INTRODUCTION 1.

1 Business Plan
This is the unique business plan in the sense, as Indian gold market is very booming industry with the subsequent rise in gold prices and the demand for the gold jewellery is also rising. As well as along with the demand of gold jewellery there is also hike in demand for diamond jewellery. The International Finance Corporation (IFC), in the first city-specific study of its kind, has said Ludhiana, the industrial hub in Punjab, is the easiest location to do business in India . Pilot Study was conducted in the selected areas of Ludhiana city and came up a very unique business plan. The entrepreneur can avail the loan scheme for small & Medium Enterprises from MINISTRY OF MICRO,SMALL AND MEDIUM ENTERPRISES under CGSME scheme. It has been decided to set up a jewellery retail outlet in Ludhiana with the help of above schemes.

Why This Idea Is Unique:

This idea is unique as it is innovative and will generate the spirit of Self Dependence & Entrepreneurship among Management Graduates.

What kind of the Consumer Fulfillment Gap this idea fills:

Jewellery is one of the most important and fast growing sector's in the Indian economy. India is the largest consumer of gold and is the biggest centre for processing diamonds in the world. The sector is one of the largest export earners for India. New entrepreneurs have vast scope to develop, create and innovative new ideas. As Ludhiana is a market full of potential buyers of gold jewellery. Therefore target group will be middle class and upper class families including both business families as well as those families contributing to service sector. According to TNS Survey across Mumbai, New Delhi and Bangalore which was targetted solely at women. While the sample size was small, 650+, the fact that the target group was covered in and around shopping malls, banks, corporate areas and commercial zones, made the sample

more relevant to the objectives. The survey was conducted through personal interviews over a period of 20 days. From the above survey it is found that, working women contribute a greater impact on branded jewelry. It is found that 42.5 per cent of working women has very good shopping habits, thus has a greater impact on branded jewelry. The rest of the target group, though non-working, came from a similar background with similar purchasing power. Survey was conducted on age group 18-65 yr.

Close Substitute for Products that the firm has planned:

In the near future the firm will enter into diamond jewellery by end of Dec.2014.

Industry under study:

In this Project, the industry under study is gems and jewellery industry.

Functional Area of study:

In this Project, the functional area of study is gold jewellery sector of gems and jewellery industry. A complete pilot survey has been conducted in different popular jewellery retail showrooms in Ludhiana city before hand.

Need for taking of study:

During the period of Recession, it is very difficult to find a new job so we wanted to learn that how an individual can set up a new unit with his skills & knowledge and helps in generating employment. As in spite of economic fall down gold prices are still rising showcasing it as a booming industry.

Overview of research planned & expected outcomes:

The research plan for the study is that firstly we will develop different alternatives from different sources of information. After analysis of all alternatives, we will select the best alternative out of this. The expected outcome is that we will start a new jewellery retail store with full utilization of resources.

Brief History
Before the liberalization of the Indian economy in 1991, only the Minerals and Metals Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold. The abolition of the Gold Control Act in 1992, allowed large export houses to import gold freely. Exporters in export processing zones were allowed to sell 10 percent of their produce in the domestic market. In 1993, gold and diamond mining were opened up for private investors and foreign investors were allowed to own half the equity in mining ventures. In 1997, overseas banks and bullion suppliers were also allowed to import gold into India. These measures led to the entry of foreign players like DeBeers, Tiffany and Cartiers into the Indian market. In the 1990s, the number of retail jewellery outlets in India increased greatly due to the abolition of the Gold Control Act. This led to a highly fragmented and unorganized jewellery market with an estimated 100,000 workshops supplying over 350,000 retailers, mostly familyowned, single shop operations. In 2001, India had the highest demand for gold in the world; 855 tons were consumed a year, 95% of which was used for jewellery.

Structure of the industry:

Indias G&J industry is highly unorganized and fragmented with 96 percent of the total players being family owned businesses. The gold processing industry has

around 15,000 players, with only 80 having revenues over USD 5 million. India is also home to around 450,000 goldsmiths, 100,000 gold jewellers along with 6,000 diamond processing players and 8,000 diamond jewellers. The value chain of the industry starts from sourcing and mining of the metals and extends to jewellery retail. While India is not a major miner of previous metals and stones, the countrys inexpensive and well skilled workforce makes it a world leader in processing of diamonds. The countrys jewellery retail sector is also expected to evolve with a shift among consumers towards branded jewellery, driven by greater quality consciousness.

Indian jewellery industry:

Jewellery is one of the most important and fast growing sector's in the Indian economy. India is the largest consumer of gold and is the biggest centre for processing diamonds in the world. The sector is one of the largest export earners for India. Gold jewellery and diamonds are two major segments of the sector in India. 80 per cent of the Indian jewellery market in Gold jewellery forms. The gold jewellery manufactured in India is consumed in the domestic market. India has very good domestic market for jewelry. In diamonds, however, a major portion of rough, uncut diamonds processed in India is exported, either in the form of polished diamonds or finished diamond jewelry. India has set up more than 3,000 offices worldwide for promotion and marketing of Indian diamonds. The Indian jewellery industry is competes in the world market due to the single reason, which is its low cost of production and availability of skilled labour.

India Jewellery Industry - Highlights

Jewellery market size - US$ 13 billion Diamond jewellery - US$ 1.2 billion Gold jewellery market growth year on year - 15% Diamond jewellery market growth - 27%

"India is the world's largest trading center for gold".

Branded Jewellery:
India is the world's largest consumer of gold and third largest consumer of diamond jewellery after Japan and USA. The jewellery market in India is estimated to be around US$ 15 billion, second only to the US (US$ 40 billion) and is followed by China (US$ 11 billion). The jewellery market in India is second to the fast moving consumer goods market. Globally, branded jewellery accounts for only 8% of the total market of US$ 70 billion, while in India of the total jewellery market, the branded segment accounts for a minuscule 2%. Further, it is very fragmented and dominated by the unorganized sector. Branded jewellery has been a relatively recent phenomenon in India. Tanishq and Gili were among the earliest jewellery brands in India. There has also been a shift in consumer preference towards diamond jewellery due to the extensive positioning of diamond jewellery as both affordable and contemporary. Another key development in branded jewellery has been the introduction of value added services such as the certification of gold and diamonds, and life time return and buy-back schemes. These trade practices have resulted in the perception of superior quality associated with branded jewelry The trend so far ... Branded jewellery has been a relatively recent phenomenon in India and in other developing countries. In India most jewellery is retailed in the unorganized sector. In India there are more than 2.5 million jewellers. But if we talk about jewellery brands in India, these brands can be counted on one's fingers. As mentioned earlier, branded jewellery is known as organized jewelry. As per survey done by some big companies branded jewellery accounts for merely 2% to 3% of the total jewellery retail market in India, which underlines the fact that there is very good scope for branded jewelry. The jewellery sector in India has grown at a CAGR of 9% in the past two years as against that organized jewellery sector has showcased over 30% CAGR during the same period. This is mainly on account of jewellery retailing in India undergoing a slow transformation from a largely unorganized sector to a more organised one. The majority of traditional jewellers cater to the local population and most purchases are made on trust and on the basis of the reputation of the local jewellers. However, with the growth in retail sector and introduction