Shree Ganesh Jewellery House Limited

July 2010

2

Agenda

Industry Overview

Company Overview

Financial Highlights

Robust Business Model

Investment Highlights

3

Gems & Jewellery Industry

Sr. Category Sub-category

1. Gemstones Diamonds

Coloured stones – precious, semi-precious, synthetic

2. Jewellery Plain gold Jewellery

Studded Jewellery

Silver Jewellery

Costume Jewellery

3. Pearls -

1. The Industry exported goods worth US$ 21.23 bn constituting 12.52% of India’s Exports (FY 09) Though Diamonds form a major portion of G&J Exports, Gold jewellery

exports were the primary drivers of industry growth in FY09 by contributing US$ 6.87 bn (FY09) with a YOY growth of 23.61%.

2. Indian domestic jewellery market - Rs.700 bn (USD14.58bn). Urban jewellery market - Rs.280 bn (USD5.83 bn) Rural & semi-rural market - Rs.420 bn (USD 8.75 bn).

3. Gold jewellery contributes 80% of Indian jewellery market (approx. Rs.560 bn / USD 11.67 bn) balance is studded jewellery which includes diamond studded as well

as gemstone studded jewellery

4. The industry is largely unorganized with over 100,000 jewellery manufacturing units, 6,000 players in diamond processing and 450,000 goldsmiths Family jewelers constitute 96% & only 4% being organized

5. With increasing disposable income, buying pattern shifting to purchase of branded jewellery from organized & reputed outlets

GOLD JEWELLERY IN TOTAL EXPORT

FY09

Source: GJEPC

Shree Ganesh’s Focus Segment

4

Gems & Jewellery Industry

CAGR 7.87%

GEMS & JEWELLERY EXPORT

Source: GJEPC

USD. Bn.

RISING SHARE OF SHREE GANESH

GOLD JEWELLERY EXPORT

Source: GJEPC

USD. Bn.

CAGR 26.53%

RISING SHARE OF GOLD EXPORT

RISING SHARE OF GOLD EXPORTS

2%

5%

6%

0

1

2

3

4

5

6

7

8

FY2007 FY2008 FY2009

0%

1%

2%

3%

4%

5%

6%

7%

DTA Exports EPZ/SEZ Exports SGJ's Market Share

Source: GJEPC

5

Company Overview

Background•One of the largest manufacturer exporters of ‘Handcrafted Gold Jewellery’•Promoted in August 2002 by Nilesh Parekh & Umesh Parekh, belonging to a jeweller family having more than 5 decades of experience in jewellery making•Investment by Credit Suisse PE aggregating Rs. 80 Crs for 10.99% equity

•stake at a price of Rs. 300/- per equity share (Pre Bonus of 1:1) in March 2008

Manufacturing• Manufacturing

facilities located at Manikanchan, Kolkata, a Gems & Jewellery dedicated SEZ promoted by West Bengal Government• Employs over

562 ‘gold karigars’ (craftsmen) from West Bengal

• Manufacturing capacity of over 30,500 Kgs of gold jewellery p.a.

Markets• Primarily focused

on Export markets which contributes over 95% of Total Revenues with major export markets as UAE, Singapore and Hong Kong

• Expanding Retail Presence in Domestic Market

Awards• “Outstanding Export

Performance and Contribution in the Trade for Plain Precious Metal Jewellery Exports by Unit from EoU/EPZ” for 2008 & 2009

• Rating in December 2009 of SE 1A by Crisil indicating High performance capability and highest financial strength

• Promoters awarded SinGem Young Achiever Award, Eastern India in 2006

• Four Star Export Trading House

6

Milestones

1992-2002Promoters engaged in

family business of

gold jewellery

manufacturing

2002Year of

Incorporation

2003Took over

partnership firm “Shree

Ganesh Jewellers” engaged in jewellery business

2004Set up

manufacturing unit at

Manikanchan SEZ

2006Promoters awarded “Young

Achievers Award” by SinGems

2010-2012Strengthening presence in

retail market

2010-2012Further

expansion to meet

growing demand and

backward integration.

2009Turnover of

Rs. 2,000 Crs

Received “Four Star

Export House” status

2008PE

investment by Credit

Suisse“Outstandin

g Export Performance” award by

GJEPC

2007Opened first

branded Retail

Jewellery store

7

Product Portfolio

• Handcrafted hallmarked gold jewellery and gold enameled jewellery • Gold jewellery studded with precious stones like rubies, emeralds, sapphires, pearls and

diamonds• Portfolio includes rings, earrings, pendants, bracelets, necklaces, bangles, medallions, gold

coins• Product catalogue includes Plain Gold sets, Gold Bengal Antique sets, Jadau - Kundan sets,

Gold Mumbai Rajkot Antique sets, Gold and studded Bangles, Polki – Chakri sets• 15 member strong in-house design development team• Tie up with Sabyasachi Mukherji, renowned Indian Fashion Designer for high end exclusive

jewellery

8

Business

• Amongst the largest player in the industry Capacity to produce 21,500 kg of Gold Jewellery p.a.

• Products majorly include Handcrafted Gold Jewellery• Major markets UAE, Singapore & Hong Kong • Contributes to more than 95% of turnover• Some of the International customers such as Ibrahim Al Sayegh

Jewellery, Sparkle Jewellery FZE (UAE), Denzong (Hong Kong), Wondercut Pte Ltd, Abhusan (S) Private Limited, Excellency Pte Limited, (Singapore) has been company’s long standing customer

• Wholesale of Handcrafted Gold Jewellery (Deemed Exports)• Expanding retailing of branded jewellery under GAJA brand through

existing 13 outlets and proposed outlets• Focus on Tier II & III cities through exclusive shops & franchisees in

Kolkata, Ahmedabad, Bangalore Chandigarh, Patiala, Bhatinda, Jalandar, Rajkot, Amritsar,

Ludhiana, Mangalore and Siliguri.• Company has other brands with different themes mainly targeting

young men and women • Leading fashion designer Sabyasachi Mukherjee is an empanelled

designer

Exports

Domestic

9

Professional & Experienced Management

Mr. Nilesh ParekhChairman, Promoter

- Experience of over 20 years in the jewellery industry- Responsible for overall strategic long term plans and product development- Awarded “Young Achievers Award” by Sin Gems in 2006

Mr. Umesh ParekhManaging Director, Promoter

- Experience of over 19 years in the jewellery industry- Heads global marketing operations and overseas business development- Awarded “Young Achievers Award” by Sin Gems in 2006

Mr. Sharad MohataNon Executive Director, CA, ICWA

- Practicing Chartered Accountant & qualified Cost Accountant- Professional experience of over 17 years in the field of Accounting, Taxation,

Project Finance etc.Mr. P. S. IngtyIndependent Director – Ex IAS

- Masters degree in Arts and MBA from Leeds University, United Kingdom- Principle secretary to the Government of West Bengal (1997 – 2002)

Mr. S. C. ChaturvediIndependent Director, CA

- Practicing Chartered Accountant with professional experience of over 38 years in the field of accounting, taxation, project finance, etc.

- Associated with several public and private sector companies as Auditors Mr. Hemang RajaNominee Director (Credit Suisse)

- B.Com - Mumbai University & MBA - University of Abilene, Texas, USA- Managing Director and Head-India, Credit Suisse Private Equity Asia- Ex MD and CEO of IL & FS Investsmart Ltd.

Mr. D. P. MathurIndependent Director

- Masters in Economics from University of Rajasthan- Had been associated with Planning Commission, Center for Management in

Agriculture, IIM-Ahmedabad, UN-FAO, Ministry of Commerce

Mr. T. K. DasIndependent Director – Ex IAS

- IAS Officer from 1965 to 2001- Had been Joint Secretary to GoI, Principal Secretary to WB Govt, Consultant to

WHO, Administrator to CSE

Financial Highlights (Stand alone)

2007-2008 2008-2009 2009-20100

1000

2000

3000

4000

5000

6000

7000

8000

9000

Exports

IN U

S $

2007-2008 2008-2009 2009-2010

Retail 8.66 13.84 75.74

Wholesale 192.43 1353.39 879.38

100.00

300.00

500.00

700.00

900.00

1,100.00

1,300.00

1,500.00

Domestic

In U

S $

Financial Highlights (Stand alone)

2007-2008 2008-2009 2009-20100.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

7000.00

8000.00

3671.58

6411.83

7439.55

Revenue

IN U

S $

2007-2008 2008-2009 2009-20100.00

100.00

200.00

300.00

400.00

500.00

600.00

293.67

461.48

550.21

EBIDTA

In U

S $

Financial Highlights (Stand alone)

2007-2008 2008-2009 2009-20100.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

PAT

In U

S $

2007-2008 2008-2009 2009-20100.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

PAT Margin

PAT Margin

In %

Robust Business Model

REVENUESRs. 29,426 mn3 yr CAGR 89%

EBITDARs. 2,119 mn

3 yr CAGR 84%

REVENUESRs. 29,426 mn3 yr CAGR 89%

EBITDARs. 2,119 mn

3 yr CAGR 84%

Strategic Location

- Easy access to skilled Bengali karigars- SEZ units - tax & custom benefits- Proximity to Airport

Strategic Location

- Easy access to skilled Bengali karigars- SEZ units - tax & custom benefits- Proximity to Airport

Strong Designing Capabilities

- Intricate handcrafted design;high demand

- Tie up with Sabyasachi Mukherji- Technological innovations

Strong Designing Capabilities

- Intricate handcrafted design;high demand

- Tie up with Sabyasachi Mukherji- Technological innovations

Large Size - Lower Costs

- Nominated Agency- Canalising Agent- Four Star Export House

Large Size - Lower Costs

- Nominated Agency- Canalising Agent- Four Star Export House

Experienced Management

- Professional management- Promoters individually have 2 decades

of experience- Jeweller from generations

Experienced Management

- Professional management- Promoters individually have 2 decades

of experience- Jeweller from generations

Insulation from price volatility

- Gold business enjoys natural hedge- Gold jewellery bought as investment- Hedged foreign exchange position

Insulation from price volatility

- Gold business enjoys natural hedge- Gold jewellery bought as investment- Hedged foreign exchange position

Excellent client relationship

- Super Distributors - Bulk orders- Repeat Order due to confidence- Long standing association with buyers

Excellent client relationship

- Super Distributors - Bulk orders- Repeat Order due to confidence- Long standing association with buyers

14

Growth Strategy

• Targeting Europe, Australia, Africa & Middle East • Set up Singapore & Dubai subsidiaries to market

products as well as procure gold• Cater hitherto untapped domestic markets

• Targeting Europe, Australia, Africa & Middle East • Set up Singapore & Dubai subsidiaries to market

products as well as procure gold• Cater hitherto untapped domestic markets

• Moving from handcrafted jewellery to machinemade light, italian and fusion jewellery

• Tie-up with more designers both India & Overseas• Launch international quality & design in India

• Moving from handcrafted jewellery to machinemade light, italian and fusion jewellery

• Tie-up with more designers both India & Overseas• Launch international quality & design in India

• Capacity expansion to enhance revenues• Newer products range - higher market penetration• Latest Technology for wastage reduction• Better technology for margin enhancement

• Capacity expansion to enhance revenues• Newer products range - higher market penetration• Latest Technology for wastage reduction• Better technology for margin enhancement

• Strengthening GAJA brand• Expand from existing 13 retail outlets to 49• Franchisee Outlets Model to penetrate at low capex • Overseas retail outlets for high end customers• More Focus on Tier II & III cities

• Strengthening GAJA brand• Expand from existing 13 retail outlets to 49• Franchisee Outlets Model to penetrate at low capex • Overseas retail outlets for high end customers• More Focus on Tier II & III cities

• Setting up a Gold refinery to add to feedstock• Retail stores to assist in procuring gold for refinery• Canalising Agency status to allow direct gold import• Domestic expansion to allow reach to final customer

• Setting up a Gold refinery to add to feedstock• Retail stores to assist in procuring gold for refinery• Canalising Agency status to allow direct gold import• Domestic expansion to allow reach to final customer

• Tie up with more domestic and international designers• Targeting international foray with overseas

subsidiaries• Tie with stores like Vishal Megamart - high footfall

stores

• Tie up with more domestic and international designers• Targeting international foray with overseas

subsidiaries• Tie with stores like Vishal Megamart - high footfall

stores

Customer Diversification Product Portfolio Enhancements

Capacity Enhancement Strengthening Retail Foray

Integration Pursue Alliances

15

Investment Highlights

Designs for both class & mass

Capacity enhancement &

margin improvement

One of the largest organised players

Retail plans to tap domestic markets

Backward & forward integration plans

Insulated & hedged Gold Jewellery

business

Yet to truly unfoldYet to truly unfold

Thank You