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ASIAN STAR COMPANY LIMITED
CORPORATE PRESENTATION
June 2020
THE COMPANY
ORIGINS
BUSINESS
HIGHLIGHTS
• Set up as a partnership firm in 1971• Became a public limited company in 1995 and
listed on Bombay Stock Exchange in 1996
• Diamond Cutting and Polishing• Diamond Jewellery Manufacturing and Marketing• Retailing
Company Snapshot
• Leading supply partners for loose polished and jewellery to some of the leading brands and retail chains across the globe
•More than 70% of the company’s turnover is generated from the overseas markets
VISION
To be a world-class diamantaire enjoying sustainablegrowth;to maximize the potential of our core competenciesandadd long-term value to the diamondpipeline.
ISSION
We will live each day our passion for innovation and excellence,so as to create highly desirable diamonds andexperiencesthat surpass our customers’ expectations.
M
VIntegrity Partnership Excellence Responsibility Unity
ALUES
Corporate Objectives
Management Profile
• Mr. Dinesh Shah – CFO & Executive Chairman
• Mr. Vipul Shah – CEO & Managing Director
• Mr. Arvind Shah – Executive Director
• Mr. Priyanshu Shah – Executive Director
• Mr. Rahil Shah – Executive Director
• Mr. Dharmesh Shah – Non Executive - NonIndependent Director
Approved manufacturer of FOREVERMARK
Certified Member of RJC (Responsible Jewellery Council)
ISO 9001:2015 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
Has the prestigious Star Trading House Status
Ranked 294 in Dun & Bradstreet’s “India’s Top 500 Companies” in 2019
Corporate Credentials
Direct supply from source – ALROSA, DE BEERS, DOMINION DIAMOND
Ranked 476 in the “Top 500 Corporations of India” in 2019
by Fortune India
Presence In Major Diamond Consuming Cities Globally, Powered By Nearly 2000 Skilled Employees
Global Presence
Key Success Factors Delivering Competitive Advantage
• Vertically Integrated Business Model delivers a sound and synergistic commercial proposition.
• World-Class Infrastructure base for diamond processing and jewellery manufacturing.
• Widespread Marketing Network allows instant access to new potential markets and provides detailed market knowledge.
• Consistency of the ‘Asian Star make’ and reputation as a one-stop-shop in the trading circles.
• Focused R&D to consistently deliver specialized cuts for diamondsand innovations in jewellery.
• Excellent Design Team based in India, the USA and Hong Kong.
• Experienced Management & Strong Financial Base fueling future growth plans
OPERATIONS
Vertically Integrated Business Model
Ethical sourcingof Rough
World-class cutting& polishing unit in Surat, India
Polished distribution to top jewellery manufacturers &
retailers globally (B2B)
Diamond jewellery distribution to top retailers &
brands globally (B2B)
Diamond jewellery retailing to HNI customers–in India & Middle East(B2C)
Polished used in-house- jewellery manufacturing
units in Mumbai & Hosur,India
LONG-TERM SUPPLY CONTRACTS
Direct Rough Sourcing
APPROVED MANUFACTURER
• World-class infrastructure at Surat,measuring 100,000square feet.
• 900+ skilled workers.
• Overall production capacity per annum of over USD 300million.
• Product range – fine makes in round brilliant in all colours and clarities up to 5 carats, proprietary cuts and generic fancy shapes.
Manufacturing Facility-Loose Polished
• Production capacity of 750,000pieces per annum.
• Factory premises of 50,000 squarefeet at Mumbai and Hosur.
• Expertise in mass producedmachine-made jewellery and hand-made couture jewellery.
• In-house designers and productdevelopment team for key marketsand clients.
• Cater to major retailers and retailchains in the domestic andinternational jewellery markets.
Manufacturing Facility-Diamond Jewellery
Diamond setting
Laser
IN
HOUSE
C O L L E C T I O N S
A W A R D
W I N N I N G
DESIGNS
Get Unwired Flowers of Paradise
For All SeasonsDancing Flame
Distribution
Widespread marketing network present inmajor 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- commerceretailers to drive growth and value.
Well-balanced demand for our productsacrossregions.
•Participation in over 20 Domestic and International Trade Fairs and Buyer Seller meets.
•Product dissemination through Catalogues/ Brochures, Trade Magazine Ads, PR, E-mailers and Websites.
•Skilled photography and multimedia team enables us toprovide our clients with high-resolution product images andcreative designs.
Marketing
JEWELLERY BROCHURE BOOTH – IIJS, INDIA
JEWELLERY AD
Couture Jewellery Boutique:
• Our couture boutique, ex-factory Mumbai, caters exclusively to HNIcustomers.
• Besides offering a wide range of prêt diamond jewellery, we alsoundertake customized orders with jewellery design consultations forspecial occasions.
Retailing
Boutique, Mumbai
Quality Norms
De Beers BPP(Best Practice Principles)
RJCCertified Member
We represent the highest ethical, social, environmental and quality standards by adhering to international codes of practice -
Committed to the
Kimberley Process(a UN mandated system)
ISO 9001: 2015
(Certified by TUV NORD)
Canadian Diamond Code of Conduct
The Company shares corporate benefits with the
community and supports many charitable causes for
the betterment of the society.
• Focuses on community development projects,prioritizing local needs in the area of education,health, livelihood, environment and rehabilitationof disaster-hit areas to ensure long-termsustainable benefits.
• 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.
Corporate Social Responsibility
Health Care
Donated Mobile EyeClinics
Girl Child Education
INDUSTRY OVERVIEW
GEMS & JEWELLERY
Industry Overview - Global
• Global diamond jewellery sales increased by 4% toUSD 85.9 bn in 2018.
• The USA, which accounts for half of global diamondjewellery sales, showed 4% growth whereas Asia,which accounts for about 30% share, had acomparable growth of 5%. China remains the keysales driver in this region.
• Sales increased marginally in the US, China andJapan, whereas there has been a degrowth inEurope and India.
• The diamond market in all regions remainsunderpinned by the engagement and bridalsegment. Couples spent an average of USD 7,829on an engagement ring in 2018 in the USA, up anastonishing 56% from USD 5,023 in 2017.
• By 2020, more than 50% of global consumers willbe the Millennials and the Gen Z and will form therising new middle class with high disposable income.
2018 Global Retail Sales ofDiamond Jewellery
Gulf &Turkey9.2%
HK/China&Taiwan15.7%
USA 49.6%
Europe 7.8%
India 6.5%
ROW6.2% Japan
5.0%
Industry Overview - Domestic
• The Indian Gems and Jewellery industry contributed 12% toIndia’s total merchandise exports in FY19, down from 14%in FY18. Gross gems and jewellery exports from Indiadeclined to USD 39.68 bn in FY19, compared to USD 40.96bn in the previous year.
• While exports of cut and polished diamonds increasedmoderately by 0.42% to USD 23.8 bn, gold jewelleryexports grew by a impressive 24.6% to USD 12.03 bn inFY19.
• India’s domestic jewellery market, currently at market sizeUSD 60 bn, is expected to grow at a CAGR of 5.6% overFY19-23.
• The diamond consumer market in India is still under-
developed with 6.5% of world consumption. Only
10% of Indian women own a diamond, against 20% in China and 70% in the US.
• Organised jewellery retailers will corner 42% market shareand will maintain CAGR of 10-11% over FY19-23 on thebasis of fresh store additions at the rate of 17%, productmix favouring high-margin diamond jewellery andaggressive long-term promotional schemes.
OrganisedRetailers
UnorganisedRetailers
30%
42%
58%
70%
Inner Ring: Year 2018 Outer Ring: Year2023
FINANCIALS
Financial Performance-Consolidated
REVENUE BREAK-UP
TOTAL REVENUE
Diamonds Jewellery
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2014-15 2015-16 2016-17 2017-18 2018-19
3,9053,642
3,221 3,302 3,494
Rs. in Crore
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2014-15 2015-16 2016-17 2017-18 2018-19
2,7512,9792,877
3,048
470 425515 555 594
Rs. in Crore3,350
Financial Performance-Consolidated
EBITDA PAT
P/E
200180160140120100806040200
2014-15 2015- 16 2016-17 2017-18 2018-19
137130 129
188 189
Rs. in Crore
120
100
80
60
40
20
0
2014- 15 2015-16 2016-17 2017-18 2018-19
8274 66
109 115
Rs. in Crore
15
25
20
10
5
02014- 15 2015-16 2016-17 2017-18 2018-19
24
1516 16
10
in Rs.
EPS BOOK VALUE
DEBT EQUITY RATIO
Financial Performance-Consolidated
1
1.5
2.5
2
0.5
02014- 15 2015-16 2016-17 2017-18 2018-19
1.44 1.43
1.16
0.860.64
600
500
400
300
200
100
0
700
2014- 15 2015-16 2016-17 2017-18 2018-19
443489
525
615672
in Rs.
80
70
60
50
40
30
20
10
02014- 15 2015-16 2016-17 2017-18 2018-19
5146
41
6872
in Rs.
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 presentationis only current as of itsdate.
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 ofAsian
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 makeany
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 strictlyconfidential.
Disclaimer
www.asianstargroup.com