ASIAN STAR COMPANY LIMITED CORPORATE PRESENTATION
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The DTC Sightholder logo is a trade mark used under licence from the De Beers Group CORPORATE PRESENTATION ASIAN STAR COMPANY LIMITED
Contents The Company Company Snapshot Corporate Objectives Corporate Credentials Management Profile Strengths Global Presence Key Success Factors Operations Manufacturing – Loose Polished Manufacturing – Diamond Jewellery Retailing & Distribution Process Quality Norms Industry Overview Financials
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 & jewellery to some of the leading brands and retail chains across the globe HIGHLIGHTS • 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 & add long‐term value to the diamond pipeline. M ISSION We will live each day our passion for innovation & excellence, to create highly desirable diamonds & experiences that surpass our customers’ expectations. V ALUES Integrity Partnership Excellence Responsibility Unity
Corporate Credentials Ranked 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 Certified 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 Dedicated Jewellery Manufacturing units World‐class infrastructure for diamond processing 20 marketing arms in major diamond consuming cities globally Strong human asset base with 2150 skilled and professional employees Detailed market knowledge through strong marketing network Strong financial base supporting future growth plans Centralized MIS control of global operations
Key Success Factors delivering competitive advantage • Vertically integrated business model to make commercial proposition sound 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.
Operations
Operations across the 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
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 development team for key markets & clients. • Cater to major retailers and retail chains in the domestic and international jewellery markets.
P R O D U C T S
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Retailing Our couture diamond 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. 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 Committed to the De Beers RJC Kimberly Process (Best Practice Principles) Certified Member (a UN mandated system) Stringent quality norms in conformance with ISO 9001: 2008, certified by TUV NORD The DTC Sightholder logo is a trade mark used under licence from the De Beers Group
Industry Overview Gems & Jewellery
Industry Overview - Global • Diamond – studded jewellery is the largest segment of the global jewellery market (approx USD 200 bn) at USD 72.1 Distribution of Diamond Jewellery Industry (2012) 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.
Industry Overview –Indian Industry • Gems & Jewellery accounted for 17% of the total exports from India in 2012‐13 Value of Polished Diamonds from local production (2012) • 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).
Financials
Financial Performance-consolidated Total Revenue Revenue Break Up Diamonds Jewellery
Financial Performance-consolidated EBIDTA PAT EPS* * ( Normalised on account of issue of Bonus Shares in the ratio of 1:2 in FY 2012‐13).
Financial Performance-consolidated P/E BOOK VALUE* * ( Normalised on account of issue of Bonus Shares in the ratio of 1:2 in FY 2012‐13). DEBT EQUITY RATIO
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.
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