indian jewelry - indian costume jewelry
Mehul Choksi recalled that as he grew up, he often looked for rough diamonds at his home in Mumbai.
His father, a diamond merchant, would take the diamond home for grading and sorting, and usually one or two loose stones would fall on the floor. The kids--
Six of them, the youngest of them. -
Will look for anything sparkling on the floor.
Every time he finds a diamond-
Some are as thin as hair-
His father will reward him for a few rupees.
"I realized it was a lucrative business," he said with a smile . "
But Choksi learned that the money was not easy after he started working for a family business just after graduating from high school in 1977.
Endless competition means razor
The profit at this end of the diamond business is meager.
Therefore, after he took over the business of the 1980 s, a company that insisted on cutting and polishing rough diamonds for three generations began to produce and sell jewelry ---
Today's gem in giltanghali-
Named after his two sisters, Gita and Anjali. -
It has more than 20 brand jewelry stores, 1,250 retail stores and 35 franchise stores.
It has broken into the United States in the past few years. S.
Opened a jewelry store in China and began selling its brand in the Middle East.
The company has a modern diamond processing plant and two jewelry manufacturing units in Mumbai.
"I'm not interested in selling items," Choksi said . ".
"I want to sell a brand.
"The growth of Gitanjali is very significant. In the mid-
Production in the 1980 s was only $7 million annually.
More than $1 billion this year.
Most of this growth came from 2005, when total revenue was $0. 31 billion.
Before brand and retail efforts really started to work, profits were only $2 million that year.
But in the first nine months of March.
Profits reached $33 million. Full-
This year's results will be announced by the end of June.
The company went public in 2006 for $4.
At $74 per share, it reached a high of $12.
In last December, 43, with most of the decline in the Indian market.
It recently closed at $6.
50. The market value is $0. 555 billion.
Choksi and his wife Priti are 46 years old. 4%.
None of his brothers or sisters had a stake, although there were two sisters and one brother --in-
Legal work in the United StatesS. operation.
Sanju Verma said: "Gitanjali is most likely to capture the growth of the gem and jewellery industry with its strong brand assets, a strong retail network and equally strong distribution franchises, HDFC Securities executive director, in a report on Gitanjali dated last November.
Choksi, a 49-year-old chairman, has now surpassed jewelry in his retail business.
Supported by joint ventures with companies such as armo Finance B in the NetherlandsV.
Italian Mariella Burani fashion group Gitanjali plans to open dozens of lifestyle retail stores across the country in the coming months, selling everything from watches, leather handbags to premium haircuts.
With disposable income and discretionary spending rising in India, the company expects sales of brands and luxury goods to surge.
"This is the time of action," said Gaurav Marya, general manager of Gitanjali's lifestyle . ".
Opportunity is just beginning.
"The company's move beyond the diamond trade began in 1991, when it was linked to the mainland jewelry manufacturing industry in Hong Kong to enter the mass market --
Manufacturing jewelry business.
In 1994, it launched the name Gili--
In a country where jewelry is often purchased from nearby home jewelers, mainly for investment, it is novel to sell branded jewelry.
One innovation: it issues Diamond Certification Certificates and repurchase guarantees to customers.
Gili didn't catch up overnight, but Choksi continued to roll out more brands.
In last December, he bought the Nakshatra brand, which was launched by diamond giant De Beers.
"Gitanjali is a pioneer of the brand," said Prasad Kapoor, director of marketing operations at De Beers Group, which is committed to creating diamond demand in India.
"In terms of their attitude towards the market, they are very dynamic.
They have different brands in different market segments.
Despite this, the competition is fierce.
Tata's Titan industry uses attractive merchandise sales and sophisticated marketing to sell a range of high
Inlaid and platinum jewelry under the brand Tanishq.
It offers a range of jewelry called GoldPlus for semi-urban and rural areas.
With 133 showrooms, the company plans to add 26 showrooms this year, including two in the United States. S.
The year ended in March.
On the 31st, the company announced jewelry sales of $0. 507 billion, an increase of 57% over the previous year.
"Tanishq is a completely professional outfit," Kapre said . ".
"Its coverage and reliability.
Because it's Tata, the name has trust.
"But Tanishq focuses on gold jewelry, while Gitanjali focuses on diamonds.
Choksi believes he has a clear advantage with his minesto-Market approach.
He buys diamonds directly from the Diamond Trading Company. --the rough-
Diamond Trading Department in DeBeers-
He controls the rest of the supply chain.
Titan Buys diamonds that have been cut and polished.
Gitanjali is also more active in overseas expansion than Titan.
It entered the United States. S.
Bought a family 18 months ago.
Run a jewelry chain in Texas, a Samuels jeweler.
Starting in 1891, the company's annual income at the time of purchase was $100 million, with nearly 100 outlets.
In last November, the company acquired Rogers jeweler, a Midwest chain, for $80 million in revenue.
This gives Gitanjali nearly 50 more branches.
In both Samuels and Rogers, jokes has retained the United States. S.
But jewelry is now from his diamond processing and design center in India. His long-
Incubation strategy from low to low
From diamond processing to high-end retail, profit margins are increasing.
He expects to clear 10% to 12% in the United States. S.
Before interest, taxes, depreciation and amortization.
The Ebitda profit for diamond processing is only 2% to 3%.
The manufacture and wholesale of diamond jewelry is not much better: the profit is only 4% to 5%.
Sidebar: King of Diamonds, currently United StatesS.
The market has attracted Choksi as it accounts for half of world diamond jewelry sales and is growing steadily.
Sales of jewelry are expected to exceed [overall]
The retail growth between now and 2016 is mainly driven by the growth of the bride's business, which is largely Diamond-
Dominant, "said Kenneth garsman, director of the Virginia Jewellery Industry Institute, who also cited examples of increased marketing efforts in the industry.
One challenge for Gitanjali is to compete with a large number of jewelry retailersS. market.
The top four jewelry chains account for only 12% of the market.
The rest of the market consists of 23,000 pearl merchants, most of which are independent family jewelers
Own operations. Choksi's U. S.
The strategy is simple: he wants to build his own business through acquisitions.
He also entered the Chinese market, but not just stores.
He has a diamond.
The cutting factory in Qingdao and the diamond manufacturing factory in Panyu.
China is also the second center for giltanghali to design diamonds for the United StatesS.
Market and supply.
Back home, Choksi developed a 170-
The Kerry special economic zone in Hyderabad's jewelry industry.
The government will provide 15-
For companies moving in, one year's tax break.
Gitanjali will first operate diamond processing and jewellery manufacturing and then lease the remaining land to other jewellery companies.
Also buying casting, laser
These companies can rent cutting and refining equipment.
"It will help [companies]
Prashant Rege, president of Gitanjali, said: "take advantage of the best manufacturing technology without incurring significant capital investment . ".
Gitanjali also focuses on developing workers for the industry.
The company conducts training programs in diamond processing and jewelry manufacturing, and it is expected that 3,000 students will attend the training every six months.
Analysts are worried that Gitanjali's business is growing too fast and too fast.
"They need to manage growth," said Verma of HDFC . ".
"Given the sheer nature of the business, Gitanjali's mandate is more challenging as the business has high requirements for working capital.
"But Choksi certainly didn't see any stops in front of him.
"I want to be the biggest jewelry retailer in the world," he declared . ".