As one of the largest manufacturer and exporter of handcrafted gold jewellery in India, Shree Ganesh Jewellery House Limited has excellent financials to report. What is more, the company has rolled out a business model that works well for its export market drive as well as the domestic retail market within India. Look at the business model:
I have canvased the business model of Shree Ganesh Jewellery on nine building blocks developed by Alexander Osterwalder.
1. Value Proposition: The bundle of product includes:
1. Handcrafted hallmarked gold jewellery and gold enamelled jewellery
2. Gold jewellery studded with precious stones like rubies, emeralds, sapphires, pearls and diamonds
3. Portfolio includes rings, earrings, pendants, bracelets, necklaces, bangles, medallions, gold coins
All these products offer quality, craftsmanship and glitter. There is something else for the buyer: insulation from price volatility. Everyone agrees that gold jewellery acts as natural hedge against inflation and that it can function as an investment vehicle.
2. Key Activities: Value configuration is from the way operational activities are scheduled. Latest technology is harnessed to reduce waste, which is concomitant in hand crafted jewellery manufacture. Efforts are made to introduce gradually machines into production. Finished goods are tested for quality and craftsmanship.
3. Key Resources: The Company uses core capabilities as follows:
1. Production capacity of nearly 21,500 kg of gold jewellery per annum, out of which major portion is manually crafted
2. Manufacturing facilities located at Manikanchan, Kolkata, where the state government has sponsored export zone. The location enjoys pluses such as easy access to skilled Bengali karigars(craftsmen) and proximity to Airport
3. Employs over 562 ‘gold karigars’ from West Bengal
4. Strong designing capability is enhanced by 15 member strong in-house design development team along with external advice on designing that result in intricate handcrafted design that is in big demand throughout India and Middle-East. Moreover, technological innovation in design methodology is appropriately used
5. Management of the company is spearheaded by the founders Nilesh & Umesh Parekh, belonging to a family of jewellers for generation who have more than five decades of experience in jewellery
4. Key Partners: Partner network includes:
1. Tie up with Sabyasachi Mukherji, renowned Indian Fashion Designer for high end exclusive jewellery
2. Shree Ganesh Jewellery continues to pursue alliances with more domestic and international designers
5. Cost Structure: Total operational cost is reported as Indian Rupees 27,307 Million
6. Customer Segment:
The company is primarily focused on export markets especially UAE, Singapore and Hong Kong which contribute over 95% of total revenue. Some of the International customers such as Ibrahim Al Sayegh Jewellery, Sparkle Jewellery FZE in UAE, Denzong in Hong Kong, Wondercut Pte Ltd, Abhusan (S) Private Limited and Excellency Pte Limited in Singapore have been company’s long standing customers.
In addition to export market Shree Ganesh Jewellery is also expanding its retail presence in domestic market. Initiatives are:
1. Expanding retailing of branded jewellery under GAJA brand through existing 13 outlets and proposed outlets
2. Focus on shops & franchisees in Kolkata, Ahmedabad, Bangalore Chandigarh, Patiala, Bhatinda, Jalandar, Rajkot, Amritsar,Ludhiana, Mangalore and Siliguri
3. Company has other brands with different themes mainly targeting young men and women
7. Channels:
1. Overseas: Establishing franchisee outlets to penetrate market at low capital expenditure on the part of the Company along with overseas retail outlets for high end customers is main focus of sales. Distribution is handled through Four Star Export House. Expanding market via nominated agency & channelizing agent is to be balanced with opening overseas subsidiaries for foray into untapped market
2. Domestic: Strengthening GAJA brand owned by the Company along with expanding from existing 13 retail outlets to 49
8. Customer Relationship: Excellent client relationship is built by nominating super distributors for bulk orders and strengthening long standing association with buyers who return with repeat orders
9. Revenue Stream: All these measures have positively impacted the sales as revenue tops Indian Rupees 29,426 Million.
Muthu Ashraff
Business Adviser
Mobile : +94 777 265677
E-mail : cosmicgems@gmail.com
Web : http://www.cosmicgemslanka.com
Blog : http://cosmicgemslanka.com/blog/
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