Kalyan Jewellers India Limited
10,571words
17turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs
2021
₹135,467
₹4,342
34%
205%
₹ 135,467
₹ 4,342
rs
6
60%
30%
10%
40%
Risks & concerns — 1 flagged
1: FY21 Opex includes ₹900 mn of one-time write-offs, losses relating to lease terminations and provisions for impairment largely relating to the impact of COVID in the Middle East business.
— Notes
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Speaking time
2
1
1
1
1
1
1
1
1
1
Opening remarks
Safety and security
Shopping experience in spacious, hygienic surrounding; service by well-trained store personnel; robust systems
Hallmarking of gold jewellery
Compulsory from 2021 Source: Technopak K A L Y A N J E W E L L E R S I N D I A L I M I T E D 12 Established brand A Brand Built On Decades Of Trust And Transparency
PIONEERS IN THE INDIAN JEWELLERY RETAILING SPACE IN
Institutionalising Highest Quality Standards Introducing Highest Degree Of Pricing Transparency For Customers Customer Education And Awareness BIS Hallmarking Of Gold Jewellery Even before regulatory mandate Price Transparency Price tags detailing components aid price transparency before customers Product Certification Guarantee of purity, lifetime maintenance, exchange and buy back Product Quality Karatmeters to verify purity of gold jewellery Transparency In Gold Exchange Transparent exchange process; valuation and verification of purity in front of the customer After-sales Service & Staff Training Staff training to drive customer satisfaction and win repeat business K A L Y A N J E W E L L E R S I N D I A L I M I T E D 13 Presence A True Pan-India Player With Expansive Geographical Presence Pan-India Presence Karnataka Bengaluru – Dickenson Road Bengaluru – Jayanagar Bangaluru - Kammanahalli Bengaluru – Koramangala Bengaluru – Malleswaram Bengaluru – Marathahalli Bengaluru – Phoenix
Grassroots Network
Facilitator of the neighborhood jeweller proposition in India • Grassroots outreach focused on marketing and customer engagement across urban, semi-urban and rural areas • Significant proportion of gold jewellery demand originates from rural, semi-urban markets where penetration of organised jewellery retail is low • “My Kalyan” centres provide marketing tool to address latent demand in some of these markets ACTIVITIES AND STRATEGIES IMPLEMENTED TO PROMOTE KALYAN BRAND Dedicated “My Kalyan” personnel for door-to-door and direct marketing efforts among local communities Showcase product catalogues Drive traffic to showrooms Purchase advance schemes enrollment Enrich customer database Relationship-building with players in wedding ecosystem 937 ‘My Kalyan“ centres (~7 centres per showroom) 10 mn Endeavored customer connect each year 19%+ Contribution to revenue from operations in India 3,624 Employees 38%+ Of enrolment to purchase advance schemes in India K A L Y A N J E W E L L E R S I N
Online Platform
Candere Targeted same stores sales growth of mid to high single digits • RoCE of 17.2% based on • To increase the share of last 12 months performance (TTM as of Sep 2022 – last available balance sheet) • Accelerated expansion in ROCE profile from the current levels through: - Capital-efficient franchise store strategy - Conversion of existing COCO showrooms to FOCO showrooms - Divestiture of non-core assets revenue from non- south markets; incremental showrooms predominantly in non- south markets • New showroom openings to be driven largely by capital-light franchise store strategy • Calibrated expansion in Middle East on the back of good business traction for last four quarters • International expansion to be funded largely via capital-light franchise store strategy • Well thought-through plan drawn up for the next phase of growth • Second offline showroom opened during Q3FY23
Note
1. COCO (Company Owned Company Operated) showrooms to FOCO (Franchisee Owned Company Operated) 2: Return on Capital Employed (ROCE) calculated as Earnings Before Interest and Tax (EBIT) divided by sum of Average Equity, Average Net Debt (excluding Gold Metal Loan), Average Lease Liabilities K A L Y A N J E W E L L E R S I N D I A L I M I T E D 30 05 P E R F O R M A N C E R E V I E W Recent Developments Key Recent Highlights Industry dynamic of rapidly accelerating demand shift towards organised players, significantly benefitting well capitalized players with strong brands and store networks such as Kalyan Significant Acceleration in Kalyan’s Growth, Profitability & Return Profile vs. Pre-COVID Continues • • Government’s impetus towards formalising sector with mandatory hallmarking norms is a further tailwind for the industry and Kalyan’s performance • Aided by industry tailwinds and strong execution, Kalyan’s business has seen a significant acceleration in scale, growth, profitability
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