Pc Jeweller Ltd. · NSE:PCJEWELLER
Pc Jeweller — Investor Presentation (June 2015)
44 slides from Pc Jeweller's investor presentation, June 2015
Slide 1: PC Jeweller Limited
June 2015 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: Indian Jewellery Industry
Indian Jewellery Industry Annual value of India’s domestic gems and jewellery industry is over INR 3,000 bn (~US$ 50 bn)* ....Industry is 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
Slide 4: PC Jeweller – Brief Snapshot
PC Jeweller – Brief Snapshot PC Jeweller - India’s leading jewellery retail chain Backed by strong promoter team, professional management and an independent board 52 showrooms across 44 cities and 17 states (over 3,24,296 sq. ft. of retail space) Robust Business Model - Large Format Showrooms, Maxim
Slide 5: Promoter and Management Background
Promoter and Management Background Company was promoted by a first generation entrepreneur in 1981 in partnership with a family friend This partnership continued till 2005, when the two families amicably separated and formed their own companies Mr. Padam Chand and Mr. Balram Garg started PC Je
Slide 6: 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 FY 2007 - 08 • +2 showrooms • Export operations commenced, manufacturing facility upgraded at Noida SEZ FY 2008 - 09 • +2
Slide 7: Business Segments – Brief Overview
Business Segments – Brief Overview PC Jeweller Limited FY 2015 Sales: Rs. 6,348.52 crores 71.5% 28.5% Domestic Sales Export Sales Rs. 4,538.70 crores Rs. 1,809.82 crores Gross Margins ~15 %- 16% Gross Margins ~ 8% (on steady state basis) 68.48% Gold Jewellery Rs. 3,108.10 crores, Gross Margins ~10%
Slide 8: Extensive Retail Network – Pan India Reach
Extensive Retail Network – Pan India Reach 52 large format showrooms Jammu 2 showrooms to be opened by Amritsar end June 2015 Panchkula Ludhiana Dehradun Chandigarh Hardiwar 44 cities, 17 states Hisar Shri Ganganagar Rohtak Ghaziabad New Delhi Jaipur Gurgaon Faridabad Bareilly Target additio
Slide 9: Robust Financial Performance Trends
Robust Financial Performance Trends 6 years CAGR in revenues ~ over 45% Consistent Focus on Domestic Retail Business INR Mn 60,000 100% 33.5% 25.5% 24.8% 80% 28.5% 34.4% 33.0% 40,000 75.2% 74.5% 63,485 60% 71.5% 66.5% 65.6% 67.0% 53,248 40,184 40% 9,848 20,000 30,419 19,771 20% 0 0% FY 2010 FY 2011
Slide 10: Robust Financial Performance Trends (Cont’d.)
Robust Financial Performance Trends (Cont’d.) RoCE RoE INR Mn INR Mn 30,000 19,904 43.60% 26,853 26,718 20,000 43.90% 45.40% 41.90% 13,888 25,000 38.20% 16,823 16,197 30.00% 15,000 20,000 29.10% 15,000 11,275 10,000 20.90% 22.10% 10,000 21.40% 5,492 21.20% 20.58% 4,647 5,000 3,252 5,000 2,624 1,786
Slide 11: Salient Features - Unique Business Model
Salient Features - Unique Business Model PC Jeweller has focus on wedding jewellery which is a high ticket purchase with 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
Slide 12: Salient Features - Unique Business Model (Cont’d)
Salient Features - Unique Business Model (Cont’d) Pursuant to our contract with canalizing agencies and international bullion suppliers, price of gold purchased is fixed within the applicable credit period on the basis of prevailing gold rates on sale to Gold Hedging customers o This minimizes any
Slide 13: 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. 200 mn Gold: Diamond Jewellery Mix 70% : 30% Store Inventory Rs. 150 mn Gross Margins – Gold 9% – 10% Back-end Inven
Slide 14: Salient Features (Cont’d.)
Salient Features (Cont’d.) Strong Designing and Manufacturing Capabilities Company has a strong team of over 50 designers who keep on creating new patterns and designs on a regular basis based on domestic and international trends Company also participates in domestic and international fashion sh
Slide 15: Strong Risk Management Policies
Strong Risk Management Policies Company obtains almost of all its gold on lease basis which protects it against gold price fluctuations 100% insured transfer Entire inventory, including raw material, finished goods at stores, goods under transit remains fully insured at all times Nearly 80%
Slide 16: Business de-risked from Gold price fluctuations
Business de-risked from Gold price fluctuations Gold Purchase Arrangement Domestic Exports Mode of Purchase RBI Nominated Agency Direct Import for SEZs / RBI Nominated Agency Credit Days 180 Days from date of procurement 270 Days from date of procurement Type of Security Stand By Letter of
Slide 17: Focussed Expansion Strategy
Focussed Expansion Strategy Started operations from one showroom at Karol Bagh, New Delhi. Today, PCJ has 52 showrooms across 44 cities and 17 states Has consistently followed a well thought-out and considered expansion plan. Key drivers are as follows Position itself as a most trusted jewelle
Slide 18: India Online Jewellery Industry – Indicative Market Size
India Online Jewellery Industry – Indicative Market Size Annual value of India’s domestic jewellery industry is ~INR 3,000 bn (US$ 50 bn) Expected to grow @ CAGR of ~16% to reach INR 5,430 bn (US$90.5 bn) by 2018 Of this, organized market constitutes ~20-22% (regional chains contribute ~17% an
Slide 19: WearYourShine.com
WearYourShine.com We launched a focussed ecommerce vertical www.WearYourShine.com in Oct 2014 focusing 100% on Customer experience, Designs and Transparent pricing Target has been to make the website a go-to jewellery destination for high-end customers and the masses alike We have seen an amaz
Slide 20: Franchisee Model
Franchisee Model Indian retail jewellery market is fast becoming organized and preference towards organized jewellery players is growing Organized market in India today constitutes ~22% (regional chains contribute ~17% and national chains ~5%) of the total market and this is expected to grow fas
Slide 21: Flexia – Detachable Jewellery Collection
Flexia – Detachable Jewellery Collection We launched a unique detachable jewellery collection, Flexia, in Nov 2014 wherein one jewellery set can be converted and worn into 5-6 unique ways Customer response to the product has been extremely good. Women are loving the concept as one jewellery piec
Slide 22: Flexia – Plans for introducing Shop-in-Shop for light weight segment
Flexia – Plans for introducing Shop-in-Shop for light weight segment We expect light weight Flexia jewellery to be a very successful amongst youngsters and working women The designs are very contemporary and affordable Hence, we are also exploring launching light-weight Flexia jewellery throug
Slide 23: International Collaborations
International Collaborations We have recently signed an exclusive India collaboration agreement with Blue Nile, one of the largest online retailer of diamond jewellery in the world As a part of the exclusive collaboration agreement, we plan to launch a PCJ – Blue Nile joint branded product range
Slide 24: Board of Directors
Professional Management Board of Directors Mr. Padam Chand Mr. Manohar Lal Mr. Krishan Kumar Mr. Miyar Ramanath Mrs. Kusum Jain Mr. RK Sharma Gupta Singla Khurana Nayak Mr. Balram Garg Non- Exec utive Executive Director Non- Exec utive Independent Independent Independent Managing Director Director a
Slide 25: Strong Corporate Governance Practices
Strong Corporate Governance Practices Only 2 (out of total 7) directors on the Management Board are Promoters Directors 3 directors on the Management Board are independent directors who are eminent personalities in their chosen field (Law, Management and Finance) Independent directors head the
Slide 26: Annexure A: Select Showroom Images
Annexure A: Select Showroom Images
Slide 27: Select Showroom Images
Select Showroom Images Milestone 50th Showroom at Jaipur, Rajasthan (Feb 2015) (20,522 sq. ft.) 27
Slide 28: Select Showroom Images (Cont’d)
Select Showroom Images (Cont’d) Flagship Showroom at Karol Bagh, New Bengaluru, Karnataka Delhi 28
Slide 29: Select Showroom Images (Cont’d)
Select Showroom Images (Cont’d) Kolkatta, West Bengal Vadodara, Gujarat 29
Slide 30: Select Showroom Images (Cont’d)
Select Showroom Images (Cont’d) Kanpur, Uttar Pradesh Jodhpur, Rajasthan 30
Slide 31: Select Showroom Images (Cont’d)
Select Showroom Images (Cont’d) Rohtak, Haryana Dehradun, Uttarakhand 31
Slide 32: Select Showroom Images (Cont’d)
Select Showroom Images (Cont’d) Varanasi, UP Jabalpur, Madhya Pradesh 32
Slide 33: Annexure B: State-of-the-art manufacturing facility
Annexure B: State-of-the-art manufacturing facility
Slide 34: State-of-the-art manufacturing facility at Noida, UP, India
State-of-the-art manufacturing facility at Noida, UP, India 34
Slide 35: Annexure C: Flexia - Detachable Jewellery Collection
Annexure C: Flexia - Detachable Jewellery Collection
Slide 36: Flexia Detachable Jewellery Collection – Higher range
Flexia Detachable Jewellery Collection – Higher range 36
Slide 37: Flexia Detachable Jewellery Collection – Higher range (Cont’d)
Flexia Detachable Jewellery Collection – Higher range (Cont’d) 37
Slide 38: Flexia Detachable Jewellery Collection - Light Weight
Flexia Detachable Jewellery Collection - Light Weight 38
Slide 39: Flexia Detachable Jewellery Collection – Light Weight (Cont’d)
Flexia Detachable Jewellery Collection – Light Weight (Cont’d) 39
Slide 40: Annexure D: Select Indian Jewellery
Annexure D: Select Indian Jewellery
Slide 41: Wedding Jewellery
Wedding Jewellery 41
Slide 42: Wedding Jewellery (Cont’d)
Wedding Jewellery (Cont’d) 42
Slide 43: Light Weight Jewellery
Light Weight Jewellery 43
Slide 44: Thank You
Thank You 44