Goldiam International Limited
3,726words
13turns
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Key numbers — 40 extracted
rs,
15 %
21.3%
33 %
16.7%
14.4%
12.0%
29 %
22%
21.7%
22.5%
14.9%
Guidance — 2 items
Expanding our Product Portfolio
opening
“Lab Grown Diamond (LGD) • LGDs market share is forecast to amount to 10% of the diamond market worldwide by 2030 from current 3%.”
Distribution Policy
opening
“• We aim to maintain a minimum payout ratio of 50% of the annual Standalone PAT to be either used for Dividend and/or Buy-back of shares, subject to the considerations of the parameters stated in this Policy.”
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Opening remarks
Goldiam International
Leading Exporter of Diamond Jewellery • Established in 1986, today we are supplier to leading global retailers, departmental stores and wholesalers with a diversified product portfolio of • Natural diamond jewellery • Lab grown diamonds (LGD) and jewellery • Our value added diamond jewellery business focuses on being a proxy to US consumer and retail demand. • Manufacturing facilities: • Goldiam International Ltd, SEEPZ Zone • Goldiam Jewellery Ltd, SEEPZ Zone • Eco-Friendly Diamonds LLP, SEEPZ Zone VISION To become the foremost vendor-partner to the US diamond-jewellery retail industry, by providing significant value across our product and services. MISSION • To enhance stakeholder value • Emphasis on 3I’s: Ideate, Innovate and Implement • To strengthen our product portfolio backed by technology integrated supply chain • Building Trust, Transparency and providing best in class service to our customers Our uniquely integrated business is spread from natural to lab grown diamond jewelle
Leading to
1 2 3 4 5 6 Jewelry Design made by Goldiam Selections completed by buyer and test order received Test Order, on consignment, shipped to US Retailers Successful test is bought out and reorders placed for full year Reorder deliveries shipped in 8-10 weeks Payment is made in 60 days to 120 days by retailers and 180 days by wholesalers 1 2 3 4 5 Jewellery designs distributed on various websites and e-commerce platforms Design customized as required Order placed online by end customers Production completed & shipped in 1 week Significantly lesser payment terms (0-30 days) and negative working capital requirement 1 2 3 4 Improved Inventory Turnover Reduced Debtor Days Better Cash & Cash Equivalents Management Improved EBITDA Margins WORKING CAPITAL OPTIMISATION Page - 12 1 2 3 4 Goldiam’s Edge: Building Momentum with Strength Financial Strength Building Financial Resilience • Debt-Free Operations • Cash and Cash Equivalents (including investments) over ₹ 2,568 Mn (FY23) • Ability to secure R
Expanding our Product Portfolio
The Future of Diamond Industry through LGD What are Lab Grown Diamonds? • Diamonds are made up almost entirely of pure carbon. LGDs man made diamonds that mirror natural diamonds. • Because of carbon atoms structures, LGD display the same chemical and optical characteristics of a natural diamond crystal. • They replicate the exact natural process that forms earth grown diamonds but cost up to 40% less. Market Size Natural Diamond Vs. Lab Grown Diamond (LGD) • LGDs market share is forecast to amount to 10% of the diamond market worldwide by 2030 from current 3%. • US$ 29.2 billion – Market value of LGDs by 2025. (source: Statista) Formed under the earth’s crust over billions of years Grown in sophisticated machinery in 6-8 weeks Constructed of carbon atoms structures Constructed of carbon atoms structures Certified by largest global labs Certified by largest global labs Affordability – One can buy multiple lab grown diamonds at the cost of one natural diamond Page - 16
Expanding our Product Portfolio
Scaling our Business through Lab Grown Diamonds Growth Opportunity of LGDs Accretive Acquisition Goldiam’s Edge • Market share of 3.1% of overall US jewellery sales. • Acquired a 88% stake in EDL, to integrate our supply chain. • At least 50% lower in price compared to same quality natural diamond. • Increasing addressable market in gems & jewellery sector. • Same chemical and optical characteristics of a natural diamond crystal. • Environmental and sustainable factors are positive for LGDs. • EDL is engaged in manufacturing & growing of large LGD via the Chemical Vapor Deposition (CVD) method. • Access to licensed US patents that allows us to grow and distribute CVD diamonds. • Increase our wallet- share and create value for stakeholders. • Introduced our first line of lab-grown diamond jewellery. • Only large jewellery exporting house with complete backward integration across the supply chain of LGD growing, cutting, jewellery manufacturing & distribution. • Ready product base of LGD
Best-in-Class OEM for US Jewellery Retailers
Strengthening our Revenue Streams along with better RoE’s By keeping our philosophy of 3I’s (Ideate, Innovate and Implement) in mind, we are moving towards better margins, cost optimisation and omnichannel business models. PRODUCT PORTFOLIO REGION SALES CHANNEL CUSTOMER BREAKUP EBITDA Margin: ~ 30% EBITDA Margin: ~ 45-50% EBITDA Margin: ~ 20% Evolving our business towards higher EBITDA margins, better cash flow and improved ROEs Natural Diamond Jewellery Business Export of natural diamond jewellery; focus on retail & wholesale clients; upto ~20% EBITDA margin LGD Growing Business Ventured into hi-tech industry of growing & distribution of LG Diamonds via CVD method through EDL; upto ~45-50% EBITDA margin LGD Jewellery Business Ventured into manufacturing & distribution of LGD jewellery; focus on creating affordable luxury jewellery segment; upto ~30% EBITDA margin Omni-channel Focus for new growth Launched our B2B e-commerce website ; strong focus on gaining market share through our ex
Digital Strategy to Widen Customer Base
Shifting towards Digital Transformation to Optimize Business Market Size & Growth Drivers E-Commerce presents opportunities to optimize Inventory, increase sales, and refocus towards ROE - driven business models • Compared to other consumer products where the market share of 'online' is much higher, online diamond jewellery sales account for just 5-10% of retail sales in this category, in the US. • E-commerce is accelerating, and major diamond jewellery retailers in the US increased their online sales to 13%. Opportunities for inventory management optimization