Pc Jeweller Ltd. · NSE:PCJEWELLER
Pc Jeweller — Investor Presentation (September 2016)
63 slides from Pc Jeweller's investor presentation, September 2016
Slide 1: PC Jeweller Limited Corporate Presentation September 2016
PC Jeweller Limited Corporate Presentation September 2016 PCJeweller.com 1
Slide 2: Presentation Structure
Presentation Structure Indian Jewellery Industry Our Sales Formats Amongst World’s Largest & Fastest growing Large Format Showrooms Key Segments Small Stores Recent Industry Updates Franchisee Showrooms Flexia Jewellery Collection Future of Luxury Markets WearYourShine.com Deloitte: Global Power of
Slide 3: Indian Jewellery Industry
Indian Jewellery Industry PCJeweller.com 3
Slide 4: Amongst World's Largest & Fastest growing
Amongst World’s Largest & Fastest growing Indians love jewellery - Jewellery is amongst the largest discretionary spend categories Large Potential - Indian economy is expected to grow at >7%, disposable income is growing, large proportion of population between 15 – 25 age band (expected to get marri
Slide 5: Amongst World's Largest & Fastest growing (Cont'd)
Amongst World’s Largest & Fastest growing (Cont’d) Significant structural shift happening across Supply side as well One of the significant features of Indian Jewellery Segment is that over 78% of the jewellery retailers are unorganized. However, 0rganized jewellery retail growing fast @ 25% CAGR (e
Slide 6: Key Segments
Key Segments Overall Indian Jewellery Market Overall imports estimated for jewellery ~ 700 tonnes. Additionally, around 15-20% of the jewellery is usually reused (returned, melted and new design made) This leads to overall Gold Jewellery market size (including the making charges) ~ 42 bn USD Diamond
Slide 7: Select Indian Jewellery Designs (Wedding Jewellery)
Select Indian Jewellery Designs (Wedding Jewellery) PCJeweller.com 7
Slide 8: Select Indian Jewellery Designs (Wedding Jewellery)
Select Indian Jewellery Designs (Wedding Jewellery) PCJeweller.com 8
Slide 9: Select Indian Jewellery Designs (Wedding Jewellery)
Select Indian Jewellery Designs (Wedding Jewellery) PCJeweller.com 9
Slide 10: Select Indian Jewellery Designs (Wedding Jewellery)
Select Indian Jewellery Designs (Wedding Jewellery) PCJeweller.com 10
Slide 11: Select Indian Jewellery Designs (Light Weight Designs)
Select Indian Jewellery Designs (Light Weight Designs) PCJeweller.com 11
Slide 12: Select Indian Jewellery Designs (Light Weight Designs)
Select Indian Jewellery Designs (Light Weight Designs) PCJeweller.com 12
Slide 13: Future of Luxury Markets
Future of Luxury Markets PCJeweller.com 13
Slide 14: Deloitte: Global Power of Luxury Goods 2016
Deloitte: Global Power of Luxury Goods 2016 Deloitte recently released its annual report on Global Powers of Luxury Goods (2016). The report examines and lists the 100 largest luxury goods companies globally The report also discusses the key forces that are shaping the luxury market and their possib
Slide 15: Key excerpts from the Deloitte report
Key excerpts from the Deloitte report Growth proliferation in luxury goods have embedded technologies beyond mobile phones. Smart wearables are entering the market without sacrificing elegance and enhance utility Excerpts from the report In order to create value over the next Falling footfall and pr
Slide 16: Future of Luxury Markets: Our course of action
Future of Luxury Markets: Our course of action Extensive focus on CRM (data capture, data analysis and usage) across all showrooms for marketing/ offering/ branding Focus on Digital Active presence on all social media, Digital Branding and Youth Marketing Initiatives 2016 Listen to what customers wa
Slide 17: PC Jeweller Limited – Overview
PC Jeweller Limited – Overview PCJeweller.com 17
Slide 18: Brief Overview
Brief Overview Overview Financial Snapshot Position • 2nd largest listed jewellery retailer in India FY14 FY15 FY16 Stores 41 50 60 Robust Retail • Pan India network of 65 showrooms across 52 cities Network encompassing 18 states Revenue (Rs mn) 53,248 63,485 72,591 Gold and EBITDA (Rs mn) 5,863 7,4
Slide 19: Large Network of Strategically Located Showrooms
Large Network of Strategically Located Showrooms Jammu 65 showrooms (3,68,661 sq. ft.)* Amritsar Yamuna Chandigarh Nagar 52 cities and 18 states Ludhiana Dehradun Hissar Haridwar Sri Ganganagar Rohtak New Delhi (10) Noida Exclusive lounges at 10 Gurgaon Faridabad Bareily Ghaziabad Siliguri showrooms
Slide 20: Our DNA
Our DNA PCJ has grown from 1 showroom in Karol Bagh (in 2005) to 65 showrooms today Throughout this journey, PCJ has remained committed to its basic principles Hedging Gold and Currency since its initial years Continuously enhanced its design team and expanded its manufacturing facilities to ensure
Slide 21: Our Long Term Vision
Our Long Term Vision Brand Trust and Recognition Manufacturing Capacity Large format exclusive WearYourShine.com Flexia Jewellery: and Technology Small Stores Shop in Shop Showrooms Franchisee showrooms Vertically Integrated Operations + Strong Design Teams + Robust Risk Management + Efficient Suppl
Slide 22: Our Long Term Vision (Cont'd)
Our Long Term Vision (Cont’d) Customer Metro Tier I Tier II Tier III Segment Exclusive Lounges Started this concept in select showrooms ~3 Ultra Rich years back. Now also planning to set up independent lounges Focused on high end designer pieces Large Format Showroom Franchisee showrooms across Rich
Slide 23: Performance since IPO (Dec 2012)
Performance since IPO (Dec 2012) Store Network As at FY12 By FY13 By FY14 By FY15 By FY16 Today Total Showrooms 24 30 41 50 60 65 Area (Sq. ft.) 137,937 164,572 247,098 313,296 352,313 368,661 Stores Area Revenue 70 400 352.3 80,000 72,591 60 350 CAGR: 26.4% 313.3 CAGR: 24.3% 60 70,000 63,485 50 300
Slide 24: Consistent Financial Performance
Consistent Financial Performance FY12-16 CAGR in revenues ~ 24.3% Consistent focus on Retail Sales 80,000 72,591 80,000 Domestic Revenue Export Revenue 72,591 63,485 63,485 60,000 60,000 53,248 28.8% 53,248 28.5% 40,184 40,184 24.8% 40,000 40,000 30,419 30,419 25.7% 33.0% 71.5% 71.2% 20,000 20,000 7
Slide 25: FY 2016 Performance
FY 2016 Performance FY 2016 Sales: Rs. 7,259.07 crores (14.34% growth over FY 2015) FY 2016 Domestic Retail Sales : Rs. 5,166.63 crores (13.84% growth over FY 2015 ) FY 2016 Export Sales : Rs. 2,092.44 crores (15.62% growth over FY 2016 ) FY 2016 PAT : Rs. 400.88 crores (5.99% growth over FY 2015) F
Slide 26: Experienced Management Team
Experienced Management Team Board of Directors Mr. RK Sharma Mr. Padam Chand Gupta Ms. Kusum Jain Mr. Balram Garg Mr. Suresh Kumar Jain Executive Director and Non- Executive Chairman Non- Executive Director Managing Director Independent Director COO Mr. Miyar Ramanath Mr. Krishan Kumar Prof. Manohar
Slide 27: Strong Corporate Governance Practices
Strong Corporate Governance Practices Only 2 (out of total 9) directors on the Board are Promoter Directors 4 directors on the Management Board are independent directors with significant experience in their field of expertise (Law, Management and Banking) Independent directors head the Audit committ
Slide 28: Large Format Showrooms
Large Format Showrooms PCJeweller.com 28
Slide 29: Flagship Showroom at Karol Bagh, New Delhi
Flagship Showroom at Karol Bagh, New Delhi Flagship Showroom at Karol Bagh, New Delhi PCJeweller.com 29
Slide 30: Our Largest Showroom at Jaipur, Rajasthan
Our Largest Showroom at Jaipur, Rajasthan Milestone 50th Showroom at Jaipur, Rajasthan (Feb 2015) (20,522 sq. ft.) PCJeweller.com 30
Slide 31: Large Format Showrooms – Unique Business Model
Large Format Showrooms – Unique Business Model Trust and Large Format Showrooms at high street in the city Ambience An element of ‘Trust’ to customers seeking one-stop for wedding jewellery products Ensure showrooms have larger variety across price range, much wider than its Large Product competitor
Slide 32: Small Stores
Small Stores PCJeweller.com 32
Slide 33: Small Store Formats
Small Store Formats In our endeavour to innovate and target newer markets, we have launched small stores Target middle class/ lower middle class customers who are not very comfortable in visiting large format showrooms at high street locations We believe such customers have a limited budget and pref
Slide 34: Franchisee Showrooms
Franchisee Showrooms PCJeweller.com 34
Slide 35: Franchisee Showrooms
Franchisee Showrooms Indian retail jewellery market is fast becoming organized Organized market in India today constitutes ~22% Growing fast and expected to reach over 35% in the next few years Smaller Indian cities (Tier 2 and 3) are also witnessing this phenomenon Growing comfort on organized jewe
Slide 36: Flexia Jewellery Collection
Flexia Jewellery Collection PCJeweller.com 36
Slide 37: Flexia Jewellery Collection
Flexia Jewellery Collection We launched Flexia in November 2014 Favourable customer response to the ‘Flexia’ concept as one jewellery piece can be worn in multiple ways and each product looks different and unique We have already launched two ranges in Flexia (Above Rs. 1,50,000 and between Rs. 1,00,
Slide 38: Flexia Jewellery Collection – High Range
Flexia Jewellery Collection – High Range PCJeweller.com 38
Slide 39: Flexia Jewellery Collection – Light Weight
Flexia Jewellery Collection – Light Weight PCJeweller.com 39
Slide 40: Internet Strategy with WearYourShine.com
Internet Strategy with WearYourShine.com PCJeweller.com 40
Slide 41: Online Jewellery Sales - Ripe for Disruption
Online Jewellery Sales - Ripe for Disruption Overall Market Size ~62 bn USD, ~ 12% Overall Market Size ~ 96 bn USD, ~3-4% sold sold online online (Grown from 0.4% five years back) Most of the large brands (like Signet) are Brands like CTF, CSS, Luk Fook have a big focus available online on this chan
Slide 42: WearYourShine.com
WearYourShine.com We launched our ecommerce vertical www.WearYourShine.com in October 2014 as a curated jewellery platform We are seeing good traffic, growing transactions especially repeat purchases. We are also seeing online discovery and offline conversion which has helped increase the ticket siz
Slide 43: Unique Business Model
Unique Business Model Curated Strong Parent Marketplace Brand Model Lean Manufacturing Technology Consultative OmniChannel Selling Strategy Product Portfolio Target Customer Base Light to Medium weight jewellery First time jewellery buyers Own as well as Designer jewellery Working Women Primarily st
Slide 44: Smart Jewellery - WYSH
Smart Jewellery - WYSH PCJeweller.com 44
Slide 45: Smart Jewellery 'WYSH'
Smart Jewellery ‘WYSH’ We displayed our smart jewellery at CES 2016 in technical tie-up with LA based leading tech firm Martian Inc We are the world’s first jewellery retailer to introduce such smart jewellery Smart jewellery comprises of an electronic module fitted within the jewellery This jewelle
Slide 46: Azva Jewellery
Azva Jewellery PCJeweller.com 46
Slide 47: Azva Jewellery
Azva Jewellery We have acquired Azva from World Gold Council Azva is a luxury jewellery brand inspired by the beautiful thought of the seven vows of the Indian wedding tradition Since its inception in 2012, Azva has captured the imagination and fancy of modern Indian brides with its exquisite range
Slide 48: Azva Jewellery (Select Designs)
Azva Jewellery (Select Designs) PCJeweller.com 48
Slide 49: Export Business
Export Business PCJeweller.com 49
Slide 50: Export Business
Export Business We have been in the export business for a fairly long time and focus has been on handmade designer gold jewellery Targets Indian diaspora and local population in Middle East Helps in getting good design ideas and latest trends Manufacturing facility at Noida SEZ caters to our export
Slide 51: Key Growth Enablers
Key Growth Enablers PCJeweller.com 51
Slide 52: Technology Advantage
Technology Advantage We expect technology to be a key differentiator in our business in the years to come This is in sync with our overall strategy to enhance sales/profitability, customer experience and develop analytics on consumer preferences We are working on various technology initiatives Robus
Slide 53: Vertically Integrated Operations – Research & Design
Vertically Integrated Operations – Research & Design Research and Strong Risk Robust Supply Manufacturing Design Management Chain Design is a key driver of jewellery sales in current times In-house design team creating new patterns and designs on a regular basis based on domestic and international t
Slide 54: Vertically Integrated Operations - Manufacturing
Vertically Integrated Operations - Manufacturing Research and Strong Risk Robust Supply Manufacturing Design Management Chain We have 5 manufacturing facilities with modern equipment Skilled pool of workers with skills of converting paper designs into exquisite jewellery pieces Role of skilled artis
Slide 55: Vertically Integrated Operations – Strong Risk Management
Vertically Integrated Operations – Strong Risk Management Research and Strong Risk Robust Supply Manufacturing Design Management Chain Gold on Lease Business de-risked from gold price fluctuations by sourcing gold on lease Insurance Entire inventory of raw material to finished goods insured at all t
Slide 56: Vertically Integrated Operations – Robust Supply Chain
Vertically Integrated Operations – Robust Supply Chain Research and Strong Risk Robust Manufacturing Design Management Supply Chain Seamless Supply Chain to ensure minimal WIP inventory and a rapid store rollout Efficient inventory management process facilitates quick rotation of stock Allows us to
Slide 57: Annexure A: Select Showroom Images
Annexure A: Select Showroom Images Flagship Showroom at Karol Bagh, New Bengaluru, Karnataka Delhi PCJeweller.com 57 57
Slide 58: Annexure A: Select Showroom Images (Cont'd.)
Annexure A: Select Showroom Images (Cont’d.) Kolkata, West Bengal Vadodara, Gujarat PCJeweller.com 58 58
Slide 59: Annexure A: Select Showroom Images (Cont'd.)
Annexure A: Select Showroom Images (Cont’d.) Kanpur, Uttar Pradesh Jodhpur, Rajasthan PCJeweller.com 59 59
Slide 60: Annexure A: Select Showroom Images (Cont'd.)
Annexure A: Select Showroom Images (Cont’d.) Rohtak, Haryana Dehradun, Uttarakhand PCJeweller.com 60 60
Slide 61: Annexure B: State-of-the-art manufacturing facility at Noida, UP, India
Annexure B: State-of-the-art manufacturing facility at Noida, UP, India PCJeweller.com 61 61
Slide 62: Disclaimer
Disclaimer The information in this presentation is being provided by PC Jeweller Limited (also referred to as ‘PCJ’ or ‘Company’). By attending the meeting where this presentation is being made or by reading the presentation materials, you agree to be bound by following limitations: The information
Slide 63: Thank You
Thank You PCJeweller.com 63