2. INDIA’S LUXURY MARKET IS AT AN
INFLECTION POINT; ESTIMATED TO LEAP
TENFOLD BY 2020
India’s demographic dividend is expected to add 120 million to its working
age population against a decrease of 50 million in China by 2020
India’s community of 150,000 high net worth individuals (US$1 million in
liquid assets) is expected to grow at 20-25% annually
India’s US$250 million market for luxury/premium watches is expected to
continue growing at around 25% CAGR
“Indian market for premium watches will be bigger than China’s in about
10 years.” Ravi Thakran, EVP Asia Pacific LVMH
4. WHAT HENGDELI IS TO CHINA,
ETHOS IS TO INDIA
China and India are amongst the fastest growing markets for
Swiss watches in the world.
Hengdeli is the largest watch retailer in China with a turnover of
US$1 billion with a profitable operation.
Both retailers have distinct retail formats targeting different
consumer segments – luxury, prestige, fashion and mono-brand
boutiques among others with brands in the price range of
Rs 5,000 to Rs 20,00,000
Ethos shares a multi-faceted relationship with Swiss brands;
retails top brands from the four largest Swiss groups (Swatch,
Richemont, Rolex and LVMH).
Ethos has an average gross margin similar to Hengdeli,
expected to strengthen over the coming years.
5. PROMOTERS
KDDL Ltd
Professionally managed, Listed company
Largest manufacturer of Watch Dials and Hands
in India
Export to Switzerland and Hong Kong
Over 30 years of experience in international
watch business
Strictly for private circulation only
6. WHERE WE ARE; WHAT WE
PLAN TO ACHIEVE
Our current
position Our intent
Stores Stores
36 20 signed up stores in pipeline 65
2011-12 2014-15
Market share Enhance geographic spread, expand loyalty Market share
7% programme, increase institutional business share 11%
2011-11 and install an E-commerce platform 2015-16
Billings Maintain a robust 38% CAGR over next five years, Billings
Rs. 1.4 billion having acheived a historic 40% CAGR across the last Rs. 5 billion
2011-12 five years 2015-16
Gross margin Economies of scale, greater negotiating power with Gross margin
26% brands, lowering duties and taxes, increasing share of 30%
2011-12 house brands 2015-16
Full-break even Greater operational and financial leverage through Profit
2010-11 larger scale of business Rs. 330 million
2015-16
7. THE MOMENT TO INVEST IN
ETHOS IS NOW!
Ethos does not have a comparable
national-level competitor.
Ethos’ topline and bottomline are
growing strongly, increasing the
enterprise value continuously.
Ethos’ promoters have a good track
record of over 20 years in managing
public listed companies.
Ethos’ accounts and governance
practices are audited and certified by
a globally recognised audit firm.
