Corporate Presentation
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Corporate Presentation April 2015 INTRODUCING GITANJALI Established in 1966, it is today one of the largest integrated jewellery players globally Strong • 2 state of the art cutting & polishing facilities with a capacity of nearly 2.4 million stones p.a Manufacturing • 8 Modern facilities spread across India, China & Thailand with a manufacturing capacity of Base nearly 8.5 million pieces p.a Designs – Key • More than 200,000 active designs Assets • Team of designers chosen from top notch fashion and design institutes Well established • Pioneer in branded diamond jewellery in India – Gili in 1994 portfolio of • More than 75 brands Indian & • 8 out of top 10 Brands in India are owned by the Group International Brands • More than 3,000 points of Sale across various channels and formats Extensive Retail • 200 Own Stores, 150 Franchisees, 675 Shop-in-shops (SIS) and 2,000 retailers Presence • The group has also explored jewellery vending machines, television selling and e-commerce • USA – 100 Stores and distribution to 500 retailers Strategically • UAE – 4 Stores and over 50 SIS present in top • Japan – Supply to the 3rd largest jewellery retail chain global jewellery • Europe – Portfolio of key Italian brands markets • China – Distribution to several retailers Organizational • Nearly 5,000 employees Strength • 10 global offices with 6 regional offices in India Strong Foundation... Mr. Mehul Choksi is the Chairman and Managing Director of the Gitanjali Group. Mr. Choksi is today one of the best known entrepreneurs in the gems and jewellery industry not only in India but also globally. Driven by a keen sense of business excellence, exceptional vision and foresight, Mr. Choksi’s initiative and charismatic leadership has led the transformation of a closely held family business into one of the largest, most professionally managed and publicly listed corporates in the gems and jewellery field. Mr. Choksi assumed a leadership position in 1981. In 1986, under his stewardship, Gitanjali Gems Ltd, the flagship company of the Group was formed. He has since, steered the group’s modernization, expansion and diversification through constant innovation and evolution. With every new step taken by the group, Mr. Choksi emerges a visionary and trendsetter, continuously providing a new thrust and direction to the industry. Mr. Mehul Choksi Mr. Choksi is also a key member of many industry bodies and associations. Over the years, Mr. Choksi and the Chairman and Managing Group have also received over 50 National and Council awards for retail excellence, brand building, and export Director performance. Besides Mr. Choksi’s passion for the industry, he also believes in upliftment of the society at large. His desire to “give back to the society” is what has resulted in the group receiving the national award from the Government of India as the best employer for the “empowerment of Persons with Disabilities” in 2009. The Group is backed by a strong second line of management with veterans from the jewellery, retail and luxury industries. Key Milestones . Acquired minority stake in Verite, a jewellery retailer in Japan . Acquired significant minority stake in Gems TV, leading jewellery sales television channel . Acquired brands ‘Nirvana’ and ‘Viola’ . Launched Gitanjaligifts.com, for e -commerce foray 2012 Acquired assets of DIT Group S.p.A (DIT) Italy 2011 Acquired the brand ‘Asmi’ from DTC 2008 . IPO of Gitanjali Gems Limited . Acquired the brand ‘Nakshatra’ 2007 . Acquired Samuels Jewelers Inc, USA for retail presence in the US 2006 . Formed JV with Sanghavi Exports for manufacturing and marketing ‘Sangini’ brand Formed JV to promote brand 'Nakshatra' 2004 Formed JV with ‘D'Damas’ 2003 Started operations at the manufacturing unit in Borivali, Mumbai 1996 . Launched India's first branded 1994 jewellery, ‘Gili’, through Gili India Started jewellery operations at the manufacturing units in 1991 SEEPZ, Mumbai Incorporated as a limited company 'Gitanjali Gems Private Limited' 1986 Acquired DTC Sightholder status 1968 Formed Gitanjali Exports for polishing, manufacturing 1966 and trading Integrated Player Across the Value Chain Manufacturing Tapping Emerging . Sightholder for DTC and . Amongst the top jewellery . Over 3,000 points of sale Retail Channels long term relationship with manufacturers in the globally in leading major global suppliers world with capacity of c. 8 jewellery markets of . Five decades of sourcing mn pieces p.a. India, US, Japan, Middle E-tailing strength and amongst the . Strategic manufacturing East and China top diamond companies in locations across India and . Multi channel retailing India providing strategic China for low cost strategy via own advantages across production stores, distribution, franch costs, consistency and . 70 designers across isee and shop-in-shops quality of supply India, US, Italy and ME for . Leveraged low cost creating global designs distribution model to gain . Most advanced business insights in newer India’s leading jewellery etailer markets before launching technologies of CAD and Sales Through TV Channel CAM to manufacture best own retail network in class and high quality jewellery Surat Acquired 20% stake in 24 hour jewellery TV channel in japan with RAJIV Gems Park US$100mn diamond jewellery Gemplus II, SEEPZ revenues Preferred supplier relationship for the TV channel sales Sourcing Retailing Strategically Present in the Top 5 Global Diamond Jewellery Markets USA Middle East India 100 retail stores chain of Samuels Positioned as a leading branded Pioneers of branded jewellery and in the South West jeweller from India organized jewellery retailing in Samuels positioned as a top Distribution of Indian branded India specialty retailer with focus on jewellery to over 50 stores of Pan India presence with over 3,000 engagement rings and wedding Damas, Al-Haseena, Alukkas points of sale bands Europe China Japan 5 key Italian brands – Stefan Several shop-in-shops in leading Strategic stake in a leading Hafner, IoSi, Nouvelle departmental stores under the jewellery retailer in Japan Bague, Porrati and Valente brand ‘Giantti’ 20% stake in the largest jewellery Access to jewellery retailers in UK Launched Italian brands in China selling TV channel through 2 independent stores Corporate Structure Gitanjali Gems Ltd. Diamond India Jewellery Branding Int’l Branded Jewellery & Jewellery & Retail Distribution & Retail Manufacturing Gitanjali Gems Ltd. Gitanjali Brands Ltd. Aston Luxury Group Ltd Gitanjali Exports Corp Ltd. Nakshatra Brands Samuels Jewelers Inc. Gitanjali Infratech Ltd.* D’Damas** Gitanjali Ventures DMCC Gili India Hyderabad Gems SEZ Ltd. Leading Italian Jewels Srl. Asmi Jewellery India Branded Jewellery*** Branded Leading Jewels of Japan KK Spectrum Jewellery Leading Italian Jewels (Singapore) Pte. Ltd. Gitanjali Lifestyle Gitanjali Jewellery Retail Retail MMTC Gitanjali ** *The company’s Infratech business is only to unlock value of its surplus land in Borivali by developing a residential complex. This is essentially to monetize the company’s surplus land bank. ** MMTC Gitanjali is 74% owned by Gitanjali Gems Limited while D’Damas is 51% owned by Gitanjali Brands Limited. ***All entities engaged in Indian branded jewellery are 100% subsidiaries of Gitanjali Brands Limited. All other entities are 100% owned by Gitanjali Gems Revenue Mix Across Products / Geographies / Distribution Channels (FY15) Gitanjali Gems Ltd. 1 USD = INR 60 Sales ~ USD1,914 Diamonds* Jewellery ~ USD 599 Mn ~ USD 1,315 Mn International India ~ USD 827 Mn ~ USD 488 Mn USA Middle East RoW Distributors Retail ~ USD 235 Mn ~ USD 227 Mn ~ USD 366 Mn ~ USD 249 Mn ~ USD 239 Mn Samuels Others Own Stores Franchisees SIS E-Com ~ USD 117 Mn ~ USD 118 Mn ~ USD 40 Mn ~ USD 117 Mn ~ USD 62 Mn ~ USD 20 Mn Diamond Polishing Total International Jewellery Total India Jewellery • Revenues – USD 599 Mn • Revenues – USD 827 Mn • Revenues – USD 488 Mn • 31% of total group revenues • 43% of total group revenues • 26% of total group revenues * Diamond Revenues have been netted off Strong Portfolio of Well Established Brands . High repeat sales with over 50% of the 2 mn pieces sold annually to Building Trust and existing customers Loyal Customer . Base Buyback and third party certification services to build trust among customers and shift customers from unorganized to organized retailing Indian Brands . Top brand recall value through consistent association with leading Indian Consistent celebrities 1. Tanishq Jewellery Investment in . Largest print media advertiser in India across categories Brand Value . Spent over US$110mn in the past 5 years to create consumer desire for 2. Asmi Diamond Jewellery Top 8 brands diamond jewellery out of top 10 3. Nakshatra Diamond Jewellery brands . Product offerings across price points and segments 4. Gili Brands Wide Product . Design bank of 0.3mn SKUs, 10,000 active SKUs and 4,000 new active valued 5. Diya Diamond Jewellery Range SKUs added every year c.US$1bn by a . Wide range providing competitive advantage over unorganized players 6. D'damas Jewellery leading independent 7. Gitanjali Jewels agency . Nationwide presence through multi channel distribution network creating Pan India Presence 8. TBZ brand visibility across India 9. Gitanjali Gems Jewellery . After sales service offerings such as diamond replacement, repair, gold 10. Sangini Diamond Jewellery After Sales Service polishing etc. to ensure 100% customer satisfaction post sales . Reputation of one of the most trusted and reliable brands