PRESENTATION ON SIX WEEKS

SUMMER TRAINING AT APAR

INDUSTRIES

Presented By:

Puja Priyadarshani

MBA 2 IB

Established : 1958

Head Office: Vadodara (Gujarat)

Registered Office: Mumbai

Founder: Mr. Dharmish  D. Desai

PRODUCTS Petroleum Specialties

Power Transmission Conductors

COMPETITORS

Sterlite Opticals Ltd. In conductor division

And following are the companies in Oil division

Savita chemicals Ltd.

Raj Industries Ltd.

Gulf Oil Ltd.

FINANCIAL RATIOS

LIQUIDITY RATIO1) Current Ratio

Benchmark level = 1.33

Particular 2007 2008 2009

Current Ratio

1.06 1.06 1.04

QUICK RATIO Benchmark = 1:1

Particulars 2009 2008 2007

Quick Ratio 0.89 0.94 0.87

Turnover Ratio: Inventory turnover ratio = Cost of goods

sold Average

Inventory  Inventory holding period = 365

Average InventoryParticulars 2009 2008 2007

Inventory Turnover Ratio

9.03 7.12 5.85

DEBT/EQUITY RATIO = Total Debt Shareholders equity

Particulars 2007 2008 2009

Debt/Equity Ratio

32.27 31.30 21.26

GROSS TURNOVER

2004-05 2005-06 2006-07 2007-08 2008-09

0

5000

10000

15000

20000

25000

30000

GROSS TURNOVER (Rs.in Millions)

GROSS TURNOVER (Rs.in Millions)

YEAR

Rs

. in

Mill

ion

NET PROFIT

NET PROFIT

0

100

200

300

400

500

600

2004-05 2005-06 2006-07 2007-08 2008-09

YEAR

Rs.

in

Mil

lio

n

NET PROFIT OFAPAR INDUSTRYFOR 5 YEARS

SWOT ANALYSIS OF APAR INDUSTRY

STRENGTH

Rich resources of raw material

Highly competitive

High quality machinery

Strong supplier relationship

WEAKNESS

Inflationary pressures the company may not

be able to control expenses

o Dependent on the fluctuation of raw material

prices

o Sale is limited only to the developing

countries

OPPERTUNITY

Demand of oil and conductor

Few competitor

THREATS

Soaring crude oil prices

Rise and/or fall of the foreign exchange rate

PART – B

TITLE

GEMS AND JEWELLERY EXPORT FROM INDIA:

CURRENT SCENARIO

OBJECTIVES

To review the present status of the Indian Gems and Jewellery Sector

& Analyze its contribution to the economy.

To evaluate the export performance of Indian Gems and Jewellery.

To study about the competitive position of Indian Gems and Jewellery

export.

To analysis the vital steps for improving the Gems & Jewellery export.

 

BACKGROUND

Gems & Jewellery Sector

SWOT ANALYSIS OF INDIAN GEMS AND JEWELLERY INDUSTRY

Strength

One million craftsmen are associated with this industry.

Availability of cheap and skilled labour.

Excellent marketing network.

Supportive government policy.

WEAKNESS

Firms lacking technological expertise.

Low productivity.

Raw material need to be imported.

OPPORTUNITY

New markets in Europe and Latin America.

Growing demand in South Asian & Far East countries.

Depreciating rupee value.

THREATS

China, Sri Lanka and Thailand entry in small diamond segment.

Absence of latest technology.

Unusual increase in the price of gold and rough diamonds.

MAJOR PLAYERS

Reliance Retail D’ Damas India Swarovski Gitanjali Group’s “Nakshatra” Mumbai-based Vardhman Dubai-based Joy Alukkas Vishwa and Devji Diamonds Gitanjali Gems Ltd

GEMS AND JEWELLERY EXPORT

April-December 2008 - US$ 15 billion 2007-08 - US$ 20.8 billion 2006-07 - US$ 17.1 billion, witnessing a growth

of 22.27 per cen.

2008-09 Half Yearly 2007-08 2006-070

5

10

15

20

25

Gems & Jewellery Export

Years

Fig

ure

s in U

S $

b

EXPORT (SECTORED)(USD mn) FY 08 FY 09 H1 FY 10 Growth %

Cut and Polished

Diamonds

14,194 13,025 7,909 21.4

Gold Jewellery

5,546 6,857 4,461 30.1

Coloured Gemstone

276 266 149 12.0

Rough Diamonds

567 772 360 -6.6

Others 234 199 139 39.2

Total 20,186 21,118 13,017 23.2

RESEARCH METHODOLOGY

Research Design: Descriptive

Universe: All exporters of Gems and Jewellery products.

Population: All Gems and Jewellery exporter operating in Mumbai.

Sample unit: Any Gems and Jewellery exporter operating in Mumbai.

Sample size:

Sample size of this research is 22 respondents.

Sampling technique:

Convenience sampling by Time.

Data Analysis and Interpretation:

For the purpose of analyzing, the responses to each

question was calculated and shown in the form of pie charts

and from these results had been carried out.

DATA ANALYSIS

Figure 4.1 showing contribution of gems and

jewellery industry to the Indian Economy

(N = 22)

18%

41%

18%

9%

14%

Very Significant Significant InsignificantVery Insignificant Can't Say

FIGURE 4.2 SHOWING THE AREAS IN WHICH GEMS AND JEWELLERY SECTOR CONTRIBUTES SIGNIFICANTLY (N = 22)

Employment41%

Export23%

GDP14%

Other Sectors14%

Can't say9%

FIGURE 4.3 SHOWING THE IMPACT OF THE POLICIES OF GLOBALIZATION AND LIBERALIZATION ON EXPORT OF GEMS AND JEWELLERY IN INDIA (N = 22) 

Accelerated the export65%

Adversely af-fected the

export13%

Did not affect the export

13%

Can't say9%

FIGURE 4.4 SHOWS THE POSITIVE IMPACT OF E-COMMERCE ON INDIAN GEMS AND JEWELLERY INDUSTRY (N = 22)

Agree73%

Disagree14%

Can't say14%

FIGURE 4.5 SHOWS BENEFITS OF E-COMMERCE IN URBAN AREAS LEAVING BEHIND RURAL ARTESIAN (N = 22)

Agree50%

Disagree32%

Can't say18%

FIGURE 4.6 SHOWS BETTER POTENTIAL IMPORTERS OF INDIAN GEMS AND JEWELLERY (N = 22)

USA59%

UK14%

Germany18%

Other Countries9%

FIGURE 4.7 SHOWS PRODUCTS EXPORTED FROM INDIA TO OTHER COUNTRIES (N = 22)

Diamond studded jewellary

18%

Necklace41%

Bangles23%

Ring & other products

18%

FIGURE 4.8 SHOWS THE PROBLEMS OF EXPORT OF GEMS AND JEWELLERY (N = 22)

Better quality products from foreign compa-

nies50%Competition in the

domestic sector23%

Lack of institutional support

14%

Other factors5%

Can't say9%

FIGURE 4.9 SHOWS MEASURES THAT CAN BE TAKEN FOR IMPROVING EXPORT POTENTIAL OF

GEMS AND JEWELLERY SECTOR IN INDIA (N = 22)

Esatablishing Gems & Jewelry

special economic zones23%

Promotion of Gems & Jewelry in the ru-

ral areas23%

Special support to the Gems & Jew-elry sector in the

trade policy32%

Institutional Financing

18%

Other measures5%

4.10 SHOWS THE EXPORT POTENTIAL OF INDIAN GEMS & JEWELLERY PRODUCTS IN COMPARISON WITH OTHER COUNTRIES (N = 22)

Very competitive23%

Competitive45%

Lacks competitive strength

14%

Not at all compet-itive18%

FIGURE 4.11 SHOWS THE FUTURE OF GEMS AND JEWELLERY INDUSTRY IN INDIA

(N=22)

Very good45%

Good36%

Can't say18%

FINDINGS Gems and Jewellery sector have a significant

impact on Indian Economy.

Globalization and Liberalization policies has accelerated the export in the Gems and Jewellery sector in India.

Gems and Jewellery sector in India has greatly benefited from the e-commerce business strategy still it is beneficial mainly to urban areas as compared to rural areas.

From India the major export of Gems and Jewellery is to USA

The major product which is exported is necklace followed by bangles and then by ring and other products.

Foreign country having better quality of jewellery product, lack of institutional support to the exporters high level of domestic competition in India are the major problems of Gems and Jewellery sector.

Establishment of special economic zone for Gems and Jewellery sector should be there in order to increase export, trade policy should be supportive and institutional help should also be provided to this sector.

The future market for export of Gems and Jewellery sector in India is good.

THANK YOU