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PN Gadgil is one of the top names in the Maharashtrian jewelery segment. Can you tell us a bit about your company and its business model?
Saurabh Gadgil: Well, I started from the beginning. The company was founded in 1832, making us one of the oldest jewelry companies in the country. After celebrating 125 years in Sangli, where we started, we expanded to Pune, which has been our growth hub. I joined the business in 2000 when we were a one shop, family run company with a top line of ₹20 crore. Today, as of March 2024, we have 39 stores and a revenue of ₹6,000 crore, and are now a professionally managed company. We’ve got some firsts in the industry. The revenue per square foot is ₹6 lakh, which is the highest in the industry. Revenue per store exceeded ₹170 crore, again leading the industry. I am proud to say that between FY22 and FY24, we have grown at a CAGR of more than 50%, making us the fastest-growing company among both organized and listed players in the country.Watch the full interview here
What geographic areas does the company focus on?
Saurabh Gadgil: Our main focus is Maharashtra, where we are now the second largest jewelery company in terms of number of stores. With the IPO, it aims to become the largest jewelery player in the country, both in terms of stores and revenue. In addition, we plan to expand, like the Peshwas, from Maharashtra to Madhya Pradesh, Chhattisgarh, Jharkhand, UP, Bihar, and Delhi. Our vision is to be a 100-store company in the next five to six years.
Today, we are professionally managed at all levels. For the past three years, we have been recognized as a great place to work. What makes us unique is that we are the only organized family jeweler in the country, with a legacy of customers spanning three to four generations. We combine this family heritage with professional systems and processes, which allow us to continue to grow and gain more market share.
As an insider, what is your view on the Indian jewelery market?
Saurabh Gadgil: The Indian jewelery market is vast and growing rapidly. Currently valued at around $80 billion, it is expected to surpass $200 billion in the next few years. Post-COVID, we have seen significant changes in consumer behavior. Today’s customers prioritize value, brand trust, after-sales service, and long-term relationships over discounts and deals.
A key differentiator for us is our focus on made-to-order jewellery, which is almost 30% of our business. This personal touch, combined with our scale, sets us apart. The market is also moving toward organized players, driven by mandatory signage and demands for transparency, quality, and advanced technology in the buying experience. As the industry evolves, the core remains the same – strong, deep relationships with customers. Today, word of mouth and social media play an important role in attracting and retaining customers, and that is where we excel.
Can you also tell us about the company’s financials?
Saurabh Gadgil: We closed March 2024 with revenue of around ₹6,100 crores, EBITDA of ₹280 crores, and PAT of ₹155 crores. Our ROCE and ROE are close to 30%, and we’ve seen a CAGR of over 50% in volume growth over the past three years. We expect continued growth, with plans to expand existing stores and open new ones. We are targeting a 30% increase in top line revenue this financial year and are on track to achieve it.
The IPO is set at about ₹1,100 crores. Can you share your goals and how debt payments will be handled?
Saurabh Gadgil: The size of the IPO is ₹1,100 crores, of which ₹850 crores are fresh issues and ₹250 crores are OFS. Out of ₹850 crores, ₹400 crores are allocated to open nine new stores this financial year. Another ₹300 crores will be used for debt repayment. We currently have ₹250 crores in working capital and ₹60 crores in term loans. The plan is to transition to a non-fund-based limit and use gold metal loans to reduce interest costs from 9.5% to around 5.5%, and also use them to hedge against price fluctuations. The rest will be used for general corporate purposes. The entire focus remains on growing the jewelry business.
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