joy alukkas organisation study project
TRANSCRIPT
A Report on the study of
Submitted to the
MAHATMA GANDHI UNIVERSITY
In partial fulfillment of the requirements for the award of
the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
Mr. Santhosh. S
By
.RONNY VARGHESE
Regn.No. 23319
“JOYALUKKAS INDIA LTD”
School of Technology and Management
Prathap Nagar, Muttom, Aluva, Kochi - 683106
CERTTIFICATE
This is to certify that the project report entitled “A REPORT ON
THE STUDY OF JOYALUKKAS INDIA LTD” is a Bonafide
record submitted by RONNY VARGHESE Regn.No. 23319. in partial
fulfillment of the requirements for the award of the degree of MASTER
OF BUSINESS ADMINISTRATION during the academic year 2010-
2012.
Date Dr. Radha P Thevanoor
Director
School of Technology and Management
Prathap Nagar, Muttom, Aluva, Kochi - 683106
CERTTIFICATE
This is to certify that the project report entitled “A REPORT ON
THE STUDY OF JOYALUKKAS INDIA LTD” has been
successfully completed by RONNY VARGHESE Regn No.23319 in
partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION, under my guidance,
during the academic year 2010-2012.
Date Santhos. s
Internal Faculty guide
School of Technology and Management
Prathap Nagar, Muttom, Aluva, Kochi - 683106
COMPANY CERTIFICATE
DECLARATION
I, Ronny Varghese, MBA student of SCMS School Of Technology And Management,
Cochin do hereby declare that this report titled “A REPORT ON THE
STUDY OF JOYALUKKAS INDIA LTD” is submitted to the
Mahatma Gandhi University for the partial fulfillment of the requirements for the
award of the Masters Degree in Business Administration is my own bonafide work.
I also declare that this report / part, thereof has not been submitted by me to any other
University / Institute in full or partial for the award of any Degree or Diploma.
Date: Ronny Varghese
Place: Cochin Reg.no. 23319
i
ACKNOWLEDGEMENT
Fulfillment of a good project will include the help of some prominent persons. For
their helping hands I must express their gratitude. I would like to express my
gratitude to our Director Dr. Radha Thevanoor for her never ending support. I
express my sincere thanks to my faculty guide Mr. Santhosh S who assisted me to
take initiative and assume responsibility in bringing out the final piece of work.
I heartily thank Joseph Christo HR Manager and also Mr.Jibin Toms John, Sr.
Marketing Executive India Ltd of Joyalukkas who has taken time out of his busy
schedule and cooperated with me to get the required information. I must specially
record my thanks to divine grace and my parents, all my friends without whose
support and encouragement this project would never have been a success
RONNY VARGHESE
ii
LIST OF TABLES
Sl no:
CAPTION
Ref no
Page
No:
1
Joyalukkas jewellery, and textiles, apparels
and accessories business operations as of
and for Fiscal 2008, 2009, 2010 and as of
and for the six month period ended
September 30, 2010:
1
32
iii
LIST OF FIGURES
Sl No:
CAPTION
Ref No
Page No:
1
Gems And Jewellery Value Addition Ladder
1.1
10
2
Organised retail in different sectors.
1.2
11
3
Geographical Segmentation of Gold in India
1.3
13
4
Average Annual 10 Year Growth Rate In India
1.4
14
5
Geographical Segmentation of Diamonds in India
1.5
16
6
Managerial Organizational Structure
2.1
38
7
Procurement Of Raw Materials For The Manufacturing Of Gold Jewellery
3.1
40
8
Manufacturing Process For Gold Jewellery
4.1
45
9
Operations Process Flow
4.2
47
10
Map Of India Highlighting Joyalukkas
Existing Retail Stores
4.3
48
11
Process Interaction
4.4
72
iv
EXECUTIVE SUMMARY
The MBA course offered by the M.G. University, Kerala, has its own
unique syllabus which requires its MBA students to undertake an
internship with any of the leading business houses during the second
semester for the purpose of acquiring practical knowledge of the working
and functioning of a company. This is helpful for us to study how the
different departments in an organization work and wins as a single unit.
Joyalukkas is a popular jewellery retail chain that has rapidly expanded
its presence across India in the past few years. The success and growth of
Joyalukkas has been driven by its unstinting commitment to quality, a
fact that has been widely recognized by its growing customer base.
Joyalukkas is renowned within jewellery lovers for its choice, quality,
service and value offering.
It is one of the consistently growing jewellery retail chains in India.
Joyalukkas is currently operating 23 jewellery showrooms across India.
Plans to open an additional 14 new showrooms are already in place, and
Joyalukkas to complete the expansion plans by September 2013.
Joyalukkas showrooms offer a wide variety of jewellery in Gold,
Diamonds, Pearl, Platinum & Precious Stones. Some of the Joyalukkas
showrooms also feature silver jewellery and silver items.
v
TABLE OF CONTENTS
TITLE
PAGE NO.
ACKNOWLEDGEMENT
i
EXECUTIVE SUMMARY
iv
LIST OF TABLES
v
LIST OF FIGURES
vi
INTRODUCTION
1
1.1 Introduction To The Study
2
1.2 Scope Of The Study
2
1.3 Objectives Of Study
3
1.4 Methodology
3
vi
1.5 Limitations Of The Study
4
BUSINESS ENVIRONMENT ANALYSIS
5
2.1 Business Environment Analysis
6
2.2 Industry Profile
8
2.2.1 Global Scenario
8
2.2.2 Indian Scenario
9
2.2.3 State Scenario
12
2.3 Indusrial Analysis
13
2.3.1 Industry Key Players
19
2.3.2 Competitor Analysis
20
ORGANIZATIONAL PROFILE
21
3.1 Background And History
21
vii
3.2 Vision, Mision, Objectives And Goals 24
3.3 Company Profile
25
3.4 Products And Materials
27
3.5 Certifications Awards And Recognitions
29
3.6 Business Performance
31
3.7 Strategic Plans And Future Programmes
34
ORGANIZATIONAL STRUCTURE
38
4.1 Managerial Organizational Structure
38
FUNCTIONAL ANALYSIS
39
5.1 Materials And Procurement
40
5.2 Operations
46
5.3 Human Resource Department
48
viii
5.4 Marketing Departmaent
53
5.5 Finance Department
58
5.6 Business Development Department
64
5.7 Loyalty Department
67
5.8 Administration
70
5.9 Total Quality Management
78
ORGANIZATIONAL ANALYSIS
82
6.1 SWOT Analysis
83
6.2 Corporate Social Responsibility
90
FINDINGS AND CONCLUSION
91
7.1 Findings
90
7.2 Conclusion
91
BIBLIOGRAPHY 93
ix
CHAPTER I
INTRODUCTION
1
1.1 Introduction To The Study.
This study is conducted to get a proper understanding on Organisational functioning,
structure and coordination of all levels. Organization is the process of identifying and
grouping the work to be performed and delegating the responsibility and authority. It
is a social entity directed towards a particular goal designed as deliberately structured
and coordinated activity systems linked to the external environment.
Joyalukkas which is renowned as Worlds Favorite Jeweller was selected for the
study because it is a well established, organized and well managed organization with
23 outlets in India and having more than 2300 employees. This project report is based
on the study conducted on Joyalukkas India Ltd at its corporate office and Joyalukkas
Wedding Centre Kollam. The duration of the project was two weeks.
1.2 Scope of Study
This project report is based on the study conducted at its corporate office and
Joyalukkas Wedding Centre Kollam. The duration of the project was two weeks.
1.3 Objectives of the Study
The objectives of the study are
To understand organization structure.
To understand the industrial discipline in the organization and the responsibility of
the employees.
To know various activities involved in the organization.
To identify strength and weakness of the organization and also identify opportunities
for improvement.
2
1.4 Methodology
To fulfill any task, it is necessary to follow a certain methodology. The methodology
used in the study is described here
Type of study:
The type of the study was descriptive in nature.
Sources of Information
The relevant data in the subject under study was collected from the following sources.
1. Primary source:-These data was collected directly from the different departmental
heads.
2. Secondary source:- The secondary data was collected from various journals, manuals
and existing records of the company.
1.5 Limitations Of the Study
The reliability of the data used in the study is depended upon the company records
and information given by the employees.
In depth study of the company could not be carried out due to shortage of time.
3
CHAPTER II
BUSINESS ENVIRONMENTAL ANALYSIS
6
2.1 Business Environment Analysis
The PESTEL analysis
The macro environment includes all relevant focus outside a company‟s boundaries relevant in the sense that they are important enough to have brought on the decision.
An industry ultimately makes about its business model and strategy.
Political Factors:-
The Government of India (GoI) has been working to develop the Gems and Jewellery Industry in India through several initiatives but under the purview of Gems and Jewellery Industry. The main political factors are as follows.
• Excise duty: In the budget of year 2008-09 government reduce excise duty from
10% to 5% on cut and polished Gems and Jewellery units. • Marketing and control orders: Import of rough jewellery are controlled by the
Jewellery export Promotion Councils. The Council provides market information to its members regarding foreign trade inquiries, trade and tariff regulations, rates of
import duties, and information about Diamond fairs and exhibitions. • FDI approval: India is now the third most favored destination for Foreign Direct
Investment (FDI), Government of India may permits 49% of FDI in the Gems and Jewellery Industry. FDI of $ 2 billion are invested in terms of working capital in the
industry.
Trade Policy for Diamond
Replenishment Licenses:
The exporters of gem and Gems and Jewellery products are entitled for REP licence
as per rates indicated in the Handbook of Procedures. Such licences are transferable.
Gems and Jewellery Imprest Licence :
Gems and Jewellery Imprest Licences are issued in advance for import of rough gold
and diamonds and for export of cut and polished diamonds. These licences or the
7
materials imported against them may be freely transferred after the export obligation
has been fulfilled.
Economic factors:-
Per capita consumption:Per capita consumption power of customers may highly affect Gems and Jewellery purchase. India`s per capita income is likely to grow more than double over the last seven years, to Rs 38,084 in the current fiscal, reflecting
improvement in the living standards of the average Indian.
• Per capita income, according to the advance estimates for national income is expected to grow by 14% during the current fiscal.
• However, after discounting for inflation, per capita income is expected to rise to Rs 25,661
representing an increase of 5.6%.
National income: As & when the national income of the people of any country
increase it will indirectly leads to more investment in Gems and Jewellery jewelry or ornaments.
State board regulations: Gujarat government declares various polices.
Custom Act: In the Union Budget (2007-2008), custom duty on cut & polished gold and diamond was reduced to 3% from 5%. The Council had made several representations to Government on the exemption of custom duty on cut & polished
diamonds.
Social factors:- The main social factors of the organization, which are deals as the business
organization are as follows.
Emergence of retail org. makes people aware about Gems and Jewellery as a luxury product or an investment option.
Emergence of substitute: Diamond is preferred by consumers with increase in the price of gold.
Changing consumer preferences: W ith the increase in standard of living it‟s also
considered for status symbol.
8
Technological factors:-
The main technological are as follows.
• As Gems and Jewellery Industry try to moving up in to the value chain they are focusing more on they use high end equipments.
• Technology solutions are also available for production control, supply chain and inventory management in the Gems and Jewellery Industry.
The Special Economic Zones and Gems and Jewellery Parks developed in various
states offer technology-enabled environments that are conductive to growth and quality production.
Environment Factors:-
This section draws on literature relating to the general environmental impacts
and related processing activities, and – where available – and specific information
relating to the production of gemstones. In relation to environmental impacts of gold
and gemstone in particular, the situation in each country varies according to the type
of gemstones and gold being exploited, the social and natural environment of the
area and cultural and organizational aspects of the mining operation itself.
Exploration
Underground Extraction
Surface Extraction
River Dredging
.
Legal Factors:-
• Trade Facilitator: The Gems and Jewellery Export Council(GJPEC) undertakes direct promotional activities like organising joint Participation in international Gems
and Jewellery shows, sending and hosting trade delegations
9
• Advisory Role: A crucial area of activity of the Council has also been aiding better
interaction and understanding between the trade and the government.
• Nodal Agency for Kimberly Process Certification Scheme: GJEPC has been
appointed as the Nodal Agency in India under the Kimberly Process Certification
Scheme.
• Training and Research: The Gems and Jewellery Export Promotion Council runs a
number of
Institutions that provide regular and part-time training in all aspects of manufacture
and design in
Mumbai, Delhi, Surat and Jaipur.
• Boosting Exports: Among the promotional activities GJEPC undertakes for the
sector is the
organising of joint participation of member - exporters in some important
international exhibitions and puts up promotional stalls in others
Competitive Environment
Threat of Substitutes : Low
From historic times, gold has played a pivotal role in the Indian social fabric. Gold is
valued in India as a savings and investment vehicle and is the second preferred
investment behind bank deposits. Gold is also the preferred metal in jewellery.
Domestic diamond jewellery demand is low, but increasing at a high rate because of
higher incomes and aggressive marketing strategies.
Bargaining Power of Suppliers : Medium
With negligible production of gold and gemstones, India relies largely on imports.
Bargaining power of Indian industry enhanced by the fact that India is the largest
10
consumer of gold. In rough diamonds, the major global suppliers have very few
alternative customers (cutting and polishing) for their cheaper range of roughs.
Inter-Firm Rivalry : High
Bulk of the industry in India is co n concentrated in the unorganised sector and
employs around 1.5 million workers serving over 0.2 million gold jewellers and over
8,000 diamond jewellers. The majority of India's diamond workforce is employed by
small units, that process diamonds on a job- lot basis. However, the share of the
unorganised sector has declined in recent years.
Bargaining Power of Buyers : Low to Medium
Bargaining power in gold jewellery limited to fabrication charges. In diamond cutting
and polishing, the bargaining power of Indian exporters arises from the fact that a
majority of the world's rough diamond production is cut and polished in India.
Barriers to entry : Low
Low capital requirements, but skilled manpower is essential. Ability to invest in more
advanced technology is becoming increasingly critical.
8
2.2 INDUSTRY PROFILE
2.2.1 Global scenario
The global market for gems and jewellery today is pegged at US$ 85 billion with key markets having registered an average compounded annual growth rate (CAGR) of 5-10 per cent in the last decade
The global market for Gold is estimated at 3300 tonnes. South Africa is the world‟s
largest producer of gold, followed by U.S.A and Australia. Together, these countries
account for 45 per cent of the world‟s total gold production. India is the largest
consumer of gold, followed by the U.S.A. In the production of Silver, the Americas
have near monopoly -Mexico, Peru and the United States are the top three silver
producing countries. Platinum is an extremely rare precious metal. More than 90 per
cent of all platinum supplies come from South Africa and Russia. With increased
economic development, the demand for the metal has grown at a faster pace than it is
being mined. The United States is the world‟s leading consumer of platinum overall,
while China has emerged as the leading consumer of platinum jewellery
Over the years, global markets have been impacted by several developments like
falling trade barriers, increasing competition, changing customer preferences and
developments in technology in several areas. The global jewellery industry is being
transformed by a few key trends such as
Increasing competition among top producing countries
.Emergence of different materials – different alloys within gold, as well asnon-gold
jewellery
Emergence of new manufacturing techniques
Requirement of stricter quality norms and hallmarking.In this context, India is fast
emerging as a leading destination for jewellery manufacturing in the world.
9
2.2.2 Indian scenario
Precious metals and gemstones have been an integral part of the Indian civilisation
throughout its recorded history. Gems and jewellery has been consumed by Indians
for centuries for both their aesthetic as well as investment value. India has the
distinction of being the first country to introduce diamonds to the world. The country
was also the first to mine, cut, polish and trade in diamonds. (Source: CARE Report)
The Indian gems and jewellery industry can be classified into various sub segments
for diamonds, coloured stones, gold and silver jewellery, pearls, and others. However,
the two major industry segments in India are gold jewellery and diamonds. India
dominates the diamond processing trade with 11 out of 12 diamonds being cut and
polished in India (around 80% in terms of carats and around 55% in terms of
volume). India also dominates gold and silver consumption globally with
consumption of approximately 700 tonnes (gold) per year. As a major foreign
exchange earner, the industry also provides employment to approximately 1.5 million
people directly and indirectly. (Source: CARE Report)
The Indian gems and jewellery industry is one of the world’s most competitive
markets due to the low cost of production and highly skilled labour. According to the
Federation of Indian Chambers of Commerce and Industry (FICCI), the Indian Gems
and Jewellery industry - consisting of the domestic and the export market has the
potential to grow from the current US$45 billion to US$100 billion by 2015.
As per the FICCI Technopak Report India’s current dominant position lies in low
value processed raw materials, as depicted on the Gems and Jewellery Value Addition
Ladder below:
10
Fig ref no: 1.1 Gems And jewellery value addition ladder.
The domestic market of gems and jewellery is estimated to be in the US$ 18-20
billion range. Given the fragmented nature of the industry it is difficult to put a finger
on the exact size. The industry is expected to grow at around 13% annually and at this
rate it could reach US$ 35-40 billion by 2015. Currently the domestic gems and
jewellery market is fragmented across the value chain. There are more than 300,000
players across the gems and jewellery sector, with majority of them being small
unorganised players who are operating on wafer thin margins. Organised retail of
jewellery thus presents a significant opportunity to create additional value through
higher margins, which would be possible through differentiation and branding. With
the onset of organised retail in the last decade, lots of new players have entered the
space. Currently modern retail players in jewellery space have only 5%-7% share of
the total jewellery market, but this number would increase considerably in the near
future. (Source: FICCI Technopak Report)
11
Fig ref no: 1.2 Organised retail in different sectors.
(Source: FICCI Technopak Report)
The industry is characterised by a significantly large unorganised sector, labour-
intensive operations, high working capital & raw material intensiveness, gold price
volatility and export orientation. The demand for gold and diamond jewellery is
driven by festivals, weddings and gifts, the increasing affluence of the middle class
population and the increase in per capita on luxury items. (Source: CARE Report)
Though India plays a dominant role in the gems and jewellery industry in terms of
processing and consumption, India’s role in mining gold and diamonds is amongst the
lowest in the world. Gold is imported from countries like Switzerland, South Africa,
Australia and the United Arab Emirates, and rough diamonds are imported from
Belgium, the United Kingdom, Israel and the United Arab Emirates. There has been
an impact on the demand for gold due to the record high price of gold in the last
12
couple of years, but consumers have continued to demand the precious metal and
there is an increased investment-related demand for gold. The key drivers for growth
in the industry are increasing disposable income, conscious marketing efforts, rising
population with the urge to spend on jewellery as a fashion accessory.
2.2.3 State Scenario
CHRONOLOGICAL GROWTH OF GOLD ORNEMENT MFG. INDUSTRY IN
THE STATE OF KERALA
Before 60s Dominance of Viswakarma (gold smith) based units
Mid of 60s Entry of trading and branded firms into this cluster
Late 60s Ban gold movements and complete break-down of Dominance of Visa
Karma (gold smith) based units
Late 70‟s Dominance of few firms and invasion of other community and unemployed
youth. And losing grip of family and community based activity.
Early 80s Entire gold Jewellery manufacturers are turned into a job workers category
and the entire markets were being controlled by few traders.
Early 90s New trade policy , which did favour to the artisans type cluster
Mid 90s Quitting and changing of trade and business was witnessed for better
survival 2000 The entry of few registered SSI based units into this sector were
witnessed
2005-11 new vision and thriving of trade are being witnessed.
13
2.3 Industrial Analysis
Precious Metals and Gems
Gold
Gold is more than a precious metal in Indian culture and is truly entrenched in India’s
culture. For hundreds of years, gold has been an important part of the Indian society
and fused well into the psyche of an Indian. There is a tradition of buying gold during
auspicious occasions such as Diwali, Akshaya Tritiya, Dussehra, and also during
weddings. In rural India, farmers typically buy gold jewellery after a successful
harvesting season as it is valued for its investment characteristics and as a hedge
against inflation.
Fig ref No.1. 3 Geographical segmentation of gold
14
In 2009, total Indian gold consumption reached US$19bn or ` 974 bn equivalent at
the end of 2009. Over the past decade, this has increased at an average rate of 13%
per year, outpacing the country’s real GDP, inflation and population growth by 6%,
8% and 12% respectively.
Gold jewellery demand in India, the world’s largest gold jewellery market, rose 67%
year -on-year to 272 tonnes in the first half of 2010. Over the same period, the
average domestic gold price surged to almost ` 52,800/oz, before hitting a new high
of ` 60,460/oz on October 15, 2010. Despite the higher gold price, market sentiment
remains positive, especially with the local gold market also benefitting from the
strengthening of the rupee against the US dollar.
Fig ref No. 1.4 Average annual 10 year growth rate in India
India is the biggest consumer of gold in the world. To meet Indian consumption
requirements for jewellery and investments, India imported 590 tonnes of gold in
fiscal 2009. Almost 95% of the gold imported to India is used for jewellery. The
15
major countries which supply gold to India are Switzerland, South Africa, Australia
and the United Arab Emirates. A majority of gold in India is sold in retail sales and a
small portion is held as reserves with the central government treasury.
Silver
The CARE Report indicates that along with gold, silver enjoys a special place in the
psyche of the Indian consumer and is considered the second-best investment option in
precious metals. In the last two years, silver prices have grown significantly in line
with the rise in gold prices resulting in a decline in demand for jewellery and fashion
accessories. Going forward, CARE Research expects that the silver price movement
will tend to follow the gold prices as the prices of silver and gold in Rupees have
shown a correlation of 0.98 in the last 10 years.
Diamonds
India is one of the leading diamond processors in the world. With the rise in gold
prices, consumers are turning to diamond-studded jewellery which gives them a
higher perception of luxury and value. The craftsmanship and low cost of Indian
diamond processors has given India a competitive edge in diamond cutting and
polishing. The CARE Report indicates that India accounts for approximately 55% of
the global polished diamonds market in terms of value, 80% share in terms of
caratage and 92% in terms of pieces. India’s dominance in the cutting and polishing
segment has been attributed to superior craftsmanship, low cost of Indian lab
Joyalukkas and superior technology. ()
Due to the global slowdown, diamonds are comparatively less expensive than they
were in 2007. With only a gradual recovery from developed markets for diamonds,
especially the US, Indian manufacturers have now focused in on the ever-growing
demand from domestic market for diamond-studded jewellery. Given these new
16
trends for diamond jewellery, diamond jewellery sales have increased by a multiple
of four, from USD 1 billion to USD 4.2 billion in the last four years according to
industry experts.
Fig No.1. 5 Geographical Segmentation of Diamonds in India
According to some estimates, about 25% of the gold jewellery purchasers have
switched to diamond- studded jewellery because diamond-studded jewellery is
typically created in less-pure 18-carat gold compared to gold jewellery which is made
from 22-carat gold.
Demand and Supply
India experienced the highest growth in jewellery demand, posting an increase of
36%. A rise in the value of the rupee against the US dollar offered Indian consumers
some degree of protection from the full extent of the rise in the US$ price during the
quarter. Demand increased to 184.5 tonnes from 135.2 tonnes a year earlier. In local
currency value terms demand reached a remarkable ` 338bn, 67% higher than the
same period of 2009. Restocking by the trade ahead of the fourth quarter festive
season was a key driver of growth. The India International Jewellery Show (IIJS) in
17
August in particular witnessed enthusiastic demand. Given the dual purpose of Indian
jewellery, as both an adornment and an investment, the rising price helped to support
demand for jewellery. Furthermore, consumers have adjusted their price expectations
and are anticipating yet higher prices. This has had the twin effects of further
reinforcing investment related demand for gold jewellery while also encouraging
consumers to purchase gold now rather than defer purchases to a time when prices are
higher. (Source: Gold Demand Trends, November 2010)
Manufacture of Jewellery
Jewellery manufacture, diamond polishing and setting is a process that requires
significant skill. Although machines can perform some part of the work, the process
is very labour intensive. India, with its availability of low-cost skilled labour is in a
position to deliver products of good design and quality at a low cost.
India has well-established capabilities in manufacturing hand-made jewellery in
traditional as well as modern designs. Indian hand-made jewellery has ethnic demand
in various geographies with a high Indian population like Middle East, the US and
Canada. With traditional hand-made jewellery, India has also progressed in using the
latest technologies in diamond-processing and jewellery-making. Many of India’s
manufacturing companies are now equipped with latest Computer Aided Design
/Computer Aided Manufacture systems and other advanced software programmers.
The diamond processing companies have modern equipment, such as laser machines,
automatic and semi-automatic bruiting machines and auto planners. India also has an
ample professionally-trained workforce which is well-versed to operate the latest
equipment.
18
Jewellery Retail
Branded jewellery has been a relatively recent phenomenon in India because most
jewellery is sold in the unorganized sector. Consumers have become more informed
about the quality and certification of gold jewellery and are now insisting on
certification. Traditionally, gold has been purchased because of its investment value
along with aesthetic value, unlike in countries other than India, where it is bought
only for ornamental purposes. With changing demographics, the branding of
jewellery and the retail revolution, young customers (from age groups of 20-40 years)
prefer buying jewellery for fashion rather than for investment. Many companies have
started investing in brand-building exercises for their products. All these efforts are
expected to result in higher growth in the branded and therefore also organised
jewellery market.
The branding of jewellery in India follows the pattern in the international market
where 90% of the jewellery is sold as a fashion accessory or as everyday wear and not
as an investment. Branded jewellery in India is positioned as a lifestyle and
personality statement. There has also been a shift in consumer preference towards
diamond-studded jewellery due to the extensive positioning of diamond-studded
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 lifetime return and buy-back schemes. These trade
practices have resulted in the perception of superior quality being associated with
branded jewellery. The new generation of jewellery purchasers does not have ongoing
relationships with local jewellers and prefers to buy branded jewellery. ()
19
Retail Formats
In India, organised retailers account for a mere 4% of the total jewellery retail market.
This is because of the buyer‟s preference and trust in their neighborhood goldsmith.
Even the standardisation of designs is not possible due to varying local tastes. There
are about 15,000 vendors across the country in the gold processing industry, with
over 450,000 gold smiths spread across the country. There are also more than 6,000
vendors in the diamond-processing industry (). Organised vendors have been growing
steadily, carving a market share of 4% of the industry (). With consumer preference
for fine quality goods, branded jewellery, hallmark certification and maturity in the
jewellery market, organised retail share is expected to grow. Elevated go ld prices,
higher borrowing and operating costs, makes the survival of family-owned jewellers
difficult as well.
Pricing
Gold is a renowned metal not only for its traditional use for adornment but also for its
stance as a time tested investment-class asset. The price of gold is determined by the
fundamental demand-supply dynamics of the gold bullion market. Gold is considered
to be a relatively safe investment in times of economic volatility and uncertainty.
With the recent weakness and high fiscal debt levels of major western paper
currencies, gold has attracted many investors, as evidenced by gold’s record high
prices in the last two years. The Indian consumer is generally regarded as
sophisticated and price sensitive and remains very risk averse when the prices are
volatile. When prices are high an increase in sales of scrap gold is often observed and
conversely when prices fall or show signs of stability, it results in an increase in
demand.
().
20
2.3.1 Industry Key Players
Gitanjali Group
Having won over 50 awards from the Ministry of Commerce, India for outstanding
exports of diamond and jewellery, is today over $1000 million multinational group,
and a publicly listed entity. Operations span the globe, all the way from USA, UK,
Belgium, Italy and the Middle East to Thailand, South East Asia China, and Japan.
Joyalukkas
The Group has grown with 10 million customers and employs a highly committed
and satisfied team of over 3000 people in various countries.
Tanishq
Belonging to the House of Tata, it is one of the most successful jewellery brands in
India. There are a total of 84 stores in 61 Indian cities at present.
D‟Damas
D'damas is one of the most popular jewellery brand in the country today with a
presence in over 159 towns and cities.A joint venture between Gitanjali Gems and the
Dubai based Damas Group; D'damas is a sub-brand that combines international
quality with Indian values.
Reliance Jewels
planning an aggressive entry into the jewellery retail market
through its about 400 to 500 jewellery retail outlets across the country.
21
Tbz
The original has been pioneers in jewellery business since inception in 1864. The
original has employeed a leadership status in its design. Quality and consumer
satisfaction for well over a centuary across generations
Of late, some of the world's biggest names in the jewelery and luxury items such as
watches and cuff- links are making inquiries to set up shop in India. Multi-national
jewelery brands such as Tiffany, Cartier, Zales and Harry Winston are all said to be
interested in coming here following the Government's decision to allow foreign direct
investment of up to 51 per cent in single brand retail stores. Most of these stores have
been sourcing cut and polished diamond and gold items from Indian firms. Now they
are making inquiries for possible tie-ups in India.
2.3.2 Competitor Analysis
Major Competitors
Gitanjali grp
Tanishq
Tbz
Prince jewellers.
22
Chapter III
ORGANIZATIONAL PROFILE
23
3.1 Background And History
JjJoy Alukkas, followed in his visionary father‟s footsteps and expanded the „Joy
Alukkas‟ name to a global level. His father Varghese Alukkas started his first
jewellery showroom way back in 1956 and since then Joy Alukkas has made
„Joyalukkas‟ an household name in jewellery. Joy Alukkas took his first step by
setting the jewellery showroom in UAE in the year 1987.
Joy Alukkas‟s success is the result of his forethought. In 1987 he flew to UAE to
explore the untapped market and little did he realize that he was going to change the
way the world looked at jewellery. He set up his first shop in Abu Dhabi followed by
Dubai, Sharjah, Al Ain and Ras al-Khaimah. The expansion since then has continued
to Europe in countries like UK, Qatar, Oman, Bahrain and Kuwait.
Despite running a multi dollar retail gold and diamond jewellery business halfway
across the world, Joy Alukkas wears his success lightly. He has his ear to the ground,
his finger on the pulse and his feet on the ground. The fact is Joy Alukkas got to
where he is because he never compromised with its corporate values and strongly
believed that satisfied customers are the backbone of a company.
Joyalukkas became the first jeweller in the Middle East to be awarded both the ISO
9001 and ISO 14001 certification and to be recognized by the Dubai government with
the Dubai Quality Award under Trade category in 2008.
.Joy Alukkas revolutionized retail jewellery trade in India by introducing training
programs for its employees and also brought the concept of „wedding centre‟ within
the jewellery store. Many a feathers are attached to the success hat of Joy Alukkas,
including the opening of the world‟s largest showroom and the first Diamond Cave in
Chennai, India, considered the jewellery hub of India. The phenomenal success of this
showroom and this unique concept has proved his foresight and business acumen.
24
3.2 Vision, Mission, Objectives and Goals
VISION
To become a global brand by ornamenting the world.
MISSION
To improve and enrich lives everywhere by offering extraordinary lifestyle solutions
backed by incomparable value-additions, adhering to globally approved processes and
norms and creating a successful value- chain for our associates.
OBJECTIVES
Plans to open 100 new showrooms by 2010, making it Asia‟s largest chain of
jewellery showrooms.
By the end of the decade, Joy Alukkas is poised to be the World‟s No. 1 jewellery
chain
Goals
The primary goal of Joyalukkas is to ensure that every customer is 100% satisfied
with their Joyalukkas purchases.
25
3.3 COMPANY PROFILE
Joyalukkas is a popular jewellery retail chain that has rapidly expanded it‟s presence
across India in the past few years. Today the jewellery retail chain has strongly
marked its presence in the states of Tamil Nadu, kerala, Karnataka & Anthra
Pradhesh is also present in the cities of Mumbai, Puducherry, Guragon (Haryana).
Joyalukkad employs a high;y commited and trained team of over 2300 employees
across its various locations in India. The success and growth of Joyalukkas has been
driven by its growing customer base.
Joyalukkas jewellery has won many awards and recognition for its excellent business
practices and skilled jewellery retailing. The most recent being the Retail chail of the
year and Best Single Store (Joyalukkas Chennai Showroom) at the „National
Jewellery Award 2011” organized by All India Gems And Jewellery trade federation
(GJF), it has also been recognized for being the highest VAT paying jewellery Group
at the Kerala Gem and Jewellery show organized by the Deopartment of Industries
and Commerce, Government of Kerala.
Jotalukkas is renowned within the Jewellery lovers for its choice, quality and service,
and value offering. It is one of the consistently growing jewellery retail chains in
India with plans to expand its presence all across India.
Joyalukka is currently operating 24 Jewellery showrooms across India. Plans to open
an additional 13 new showrooms are already in place, and Joyalukkas to complete the
expansion plans by September 2013. Joyalukkas showrooms offer a wide variety of
jewellery in Gold, Diamonds, Pearl, Platinum & precious stones. Some of the
joyalukkas showrooms also feature silver jewellery and silver items.
26
The Joyalukkas chain also includes „Wedding Centers‟ which offers a wide variety of
clothing and fashion accessories for weddings and regular use of ladies, gents and
kids. The „weddimg centers‟ aim to offer an integrated shopping experience to
shoppers, where they can purchase jewellery ,clothing and accessories for wedding
and other occasions from one single store. The Joyalukkas Wedding Centers are
located in Kerala and is most popular in its respective locations.
Joy Alukkas Group has always believed that people and the community within which
operates are the cornerstones for its success and as such is active ly involved in CSR
activities across various states in India. Joyalukkas consistently undertakes various
programmes to help the needy and encourage cases that benefit the society. From
building homes to helping flood victims when they require financial ass istance, the
group ha always believed in being there when needed the most.
27
3.4 Products And Market
Products
Joyalukkas portfolio of finished jewellery products includes, among others,
Studs
Chains
Bangles
Necklaces
Bracelets
Rings
anklets.
Textiles and Apparels Market
Joyalukkas textiles, apparels and accessories business operations are carried out
through their four Wedding Centres situated in Kerala. Joyalukkas‟s largest Wedding
Centre is situated in Kollam having a floor area of approximately 39,896 sq. ft. Our
Wedding Centres aim to offer an integrated shopping experience where Joyalukkas
customers can purchase premium jewellery, clothing and accessories for weddings
and other festive occasions in the same store. Further, our Wedding Centres cater to
the textile requirements of an entire family, with its wide collection of men’s,
women’s and children’s apparel. Joyalukkas believe this is an innovative concept and
enables their Company to cross sell their products and also to create a loyal customer
base.
The purchase division for the Wedding Centres is spread across their four stores. The
Manager (Textiles) heads the textile division. All purchases for the Wedding Centres
28
are directly controlled by the Manager (Textiles) and orders for purchase are placed
based on the requirements received from each of the Wedding Centres.
As of December 31, 2010, Joyalukkas textile and apparel division comprised of 535
employees. Joyalukkas textile and apparel purchases can be broadly categorized into:
(a) seasonal purchases, (b) non-seasonal purchases and (c) purchase for export sales.
A. Seasonal purchases - These are bulk purchases made to fulfill Joyalukkas seasonal
requirements, such as during Onam, Christmas and New Year seasons. Based on the
previous year‟s sales figures, Joyalukkas purchase division prepares a purchase
budget for the upcoming season. The purchase requisitions and purchase orders are
prepared and approved based on this budget.
B. Non-seasonal purchases - These purchases are made based on Joyalukkas stock
position and the anticipated marketability of certain unique and new products.
C. Export sales - These purchases are made for the purpose of Joyalukkas export sales
of textiles and apparels to Joy Alukkas Center LLC, Sharjah.
29
3.5 Certifications, Awards, Recognitions
Fiscal
Year Awards
2011 Best Single Retail Store of the Year‟ award to Joyalukkas chennai
showroom at the National
Jewellery Awards
2011 Organized by the All India Gems and Jewellery Trade Federation
2011 Best Retail Jewellery Chain of the Year‟ award at the National Jewellery
Awards 2011
organized by the All India Gems and Jewellery Trade Federation
2010 Retail Chain of the Year Award at the Retail Jeweller India Awards 2010
instituted by
the Retail Management Group‟
2010 Highest Commercial Tax Payer in Jewellery Retail at the Kerala Trade
Awards 2010
organised by the Government of Kerala
2009 Retail Jeweller India Awards for the television campaign, 2009 instituted by
the „Retail
Management Group‟
30
2009 360 Degree Marketing Campaign for the Year 2009 at the Retail Jeweller
India Awards
instituted by the„„Retail Management Group‟
2009 Kerala’s Highest VAT Payer in Gem & Jewellery Industry at the Kerala
Gem &
Jewellery Show – Gold Souk Awards
2008 Best Consumer Choice Award at the Retail Jeweller Awards, 2008 instituted
by the
„Retail Management Group‟
2008 Best Overseas Retailer of the Year at the Kerala Gem & Jewellery Awards,
2008 at the
Kerala Gem & Jewellery Awards, 2008
2007 Best Retailer of the Year at the JJS Gold Souk Awards, 2007
2006 Best Retail Promotion of the Year at the Retail Jeweller Awards, 2006
instituted by the
„Retail Management Group‟
31
3.6 Business Performances
Joyalukkas is one of the leading jewellery companies with focus on Large Format Stores.
Joyalukkas jewellery business consists of the sale of jewellery made of gold, diamond and
other precious stones, platinum and silver. Joyalukkas have also engaged in the business of
selling textiles, apparels and accessories through our Wedding Centers in Kerala. Joyalukkas
offer a wide range of products across various price points and cater to customers across all
market segments. In Fiscal 2008, 2009 and 2010, Joyalukkas sold 7,154.35 kg, 8,430.05 kg and
8,807.46 kg of Gold, respectively. In Fiscal 2008, 2009 and 2010, Joyalukkas total income
from sale of Gold was ` 7,500.64 million, ` 11,248.35 million and ` 14,468.25 million,
respectively, representing a CAGR of 38.89% over the a foresaid period.
Joyalukkas conduct jewellery retail business under the brand name „Joyalukkas‟. Joyalukkas
started retailing jewellery in India in the year 2002 with the launch of their first retail store at
Kottayam in Kerala.
As of December 31, 2010 Joyalukkas had 22 retail stores, of which 10 are Large Format
Stores, each having a floor area of 12,000 sq. ft. or more. Further, Joyalukkas intend to set up
three new Large Format Stores in Kumbakonam, Hubli and New Delhi and three new Wedding
Centres in Kozhikode, Thrissur and Thiruvananthapuram by September 2013, each with an
estimated floor area of 12,000 sq. ft. or more.
32
The following table depicts the details of Joyalukkas jewellery, and textiles, apparels and
accessories business operations as of and for Fiscal 2008, 2009, 2010 and as of and for the six
month period ended September 30, 2010:
Sr.No.
Particulars
particulars Fiscal 2008 Fiscal 2009 Fiscal 2010 Six months
ended
September
30, 2010
1 Number of
stores
13 15 20 21
2 Floor area
(sq. ft.)
Jewellery
185,713 200,893 235,438 261,752
Textiles,
Apparels and
Accessories
104,617 104,617 104,617 104,617
3 Gold Sales (in
kg)
7,154.35 8,430.05 8,807.46 5,223.05
33
4 Revenue (` in
million)
Jewellery 8,345.53 12,843.45 16,730.07 11,765.13
Textiles,
Apparels and
Accessories
1,280.90 1,428.29 1,490.52 779.49
*As per the certificate obtained from Molekules Interior Studios, Sai Lake Residency, Near
Adarsh Nagar, Kolbad, Thane (West),
Mumbai 400 601.
Table ref no 1. Joyalukkas jewellery, and textiles, apparels and accessories
business operations as of and for Fiscal 2008, 2009, 2010 and as of and for the
six month period ended September 30, 2010
Joyalukkas premier Stores are the three Large Format Stores situated in Chennai, Bangalore
and Coimbatore, having an aggregate total floor area of 96,309 sq. ft. Joyalukkas sell textiles,
apparels and accessories through Joyalukkas four Wedding Centres situated in Kerala
(Angamaly, Thiruvalla, Kollam and Ernakulam) having an aggregate floor area of 157,593 sq.
ft. Our Wedding Centres aim to offer an integrated shopping experience where Joyalukkas
customers can purchase premium jewellery, textiles, apparels and accessories for weddings and
other festive occasions in the same store. Joyalukkas believe this is an innovative concept and
enables their company to cross sell their products and also to create a loyal customer base.
Further, our Wedding Centres cater to the textile and apparel requirements of an entire family,
with their wide collection of men’s, women’s and children’s apparel.
As of March 31, 2010 and September 30, 2010, Joyalukkas maintained an aggregate inventory
34
of 2,222.74 kg and 2,385.47 kg of Gold, respectively. In addition they maintained an inventory
of jewellery made of diamond and other precious stones, platinum and silver, all with an
extensive array of designs.
As of December 31, 2010, Joyalukkas had 2,347 employees, comprising 1,311 employees
working in division, 535 employees in textile division, 420 employees in administrative office
and 81 employees in purchase department.
3.7 Strategic Plans and Future Programmes
The key elements of Joyalukkas business strategy are as follows:
Continue to expand Joyalukkas network of Large Format Stores and Wedding
Centres
We intend to continue to develop Joyalukkas existing branded jewellery lines and introduce
additional sub-brands and product offerings to cater to Joyalukkas customers and price
segments in the diamond and platinum jewellery markets through expansion of Joyalukkas
retail operations. We intend to capitalize on Joyalukkas significant experience and expertise in
developing the branded jewellery market in India. Further we intend to leverage Joyalukkas
goodwill associated with Joyalukkas existing brands, to further develop Joyalukkas various
sub-brands in target markets and product segments in India. Joyalukkas seek to achieve this
through expansion of Joyalukkas retail operations, increased marketing initiatives, innovative
promotional campaigns and extensive advertising.
Joyalukkas large Format Stores are typically situated at strategic locations in prominent cities,
such as in Chennai, Bangalore and Coimbatore. By September 2013 we intend to set up three
new Large Format Stores in Kumbakonam, Hubli and New Delhi and three new Wedding
35
Centres in Kozhikode, Thrissur and Thiruvananthapuram, each with an estimated floor area of
12,000 sq. ft. or more. Joyalukkas large Format Stores in India offer comprehensive product
range of jewellery made of gold, diamond and other precious stones, platinum and silver to
target various jewellery categories and different customer and price segments as well as to
provide custom made jewellery.
Our Wedding Centres are Large Format Stores that house a wide range of jewellery, textiles,
apparels andvaccessories that specially cater to customers looking for wedding related
purchases. Our Wedding Centres aim to offer an integrated shopping experience where
Joyalukkas customers can purchase premium jewellery, apparel and accessories for weddings
and other festive occasions under one roof. In Fiscal 2010 and for the six month period ended
September 30, 2010, Joyalukkas total income from sale of textiles, apparel and accessories in
our Wedding Centres was ` 1,404.81 million and ` 751.26 million respectively, which
constituted 7.70% and `
Further increase their percentage contribution of diamond and platinum
jewellery business to their total revenues
The sustained growth of Indian economy coupled with growing employment levels, income
levels and availability of credit in India has resulted in greater consumer spending and
disposable income. This has boosted the retail business in India and consequently resulted in
the growth of retail jewellery business and increasing demand for jewellery made of diamond,
platinum and other precious stones. In Fiscal 2009, 2010 and six months ended September 30,
2010, Joyalukkas revenue from the sale of jewellery made of diamond, platinum and other
precious stones constituted 10.61%, 11.98% and 13.50% respectively of Joyalukkas total
revenue. We intend to continue increasing Joyalukkas diamond and platinum jewellery
retailing business and use Joyalukkas ability to provide a wide range of jewellery products of
various grades, designs and price segments, Joyalukkas strong branded jewellery lines and our
wide retail trade operations to increase Joyalukkas market share in diamond and platinum
jewellery in India. Joyalukkas also intend to capitalize on the gradual shift of consumer
36
preferences in India from traditional gold jewellery to jewellery made of diamond, platinum
and other precious stones.
Continue to invest in their marketing initiatives and brand building exercise
We intend to continue investing in Joyalukkas marketing initiatives and brand building
exercise, including advertising through various media. In Fiscal 2010, and for the six month
period ended September 30, 2010, Joyalukkas had expended ` 480.56 million and ` 333.92
million respectively, towards advertising and sales promotions expenses, which constituted
2.64% and 2.66% respectively of Joyalukkas total income. Further Joyalukkas shall continue to
consult external agencies on the optimum allocation of Joyalukkas marketing resources by
determining the appropriate media vehicle for reaching out to Joyalukkas retail customers.
Joyalukkas believe that effective marketing is important for future revenue growth, to improve
Joyalukkas company’s brand visibility, to establish relationships with target markets and to sell
a great number of Joyalukkas products in a competitive cost effective manner.
Set up service centres in Bangalore and Chennai
We intend to set up specialized service centres in Joyalukkas large Format Stores situated in
Bangalore and Chennai. These service centres would cater to our wide range of customers by
providing free service on Joyalukkas jewellery products. This may also increase the number of
repeat customers, establish long term relationships with Joyalukkas repeat customers and
increase the sales of a wider range of jewellery products.
37
CHAPTER - IV
ORGANISATIONAL STRUCTURE
38
4.1 Organisational Structure
Joyalukkas‟s managerial organisation structure is given below:
Fig ref no 2.1 Organization structure
39
CHAPTER V
FUNCTIONAL ANALYSIS
40
5.1 Materials & Procurement
The following flowchart indicates the mode of procurement of raw materials for the
manufacture of gold jewellery:
Fig ref. no 3.1 procurement of raw materials for the manufacture of jewellery
41
Joyalukkas jewellery products consist of four product segments:
(a) Gold jewellery;
(b) Diamond jewellery;
(c) platinum jewellery and jewellery made from other precious stones; and
(d) silver jewellery.
Sourcing of Jewellery
Gold jewellery
Joyalukkas source Joyalukkas inventory of gold jewellery through the following
routes:
(a) Purchase of bullion/standard gold from bullion suppliers and converting them into
finished
jewellery through job-work arrangements;
(b) Purchase of finished gold jewellery from independent jewellers/ suppliers; and
(c) Purchase of old gold jewellery from customers and converting them into finished
jewellery
through job-work arrangements.
Joyalukkas place orders for the purchase of bullion/standard gold from gold suppliers
or finished gold jewellery from a large number of local independent jewellery
manufacturers, based on Joyalukkas requirements received from each of Joyalukkas
42
retail stores, through Joyalukkas centralized purchase division having regional
offices. The bullion/standard gold is converted into finished gold jewellery through
job-work arrangements with Joyalukkas dedicated group of goldsmiths/ job-workers.
Joyalukkas select the jewellery designs, based on market trends and Joyalukkas
requirements in each of Joyalukkas retail stores, or Joyalukkas obtain designs through
leading design houses. The raw materials required for the manufacture of gold
jewellery products, such as, standard gold/bullion, copper and colored-stones are
provided by us to the job-workers, based on Joyalukkas requirements. Joyalukkas
have entered into agreements with major suppliers of bullion, such as, with the Bank
of Nova Scotia for spot purchase of bullion and also entered into supply agreements
with some of Joyalukkas major suppliers of finished jewellery and job-workers.
Additionally, Joyalukkas procure old jewellery from Joyalukkas customers who
intend to exchange their old jewellery for new designs or against payment of cash.
Joyalukkas currently have five purchase divisions for the purchase of gold, situated at
Thrissur, Coimbatore, Chennai, Bangalore and Hyderabad.
Diamond Jewellery
Joyalukkas source inventory of diamond jewellery through the following routes:
(a) Purchase of finished diamond jewellery from independent jewellers/suppliers; and
(b) Job-work arrangements for manufacture of diamond jewellery.
The procedure followed for the sourcing of diamond jewellery is similar to that of
gold jewellery. We currently have four regional purchase divisions for the purchase
of diamond jewellery, situated at Thrissur Chennai, Hyderabad and Bangalore.
Joyalukkas have entered into supply agreements with some of their major suppliers of
finished diamond jewellery.
43
Platinum Jewellery and Jewellery made from other precious stones
Joyalukkas source their inventory of jewellery made of platinum and other precious
stones completely through purchase of finished jewellery from independent
jewellers/suppliers. The procedure followed for the sourcing of jewellery made of
platinum and other precious stones is similar to that of gold and other jewellery
products. Joyalukkas currently have three regional purchase divisions for the
purchase of jewellery made of platinum and other precious stones, situated at
Thrissur, Chennai and Bangalore. Joyalukkas have entered into supply agreements
with some of their major suppliers of jewellery made of other precious stones.
Silver Jewellery
Joyalukkas source their inventory of silver jewellery through the following routes:
(a)Purchase of finished silver jewellery from independent jewellers/suppliers; and
(b) Purchase of old silver jewellery from customers and converting them into finished
jewellery
through job-work arrangements.
The procedure followed for the sourcing of silver jewellery is similar to that of gold
jewellery. Joyalukkas‟s purchase division for the purchase of silver jewellery is
currently situated in Chennai.
Upon receipt of finished jewellery from job-workers/independent jewellers,
Joyalukkas undertake the following measures, prior to final sale of jewellery products
to end-customers:
A. Quality control
44
Quality control involves physical verification and inspection of the finished jewellery
products and mechanized purity check of the finished jewellery products on a random
basis. The physical and mechanized verification is to ascertain the craftsmanship,
finishing and purity of the jewellery products. Apart from the regular quality control
measures, finished diamond jewellery products are tested on a fourpoint scale: carat,
color, cut an clarity. Based on this test, the diamond jewellery is given a grade such as
Flawless (FL), Internally Flawless (IF), Very Very Slightly Included (VVS), Very
Slightly Included (VS), Slightly Included (SI) or Included (I).
B. BIS Hallmarking/ IGI and PGI certifications
Hallmarking is a gold purity assurance certification obtained from certain agencies
certified by the Bureau of Indian Standards („BIS‟), a Central Government authority.
BIS is a recognized certification authority in the gold jewellery industry. The
hallmarking agencies test the purity of gold contained in the finished gold jewellery
products and certifies such purity for each product. Joyalukkas company typically
sells hallmarked gold jewellery through its retail stores.
Diamond jewellery is certified by International Gemological Institute („IGI‟). The
IGI certification is a purity assurance certification. All diamond jewellery sold at
Joyalukkas retail stores is certified by IGI except very small ornaments like nosepins
etc.
Joyalukkas platinum jewellery is certified by Platinum Guild International („PGI‟).
The PGI certification is a purity assurance certification. All platinum jewellery sold at
Joyalukkas retail stores is certified by PGI except very small ornaments like nosepins
etc.
45
Joyalukkas platinum jewellery is certified by Platinum Guild International („PGI‟).
The PGI certification is a purity assurance certification. All platinum jewellery sold at
Joyalukkas retail stores is certified by PGI except very small ornaments like nosepins
etc.
Further, Joyalukkas obtain purity assurance certification for Joyalukkas silver
jewellery products from certain outside agencies. The purity assurance certification
will specify the purity of silver contained in the finished silver jewellery products.
C. Bar-coding
The hallmarked jewellery products are bar-coded by Joyalukkas company. Bar-
coding is a process of categorizing, branding and pricing of the jewellery products,
prior to distributing the finished jewellery products for sale in Joyalukkas retail
stores. Bar-coding provides the maximum price at which a finished jewellery product
can be sold. Further, bar-coding also enables the tracking of the finished jewellery
products from the time of barcoding until the sale of the jewellery product by
invoicing the bar-coded details. Details such as gold content, item code, description
of the item, weight, the name of the supplier, brand name, price, and stone value are
typically included in the bar-coding of the finished jewellery products. Bar-coding is
carried out prior to distribution to Joyalukkas retail stores.
D. Packaging
Joyalukkas package their jewellery products prior to their sale to their end-customer.
Joyalukkas packaging carries the „Joyalukkas’ brand name and is carried out at
Joyalukkas retail stores.
46
The following flowchart indicates the manufacturing process for gold jewellery:
Fig Ref. no 3.2 Manufacturing process of gold jewellery
Gold jewelery
Quality control
Hallmarking
Barcoding
Packaging
Sales
47
5.2 Operations
Joyalukkas business operations can be broadly categorized into two verticals, namely,
(a) manufacture and retail trading of jewellery and (b) retail trading of textiles,
apparels and accessories
Fig Ref. no 3.2 Operations process flow
BUSINESS
JEWELLERY
GOLD DIAMOND
PLATINUM AND PRECIOUS STONES SILVER
TEXTILES /APPARELS
WEDDING AND OTHER APPARELS ACCESSORIES
48
Following is the map of India highlighting Joyalukkas existing retail stores
Fig ref no.3. Map highlighting Joyalukkas existing store
49
5.3 Human Resource Department
As of December 31, 2010, Joyalukkas had 2,347 employees, comprising 1,311
employees working in Joyalukkas jewellery division, 535 employees in Joyalukkas
textile division, 420 employees in Joyalukkas administrative office and 81 employees
in Joyalukkas purchase department.
HR Policies in the organization
Joyalukkas group is very famous in their HR activities. Human Resource is the most
important part of every industry. A gathering of efficient employees is the base of
every organization. Without that the organization will struggle to survive. And of
maintaining existing and attracting employees good Hr policies should be maintained
in the company.
Recruitment
The recruitment policies of a company constitute its need for employees. Recruitment
helps a company to meet their human resource needs. It is very important to recruit
quality employees. For that a well prepared recruitment policy should be there for the
company.
50
The policy should mention some questions like:
What is purpose of recruiting people?
To which area recruitment is made?
What all are the skills looking at?
What kind of people are we looking for?
What are the qualifications needed? Etc.
Recruitment should be able to satisfy all these questions. Otherwise the main aim of
the process will be a failure.
Recruitment in Joyalukkas group are conducted on quarterly basis. The company will
give advertisements in newspapers and famous T.V channels. Then through normal
recruitment procedures recruitment will be made. The rules and regulations of the
company will be announced only after the selection process. The procedures of
recruitment practiced for both the gold and textile division are different
For gold division employees there will be bonded agreement and candidates will have
to submit a cheque worth ` 50000 as a safety measure. The most important part of
Joyalukkas group is that even if there exists these kinds of rules they are only for the
sake of safety and nothing else. They don‟t hesitate to relieve a candidate who has got
another job or opportunities with more benefits. And that‟s one of the main
advantages of the company when compared to others.
51
The newly recruited employees will be appointed as sales trainees for three months.
The probationary period of the employees will end by 6 months from the date of
joining. In the first month candidate will not be having any salary. There will training
sessions by floor managers for three months. There will training by experts from
external agencies to make a vision on employees (within first 6 months.)
The uniforms will be provided to the employees after first 3 months. Within this time
these candidates are given proper understanding on what they are dealing with and
how they should deal with it.
Training & Development
The training and development practices in joy Alukkas is very famous as it focuses at
the overall development of the employee. Initially the candidates will be given 3 days
training based on the general topic like „About the company‟, the products they are
going to deal with, sales techniques etc. and this will be done by experts from famous
training house. After the 3 days training the candidates will be posted to different
showrooms around the country. The next level of training starts from here. The newly
selected candidates are not allowed to enter the counter for selling when they come.
To enter the sales counter the candidates have to prove his competent for facing the
customers. If the supervisor thinks he is competent enough to deal the customers he is
allowed to assist a senior salesperson. And this senior person will help the candidate
to learn how to route a sale. Here in Joy Alukkas group the candidates or employees
are given chance to work in all the department i.e. a candidate will get experience in
sales while doing counter sales, he will get experience as a cashier, he will get
experience in human resource dept., accounts, marketing etc.. This type of training is
only to make sure that they are capable of becoming good future managers and should
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be capable of understand these functions as a manager. Here the training will only get
to an end when he becomes a manager of a showroom.
Salary
For fixing the salary the Joy Alukkas Group are using grade system within which
percentage is applied to calculate. The major grades are
Grade 1 - Staff
Grade 2 - Floor- in-charges
Grade 3 - Assistant managers
Grade 4 - Managers
Grade 5 - Mall managers
Grade 6 - Functional heads etc.
A percentage is fixed on this entire grade and on basis of these percentages salary is
fixed. Apart from fixed salary commission will also enter the package on the basis of
different percentage. Here according to the sales achievement by each showroom the
commission rate will vary.
The most attractive thing about Joy Alukkas Group is that they always try to promote
employee savings. Joy Alukkas Group in association with Life Insurance Corporation
of India is an appreciatable attempt, through this they trying to promote savings in
employees.
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Also here in the Joy Alukkas Wedding Center, Cochin, the management and
employees are trying a different method of savings by introducing “Employees
welfare fund”, here each and every employee have to contribute a sum of amount on
monthly basis and they can use this fund in case of emergency as in the loan and they
will be charged with a nominal amount of interest. As this in association with HR
dept. salary cutting is also possible.
While discussing with the HR manager, Wedding Centre Cochin it became clear that
the management is more looking towards the growth and welfare of the employees
and they are more keen on increasing the personal skills of employees.
Initially the food and accommodation was given directly by the company itself by
charging a nominal amount from the salary. But for this the company needed to
employee more people to carry on with these duties and more cost than what the
company was charging from the employees. This was provided to help the employees
to get better food and accommodation. But later it came to know that the facilities
given were not used properly. The employees were even provided with dobby
facilities for uniforms. But these facilities made employees to sit like couch potatoes.
As they were provided with good accommodation they were not aware of the rent that
they might had given if they choose the accommodation outside, they became
unaware of the cost of the food outside, by these they became unaware of how to deal
with money as they were not exposed to economic challenges. As the employees
began to get more facilities, they began to misuse these facilities. This made
management to have a rethink on the provided facilities. For structuring effective
future leaders and not couch potatoes, the management reduced the facilities that
were given initially. For this employees were paid Rs 3000 extra with their salary for
meeting their expenses and blocked all facilities like food, accommodation, dobby
etc. Now the thing became simple like for an employee who need s accommodation
can either choose the company hostel but for that he needs to pay rent separately, also
in case of food he have to completely depend on hotels.
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5.4 Marketing department
Objectives
Create effective campaign to ensure greater band visibility.
Ensure all advertisement and promotional activities load to be build up of greater
market share of the brand.
Constant market analysis to ascertain market perception, change and competitiveness.
Engage in brand building exercise.
Marketing
Joyalukkas marketing initiatives include advertising through various media, such as,
television, radio, newspapers and magazines, interactive website, hoardings and
display, CCTV visual advertisements at prominent locations, advertisements in
cinema hall, bus terminals, railway stations and similar displays.
Further, Joyalukkas shall continue to consult external agencies on the optimum
allocation of Joyalukkas marketing resources by determining the appropriate media
vehicle for reaching out to Joyalukkas retail customers. Joyalukkas also have a
professionally composed jingle used for electronic advertisements and as caller-tones.
Joyalukkas believe that effective marketing is an important investment in future
revenue growth, to improve Joyalukkas brand visibility, to establish relationships
with target markets and to sell Joyalukkas products in a competitive cost effective
manner. Further Joyalukkas have won the Best T.V. Campaign and the Best 360
Degree Marketing Award in 2009 from the Retail Jeweller Magazine, Mumbai.
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In Fiscal 2010 and in the six month period ended September 30, 2010, Joyalukkas had
expended ` 480.56 million and ` 333.92 million respectively for advertising and sales
promotions across various media as part of Joyalukkas marketing initiative.
Competition
Joyalukkas operate in highly competitive and fragmented markets, and competition in
these markets is based primarily on market trends and customer preferences. The
jewellery industry is still an unorganized sector in India and therefore Joyalukkas face
competition not only from other jewellery companies, but also from local jewellers
and craftsmen, which affects Joyalukkas business prospects and margins. The Indian
retail jewellery industry is highly fragmented and dominated by the unorganized
sector, from which the organized retail jewellery sector faces intense competition.
The players in the unorganized sector offer their products at highly competitive prices
and many of them are well established in their local sectors. Joyalukkas also compete
against certain organised national, regional and local players.
Job profile of a marketing manager
Promotions
Introducing various promotions for increasing sales in gold and purchase.
Joining hand with companies/brands for join promotion (as cosponsor)
Coordinating the press for media support,
Organizing events and lucky draws in connection with promotions.
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Advertisements
Handling all showroom advertisements in India.
Media planning (print and visual media)
Negotiations with all channels and publications.
All outdoor copmaigns and advertisements like hoardings, sign boards, neon bords,
theatre advertisement, road shows etc.
All media releases, press meet etc.
Market survey
Period wise market survey about product and services.
Introducing new product to the market.
Comparative study of both competitors and ours.
Roles and Responsibilities
The marketing manager has overall responsibility for effectiveness of the department.
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Marketing activities
The marketing manager makes an annual plan for marketing activities to be
undertaken during the year considering the budget given by the finance department.
The annual plan will be approved by the chairman and a copy of the same will be
given to the G.M and accounts department.
Every marketing activity detailed in the annual plan will be undertaken after receiving
the proposal from different advertising agencies.
A release order is prepared in triplicate to the best advertisement agency, based on
their work, cost timeliness and reliability.
The release order will be approved by the G.M and copy will be forwarded to
accounts department.
On execution of the work order the marketing manager and his assistants monitor the
work executed in terms of print, T.V, radio and outdoor advertisement for the quality
and also for the outcome.
Promotion activities
The marketing manager proposes various promotion plans for the year and discusses
with the chairman and G.M. All the promotion has to be approved by the chairman.
After approval the marketing manager lists out various activities required for
executing the promotions like Govt. approval and permission, advertisement material
and promotion gifts.
A release order is made for the advertisement material and promotional gifts and the
necessary approval is taken from G.M.
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Company promotion activities are initiated with the banks and other prominent
companies and proposal is made and submitted to G.M with a cost benefit analysis.
On approval from the G.M. the co-promotion will be executed.
All agency items and media release are communicated and approved through release
order while promotion gift items, prizes etc are purchased through purchase order
(PO).
Packaging Materials & Promotional Gifts
All packaging materials and promotional gifts are custom specific and are purchased
using purchase order. (P.O)
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5.5 Finance Department
The five basic corporate finance functions are described as those functions
related to:
1. Raising capital to support company operations and investments.
2. Selecting those projects based on risk and expected return that are the best use of the
company‟s resources.
3. Management of company cash flow and balancing the ratio of debt and equity
financing to maximize company value.
4. Management of risk exposure to maintain optimum risk return trade off that
maximizes shareholder value.
Several other functions are as follows:
Preparation of budget, appropriation of accounts, re-appropriations, surrender and
savings.
Control of expenditure and ways & means position
Audit
Treasury administration
Administration of taxes i.e. Sales tax, Entertainment tax, Luxury tax and Entry tax
etc.
Service conditions including freedom fighters pensions.
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Resource mobilization through loans, Institutional Finance, Small savings, Credit and
Investment and public debt.
Financial concurrence and advice.
Compilation of codes, rules and procedures concerning financial transactions and
having bearing on state finance and their implementations.
Safety and investment of funds from consolidated funds, contingency fund and public
account.
Contract recovery and refund of revenue etc.
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5.6 Business Development Department
This department plays important strategic role in the company, because it can
substantiate, initiate and support projects which may include all other departments
and can improve company‟s performance. Bus iness development department supports
and guides companies strategic planning, influences short term and long term goal
setting, and provides information for effective decision making in company
management.
Objectives
To enhance institutional sales progressively.
Initiate co-branding activities to enhance the brand position of joyalukkas.
Enhance customer relation and brand loyalty.
Constant market analysis to ascertain market perception, change and competitiveness.
Job Profile of a Business Development Manager
Scan environment – formulate long term forecasts.
Initiate measures to build up / improve relations new / existing customers.
Organize and implement various promotional activities.
Feedback to divisions.
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Monitoring and compiling data on product performance.
Systematic timely communication / feedback to division on:
Opportunities and threats in the environment.
Competition
Product
Roles and Responsibilities
The business development manager has the overall responsibility for the effectiveness
of the department.
Customer complaint management system
Customer complaints are received through various channels:
Showroom
Customer feedback form (Customer feedback form can also be used as a channel for
complaints )
Verbal
Fax, E-mails
At showroom level, the complaints are resolved by the showroom manager. All
written complaints are recorded in the complaint feedback register by the customer
relation executive. These complaints are attended immediately. The customer is given
a call within 24 hours and a solution is found within 48 hours. The customer relation
executive with the head of the concerned department finds solution to the complaint.
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Serious issues are brought to the attention of the GM. The remedial actions are taken
for each compliant recorded in the feedback register at the showroom.
All complaints, the corrective and preventive actions taken shall be discussed during
management review meeting.
Customer feedback
A framed statement kept in each showroom encouraging customers to provide
feedback through the customer feedback forms. A customer feedback form is kept at
every outlet. The customer relationship executive is assigned the duty for collecting
the customer suggestions who in turn gives his feedback to the manager for necessary
action.
The Customer Relations Executive analyses the feedback each week at the
showroom. Complaints received by mail or fax or phone at the corporate office are
directed to the concerned department and befitting solution is taken for the same.
5.7 Loyalty department
In today‟s world, customer service is paramount to success. Servicing it‟s most
valued customers with attention and respect that they deserve can distinguish your
products and services from the competition.
The relationship marketing and effective CRM will bring customers back repeatedly,
positively impact your bottom line and establish a strong team approach than you
have ever known before.
The goal, ultimately is to promote a “conversation” so satisfying for customers that it
moves their attention off price and on to added value.
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Loyalty and Promotion Programs
Golden Rewards Program:
This is a loyalty program of Joyalukkas company where the customer is offered a
„smart card’ which offers the customer a wide range of benefits and privileges. To
earn reward points, the customer presents the card at the time of purchase at any of
Joyalukkas stores and receives points, which can later be redeemed by the customer,
against future purchases at any of Joyalukkas stores. For every 10,000 points the
customer will be eligible for a discount of ` 1,000.
B2B Program:
„B2B Solutions‟ is a division of Joyalukkas company dedicated towards customized
corporate sales. It began operations in July 2008. Joyalukkas maintain corporate tie-
ups with certain key corporate customers as part of their b2B Solutions program, for
providing loyalty and retention related services. Joyalukkas offer the customers or
clients of their b2B corporate-partners, discount vouchers or options to earn loyalty
points based on various loyalty programs including credit and debit card usage or
purchasing merchandise at various identified outlets in India. Joyalukkas offer reward
points against such purchases/usage in order to enable the customers to earn points
from purchases at the program partners‟ outlets or stores and to redeem such points
on purchase of jewellery or textile products at Joyalukkas retail outlets. Joyalukkas
also offer certain customized gifting options for their corporate-partners, based on
their requirements. B2B is aimed at corporate clientele and with a view of creating
strong brand equity and increasing customer foot falls and revenues.
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Annual Clearance Sales:
Joyalukkas periodically evaluate the stock position of the textile division of their
company. Non-moving items or old stocks are identified and ear marked for discount
sales. Joyalukkas typically hold discount sales once a year.
Easy Gold Plan:
Joyalukkas easy gold plan enables the purchase of jewellery by a customer based on
fixed monthly installment payments, starting from ` 500, for a specified period of
time (12 or 18 or 24 months), for the purchase of gold or other jewellery products
worth the total amount including a certain bonus from the Company, upon maturity of
the plan at the then prevailing market price. Under the plan, purchase of 22 or 24
carat gold coins or bars is not permitted. Further, pre-payment of installments at one
time and redemption (with bonus) thereafter on or before the indicated day of
maturity is not allowed. Purchases can be made only after 30 days from the last
installment paid under the plan. In case of default in payment of installments, the
eligibility for purchase is proportionately reduced. Late payments are treated as
defaults for that month and are taken into account in reducing the calculation of bonus
under the plan. As per the plan, cash will not be refunded to the customer.
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5.8 Information technology department
The management information services department provides a variety of services
relating to computer and telecommunication services, application software
development, design and production services and software training to all internal
town client departments. The management information system serves as an internal
reposting unit of the organization. The department is responsible to report in
quantitative as well as qualitative terms and has an extensive database of the existing
organization activities. The MIS department is an innovator in the field of
information technology management, using a management solution that maximize
effectiveness and minimize cost. The MIS department also consults with other
departments to select analyze and select proper IT solutions for specific applications,
provide internet access, computer training and support and mobile computing
solutions for town departments.
5.9 Administration
Top Management
The top management is composed of the chairman, general manager and department
heads.
Top management responsibility includes:
Setting quality policy
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Establishment deployment and monitoring measurable quality objectives at relevant
functions and levels within the organization.
Ensuring availability of resources identified in the processes for effective
implementation of QMS.
Reviewing effectiveness of implementation and identifying area for improvement of
the QMS once in every six months during the management review.
Top management‟s measurement for organization performance includes financial
performance process performance and assessment of satisfaction level of customers
and other interested parties and benchmarking.
Customer focus
Top management of Joyalukkas realizes that customer satisfaction is the ultimate
goal; Customer satisfaction is an investment and will lead to growth of the
organization.
The showroom sales personnel are in the front- line with walk in customers. They are
given appropriate training to ensure that the customer‟s are determined and fulfilled
in all respects.
The marketing department identifies the general market perception about the
organization and its products /services and plans promotion activities in order to
promote organization and its products while creating the need in the market.
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Management Representative
The chairman has appointed the General manager/HR/Internal Auditor as the
management representative besides other representatives:
1. Ensure that processes of the QMS are established and maintain them on continual
basis to meet the goals of the company‟s policy requirements and third party
registration requirements.
2. Reports to top management on the performance of the QMS through periodic internal
audit of the system as per annual audit schedule
3. Promote awareness of customer requirements and the market needs (during the
meeting) throughout the organization based on feedback from the marketing
manager.
The internal auditor/HR has been assigned as the QMS coordinator to assist the MR
in the implementation and maintenance of the QMS.
Internal And External Communication
Top management realizes the usefulness of internal and external communication
process to help the organization to achieve the quality objectives and participation of
employees in best practices. A documented procedure is established for effective
internal and external communication.
Internal communication includes:
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Communication of policy, objectives and arrangements for implementation of QMS
to employees.
Communication regarding the current bullion rates.
Communication regarding service related legal and regulatory requirements.
Communication of customer requirements by the purchase/marketing
manager/business development manager.
Service and product related communication takes place via exchange of experience
and internal meetings and in work groups.
Employee suggestion scheme to nurture ideas of the employees for benefit of the
organization.
Press publications dealing with the organizations activities are circulated through
notice boards, intranet and company website.
Employee news letter. (will be developed).
External communication includes:
Company brochure and website providing information about the organizations
activities.
Communication with regulatory bodies with updation regulatory requirements.
Communication with legal authorizes in case of incidents and accidents.
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Management Review
Th top management once in six months (after every internal audit) reviews the QMS
to ensure suitability adequacy and effectiveness of the system.
The management review input include:
Results of departmental objectives and budget review.
Quality policy review.
Results of the internal and third party audits.
Customer feedback/complaits.
Status of preventive and corrective actions taken for identified non conformities.
Review of business growth and strategies.
Changes to quality manangement system.
Resource needs
Follow-up actions from last management review.
The management review output considers actions related to improvement of the QMS
and its processes improvement of the product/services related to customer
requirements and resource needs for implementation of quality and management
systems. The effectiveness of management review is measured in subsequent review
meeting.Management representative is responsible and authorized to collect data,
organize and schedule management review once in six months after internal audit.
MR maintains records of the management review meetings.
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Process approach
The numerous processes of the company are classified into three categories;
Core business process
Support process
Management process
The core business process of Joyalukkas are:
1) Purchase (jewellery textiles and services)
2) Showroom operations.
3) Marketing.
The support process of joy Alukkas are:
„
1) Planning
2) Formulation of policy and objective.
3) Management review
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Process Interactions
Management process – planning, policy & objectives and management Review
C U
S T
O M E
R
R
E Q
U I R
E M
E N T
C U
S T
O M E
R
S
A
T
I
S
F
A
C
T
I
O
N
Purchase
Purchase of
gold and
diamond
jewellery
repair
Showroom
operations
Display of
jewellery
Sales of
jewellery
Sale of
repair &
services
Purchase of
old gold
Exchange of
old gold
Marketing
Definition of
market
requirement
Customer
feedback
Promotional
activities to
create
market need
Support process – Resources management, IT, Monitoring & Measurement
& Calibration
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Jewellery Stores
As of December 31, 2010, Joyalukkas had 22 retail stores in 21 cities in India, eight
of which are situated in Kerala, eight in Tamil Nadu and one each in Puducherry,
Bangalore, Mangalore, Hyderabad, Mumbai and Gurgaon. Further, out of our 22
retail stores, 10 are Large Format Stores each having a floor area of 12,000 sq. ft. or
more.
Joyalukkas three Premier Stores are the Large Format Stores situated in Chennai,
Bangalore and Coimbatore, having an aggregate floor area of 96,309 sq. ft.
Joyalukkas believe that the large format, luxury retail shopping experience and the
inventory that these stores offer, enables us to attract customers to Joyalukkas product
offerings.
Premier Stores
Coimbatore Store -
Joyalukkas large Format Store situated in Coimbatore was the first retail store that
Joyalukkas set up in Tamil Nadu, situated at Cross Cut Road in Coimbatore having
an aggregate floor area of 12,565 sq. ft. The store started its operations on May 30,
2004. This is one of Joyalukkas large Format Stores in Coimbatore with ample car
parking facility. As of December 31, 2010, Joyalukkas had 138 employees working in
the Coimbatore store. The store has four levels, ground plus three floors. The ground
floor sells generic gold and antique jewellery. The first floor is exclusively dedicated
to jewellery made of diamond, platinum and other precious stones. The second floor
comprises regular gold and silver jewellery. The store also has a prayer room, feeding
room and restrooms for the convenience of Joyalukkas customers.
Chennai Store -
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Joyalukkas large Format Store situated in Chennai is known for its wide collection of
jewellery, size of the store and its ambience. The store has five levels, having an
aggregate floor area of 57,430 sq. ft. with an ample car parking facility. As of
December 31, 2010, Joyalukkas had 190 employees working in the Chennai store. On
the ground floor Joyalukkas sell generic 22 carat gold jewellery, while on the first
floor Joyalukkas sell gold brands, gold watches, 24 carat gold statues, traditional gold
jewellery and jewellery made from other precious stones. The second floor is
exclusively dedicated to diamond and platinum jewellery. On the third floor
Joyalukkas sell silver jewellery, gift articles, silver furniture and Joyalukkas have a
VIP lounge and a unique diamond cave. Joyalukkas purchase division, regional office
and B2B Solutions division are situated on the fourth floor. The diamond cave gives
information to Joyalukkas interested customers on the history of diamonds including
mining, cutting, polishing and designing of diamond jewellery. This is Joyalukkas
largest jewellery retail store, in terms of store size, gold and diamond jewellery stock,
car parking facility, number of staff and by quantity of Joyalukkas sales. Apart from
these, there are facilities such as a feeding room, prayer rooms, and restrooms etc. to
cater to the comfort of Joyalukkas customers. Further, Joyalukkas have won the „Best
Single Retail Store of the Year‟ award for Joyalukkas chennai store at the National
Jewellery Awards 2011 organized by the All India Gems and Jewellery Trade
Federation.
Bangalore Store -
Joyalukkas large Format Store situated on M. G. Road, Bangalore is spread over an
aggregate floor area of 26,314 sq. ft. Joyalukkas bangalore store was inaugurated on
July 4, 2010. As of December 31, 2010, Joyalukkas had 150 employees working in
the Bangalore store. The building has five levels with ample car parking facility. On
the ground floor Joyalukkas sell generic antique, traditional and contemporary gold
jewellery. The first floor features exclusive branded collections and jewellery made
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from other precious stones. The second floor showcases diamond bridal sets and
premium diamond sets. The third floor houses the Joyalukkas branded collections in
pearls, diamonds and platinum. It also features a dedicated section for silver artifacts,
utensils and jewellery. The store also has feeding rooms, prayer rooms and
refreshment corners to cater to the comfort of Joyalukkas customers.
5.10 TOTAL QUALITY MANAGEMENT
Quality management policy
The management of Joyalukkas India Pvt. Ltd hereby commits to enrich the quality
the quality of life by offering innovative solutions backed by incomparable value
additions, adhering to globally approved process and norms, and creating a win-win
value chain with all our associates, which has in its ultimate objective, to achieve
maximum customer satisfaction and to protect and improve the environment, health
and safety of our employees, and preserve the interest of suppliers, customers and the
community .
Joyalukkas recognizes that a commitment to the following policies is fundamental in
implementing the above pledge:-
1) To procure and deliver jewellery and textile products and other related services to this
customers at the highest standard meeting regulatory requirements whereby to
achieve 100% customer satisfaction.
2) To develop and implement measures aimed at the preventon of pollution by reducing
the generation of waste and properly disposing of waste and also to minimise use of
hazardous materials and energy and other resources.
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3) To comply with all requirement of all relevant legislations and regulations.
4) To establish and review objective from time to time and maintaining, reviewing and
continually improving our quality management system according to the standards of
ISO 9001:2000.
Quality policy
The top management has established quality management in line with company‟s
overall business policy. The policy statement considers the following in line with the
requirement of the standard:
a) Leadership position in jewellery industry.
b) Customer satisfaction.
c) Compliance to applicable regulatory requirements.
d) Reliability of jewellery caratage (purity) to customers.
e) Continual improvement.
f) Continual development of skilled and dedicated staff.
g) Contributions of suppliers.
h) Stakes of stakeholders and society
The quality policy is reviewed every six months during the management review
meeting by the top management to ensure that the policy is in line with the current
corporate policies and goals,
The policy is exhibited in all the prominent viewing spaces at the corporate office.the
policy are communicated to every staff within the organization.
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Corporate objectives
To become the world leader in retail chain of jewellery and textiles business
To provide maximum customer satisfaction.
To motivate and strengthen the competencies of employees.
To actively initiate social activities in order to fulfill Joyalukkas obligation to thr
society and the environment in which the company operates.
To achieve 100% environment friendly operations.
Objectives from the driving force of an organization. The top management of
joyalukkas jewellery has set corporate objectives and department objectives.
The establishment and objectives are dependent on:
The customer and other interested parties requirements.
Organizations image.
Organization‟s growth perspective.
Legal and regulatory requirements.
Corporate objectives are set by the top management to channel the growth of the
organization as per the vision of the chairman. Departmental objectives and budget
for the department are set by the GM and the departmental managers in line with the
corporate objectives. These objectives are reviewed every six months by the GM and
form one of the criterians for performance evaluation.
Objectives review is carried out by the GM every six months before/during the
management review. This review is based on the data analysis of set parameters of
the objectives.
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Control documents
A document procedure has been established to define the controls needed.
a) To approve review and update as necessary and re-approve documents prior to issue.
b) To identify changes and ensure relevant versions of applicable documents are
available at the point of use.
c) To ensure that documents of external origin are identified and their distribution
controlled and
d) To prevent the unintended use of obsolete documents, and to apply suitable
identification to them if they are retained for any purpose.
Control of records
A document procedure is established to define the controls needed for the
identification, storage, protection, retrieval, retention time and disposition of records.
The list of records for all the documented processes is identified at the end of the
procedures.
Quality management system (QMS)
The quality management system of Joyalukkas India Pvt. Ltd. Is devised as per the
requirements of the ISO 9001:2000 standards and adopts a process approach in the
design and documentation of the QMS.
Process approach as defined in ISO 9001 is adopted while designing and
documenting the quality management system.
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Chapter VI
Organizational Analysis
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6.1 SWOT Analysis
Strengths
High quality and purity :-
The success and growth of Joyalukkas has been driven by its unstinging
commitment to quality, a fact that has been widely recognized by its growing
customer base.
Distribution network and retailing stores :-
It has a wide netwrk of more than 23 showrooms across India.
Competitive prices :-
Joyalukkas follows competitive pricing strategies and adheres to provide quality
products at minimum cost.
Brand Leverage :-
Joyalukkas is a well established top brand in jewllery retail sector in India. This brand
name itself provides an additional leverage in their growth.
ISO 9001 & 14001:-
Joyalukkas is awarded with ISO 9001 and 14001 for its quality in business processes
and products and also for its strong environment concerns and programs.
Weaknesses
There may be conflicts of interest between them and certain of their Promoter
group companies.
As the major raw material requirements need to be imported, companies
normally stock huge quantities of inventory resulting high inventory carrying
costs.
Technology is less improved compared to China and Thailand‟s company.
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Opportunities
New markets in Europe & Latin America.
Growing demand in South Asian & Far East countries.
Industry moving from a phase of consolidation.
Expansion possibilities in lifestyle and luxury products in India like watches,
leather goods, Platinum jewellery because increasing disposable income of
people.
Threats
International Competition:-China, Sri Lanka and Thailand's entry in small
diamond jewellery.
Increase in the price of gold and diamonds.
Other local competitors. According to the data 97% jewellery sales are by
family jewelers.
Threat from producing nation like S.A. & Russia
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Competitive Strengths
Joyalukkas believe that Joyalukkas primary competitive strengths include the
following:
Large Format Stores and Wedding Centers at strategic locations
As of December 31, 2010, Joyalukkas had 22 retail stores in 21 cities in India, eight
of which are situated in Kerala, eight in Tamil Nadu and one each in Puducherry,
Bangalore, Mangalore, Hyderabad, Mumbai and Gurgaon. Further, out of our 22
retail stores, 10 are Large Format Stores each having a floor area of 12,000 sq. ft. or
more. Joyalukkas three Premier Stores are the Large Format Stores situated in
Chennai, Bangalore and Coimbatore, having an aggregate floor area of 96,309 sq. ft.
As of September 30, 2010, Joyalukkas maintained an aggregate inventory of 690.46
kg of Gold at their three Premier Stores. This is in addition to the jewellery made of
diamond and other precious stones, platinum and silver, all with an extensive array of
designs. Joyalukkas store in Chennai has a floor area of 57,430 sq. ft. across five
floors with 190 employees as of December 31, 2010. Joyalukkas store in Bangalore
has a floor area of 26,314 sq. ft. across five floors with 150 employees as of
December 31, 2010. Joyalukkas store in Coimbatore has a floor area of 12,565 sq. ft.
across four floors with 138 employees as of December 31, 2010. Joyalukkas premier
Stores with an aggregate floor area of 96,309 sq. ft. display a wide range of jewellery
products at any given point in time. Joyalukkas large Format Stores enhance their
efficiency as they require less managerial staff in proportion to the large inventory of
jewellery products. Joyalukkas believe that their large Format Stores provide a luxury
retail shopping experience, in addition to the inventory that these retail stores are able
to offer, enables us to attract customers to Joyalukkas product offerings.
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Of our 22 retail stores, Joyalukkas sell their textile products through four Wedding
Centres situated in Kerala with an aggregate floor area of 104,617 sq. ft. Our
Wedding Centres aim to offer an integrated shopping experience where Joyalukkas
customers can purchase premium jewellery, premium festive clothing and accessories
for weddings and other festive occasions in the same store. Further, our Wedding
Centres cater to the textile requirements of the entire family, with its wide collection
of men’s, ladies and children’s apparel. Joyalukkas believe that this is an innovative
concept, which enables us to cross sell a wide range of their product offerings to their
customers.
Strong track record and established brand equity with robust sales and
marketing network
Joyalukkas prominent presence as a jewellery retailer in south India has been a result
of Joyalukkas strong branding, our marketing efforts and a favorable response from
Joyalukkas customer base. Joyalukkas have further strengthened Joyalukkas brand
portfolio with the launch of internal brands aimed at different customer profiles,
various markets and price segments and for various uses and occasions.
Joyalukkas have won several awards, including, the Best Single Retail Store of the
Year 2011 Award for Joyalukkas chennai showroom and the Best Retail Jewellery
Chain of the Year 2011 Award at the National Jewellery Awards 2011 instituted by
the All India Gems and Jewellery Trade Federation. Joyalukkas have also won the
Retail Chain of the Year 2010 Award at the Retail Jeweller India Awards 2010,
instituted by the Retail Jeweller Group, Mumbai; first prize under gold category in
Kerala Trade Awards 2010 instituted by the Government of Kerala; the Highest VAT
Paying Jewellery Group Award in 2009 at the Kerala Gem and Jewellery Show,
instituted by the Department of Industries and Commerce, the Government of Kerala;
the Best T.V. Campaign and the Best 360 Degree Marketing Award in 2009 by the
Retail Jeweller Magazine,
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Mumbai; the Consumers Choice Award in 2008 by Retail Jeweller India in
association with Dimexon; the JJS & Gold Souk Jeweller Award in 2007 by Jaipur
Jewellery Show & Gold Souk; the Best Overseas Retailer, 2008 at the Kerala Gem
and Jewellery Show, 2008 instituted by the Government of Kerala.
Joyalukkas marketing initiatives also include Joyalukkas customer loyalty programs
such as golden rewards program, Business to Business Solutions („B2B Solutions‟),
discount sales, easy gold schemes and others
In addition to Joyalukkas sales to a wide range of customers through Joyalukkas retail
stores mostly spread throughout south India, Joyalukkas marketing initiatives include
advertising through various media, such as, television, radio, newspapers and
magazines, interactive website, hoardings and display, advertisements in cinema hall,
bus terminals, railway stations and similar displays. Further, Joyalukkas shall
continue to consult external agencies on the optimum allocation of Joyalukkas
marketing resources by determining the appropriate media vehicle for reaching out to
Joyalukkas retail customers. Joyalukkas also have a professionally composed jingle
used for electronic advertisements and as caller ring tones. Joyalukkas believe that
effective marketing is an important investment in future revenue growth, to improve
Joyalukkas brand visibility, to establish relationships with target markets and to sell
Joyalukkas products in a competitive cost-effective manner.
Use of efficient internal processes to leverage Joyalukkas sales
Joyalukkas rely on Joyalukkas internal processes for activities ranging from the
procurement of bullion, finished jewellery and textile products, identification of
craftsmen and jewellery suppliers, specifications and design, selection of store
location, conduct constant market analysis to ascertain market perception, change and
competitiveness, inventory management as well as activities like purity testing,
hallmarking, bar coding, branding, packaging, store design and management.
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Joyalukkas believe that Joyalukkas understanding of the jewellery, textile and apparel
industry helps us in assessing market opportunities and positioning ourselves
accordingly. Joyalukkas retail operations network are supported by Joyalukkas
inventory management system that enables us to move Joyalukkas inventory to and
from, and channel Joyalukkas sales through, Joyalukkas various retail stores
depending on the relevant festive and other occasions and the demographic nature of
Joyalukkas customers. Joyalukkas have evolved and continue to improve Joyalukkas
internal processes which drive Joyalukkas business efficiency and profitability.
Joyalukkas believe that Joyalukkas effort to predict market expectations, in-house
order projections, customer preferences towards specific stones and jewellery
products enables us to undertake effective inventory management, ahead of
Joyalukkas delivery schedule. Joyalukkas believe that Joyalukkas internal processes
such as an effective Enterprise Resource Planning („ERP‟) system to manage finance
and accounting, inventory of gold and other jewellery, internal and external resources,
including tangible assets, human resources and financial resources, Joyalukkas
internal audit systems, sales and distribution and extensive domain knowledge of
Joyalukkas promoter and Key Managerial Personnel has substantially contributed to
the growth of Joyalukkas business operations.
Corporate tie-ups with leading companies as part of Joyalukkas business
to Business program
Joyalukkas maintain corporate tie-ups with certain key corporate clients through
Joyalukkas b2B Solutions program for providing loyalty and retention related
services. For the customers or clients of Joyalukkas b2B Solutions, Joyalukkas offer
discount vouchers or options to earn loyalty points based on various loyalty
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programs. Joyalukkas offer reward points against such purchases/usage in order to
enable the customers to earn points from purchases at the program partners‟ outlets or
stores and to redeem such points on purchase of Joyalukkas jewellery or textile or
apparel products at Joyalukkas retail outlets. For instance, Joyalukkas have entered
into a similar agreement with a leading hotel group, offering its members the option
to redeem their gift vouchers against the purchase of jewellery at Joyalukkas retail
stores. Joyalukkas also offer certain customized gifting options for Joyalukkas
corporate-partners, based on their requirements. Joyalukkas b2B Solutions aims at
enhancing Joyalukkas corporate clientele and in turn a wide range of customers and
also result in the creation of strong brand equity and increase Joyalukkas customer
footfall and revenues. Joyalukkas have followed a structured approach for Joyalukkas
product development which involves market research, sales analysis, brand
development, media campaigns and promotions. Joyalukkas believe that this has
helped us forge strong relationships with key corporate customers and gaining
increased business through their customers/clients. Joyalukkas believe that
Joyalukkas structured approach towards brand development through Joyalukkas b2B
Solutions and Joyalukkas execution capabilities has enabled us to create long term
relationships with leading corporate clients.
BUSINESS-TO-BUSINESS FOCUS
The Joyalukkas Group, owned by Mr Joy Alukkas, is focusing increasingly on B2B
(business-to-business) projects and has already launched a variety of schemes to increase
footfall to its stores.
B2B accounts for less than 10 percent of total revenues, but Mr Venugopal believes it is a
growing priority with great potential for futures sales.
In one joint project with Cocoa Cola and McDonald‟s during the 2008 Olympics, Coca Cola
encouraged people to redeem ring pulls from cans of Coke in return for a gift of one gm of
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gold at a Joyalukkas store or a meal at McDonalds.
Now, people can take stubs from flight tickets with Etihad, the United Arab Emirates‟ national
airline, and get a 10 percent discount on diamond jewellery when they visit a Joyalukkas store.
Unilever gives vouchers to employees who achieve targets on sales of products such as Lipton
tea. The vouchers can be cashed in at Joyalukkas stores.
Joyalukkas also promotes an incentive programme with dealers at French glass company Saint-
Gobain enabling them to cash in vouchers towards jewellery purchases at Joyalukkas stores.
Joyalukkas is looking for opportunities for B2B projects to coincide with the 2012 London
Olympics and has already met with leaders of the London Olympics organisation such as
former athlete Sebastian Coe.
Joyalukkas wishes to raise its profile in the UK market by adding a store in a London district
such as Wembley or Southall where there are already well-established British Asian
communities with a taste for 22-carat gold jewellery – and increasingly, diamond jewellery.
Joyalukkas‟s Green Street shop in London belongs to the Green Street Jewellers‟ Association
(GSJA), which is branding itself as a distinctive jewellery quarter before the 2012 Olympics.
In Britain, Joyalukkas‟s contact for B2B projects is John Jacob, Marketing Manager
The Joyalukkas Group, which has 3,000 employees in total, mainly in India, has assigned 25
people on B2B projects full- time in Dubai, its global headquarters, and a further 25 people
working in B2B in India.
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6.2 Corporate Social Responsibility
Joyalukkas Foundation is a public charitable trust created under the deed of
declaration of trust dated August 12, 2009. It is a registered charitable trust under the
provisions of the Income Tax Act. The objects of the trust include, among others, to
give financial aid and assistance to establish, promote, set up, maintain and support
the running of educational institutions, orphanages, schools and old age homes.
Joyalukkas promoter Alukkas Varghese Joy and Joyalukkas promoter’s spouse Jolly
Joy are the trustees of Joyalukkas Foundation. The employees of Joyalukkas company
voluntarily contribute a fixed sum out of their monthly salary to the Joyalukkas
Foundation and the Company also contributes towards the same. The fund is mainly
utilized for the medical aid and treatment of needy patients. Joyalukkas company has
also formed a blood donation forum amongst its employees which has organized
blood donation camps. Joyalukkas company has also organized green campaigns with
the objective of improving the environment.
The CSR activities of Joyalukkas can be briefed as follows:
Mangalya mela, (101 couples)
Eye donation camp
Blood donation camp
Amnesty flight (165 helpless Indian Residents brought back to home land from
middle east)
Snehalaya Old Age home, Thrissur
Educational Donations (cancer patients and other major diseases)
House construction for poor
Sponsored candidates for their excellence in sports and other scientific areas.
Marriage donations
Donated 255,00,000 towards Tsunami Relief Fund
Donation towards Gujarath Earth Quake Relief fund
Issued cloths for attapadi tribals once in quarter
„Think Green‟
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.
CHAPTER VII
FINDINGS AND CONCLUSION
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7.1 FINDINGS
The success and growth of Joyalukkas has been driven by its unstinting
commitment to quality, a fact that has been widely recognized by its growing
customer base
Joyalukkas follows competitive pricing strategies and adheres to provide
quality products at minimum cost.
Joyalukkas is a well established top brand in jewllery retail sector in India.
This brand name itself provides an additional leverage in their growth.
.As the major raw material requirements need to be imported, companies
normally stock huge quantities of inventory resulting high inventory carrying
costs.
Gold as a share of wallet is decreasing in the younger generation. Traditional
jewellery is still the dominant design pattern while contemporary styles are
emerging fast
Although guarantee of the retailer is important in ascertaining quality,
hallmarking is gaining acceptance
In the past choice of stores used to be 1-2 stores, but customers now look at 4-
5 stores for range and choice of jewellery
The main occasions to buy are still marriage and festivals
Customers in the high value category are becoming more informed because of
exposure to media and fashion trends
Joyalukkas is perceived as a highly Reliable brand.
Joyalukkas emerges as the best known brand with the highest
awareness and recall.
Customer is shifting towards Branded Jewellery.
The younger generation is looking for trendy, contemporary jewellery
The Indian consumer is willing to experiment with new designs.
The consumer wanted a wider selection at a single convenient
location and expected an international shopping experience.
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7.2 Conclusion
Joyalukkas has been hailed as the world’s favorite jeweller!!!
The registered office of joyalukkas (Indian operations) is situated at Marine Drive,
Cochin, Kerala which is very attractive promenade on the side of Vembanad Lake.
The global retail chain is presently having 81 showrooms. Joyalukkas jewelery aims
at having 100 showrooms around the world by the end of 2011. It had a unique
business model in the industry and is having strengths like value addition, branding,
rapid expansion and focusing only on retail.
Joywlukkas was the first jewellery retail to be awarded the prestigious ISO 9001:2008
and 14001:2004 certification. Joyalukkas is named retail chain of the year 2010 and is
the first jeweller to win at the Kerala trade awards, a Government of Kerala initiative.
Joyalukkas was recently was recently awarded the d istinction of being a „Superbrand‟
in the UAE. It is its unique business styles that made Joyalukkas the “World‟s
Favorite Jeweller”.
This organization study at Joyalukkas India Ltd., cochin, helped me to get an
awareness of the fuctioning of the HR department, in the office and gave me an
outlook of thr various modes of work being performed. The study has also helped me
a real time exposure to corporate office functioning thus helping me to relate with the
little theoretical knowledge which I had learned during my course. At last, I would
like to extend my heartfelt thankfulness to everyone who were a part of my project
and helped me to successfully complete this report, as this is important in partially
fulfilling my Master Degree in Business Adminisstration.
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BIBLIOGRAPHY
TEXT BOOKS
Human Resource Management, Eighth edition, Gary Dessler
P. Subba Rao, Essentials of HUMAN RESOURCE AND MANAGEMENT
RELA TIO N S , Hima laya P ub lica t io ns
David A. Decenzo, PERSONNEL /HUMAN RESOURCE MANAGEMENT
Websites
www.sebi.gov.in.
www.joyalukkasindia.com
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