Gitanjali Q: How can Gitanjali secure the procurement of diamonds?

Diamond industry is totally dependent on sources of Rough Diamonds of which Australia , Botswana and South Africa were the major suppliers. Its distribution is mainly maintained by Diamond Trading Corporation. India sourced 21% of Rough Diamond from DTC .DTC plays an important role in the procurement of Diamond. Although Gitanjali has a good relationship with DTC since 1967 but it has to utilize the relation to increase the sourcing from 21% to 30% or more. Gitanjali need to understand the Indian Market and explore the opportunities .The have to reach the lower sized and lower valued market where the market is dominated by small manufacturers. Also, the high value diamond was dominated by European Manufacturers which is a great challenge to Gitanjali. However, they can organize the Indian Diamond market and go for retail marketing by venturing with some Big Local Players. Gitanjali has to go for more promotions and advertisement for all its brands. Promoting and positioning is directly related to the success of marketing .Gitanjali has to reach the class of people who are more concentrated to Gold Jewelry. Also they need to reach the sub metropolis to conquer the opportunity in the Lower class and Middle Class people. Diamond market was mainly controlled by DTC as it has significant control over pricing over rough and polished diamonds by adjusting the quantity supplied and demand. Gitanjali constituted 25% share from DTC and rest from secondary sources. The secondary sources have to be increased to secure the procurement of Diamonds. As a whole we can say that Gitanjali shall do the following steps to secure Procurement: a) Focusing on International Market b) Developing branded Jewelry Market c) Expand retail operations d) Increase production capacities e) Strategic acquisitions

Q ) If the above requires investment, determine : A) to what level? From the P & L Statement of it is clear that the Revenue With Gitanjali was approximately Rs.700cr and can be figured out as: Reserve excluding revaluation reserve Paid up Equity share capital Total immediate convertible cash in hand = = = Rs.6561872000 Rs. 589985000 Rs.7151857000 (Appx.)

If we assume that from the market reputation it can take loan also then the Revenue it will be having is more than Rs.1500Cr(including loan).This whole amount can be easily used in the short run to open retail outlets and for recent acquisitions.

Q) Where to invest? Gitanjali has an investment plan at Hyderabad and Andheri which requires Rs.300Cr which can easily be taken from the revenue we have calculated in the previous section. Rest it can invest in Joint ventures and associate companies.