Thangamayil Jewellery Ltd. · NSE:THANGAMAYL
Thangamayil Jewellery — Investor Presentation (June 2022)
20 slides from Thangamayil Jewellery's investor presentation, June 2022
Slide 1: Thangamayil Jewellery Limited (TMJL)
Thangamayil Jewellery Limited (TMJL) June 2022 1
Slide 2: Index
Index Indian’s obsession with gold to continue 3 South region / Rural India contributes chunk of demand 4 The dazzling shift to formalization 5 Regulatory interventions – setting base for formalization 6 India’s demographic dividend in favor of formalization 7 Share of organized players
Slide 3: Indian's obsession with gold to continue
Indian’s obsession with gold to continue Market Size - USD Bn • Demand for gold jewellery has remained steady at 700-800 tonnes 60 over CY2017-2021, as people buy gold 40 40 to mark new beginnings, birth, festivals 35 38 34 and weddings • Majority of gold demand in India is CY 2016 CY 2017 CY 2018 C
Slide 4: South region / Rural India contributes chunk of demand
South region / Rural India contributes chunk of demand • South India constitutes c40% of gold demand (Source: WGC), Urban vs Rural: Gold Ownership (%) based with a majority of the jewelry market being captured via value conscious customers / economy products on Income Level (Source: World Gold Counc
Slide 5: The dazzling shift to formalization
The dazzling shift to formalization • Organized players have grown at a faster rate vs Industry growth rate in medium term owing to market share gains, although industry growth might remain subdued. • Troika of factors – such as Regulatory, Macro and Business oriented will drive dazzling shift to fo
Slide 6: Regulatory interventions – setting base for formalization
Regulatory interventions – setting base for formalization • During the era of FY12-17, government introduced a slew of regulations, which was hurting organized sector more than benefitting them. However, seen in hindsight, it was setting base for formalization Regulatory Factors which were introduce
Slide 7: India's demographic dividend in favor of formalization
India’s demographic dividend in favor of formalization Macro factors • Increase in share of Urbanization to 35% now has 2021 35% resulted in shift in demand to more organized brands that provide authenticity, purity 2015 33% and innovative designs • Nuclearization of families • Increasing share of w
Slide 8: Organized players' share set to rise
Organized players’ share set to rise Business factors • Setting up of large format stores - better range/ variety, contemporary design, access to trained staff enables to cross-sell and give better customer experience vs unorganized players • Mandatory implementation of Hallmarking to put unorganize
Slide 9: Company Section
Company Section 9
Slide 10: TMJL : Entering a Golden era
TMJL : Entering a Golden era • Promoters forayed into business of jewellery retailing under the name of “Balu Jewellers” in 1947 in city of Madurai, Tamil Nadu. Store Expansion (LFS) • Proprietorship business converted into a Corporate entity in 2000 40 38 under the name of “Thangamayil Jewellery Pv
Slide 11: Key Performance Indicators for TMJL
Key Performance Indicators for TMJL • Gold procurement : TMJL has a very Annual Inventory Funding - % balanced approach in gold 100.00 procurement using the mix of low cost 80.00 42 46 58 53 53 51 and stable sourcing options, given 60.00 historically there has been lot of flip- 40.00 32 28 33 34 flo
Slide 12: Inventory management practices
Inventory management practices • Since majority of the investments being in inventory, TMJL has deployed best in class inventory management practices to improve stock turnover ratio – so that it can free up working capital • Hired Goldratt (Theory of Constraints expert), who has been expert in inven
Slide 13: Hedging Strategies
Hedging Strategies Gold Metal Hedging in Inventory Holding • TMJL though get natural hedging in the form of 80% metal loan from banks and customers advances in 73% gold form, the company made it a policy to hedge 70% 65% the aggregate inventory in operations up to 75%. 63% • The balance 25% unhedged
Slide 14: Profile of Key Professionals associated with the Company
Profile of Key Professionals associated with the Company Experience in TMJL Name Department Designation Qualification (in years) VIJAYARAGHAVAN V MANAGEMENT COMPANY SECRETARY B.A, LLB, ACS 15 LAKSHMANAN SOMAN FINANCE & ACCOUNTS VICE PRESIDENT ACA, ACS 3 ASSISTANT GENERAL SUBHA V FINANCE & ACCOUNTS B
Slide 15: Family tree
Family tree Promoter Group Mr. Balarama Govinda Mr. B A Ramesh Mr. N B Kumar Das (CMD) (Jt. MD) (Jt. MD) A commerce scholar, has He has been Involved in He has been managing the been driving the business business for around 40 day-to-day affairs of the of manufacturing and years and played key role
Slide 16: SWOT Analysis
SWOT Analysis STRENGTH CHALLENGES 1. Value retailer operating in Tier 2 / Tier 3 cities of western / 1. Gold price volatility leads to deferment of non-discretionary Southern India, where is less competition from organized purchases retailers 2. Frequent change in customer taste / preferences for je
Slide 17: Growth Strategy
Growth Strategy • Refurbishment of existing stores, which shall lead to Advertisement & Publicity Expense improved SSSg / Margins 300 244 • Plans to embark upon aggressive asset light store 250 expansion strategy 200 In Rs. Mn Focus on setting up stores in rural areas, so that 150 137 102 96 tende
Slide 18: Financial Information
Financial Information Profit & Loss (Rsmn) FY19 FY20 FY21 FY22 Balance Sheet (Rsmn) FY19 FY20 FY21 FY22 Net Sales 14,434 16,920 18,186 21,931 Share holders fund 1,932 2,201 2,979 3,243 % Change 4.6 17.2 7.5 20.6 Loan funds 1,777 2,481 3,116 4,044 Raw materials cost (12,903) (14,814) (15,928) (19,749
Slide 19: Disclaimer
Disclaimer This presentation (“Presentation”) does not constitute a prospectus, offering memorandum or an offer, or a solicitation of any offer, to purchase or sell any securities. This presentation should not be considered as a recommendation that any investor should subscribe for or purchase any s
Slide 20: Thank You
Thank You 20
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