INTRODUCTORY PAGE

Name of the business: Deep Diamonds Pvt. Ltd.

Address: The business will be located in the Zaveri Bazaar of Mumbai City as
that area is a manufacturing hub for jewellery industry and is a great location to
interact with potential customers and suppliers. The proper address is yet to be
decided, but the area has been narrowed down upon.

Nature of the business: The objective of this enterprise will be to manufacture

jewellery and wholesale it to retailers all over India. It will be a sole
proprietorship with a total team of 30 employees. 20 people will be dedicated on
the manufacturing aspects of the business whereas the rest will concentrate on
marketing the company.

Name of the sole proprietor: Nilesh D Solanki

Contact details: D/32A Damodar Bhavan,

VP Road,
Vile Parle West,
Mumbai (400056),
Maharashtra.
8879309650
nileshsolanki141@gmail.com

EXECUTIVE SUMMARY
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In a country such as India, where Jewellery is perceived as an investment rather

than an accessory, it is always a safe bet to venture in this industry. Diamonds
combine novelty with grace charm and elegance so just entering this market
gives a premium feeling. As gold is now being seen as a 'dead investment', the
next big things is diamonds for the Indian market.

The focus of this business activity is the production and wholesaling of diamond
jewellery in India. The traditions are now being shifted and the main objective
of a piece of jewellery is that's it's an accessory. Diamonds are a girl's best
friends, therefore it's natural that detailed attention must be paid towards them.

I don't believe in being conventional so I'm altering the course of the future for
my 4 decade old family business. In the coming years, India will be the hub for
manufacturing and I intend to be actively involved during such a dramatic
change. Innovation will be coming to us on our doorstep!

If Tiffany & Co. Can attract consumers world over, why can't India give the
next big thing for the global diamond industry. There is a lot to be exploited in
the Indian diamond industry which remains unexplored. Right from budding
Jewellery designers to fresh manufacturing procedures, this business will
employ it all.

The ideology of this firm is to be specialized to the highest degree. Exclusivity

and elegance can only be derived from specialization so naturally expertise
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would be the highest priority. Diamonds form the strongest bonds but the
business of diamonds is frail and fragile. Minute attention will be paid to every
element in the supply chain.

The aim for the first 5 years of this establishment would be to earn ample
market share and a few loyal customers

ENVIRONMENTAL AND INDUSTRY ANALYSIS

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Opportunities:
a) In a country such as India, jewellery is always a safe bet. Consumers
abroad are more brand conscious but in India wealth is measured
according to the jewellery a person owns. The consumer psyche is such
that diamond is always considered a good investment. Therefore, the
mind-set of the average Indian consumer is a very big opportunity which
must be exploited.
b) Furthermore, the market which has been targeted is not a niche one. It is a
very wide market hence the customer base will be very vast. Since the
business is not restricted to a particular region, the entire country can
supply potential customers.
c) A major advantage for the business is an emerging new trend. Consumers
now prefer diamond jewellery because it is in vogue internationally.
Since consumers are more aware because of technology and social media
they demand diamond products which are the primary focus of this firm.
d) If foreign trends can emerge in India, the opposite is also possible. As
tourism increases in India, there is more awareness about Indian tastes
and cultures abroad. This pattern has created a demand for Indian
products internationally which is a huge benefit if utilised effectively.
Therefore, the business can also expand by exporting goods. There are no
excess tariffs or trade embargos in India which makes it an amiable
country for foreign exchange.
e) Labour is cheaper than other countries which gives the business a
competitive edge in foreign markets as a substantial cost of production
has been reduced.
f) Marketing and branding can be done through social media channels.
Threats:
a) Although there are many opportunities available, there are considerable
threats as well which cannot be overlooked. Competition is the biggest
threat to this business. There are many jewellery wholesalers who have
been in this business since decades and have a monopoly with customers.
Moreover, these companies have an established brand loyalty which
would be very hard to earn in a short time.
b) Fast fashion is an emerging trend in India which will affect this business.
People are less inclined towards purchasing heavy jewellery and would
rather spend on a known brand than fine jewellery which they would
rarely use.
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c)
d)
e)
f)

Although, labour is cheap there is a scarcity of skilled labourers.

Emergence of China as a competitor.
There has also been an unusual increase in gold and rough diamonds.
Indias currencys standing in the foreign market is very week which
increases cost. Overall, Indias economic scenario is poor because of the
looming recession.

Critical issues for industry and environmental analysis

What are the total industry sales over the past five years? The value of
diamond jewellery sold each year is approximately US$72 billion, which
includes the cost of the diamonds, precious metals and other gems. The USA
represents the largest market (50%), followed by Japan (15%), Italy (5%),
India (3%), China (2%), The Gulf (2%) and other countries (23%).
What is the anticipated growth in this industry? The rough-diamond market
is expected to remain balanced from 2013 through 2017. From 2018 onward,
as existing mines get depleted and no major new deposits come online,
supply is expected to decline, falling behind expected demand growth that
will be driven by China, India and the US. Over the next 10-year period,
supply and demand are expected to grow at a compound annual rate of 2.0%
and 5.1%, respectively. The supply-demand outlook carries different
implications for industry players at different points along the value chain,
and it will impact the way they manage their business activities over the next
four years and in the longer run.

DESCRIPTION OF THE VENTURE

Mission Statement To successfully enter the Indian Diamond market and
have customer bases in all regions of the country.
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Vision Statement To be a leader in diamond jewellery export and establish

great consumer loyalty.
Products and Services offered: Products: Diamond rings, diamond
necklace, diamond bracelets, diamond earrings, diamond watches and other
diamond accessories.
Services: -Wholesaler and manufacturer of diamond jewellery - An
outsourcing station for other wholesalers and resellers
Size of the workforce: 30 employees
Marketing personnel 10 employees
Manufacturing workers 20 employees
Equipment
Factory equipment: -casting machine
-polishing machine
-Wax pulling machine
-CAD/CA
Office equipment: -5 laptops
-Desks
-Stationary
-Wi-fi connection
-Safe room (Godrej)
Background of the entrepreneur
A student of Mithibai College who is currently studying Masters in
Commerce (Management). At an undergraduate level he studied business
management studies from Ritumbara college.
He has a family business background of diamond jewellery retailing since
last 40 years.
Rationale for starting this venture: - Strong family background in the
industry
-Changing consumer trends is a challenge.
Why will you be successful in this venture?

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The entrepreneur has an inclination towards diamonds because they are

unique and exquisite.
-Family history has given him a lot of exposure which will be a competitive
advantage against other young entrepreneurs in the same industry.
-Manufacturing was also a part of the family business which has provided a
good network.

PRODUCTION PLAN
Jewellery manufacturing process includes most advance technologies and
dedicated research. Jewellery making is a very composite process undergoing a
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long and slow procedure making it tough from the initial point to the concluding
point. Each product undergoes a series of procedures before we get the net
product as a beautiful jewellery product.
The natural components of jewellery (stones, metal, and accessories) will
undergo multiple processes. These jewelleries are unique and involve a lot of
time and skill. Except for personalised jewellery which are hand crafted most of
jewelleries are executed by casting machines. Following is a brief description of
all the process involve in the manufacturing chain
DESIGN MAKING:
Order to produce a unique piece , the very initial step is to create a dezign , this
is the point from where the magic begins! And idea of the end product by very
talented designers who then makes a sketch of the design . this process of blue
print designing is carried out by proficient craftsmen using techniques and
methods handed.

Each piece of jewellery starts off with a concept. A concept is basically a rough
desgn in the the mind of the designer and coastland giving art object a real hand
crafted origin the designers concept and drawings are used by the model maker
to create the original piece of jewellery .

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MOULDING
Once the master piece of jewellery is complete it is used to make a high
technology mould ,which in turn is used to make wax reproduction of the
jewellery
After the sketch is complete with all the fine details, it is passed on to the
moulding section. In the moulding department the very experienced
professional moulders then turns the sketch into a master mould which sets the
base for the total procedure from the master mould is very complex level of
crafting as the final outcome rests on the master mould.

CASTING
Casting again is a very complex process and requires utmost skilled and
experienced casters for the desired final product The wax replicas are placed in
steel containers which are then occupied with the invest ment powder and the
containers are heated in a chamber to 550 degree which solidifies the the
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powder and melts the wax leaving behind a perfect effect. Liquefied metal is
then poured into the flask , allowed to cool then demolished to reveal the
jewellery in casting form Filing is an essential technique in jewel.

FILLING
Filing is an essential technique in jewellery making, and although simple in
concept following proven practices combined with the right equipment and
tools, ensures the job becomes a breeze. Filing is used in jewellery to remove
excess metal, even out surfaces, smooth or to shape, form and texture pieces.

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POLISHING
Polishing is another integral part in the process of jewellery
making. Every part must be while the mount is carefully made
clean and polished to the highest degree of smoothness so that
each each and every part is attractively polishes off. After stage
setting, the polisher is credit worthy for giving the jewellery a
concluding polish compounds and rouge must be meticulously
got rid of either careful washing by hand, or by use of
supersonic cle aning baths.

EMBELLISHMENTS
Embellishments/Decorative processes: After the product has
passed from the polishing and finishing departments it has to
undergo embellishment processes. When the products get
casted and foiled, the requires decorative stones of the correct
sizes and weight are cut and made with extreme precision and
are then assorted for the final setting which is done once the
products leave the foiling

and finishing department. It requires immense

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patience and skill to make the master-model and to produce an exquisitely

casting free from defects which needs minimum chasing to make it perfect.

FINISHING:
Once the casting process is over and caster delvers the product
to the following department, they are then foiled with extreme
attention for a smooth and soft finish. These castings are then
hand finished in order to meet high standards.

QUALITY CHECKING:
After plating process, the product is brought to the checking
department for quality checks. Each employee is highly skilled
to detect defects and if spots a defect, sends it back
immediately to the respective department for correction.

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MARKETING PLAN
Product the business will focus primarily on the specialization of
diamond products. Rather than varying the product range, importance
will be placed on manufacturing and distributing diamond Jewellery .
This gives then firm a competitive edge since consumers will perceive
it as a highly specialized brand with great expertise in the area of
diamonds. Broadly, the products will be divided in categories
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according to their function. The core products would include rings,

earrings, necklaces, bracelets and watches.

Place South india, (chennai Bangalore Hyderabad) north India

(delhi, Chandigarh) west (Mumbai Pune Nagpur Ahmedabad, Jaipur)

Price The pricing strategy would vary from product product because
it would depend on the karats of each product. However, here is a
general overview:
-38,000-43,000 per Carat.

Promotion - Physically talking to retailers: since the firm is a 'B2B'

model, it is imperative to build a good rapport with future customers.
They need to feel a sense of security and comfort because a lot of
trust will be required to take such a considerable risk. Also, this is a
tried and trusted formula which has been effective every time in this
industry especially. Approaching these retailers and getting an
appointment would be a real challenge but given the family
background, there would be quite a few shops who would be willing
to invest their time and money.

Gems and jewelry exhibition - not only is this is a great place for
networking and socializing but also a hotbed for gathering
information on new and trending designs. This is also a great place for
strategic branding

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Social media - with growing consumer awareness and a boom in e

commerce, social media will be a great beneficiary on the ladder of
success. It's not that just youngsters are akin to the Internet, even
older women are actively found on platforms such as Facebook,
Instagram and Whatsapp. The growing connectivity in the business
world is mainly due to social media.

Word of mouth - since family was strongly present in this industry,

there will already be some loyal customers. They can help spread the
word which would lead to a snowball effect

MAIN POTENTIAL RISK ELEMENTS

The Company may face the following risks during

development:
Market risks: In spite of the good marketing
performance in early operation of the Company, there
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will be competition with the existing famous retailers

and subsequent components after entering the retail
market. It is hard to predict accurately the final market
share achieved in competition, therefore uncertainty
exists in the development perspective.
Financial risks: Continuous input of great deal of
capital is required for the series of purchasing plans,
retail business and scale expansion of the processing
factory afterwards. In current situation, equity financing
is needed to solve the capital problem; otherwise the
implementation of the above plans will be influenced.
Risks of raw materials: Though the raw materials of
the Company are mainly from first-grade foreign
jewelry suppliers and the good relationship with them
are maintained, loose stones as non-renewable
resource has growing price in the long run, which will
have unfavourable influence on production cost and
sales volume of diamonds the Company.
Risks of operation modes: During the promotion of
chain business, capital shortage restricts the
development of the main business and it is big
challenge of the Company to guarantee the increase of
operation efficiency and profiting capacity during
continuous business expansion, as with increasing
competition, the expansion of chain business may have
the risk of reduction of the gross profit rate and net
profit rate. Force majeure and unpredictable incidents
may cause investment loss of the Company.

COUNTERMEASURES FOR RISKS

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For market risks: Ameliorate the feedback system of market

consumption information while enhancing marketing and set
reasonable product prices to increase the profiting capacity of the
Company. Accelerate product design and supply, enhance market
strain capacity, adjust duly product structure and increase the output
of popular goods. Further improve product quality and reduce cost,
increase the comprehensive competitive capacity and market
adaptation capacity of products.
For financial risks: The Company will implement financing in
multiple channels and cooperate with famous financial institutions in
a long term for uniform operation and planning of capital and to
enhance routine management. Meanwhile, communication with the
finance circle will be maintained for active capital operation for
maximum payback for investors. In case of financing failure, the
current situation of the Company enables operation with a slower
speed.
For risks of raw materials: From a long-term perspective, the
increase of prices shows investment value of this project in certain
degree, which can be taken as a sales point of product marketing. To
avoid the operational risk, the Company will in one hand continue to
reinforce the cooperative relationship with suppliers to stabilize the
prices of raw materials, and in the other hand will implement the
strategy of brand creation during development, maintaining customers
and prices through high-quality products and eliminating the
influence of market prices fluctuation on the product prices of the
Company. Meanwhile, after successful of this financing, the Company
will purchase rough diamond factories and seats of Shanghai
Diamond Exchange to further stabilize raw material supply.

For risks of operation modes: The main reasons for the profit loss of
current enterprises of jewelry chain business are incomplete industry
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chain resulting in excessive product cost, or not high standard of

designing and processing and not strong product originality, or not
enough understanding of the market and consumption trends resulting
in unbalance of profit and loss of sales volume. The risks are
controllable for this project unlike the chain business of other
enterprises since raw material procurement, feedback and collection
of market information, its own processing and design capacities and
good relationship in the industry chain are favourable conditions for
chain business.

FINANCIAL PLAN
SOURCES OF FUND
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EQUITY CONTRIBUITON

AMOUN

PERSONAL CAPITAL

T
1,00,00,0
00

BANK LOAN

50,00,000

LENDERS

50,00,000

TOTAL INVESTMENT

2,00,00,0
00

PROFIT AND LOSS STATEMENT

YEAR
sales
COST OF GOOD SOLD
GROSS PROFIT 30%
OPERTAING INCOME
EXPENSE
A) SALARY
B) PROFESSIONAL FEELS
C) TRAVEL
D) RENT
E) INSUARANCE
F) MARKETING
G) MISC COST
TOTAL OPERATING COST
INTREST EXPENSE
DEPRICIATION
TOTAL EXPENSE
NET PROFIT

1ST YEAR
19200000
13440000
30%
5760000

2ND YEAR
24000000
16800000
30%
720000

3RD YEAR
30000000
21000000
30%
9000000

3600000
300000
200000
300000
50000
100000
25000
4575000
540000
100000
5215000

3600000
300000
200000
300000
50000
100000
25000
4750000
540000
100000
5215000

3600000
300000
200000
300000
50000
1000000
25000
4750000
540000
100000
5215000

545000

2075000

3785000

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