I have immense pleasure in presenting the 11th Annual Report of PC JewellerLimited highlighting our achievements reflecting on the year gone by and sharing ourvision for the future. I would also like to share my thoughts on my favourite topic TheIndian Jewellery Industry.
Jewellery industry is an integral part of our culture and heritage. Besides textilesjewellery is perhaps the only industry which continues to survive and thrive since thebeginning of Indian civilization and even today the craftsmanship of our karigars isunmatched in the world. This industry has started coming into its own during 1990s afterthe liberalisation of gold imports and today plays a very important role in the Indianeconomy.
The current size of the domestic gems & jewellery industry is estimated to be morethan Rs. 3 lakh crores. Contributing around 6-7 per cent of the countrys GDP theGems & Jewellery industry has been a major contributor to the countrys exportsand thereby a key generator of foreign exchange earnings for the country. This sectorprovides employment to more than a crore of people today in segments right frommanufacturing to retail. The importance of this sector is thus significant to the Indianeconomy.
The financial year 2015-16 was a very special one for your Company as it celebratedits 10th anniversary in April 2015. We are delighted to bring to your noticethat your Company which started its journey in April 2005 with a single showroom atKarol Bagh (Delhi) is today a Pan India player with 64 showrooms in 52 cities across 18States. It also had the distinction of achieving a billion-dollar turnover in the tenthyear of its existence. All these milestones have been achieved with hardwork andcommitment from every single team member bankers and stakeholders alike.
However your Company has no intentions to rest on its laurels and has embarked uponambitious plans to maintain its leadership position in its core area of operations. TheCompany would be working through the following formats in its aim to capture the entiregamut of the jewellery consumers in the country:
|Format ||Area of Operations |
|Large Format Showrooms ||At high street locations for catering rich and upper middle class customers. |
|Small Format Showrooms ||Focus on middle and lower middle class customers at the smaller markets of cities where the Company has large format showrooms at the high street. |
|Exclusive Lounges ||Separate lounges at select showrooms to cater to high networth individuals. |
|Franchisee Showrooms ||Showrooms at tier II & III locations. |
|Online Platform ||Light weight jewellery for every day wear for catering to working women & young generation customers. |
|Flexia Jewellery ||A unique detachable jewellery to cater to value conscious customers who want more in less. |
We at the PC Jeweller believe that any long term sustainable growth is a result ofcontinuous innovation and this is reflected in our initiative on creating our onlineplatform franchisee showrooms flexia and smart jewellery among others. We are confidentthat these new initiatives of the Company will very soon bear fruit and your Company willbe a fully integrated jewellery Company with capability to serve all type and class ofcustomers. Though the existing large format showrooms at high street locations willcontinue to be the core revenue driver we believe that going forward these newinitiatives will propel the Company to newer dimensions of market creation and revenuegeneration.
A jewellery purchase experience is intrinsic to customers emotions and we need toconstantly remain conscious of this customers buying behaviour and demands. In thiscontext we carried out detailed studies and focussed group discussions through ourshowrooms. We have been observing that with increasing purchasing power theself-purchasing younger generations buying behaviour is completely different from theprevious generation. With increasing social media influences and point of sale experienceour future customers have a very different perspective and we have been taking keenefforts to not only live up to their expectations but delight them at every point whenthey interact with us.
Technology is driving almost every step of retail experience for the youngergeneration. Accordingly we have embarking on an in-depth digital branding exercise andhave mapped our target customers. We propose to invest in social media platforms forcreating communities on Facebook Twitter Instagram and other platforms. In order toensure complete resonance of all activities online and offline we will align all ourmarketing efforts spanning print television and out of home media with digital marketing.We are also pleased to inform that we are making a lot of innovations for instoreexperience by incorporating Augmented Reality and Virtual Reality zones in our showroomsto increase customer engagement.
We continue to remain very bullish on the growth of the organized jewellery retailsector in the country. Your Company has achieved a topline CAGR of 24.30% between thefinancial year 2011-12 & 2015-16 and I am fully confident of surpassing this figure inthe coming four years. Our EBIDTA has shown a CAGR of 22.80% in the same period and thereis no reason why we cannot improve on this performance as well.
Looking ahead as the retail jewellery space is becoming more and more competitive withcustomer choices becoming increasingly personalized influenced by a variety of factorsour expertise in design coupled with the world class manufacturing facilities puts us in avery favourable position to address the market challenges. With all the above initiativeswe as a team are confident to propel your Company to make a significant impact in thejewellery industry.
I am thankful to all employees who have continued to contribute with exemplaryperformance and face the ever increasing demands and work pressure. I believe that adedicated and committed team is lifeline for any successful organization and we arecommitted to maintain and nurture a happy and satisfied work force. We have accordinglydrawn up an ESOP Scheme where we have given ESOPs at the face value of the share.
I wish to convey my sincere appreciation to all who have strived to place us where weare now. I would also like to thank the government authorities the bankers supplierscustomers and the shareholders for all their support and encouragement during the year.
With Warm Regards