Introduction

Gold Industry An Overview Indian Gems & Jewelry Industry: Fastest Growing Sector!

Gems and jewellery industry accounts for nearly 20% of the total Indian exports. Total gems and jewellery exports experienced a growth of 22.27% in 2007-2008. The largest diamond cutting and polishing centre in the world. Nearly 9 out of 10 diamonds sold worldwide are cut and polished in India. India is the largest consumer of gold in the world, followed by China and Japan. India consumes nearly 800 tonnes of gold that accounts for 20 per cent of world gold consumption, of which nearly 600 tonnes go into making jewellery.

Indian diamond jewellery industry is the third largest consumer of polished diamonds after USA and Japan. The US and Hong Kong were the largest importers of gems and jewellery from India, followed by UAE at 21%. An international sourcing destination for best skilled manpower for producing high quality designer jewellery at low labor costs.

Indian Scenario The Values Gold and precious gems have played a pivotal role in the Indian social fabric and economy. Precious gems and jewellery are a part and parcel of Indian traditions and customs. Gold has traditionally been valued in India as a savings-and-investment vehicle and even today, continues to be the second most popular instrument after bank deposits!
India is a leading player in the global gems and jewellery market. The gems and jewellery industry occupies an important position in the Indian economy. It is a leading foreign exchange earner, as well as one of the fastest growing industries in the country. The two major segments of the sector in India are gold jewellery and diamonds. Gold jewellery forms around 80 per cent of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes diamond studded as well as gemstone studded jewellery. The Indian gems and jewellery industry is competitive in the world market due to its low cost of production and the availability of skilled labor. In addition, the industry has set up a worldwide distribution network, of more than 3,000 offices for the promotion and marketing of Indian diamonds.

SWOT Analysis of Indian Organized Gold Industry

Inter-Firm Rivalry High Two types of rivalry. (1) Inside India & (2) Outside India. Large presence of unorganized sector. 0.2 Million Gold jewelers and over 8,000 Diamond jewelers International rivals Such as, China Threat from producing nation like S.A. & Russia. Bargaining Power of Suppliers Medium In jewellery industry the suppliers are S.A., UAE, Australia, US, Congo, Botswana, Russia, DTC. Few Alternatives of cutting & polishing. Skilled labor Bargaining power of India is enhanced because India is largest consumer of gold jewellery. Bargaining Power of Buyers Low Divided in two types 1. Domestic buyers & 2. Foreign buyers As investment (Demand increase) Bargaining power of Indian exporter is high because Majority of the world's rough diamond production is cut and polished in India. Threat of Substitutes: Low Substitutes are Real assets, Stock market, & Bank deposits & mutual fund investment and Other types of jewellery like imitation jewellery, bagasra jewellery, stone jewellery etc. Second preferred investment behind bank deposits Status and standard of living increase so demand is increasing at high rate. Barriers to entry Low to Medium Low capital requirement Government subsidy EXIM policy & governments rules-regulations are high

Skilled manpower is essential Advanced technology required

The Tanishq Group (Story) Organization/Company Profile

Tanishq is Indias largest, most desirable and fastest growing jewelry brand in India. Started in 1995, Tanishq is the jewelry business group of Titan Industries Ltd - promoted by the TATA group; Indias most respected and widely diversified business conglomerate. This year marks a decade of successful innings for Tanishq. With retail sales of 1200 crore last years and gunning for 2000 crores this year, Tanishq has arrived in the Indian jewelry market. It is a story of a successful Indian enterprise, which has delivered value to its customers and shareholders in a complex category, marked by its completely localized front end as well as back end. Tanishq has set up production and sourcing bases with through research of the jewelry crafts of India. jewelry at Tanishq is crafted in one of the worlds most modern factories. The factory complies with all labour and environmental standards. Located at Hosur, Tamil Nadu, the 1,35,000 sq. ft. factory is equipped with the latest and most modern machinery and equipment. Every product at Tanishq is painstakingly crafted to perfection. Diligent care and quality processes ensure that the Tanishq finish is unmatched by any other jeweller in the country. Tanishq challenged the age-old jewellers word with TATAs guaranteed purity. It exploded the market with facts about rampant impurity across India. It introduced technology-backed challenge in a category completely governed by individual trust. Fact file

The beginning: Launched in 1995, Tanishq is the jewellery division of Titan Industries. It has established itself as the most desirable and trustworthy jewellery brand in India. In 2005, the company launched a new jewellery line, GoldPlus, for semi-urban and rural areas. The store: Tanishq stores are all about experience. The product portfolio includes jewellery for everyday wear and for occasions, in 22-carat gold, diamonds and precious gemstones. The jewellery designs range from traditional to contemporary and are available in several styles such as jadau and kundan. The GoldPlus brand focuses on local tastes in 22-carat gold.

The spread: Tanishq has 104 stores in 71 Indian cities; GoldPlus has a presence in 21 towns.

Motto
Innovation has always been the motto at Tanishq. From its systematic network of retail outlets across the country, to the revolutionary system of measuring purity of gold, Tanishq has become synonymous with trust. And with a range that includes both traditional and contemporary designs, its no wonder that Tanishq is Indias most aspirational brand of jewellery today.

Logo

SWOT Analysis of Tanishq

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 Strong brand equity and broad product range Highly skilled, qualified and motivated employee. Weaknesses

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 Thailands 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.
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

THE RESEARCH PROPOSAL Need for Study: Of all the precious metals, Gold is the most popular as an investment. The history of the gold standard, the role of gold reserves in central banking, golds low correlation with other commodity prices, suggest that gold behaves more like a currency than a commodity. To buy gold in India is a very big thing. Ones personal wealth is traditionally determined by how much gold one has and India is, by far, one of the biggest gold consumers of all the nations. In 1995, Indias gold consumption was 447 tonnes. Gold is very big business in India and it is not difficult to buy gold in India and invest in gold. Gold always keeps its value in the end and, in times of economic uncertainty, invariably improves. Objectives:

To understand what percentage of Indias younger generation of age group 20 35 years of age are interested in investing in Gold Schemes. To understand the capability of employees working in the ITES (Information Technology Enabled Services) industry to invest in Gold schemes.

Research Design Exploratory Research This research is used to clarify thoughts and opinions about the research problem or the respondent population, or to provide insights on how to do more conclusive research. The study for Gold Investment Scheme for BPO Employees is being conducted for the first time, as this type of a research would help meet the problem statement that is To understand what percentage of

younger generation of age group 20 35years of age are interested in investing in Gold Scheme and what is the BPO industry employees capability to invest in such schemes.
Therefore this research design was used to conduct the study. Cross sectional Design

It is a one-shot research study at a given point of time, and consists of a sample [cross section] of the population of interest. Its advantages are that it gives a good overall picture of the position at a given time. It can cover many variables of interest, and is not affected by the movement of elements in the sample, because other elements can be substituted for them. It does not restrict you to choose the sample size and is much convenient to implement in a study thus cross sectional design was also included in the study of Tanishq Gold Scheme.

Research Methodology The data required for any research study or a project was gathered through primary and secondary sources. Primary Source Survey
Choosing the sample was the first and fore most activity in the study. Taking the objective into consideration only one survey was conducted to achieve the objective. The survey was conducted exclusively on the employees of Infosys working for the BPO industry. This survey was carried out so as to understand the BPO employees point of view and their perception about the Tanishq Gold Scheme. To understand their investment decision experience and would they prefer the gold scheme over other investment plan available.

Secondary Source External - Internet Based

The secondary data was collected from various sources such as the concerned Web Sites, Reference Books and Material. This helped in understanding the background of the Gold Industry as whole and how Tanishq was operating its business. Tools: Questionnaire (Attached in Annexure)

Process: Personal Interaction

It was a two way conversation initiated by us to obtain information from the emplyee of Infosys BPO.

Sampling: Probability sampling Simple random sampling These are the techniques where each sampling unit has a known probability of being included in the sample. The probability of inclusion need not be equal for every sampling unit. In some methods, it is equal, and in some others, it is unequal. Feature of probability sampling method is that they are unbiased and thus this sampling was used. Simple random sampling because the sample was randomly selected from the employees working for Infosys BPO and there was no constraint that every employee had to answer. It was more convenient and simple to understand and do the study.

Sample Size 30 Geographic Area: Infosys Bangalore, Karnataka Limitations of the study: The study was conducted is a systematic and comprehensive manner so as to achieve the objectives stated. Thought utmost care was taken while there were some limitations that were uncounted that has been revealed here. The limitations are mentioned here under:

The study was conducted to know the perception about Tanishq Scheme and the

expectations of its customers. But the study was entirely an external study and insights to the company financial were not provided.

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As it was an external study only observational study was possible of the functioning

of the Tanishq Gold Scheme. The various schemes and gold plans could not be accessed. How well a certain scheme or offer was successful to meet the customer satisfaction

and expectation could not be quantified.

Analysis of the Survey

1) Are you aware of the Tanishq Gold Scheme?

a) If Yes: How did you get to know about this scheme:

2) Do you think savings in Gold is better than Fixed Deposits?

3) Is the Installment size of Rs. 8000, for 11 months, feasible?

4) Do you think, only 1 installment out of 11 paid by Tanishq is good?

5) Would you be more interested in this plan, if given a choice to pay any amount in the range (500 10000)?

6) What installment amount is suitable (In Rupees)?

7) What installment amount is suitable (In Rupees)?

8) How would you rate this Investment Plan?

9) Will you use this investment plan to buy jewels with Tanishq or would you just use this as an investment plan?

FINDINGS
On the basis of the survey conducted it can be observed that: Awareness of the Gold plan from Tanishq is not very high. Whatever awareness about the Gold plan exists; most seems to have come from TV commercials. Tanishq should advertise on other modes of advertisement more frequently. Gold is considered to be a better investment over money deposits. Most ITES employees feel that a minimal amount of investment (500 Rs. 2000 Rs.) every month is definitely feasible. Therefore, Tanishq should introduce schemes that should cater to this category.

Annexure

QUESTIONNAIRE
Name: Age:

I
Gender:

1) Are you aware of the Tanishq Gold Scheme? Yes Internet Friends No Family TV commercials Radio commercials a) If Yes: How did you get to know about this scheme:

b) If No: Under this scheme, you need to invest a fixed amount every month with Tanishq for 11 months. The 12th month installment is paid by Tanishq; hence you can buy for more than what you pay. 2) Do you think savings in Gold is better than Fixed Deposits? Yes No

3) Is the Installment size of Rs. 8000, for 11 months, feasible? Yes No

4) Do you think, only 1 installment out of 11 paid by Tanishq is good? Yes 10000)? Yes No 10000 - 15000 15000 20000 20000 25000 25000 30000 > 30000 6) What is your monthly salary range? No 5) Would you be more interested in this plan, if given a choice to pay any amount in the range (500

7) What installment amount is suitable (In Rupees)?

500 - 1000

o o o o o

1000 - 2000 2000 - 4000 4000 - 6000 6000 8000 8000 10000

8) How would you rate this Investment Plan? Good Excellent Average

9) Will you use this investment plan to buy jewels with Tanishq or would you just use this as an investment plan? Investment Plan Purchase Jewels

- Thank You for Your Time and Cooperation -