PC Jewellers is one of the fastest growing jewelry companies in India. Founded in 2005 in Delhi, it now has stores in 11 states. PC Jewellers has a lower cost structure than competitors due to in-house manufacturing and inventory management. It focuses on gold jewelry over diamonds. PC Jewellers plans to continue expanding through both company-owned stores and franchises to rapidly enter new markets. It also aims to grow its diamond portfolio and online sales. Regulations around gold hedging present an obstacle for new players in the jewelry market.

1. One of the Fastest Growing Companies

2. PC Jewellers-A brief Profile
Started in April 2005 in Karol Bagh
Delhi
Founder- Padam Chand Gupta and
Balram Garg
The company has now stores in 11
states across
india(Chhattisgarh,Gujarat,Andhra
Pradesh,Karnataka,Punjab & Madhya
Pradesh)
Chairman-Padam Chand Gupta(28%
shareholder)
Mnaging Director-Balram
Garg(36% shareholder)
Turnover-Rs.4018 Cr (FY 13)(and in
December 2013,it had already crossed
Rs.3788 Cr for the first nine months of
FY 14)-an impressive doubling from
Rs.2209 Cr just two years earlier

3. P C Jewellers V/s other competitors
-Lower Making Charges
1)PC Jewellers have lower making charges & also offer the option of
returning jewellery within one week for a full refund whereas other
jewellers usually retain the making charges on returns(P C J’s
effective manufacturing & inventory strategy allows it to make this
offer)
2)About 30% of the jewellery it sells is non-designer,which involves
low making charges
3)Company’s manufacturing plant lets the company to save 2-3% on
making charges

4. Jewellery Market in
India
-The 3 Lakh Crore market is slowly
becoming organized, with about 20%
of all regional & national players
becoming organized
-The figure drops to 7-10% if you
count only large players such as
Titan,Keshavlal Dalpathbhai Zaveri &
Sons ,Joyalukkas,Kalyan
Jewellers,Gitanjali & PCJ among
others
Size of Jewellery Market
-3 Lakh Crore
(Organized Market-
Rs.50000 Crores)
(Unorganized Market-
Rs.2.5 Lakh Crores)
P C Jewellers
strategy on
Organized Markets
As consumers
switch to shopping at
organized jewellery
outlets,P C Jewelers
has been quick to
leverage the
opportunity.
Ex:P C Jewellers
opened 11 stores in
2013 & 6 stores in
2012
Market Leader Titan has 190 stores &
Gitanjali 101 stores ,in comparison ,P C
Jewellers only has 41 stores till date & has
become a multi-region player only recently
Titan is the only PAN India player with 4-5%
market share

5. Success factors of P C Jewellers
1)Selling more of Gold
than Diamonds
2.Looking for outside markets
-P C Jewellers overseas market comprises NRI’s looking for
handmade Indian Jewellery.The machine made designs that
are otherwise popular abroad are not the company’s forte & it
has decided to stick to its knitting
-The company has intentionally kept their exports sales at
around Rs.1,000 Crores for the past two years while
continuing to expand domestically
3.Localization of Jewellery designs
-The company ties up with local
designers in each location, in addition to
getting jewellery manufactured at its
central manufacturing unit in Delhi
-In 2013,PCJ ventured into South India
for the first time opening stores in
Mangalore,Bengaluru & Hyderabad
(50% of the inventory of this market is
localized due to the preference for local
designs)

6. Shilpa Shetty Inaugurates the First Showroom in M G
Road,Mangalore

7. P C Jewellers
Stores

8. P C Jewellers Stores Plan
P C Jewellers weighs every option
very carefully & on multiple
parameters before taking a decision
P C Jewellers has already
finalized first four stores
to be launched in FY 15 in
Patna,Jammu,Guwahati &
Ranchi
An internal team from PCJ
surveys all potential locations,
considering the city’s growth,
purchasing power of the
people, the ratio of organized
to unorganized
jewellers,preference for
diamond Versus Gold
Jewellery etc before making its
recommendation to the
management
A third of new stores are
opened in cities where P C
Jewellers are already
present & break-even here
is usually in under six
months. The next 33% are
opened in the same region
where we are present &
here break-even is between
six & nine months .The
remaining 33% are opened
in entirely new regions &
break even is in about a
year.
All stores of PC Jewellers are company owned. But the company
off late has idea of going to Franchisees in smaller cities because
of;
1)Lower investment requirement
2)Franchises will allow PC Jewellers to expand more rapidly

9. Obstacles in Jewellery
Market
1.For new Players
oRBI has withdrawn the lease provision for Gold
hedging, thus increasing working capital
requirements of jewellers
Earlier a jeweller could lease Gold from a bullion
banker for 90 days at a fixed price by merely paying
3-4% interest
:ExIf someone leased 1 kg Gold for 90 days & sold
0.5 KG on day 20,he would pay for that quantity
only then & that too at the agreed price,thus hedging
himself from fluctuations in Gold price
oNow, a jeweller needs to pay upfront for Gold or
seek different hedging mechanisms
2.RBI ‘s authorization on
hedging
The RBI has allowed only TITAN
to hedge with international markets
as it is the only jeweller with a Gold
import license while all other
companies import through
intermediaries
Impact of hedging on P C
Jewellers
P C Jewellers was 100%
hedged earlier, now the ratio is
down to 70 % & it is relying on
other mechanisms such as
hedging with MCX &buying
physical Gold & selling to
others on paper
3.RBI’s provision
•In 2013,The RBI introduced the 80:20 rule to cap shooting
Gold prices. This means that 20% of all imported Gold has
to be re-exported after value addition
•For P C Jewellers, this policy fits as their exports stand at
25% but the ratio will come down as domestic revenue
outgrows exports.

10. Franchisee based stores
P C Jewellers is planning
to opt for franchisee based
stores. This route will
allow P C Jewellers to
expand more rapidly
Online retail portal
P C Jewellers is
working on pushing
sales through its online
retail portal
IPO Proceeds(Amount)
P C Jewellers has over Rs.358 Crores worth
of IPO proceeds of the total Rs.603 Crores
raised in December 2012 & a negligible
debt-to-equity ratio.
P C Jewellers Future plans
Diamond Portfolio
P C Jewellers will be
focusing on their
high-margin
diamond business
for growth

11. P C Jewellers Product
Portfolio
Diamond Jewellery
Pendant
Neclaces
Rings/Ear
Rings/Nose Rings
Bangles
Bracelets
Mangal Sutra
Gold Jewellery
Coins
Rings/Ear Rings
Bangles
Gents Kada
Chains
Necklaces Set
Wedding Jewellery
Diamond
Necklaces
Diamond
Ring/Ear Rings
Diamond
Mangal Sutra
Kada

12. Spectrum Jewellery
Diamond
Pendant
Diamond
Ring/Ear Rings
Bangles
Spectrum Jewellery by P C Jewellers

13. Anup George Rebello
Asst.Manager
The Catholic Syrian Bank Ltd