Pc Jeweller Ltd. · NSE:PCJEWELLER
Pc Jeweller — Investor Presentation (July 2014)
27 slides from Pc Jeweller's investor presentation, July 2014
Slide 1: PC Jeweller Limited
July 2014 PC Jeweller Limited
Slide 2: Disclaimer
Disclaimer Certain statements are included in this release which contain words or phrases such as “will,” “aim,” “will likely result,” “believe,” “expect,” “will continue,” “anticipate,” “estimate,” “intend,” “plan,” “contemplate,” “seek to,” “future,” “objective,” “goal,” “project,” “should,” “will
Slide 3: Annual value of India's domestic gems and jewellery industry
Annual value of India’s domestic gems and jewellery industry is ~INR 3,000 bn (US$ 50 bn) ....Expected to grow @ CAGR of over 16% to reach INR 5,430 bn (US$90.5 bn) by 2018 Of this, organized market constitutes ~20-22% (regional chains contribute ~17% and national chains ~5%) ....Expected to grow fa
Slide 4: Promoter Background
Promoter Background Company’s promoter, first generation entrepreneur Mr. Padam Chand Gupta, entered the jewellery business in 1971 in partnership with a family friend The business was formed under the name of PP Jewellers. Mr. Balram Garg joined the jewellery business in 1989 This partnership conti
Slide 5: Right Business Plan, Speedy Execution with Careful Optimism over the years
Right Business Plan, Speedy Execution with Careful Optimism over the years FY 2005 - 06 • Commenced operations with a single showroom focussed on wedding jewellery at Karol Bagh (New Delhi) FY 2007 - 08 • +2 showrooms • Export operations commenced, manufacturing facility upgraded at Noida SEZ FY 200
Slide 6: PC Jeweller today
PC Jeweller today India’s leading jewellery retail chain 44 showrooms across 35 cities and 14 states (~2,58,000 sq. ft. of retail space) Targeting $50 bn Indian Jewellery Market Clocked Rs. 53,248 (US$ 890 mn) in total sales in FY 2014 Domestic retail sales contributed to ~75% of FY 2014 total sales
Slide 7: Business Segments – Brief Overview
Business Segments – Brief Overview PC Jeweller Limited FY 2014 Sales: INR 53,248 mn (US$ 887.5 mn) 75.20% 24.80 % Domestic Sales Export Sales Sales – Rs. 40,021 mn (US$ 667.0 mn) Sales – Rs. 13,228 mn (US$ 220.5 mn) Gross Margins ~15 %- 16% Gross Margins ~ 8% (on steady state basis) 72.85% Gold Jewe
Slide 8: Extensive Retail Network – Pan India Reach
Extensive Retail Network – Pan India Reach 44 showrooms across 35 cities Jammu and 14 states Amritsar Panchkula Ludhiana Dehradun Expansion plans are well on Chandigarh Hardiwar Hisar Shri Ganganagar Rohtak Ghaziabad track with 14 new showrooms New Delhi Faridabad Gurgaon Noida opened in FY2014 till
Slide 9: Robust Financial Performance Trends
Robust Financial Performance Trends 5 years CAGR in revenues ~ 52.5% Continuously growing focus on Retail Sales 35,000 Total Sales (INR Mn) 100% 53,248 28,000 33.5% 25.5% 24.8% 80% 40,184 34.4% 33.0% 21,000 75.2% 74.5% 60% 66.5% 67.0% 30,419 65.6% 14,000 40% 19,771 9,848 7,000 20% 0% 0 FY 2010 FY 20
Slide 10: Robust Financial Performance Trends (Cont'd.)
Robust Financial Performance Trends (Cont’d.) RoCE RoE 30,000 Significant increase in 43.6% 26,853 30,000 45.4% 43.9% 41.9% networth owing to IPO fund 25,000 38.2% 25,000 raise 16,197 30.0% 20,000 29.1% 20,000 13,888 16,823 21.4% 20.9% 15,000 15,000 21.2% 11,275 10,000 10,000 5,492 4,647 5,000 2,624
Slide 11: Unique Business Model
Unique Business Model PCJ has focus on wedding jewellery which is a high ticket purchase with a strong emotional touch-point for most Indian families Wedding jewellery is considered as an investment and an asset to be used in need. Trust becomes the most important factor for the customer to decide t
Slide 12: Focussed Expansion Strategy
Focussed Expansion Strategy Started operations from one showroom at Karol Bagh, New Delhi. Today, PCJ has 44 showrooms across 35 cities and 14 states Has consistently followed a well thought-out and considered expansion plan. Key drivers are as follows Position itself as a most trusted jewellery bra
Slide 13: Unique Customer Experience at PCJ
Unique Customer Experience at PCJ Best in class, transparent and customer friendly policies Exchange, Return and Life-time maintenance policies Lounge concept introduced at select stores for catering to high net-worth customers Lounge gives HNI customers adequate space and privacy. There is a dedica
Slide 14: Typical Store Economics
Typical Store Economics Indicative workings for a Store with an area of 5,000 sq. ft. Indicative Capital Employed at the Store Target Annual Store Sales Rs. 600 mn Total Inventory Rs. 300 mn Gold: Diamond Jewellery Mix 70% : 30% Store Inventory Rs. 225 mn Gross Margins – Gold 9% – 10% Back-end Inven
Slide 15: Professional Management
Professional Management Mr. Padam Chand Mr. Manohar Lal Mr. Krishan Mr. Miyar Directors Board of Mr. RK Sharma Gupta Singla Kumar Khurana Ramanath Nayak Mr. Balram Garg Executive Director Non- Exec Independent Independent Independent Managing Director and COO Chairman Director Director Director Mr.
Slide 16: Strong Corporate Governance Practices
Strong Corporate Governance Practices Only 2 (out of total 6) directors on the Management Board are Promoters Directors 3 (of the total 6) directors on the Management Board are independent directors who are eminent personalities in their chosen field (Law, Management and Finance) Independent directo
Slide 17: New Initiatives: Ecommerce (Unique Online + Offline strategy)
New Initiatives: Ecommerce (Unique Online + Offline strategy) Buying patterns of Indian consumers are changing fast. Consumer are getting more comfortable with online purchases Online sales of precious jewellery items is also picking up, especially small ticket value items We are setting up a focuss
Slide 18: New Initiatives: Franchisee Model
New Initiatives: Franchisee Model Indian retail jewellery market is fast becoming organized and preference towards organized jewellery players is growing. Past decade has witnessed the emergence of various such organized players Organized market in India today constitutes ~22% (regional chains contr
Slide 19: New Initiatives: Empowering Women Entrepreneurs
New Initiatives: Empowering Women Entrepreneurs Every Indian city has a number of women entrepreneurs working in the jewellery space We are looking to build our social selling programme to harness this entrepreneurial intellect and develop women ambassadors/ stylists who will showcase and market our
Slide 20: Other Initiatives
Other Initiatives Active work on developing a separate team to focus on jewellery marketing to HNI customers and regular buyers through home visits/ roadshows Image Consulting Image consultants being hired for lounges with a focus to help high networth individuals and regular buyers in choosing jewe
Slide 21: Regulatory Aspects – Then and Now
Regulatory Aspects – Then and Now Then Hike in Custom Duty Weightage of custom duty is very small in the final sale price of jewellery items and this cost is always passed on to the consumers. Hence impact is NIL/ minimal Introduction of 20:80 scheme for gold supply This scheme imposed a condition u
Slide 22: Annexure: Detachable Necklaces
Annexure: Detachable Necklaces Necklace Set Different ways to wear 22
Slide 23: Annexure: Detachable Necklaces
Annexure: Detachable Necklaces Necklace Set Different ways to wear 23
Slide 24: Annexure: Detachable Necklaces
Annexure: Detachable Necklaces Necklace Set Different ways to wear 24
Slide 25: Annexure: Detachable Necklaces
Annexure: Detachable Necklaces Necklace Set Different ways to wear 25
Slide 26: Annexure: Detachable Necklaces
Annexure: Detachable Necklaces Necklace Set Different ways to wear 26
Slide 27: Thank You
Thank You 27