ASIAN STAR COMPANY LIMITED - CORPORATE PRESENTATION
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ASIAN STAR COMPANY LIMITED CORPORATE PRESENTATION
THE COMPANY
Company Snapshot
• Set up as a partnership firm in 1971
ORIGINS • Became a public limited company in 1995 and
listed on Bombay Stock Exchange in 1996
• Diamond Cutting and Polishing
BUSINESS • Diamond Jewellery Manufacturing and Marketing
• Retailing
• Leading supply partners for loose polished and
HIGHLIGHTS jewellery to some of the leading brands and retail
chains across the globe
• More than 75% of the company’s turnover is
generated from the overseas markets
Corporate Objectives
V
ISION
To be a world-class diamantaire enjoying sustainable growth;
to maximise the potential of our core competencies and
add long-term value to the diamond pipeline.
M
ISSION
We will live each day our passion for innovation and excellence,
so as to create highly desirable diamonds and experiences
that surpass our customers’ expectations.
V ALUES
Integrity Partnership Excellence Responsibility Unity
Corporate Credentials
Direct supply from source – ALROSA, DE BEERS, DOMINION and
RIO TINTO
Approved manufacturer for FOREVERMARK, CANADAMARK and
AUSTRALIAN DIAMONDS
Certified Member of RJC (Responsible Jewellery Council)
ISO 9001:2008 certification from TUV NORD, Germany
‘A2+’ rating for short term and ‘A- ; Stable’ rating for long term bank facilities
by CARE – Credit Analysis and Research Ltd
Ranked 293 among the corporates in Dun & Bradstreet’s
“India’s Top 500 Companies” in 2017
Has the prestigious Star Trading House Status
Management Profile • Mr. Dinesh Shah – Chairman & CFO • Mr. Vipul Shah – CEO & Managing Director • Mr. Arvind Shah – Executive Director • Mr. Priyanshu Shah – Executive Director • Mr. Rahil Shah – Executive Director • Mr. Dharmesh Shah – Director
Strengths
Dedicated jewellery manufacturing units
World-class infrastructure for diamond processing
Marketing arms in major diamond consuming cities globally
Strong human asset base with 2900+ skilled and
professional employees
Detailed market knowledge through strong marketing network
Strong financial base supporting future growth plans
Centralized MIS control of global operations
Global Presence Marketing Arms In Major Diamond Consuming Cities Globally
Key Success Factors Delivering
Competitive Advantage
• Vertically Integrated Business Model to make commercial
proposition sound and synergistic.
• World-Class Infrastructure base for diamond processing and
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 and Hong Kong.
• Experienced Management with significant expertise and repute in
the diamond and jewellery business.
OPERATIONS
Operations Across Entire Value Chain
Rough procurement from
multiple sources
Diamond cutting &
polishing - Unit
in Surat, India
Loose Polished in Loose Polished Distribution
Jewellery manufacturing – Global (B2B)
- Units in Mumbai &
Hosur, India
Diamond Jewellery Distribution Diamond Jewellery Retailing
– Global (B2B) – in India & Middle EastDirect Rough Sourcing LONG-TERM SUPPLY CONTRACTS: APPROVED MANUFACTURER:
Manufacturing Facility-Loose Polished
• World-class infrastructure at Surat, measuring 100,000
square feet.
• 1700 + skilled workers.
• Overall production capacity per annum of over USD 300
million.
• Product range – fine makes in round brilliant in all
colours and clarities up to 5 carats, proprietary cuts and
generic fancy shapes.Manufacturing Facility-Diamond Jewellery
• Production capacity of 750,000
Laser
pieces per annum.
• Factory premises of 50,000 square
feet at Mumbai and Hosur.
• Expertise in mass produced
machine-made jewellery and
hand-made couture jewellery.
• In-house designers and product
development team for key markets
and clients.
• Cater to major retailers and retail Diamond setting
chains in the domestic and
international jewellery markets.I
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I
O
N
SGet Unwired Flowers of Paradise
A
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Dancing Flame For All SeasonsRetailing
Couture Jewellery Boutique:
• Our couture boutique, ex-factory Mumbai,
caters exclusively to HNI customers.
• Besides offering a wide range of prêt diamond
jewellery, we also undertake customised
orders with jewellery design consultations for
special occasions.
Boutique, Mumbai
Luxury Event:
• Asian Star hosts Rendezvous Luxe every year,
a couture diamond jewellery extravaganza for
Mumbai’s elite.
• Design conceptualisation for the collections is
thematic and takes inspiration from varied
sources such as history, nature and art.
Exquisite craftsmanship makes every jewellery
piece ‘one of a kind’ masterpiece.
Rendezvous LuxeDistribution
Widespread marketing network present in
major diamond consuming cities globally.
Our customer base comprises of jewellery
manufacturers, independent retailers, large retail chains and e-
commerce retailers, with increasing focus on large retail chains
and e-commerce retailers to drive growth and value.
Well balanced demand for our products across
regions.Quality Norms
We represent the highest ethical, social, environmental and quality standards by
adhering to international codes of practice -
Committed to the
De Beers BPP RJC Kimberly Process
(Best Practice Principles) Certified Member (a UN mandated system)
ISO 9001: 2008 Canadian Diamond
(Certified by TUV NORD) Code of ConductCorporate Social Responsibility
The Company shares corporate benefits with the
community and supports many charitable causes for
the betterment of the society.
• Focuses on community development
projects, prioritising local needs in the area of
education, health, livelihood, environment and
rehabilitation of disaster-hit areas to ensure
long-term sustainable benefits.
Donated Mobile Eye Clinics
• Contributes funds to trusts supporting
eradication of hunger and poverty, education of
girl child and the youth, women empowerment
and medical aid to improve quality of life.
• Supports industry beneficiation programmes.
Girl Child Education Health CareINDUSTRY OVERVIEW GEMS & JEWELLERY
Industry Overview - Global
• Global consumer demand for diamond jewellery
increased marginally to USD 80 bn in 2016 from
USD 79 bn the previous year.
Global Diamond Consumption - 2016
• US continued as main driver of global
growth, accounting for USD 41 bn and a growth
of 4.4% over last year. More frequent
acquisitions, a higher value of spend and
self-purchase trends helped drive demand.
• Except for China and Japan, most other markets
declined in 2016. But H1 2017 shows
improvements in demand, in particular from
China and India.
Source: De Beers Group, June 2017
• While Bridal diamond jewellery continues to be
popular in most markets, US saw a rise in
multi-diamond pieces whereas China and India
showed interest in solitaire type jewellery.Industry Overview - Domestic
• The Indian Gems and Jewellery industry contributes
around 6-7% of the country’s GDP.
7%
• The total exports of the industry stood at 5%
USD 35.59 bn during FY 2016-17 as against 23%
USD 32.6 bn in 2015-16, registering a growth of
8%. In rupee term, it increased by 11%.
95% 70%
• India's diamond jewellery market declined by 8.8%
in local currency, a direct result of the jeweller’s
strike and demonetisation initiative.
Stand alone/ Medium sized retailers
• The penetration of organised gems & jewellery
Regional chains
market is expected to increase due to changing
lifestyle patterns and mall culture fast catching-up in National chains
Tier-II and Tier-III cities.
Inner ring: Year 2000
• Whilst online jewellery retailing is at present a very Outer ring: Year 2016
small part of the market, over 40% of consumers
revealed that they browsed online to check latest
trends.FINANCIALS
Financial Performance-Consolidated
Rs. in Crores
4,000 3,302 3,494
3,250 3,221
3,500
TOTAL REVENUE 3,000 2,462
2,500
2,000
1,500
1,000
500
0
2012-13 2013-14 2014-15 2015-16 2016-17
Rs. in Crores
3500 2,979
2,774 2,751 2,877
3000
REVENUE BREAK-UP 2500 2,030
2000
1500
1000 432 476 470 425 515
500
0
2012-13 2013-14 2014-15 2015-16 2016-17
Diamonds JewelleryFinancial Performance-Consolidated
EBIDTA PAT
Rs. in Crores Rs. in Crores
160 131 137 130 129 100 82
140 78 74
120 91 80 66
100
60 48
80
60 40
40
20 20
0 0
2012-13 2013-14 2014- 15 2015-16 2016-17 2012-13 2013-14 2014- 15 2015-16 2016-17
P/E
in Rs.
30 26
24
25
20 15 16
13
15
10
5
0
2012-13 2013-14 2014- 15 2015-16 2016-17Financial Performance-Consolidated
EPS BOOK VALUE
in Rs. in Rs.
60 51 600 525
49 489
46 443
50 41 500
40 30 400 344
295
30 300
20 200
10 100
0 0
2012-13 2013-14 2014- 15 2015-16 2016-17 2012-13 2013-14 2014- 15 2015-16 2016-17
DEBT EQUITY RATIO
2.5
1.74 1.82
2
1.44 1.43
1.5 1.16
1
0.5
0
2012-13 2013-14 2014- 15 2015-16 2016-17Disclaimer
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 www.asianstargroup.com
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