asian star company limited corporate presentation · the dtc sightholder logo is a trade mark used...
TRANSCRIPT
-
ASIAN STAR COMPANY LIMITED
CORPORATE PRESENTATION
The
DTC
Sig
htho
lder
logo
is a
trad
e m
ark
used
und
er li
cenc
e fro
mth
e D
e B
eers
Gro
up
-
Contents
Company SnapshotCorporate ObjectivesCorporate CredentialsManagement ProfileStrengthsGlobal PresenceKey Success Factors
Manufacturing – Loose Polished Manufacturing – Diamond JewelleryRetailing & DistributionProcess Quality Norms
The Company
Industry Overview
Operations
Financials
-
The Company
-
Company Snapshot
ORIGINS
BUSINESS
HIGHLIGHTS
• Set up as a partnership firm in 1971• Became a public limited company in 1995 and listed
on Bombay Stock Exchange in 1996
• Diamond Cutting and Polishing• Diamond Jewellery Manufacturing and Marketing• Retailing
• Leading supply partners for loose polished & jewellery to some of the leading brands and retail chains across the globe
• More than 75% of the company’s turnover isgenerated from the overseas markets
-
Corporate Objectives
VTo be a world‐class diamantaire enjoying sustainable growth; to maximise
the potential of our core competencies & add long‐term value to the diamond pipeline.
ISION
ISSIONWe will live each day our passion for innovation & excellence, to create highly desirable diamonds & experiences that surpass our customers’
expectations.MVIntegrity Partnership Excellence Responsibility UnityALUES
-
Corporate CredentialsRanked 375th among the corporates in Dun & Bradstreet’s 2012 edition
of “India’s Top 500 Companies”
Has the prestigious status of being a DTC Sightholder
Commercial Member of RJC (Responsible Jewellery Council)
Has ISO 9001:2008 certification from TUV NORD, Germany
‘A2+’ rating by CARE – Credit Analysis & Research Ltd
No. 1 Exporter Award by GJEPC for 4 consecutive years since 2001
Has the prestigious Star Trading House Status
-
Management Profile
• Mr. Dinesh Shah – Chairman
• Mr. Vipul Shah – CEO & Managing Director
• Mr. Dharmesh Shah – CFO & Jt. Managing Director
• Mr. Arvind Shah – Executive Director
• Mr. Priyanshu Shah – Executive Director
-
Strengths
Centralized MIS control of global operations
Strong financial base supporting future growth plans
Detailed market knowledge through strong marketing network
Strong human asset base with 2150 skilled and professional employees
20 marketing arms in major diamond consuming cities globally
World-class infrastructure for diamond processing
Dedicated Jewellery Manufacturing units
-
Global Presence
20 Marketing Arms in major diamond consuming cities globally.
-
Key Success Factors delivering competitive advantage
• Vertically integrated business model to make commercial propositionsound and synergistic.
• World-class infrastructure base for diamond processing & jewellery manufacturing.
• Widespread marketing network to provide instant access to new potential markets.
• Consistency of the ‘Asian Star make’ and reputation as a one-stop-shop in the trading circles.
• Focused R&D to consistently deliver specialised cuts for diamonds and innovations in jewellery.
• Excellent design team based in India, the USA & Hong Kong.
• Experienced management with significant expertise and repute in the Diamond & Jewellery business.
http://www.mapsofindia.com/worldmap/world-map.gifhttp://images.google.co.in/imgres?imgurl=http://www.smh.com.au/ffximage/2007/02/03/diamond_wideweb__470x323,0.jpg&imgrefurl=http://www.smh.com.au/news/national/no-blood-on-our-diamonds/2007/02/03/1169919577888.html&h=323&w=470&sz=27&hl=en&start=130&um=1&tbnid=Fw3MYoFNxNKf8M:&tbnh=89&tbnw=129&prev=/images%3Fq%3Dcustomer%252B%2Bjewellery%26start%3D120%26ndsp%3D20%26um%3D1%26hl%3Den%26sa%3DNhttp://images.google.co.in/imgres?imgurl=http://www.jaubalet-paris.com/Upload/PhotoCMS/Dessin_Photo5.jpg&imgrefurl=http://www.jaubalet-paris.com/jeweler_28_43.html&h=400&w=400&sz=64&hl=en&start=275&um=1&tbnid=S9COA_sZ2VvmkM:&tbnh=124&tbnw=124&prev=/images%3Fq%3Dcustomer%252B%2Bjewellery%2Bpurchase%26start%3D260%26ndsp%3D20%26um%3D1%26hl%3Den%26sa%3DN
-
Operations
-
Operations across the entire value chain
Rough procurement from multiple sources
Diamond cutting & polishing - Unitin Surat, India
Loose Polished Distribution– Global (B2B)
Loose Polished in Jewellery manufacturing
- Units in Mumbai &Hosur, India
Diamond Jewellery Distribution– Global (B2B)
Diamond Jewellery Retailing– in India
-
Manufacturing facility- Loose Polished
• World-class infrastructure at Surat, measuring 65,000 square feet.
• Production capacity per annum of over USD 270 million.
• 1000 + skilled workers.
• Product range – Fine makes in round brilliant in all colours & clarities upto 3 carats, Proprietary cuts & Generic fancy shapes.
-
Manufacturing facilities - Jewellery
• Production capacity of 750,000 pieces per annum.
• Factory premises of 50,000 square feet at Mumbai & Hosur.
• Expertise in mass produced machine-made jewellery & hand-made couture jewellery.
• In-house designers & product developmentteam for key markets & clients.
• Cater to major retailers and retail chains in the domestic and international jewellery markets.
-
PRO DUCTS
-
AWARD
WI N N I NG
DESIGNS
Get Unwired
For All Seasons
Flowers of Paradise
Dancing Flame
-
Retailing
Our couture diamond boutique, ex-factoryMumbai, caters exclusively to HNIcustomers.Besides offering a wide range of prêtdiamond jewellery, we also undertakecustomised orders with jewellery designconsultations for special occasions.
EX-FACTORY MUMBAI
-
Distribution
Widespread marketing network present in
major diamond consuming cities globally.
Jewellery manufacturers, independent retailers and large retail
chains constitute a major chunk of our customer base, with an
increasing focus on large retailers to drive growth & value.
Well balanced demand for our products across regions.
-
Process Quality Norms
Stringent quality norms
in conformance withISO 9001: 2008, certified by TUV NORD
Committed to theKimberly Process
(a UN mandated system)RJC
Commercial MemberDe Beers
(Best Practice Principles)
The DTC Sightholder logo is a trade mark used under licence from the De Beers Group
-
Industry OverviewGems & Jewellery
-
Industry Overview - Global
• Diamond – studded jewellery is the largest segment of the global jewellery market (approx USD 200 bn) at USD 72.1 billion in 2012.
• Sale of diamond jewellery is concentrated in key world markets, the US being the world’s largest market (USD 27.4 bn in 2012).
• India and China are also rapidly emerging as the key manufacturing and consumption markets of diamond jewellery.
• China, India and Japan together (Asian market) will be a larger diamond consumer market than the United States by 2016.
• The European market will continue to experience sluggish growth.
Distribution of Diamond Jewellery Industry (2012)
USA38%
India12%
China / HK / Taiwan
15%
Gulf / Turkey9%
Japan8%
Others18%
-
Industry Overview –Indian Industry
• Gems & Jewellery accounted for 17% of the total exports from India in 2012-13
• India is world’s highest exporter of loose polished in value terms (USD 17.4 bn in 2012-13).
• India has become the fastest growing jewellery manufacturer in the world and in 2012-13, jewellery exports stood at USD 13 bn, a growth of 33% over last year.
• India is gaining prominence as an international sourcing destination for high quality designer jewellery.
• Retail sales of diamond jewellery in India touched USD 8.65 bn in 2012, with the second highest value of diamond content (after USA).
Value of Polished Diamonds from local production (2012)
India58%
USA1%
S.Africa10%
Thailand, China & Others19%
Russia4%
Belgium2%
Israel6%
-
Financials
-
Financial Performance-consolidated
Revenue Break Up
Total Revenue
Diamonds Jewellery
1,466 1,4681,667 1,836
2,462
0
500
1000
1500
2000
2500
3000
3500
2008-09 2009-10 2010-11 2011-12 2012-13
Rs. in Crores
1,466 1,4681,667 1,836
2,462
0
500
1000
1500
2000
2500
3000
3500
2008-09 2009-10 2010-11 2011-12 2012-13
Rs. in Crores
1,265
201
1,328
140
1,473
194
1,531
305
2,030
432
0200400600800
10001200140016001800200022002400
2008-09 2009-10 2010-11 2011-12 2012-13
Rs. in Crores
1,265
201
1,328
140
1,473
194
1,531
305
2,030
432
0200400600800
10001200140016001800200022002400
2008-09 2009-10 2010-11 2011-12 2012-13
Rs. in Crores
-
Financial Performance-consolidated
95
7076 77
90.56
0
20
40
60
80
100
120
2008-09 2009-10 2010-11 2011-12 2012-13
Rs. in Crores
95
7076 77
90.56
0
20
40
60
80
100
120
2008-09 2009-10 2010-11 2011-12 2012-13
Rs. in Crores
46
30
3841
48
0
10
20
30
40
50
2008-09 2009-10 2010-11 2011-12 2012-13
Rs. in Crores
46
30
3841
48
0
10
20
30
40
50
2008-09 2009-10 2010-11 2011-12 2012-13
Rs. in Crores
29
19
2426
30
0
5
10
15
20
25
30
35
2008-09 2009-10 2010-11 2011-12 2012-13
in Rs.
29
19
2426
30
0
5
10
15
20
25
30
35
2008-09 2009-10 2010-11 2011-12 2012-13
in Rs.
EPS*
EBIDTA PAT
(*Normalised on account of issue of Bonus Sharesin the ratio of 1:2 in FY 2012-13).
-
Financial Performance-consolidated
P/E
DEBT EQUITY RATIO
25
4238
26 26
05
1015202530354045
2008-09 2009-10 2010-11 2011-12 2012-13
in Rs.
227 219240
266295
0
50
100
150
200
250
300
350
2008-09 2009-10 2010-11 2011-12 2012-13
in Rs.
BOOK VALUE*
(*Normalised on account of issue of Bonus Shares in the ratio of 1:2 in FY 2012-13).
1.541.63
1.711.54
1.74
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2008-09 2009-10 2010-11 2011-12 2012-13
-
Disclaimer
This investor presentation has been prepared by Asian Star Co. Ltd. (“Asian Star”) and does not constitute a
prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other
documentation or information (or any part thereof) delivered or supplied should not be deemed to constitute
an offer. No representation or warranty, express or implied is made as to, and no reliance should be placed
on, the fairness, accuracy, completeness or correctness of such information or opinions contained
herein. The information contained in this presentation is only current as of its date.
Certain statements made in this presentation may not be based on historical information or facts and may be
“forward looking statements”, including those relating to the general business plans and strategy of Asian
Star, its future financial condition and growth prospects, future developments in its industry and its
competitive and regulatory environment, and statements which contain words or phrases such as ‘will’,
‘expected to’, ‘horizons of growth’, ‘strong growth prospects’, etc., or similar expressions or variations
of such expressions. These forward-looking statements involve a number of risks, uncertainties and other
factors that could cause actual results, opportunities and growth potential to differ materially from those
suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to
risks with respect to its Diamond business, its Jewellery business and its Retailing business.
Asian Star may alter, modify or otherwise change in any manner the content of this presentation, without
obligation to notify any person of such revision or changes. This presentation cannot be copied and
disseminated in any manner. No person is authorized to give any information or to make any
representation not contained in and not consistent with this presentation and, if given or made, such
information or representation must not be relied upon as having been authorized by or on behalf of Asian
Star. This presentation is strictly confidential.
-
www.asianstargroup.com
Slide Number 1Contents The Company � Company Snapshot �Corporate Objectives� Corporate Credentials�Management Profile � Strengths Slide Number 9� � Key Success Factors delivering competitive advantage�Operations� � Operations across the entire value chain � Manufacturing facility- Loose Polished� � Manufacturing facilities - Jewellery�Slide Number 15Slide Number 16�Retailing Distribution � Process Quality Norms��Industry Overview �� Industry Overview - Global �� Industry Overview –Indian Industry�Financials Financial Performance-consolidated Financial Performance-consolidated Financial Performance-consolidated DisclaimerSlide Number 28