,320 70,18,516
36
6. CRITICAL RISK FACTORS
7.1 LABOR RISK
The main risk associated with the project is the labor risk,
which arises due to the shortage of skilled designers. Despite
the fact that the area of business establishment has a good
worker population, the scarcity of workers for related business
might cause labor shortage issues even during the initial stages
of the company.
7.2 MARKETING RISK
The company would have to identify alternate channels
and customers at the earliest. Though this partnership can
provide a good foundation in the initial stages, it might not
profit the company in the long run if consistent orders are not
received.
37
7. CONCLUSION
The Indian Gem and Jewel industry is the fastest growing
jewel market in the world. The country is gaining prominence as
an international sourcing destination for high quality designer
jewellery. The presence of highly skilled, low-cost labour enables
India to design and make high volumes of exquisite jewellery at
relatively low cost.
The consumer consciousness increasing, the future of
organized retail in India is very bright. The organised sector of
the gems and jewellery industry in India is estimated to grow at
40 per cent. The number of gold retailers in the country has
increased by 40 per cent since the year 2000. Therefore we can
say that the industry looks very promising and is steadily
improving. There is a constant increase in disposable income,
people are spending more and are aspiring for a better lifestyle.
This is the right time for a Custom Made Jeweler to enter
the market. The company should put in place an integrated
marketing approach. It should focus on building brand equity
38
and making the people realize the advantages of a custom made
jeweler.
Once if that is done successfully then even with a
premium charged the company can make inroads in today’s
gem and Jewel industry.
39
Bibliography
Websites
– http://www.gjepc.org/
– http://goldprice.in/2005/04/india-gold-jewellery.html
– www.gold.org/
– http://en.wikipedia.org/wiki/Jewelry#Jewellery_market
– http://www.paynesjewelry.com/
– http://handcraftedjewelry.imagesjewelers.com/
– http://www.culturalindia.net/jewellery/types/custom-jewelry.html
– http://www.india-crafts.com/jewelry/custom-jewelry.html
– http://www.artofjewellery.com/guestarticle.aspx?id=28
– http://www.ibef.org/artdispview.aspx?in=25&art_id=25314&cat_id=439&p
age=1
– http://www.resourceinvestor.com/News/2007/8/Pages/India-s-Gems-and-
Jewellery-Market-is-Glittering.aspx
– http://www.angeljewel.com/index.php/custom-jewellery/gents-bracelets
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