Gitanjali Gems Limited - AceAnalyser

1 Gitanjali gems Limited Disclaimer This presentation and the accompanying slides (the Presentation ), which have been prepared by Gitanjali gems Limited (the Company ), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to p purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding f y , f y g commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation.

2 This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward looking statements. Such forward looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include but are not Limited to the performance of the Indian economy and of the economies of various international and uncertainties include, but are not Limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the wind power industry in India and world wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks.

3 The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward looking information contained in this p y p y g p yf g f Presentation. Any forward looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. 20100602 v1.

4 Gitanjali gems Limited Gitanjali gems Limited An overview Gitanjali gems . an overview an overview Established Presence Over two decades of experience p in diamonds and studded jjewellery y DTC Sight holder status through a promoter group company Focused on Jewellery marketing and retailing to drive growth and margin Integrated Business Model Integrated Jewellery manufacturing & retailing model provides significant competitive advantage India's largest branded diamond jewellery retailer Strategic presence in leading global diamond jewellery markets Large L scale l retail t il expansion i with ith over 2400 P. Points i t off S. Sale l (P. (PoS). S) in i IIndia di Strong Manufacturing Base State of the art facilities at nine locations for diamond processing & jewellery manufacturing Advanced product development and design capabilities Well Defined Diversification Strategy gy Retail expansion through organic, inorganic and partnership routes Foray into lifestyle products to leverage customer base and domain knowledge Infrastructure development to unlock value from fixed assets Gitanjali gems .

5 Key subsidiaries Key subsidiaries Gitanjali Group 1 2 3 4 5. Diamond & Branded B d d IInternational t ti l Jewellery Indian Retail Infratech Jewellery Retail Mfg & Wholesale Gitanjali gems Ltd. Gili Gitanjali Lifestyle Samuels Jewelers Inc Gitanjali Infratech (Gili India Ltd.). I di Ltd ) Ltd Ltd. (USA) Ltd Ltd. Gitanjali Exports Nakshatra (Brightest Gitanjali Jewellery Hyderabad gems Rogers Ltd. Inc (USA). Corp. Ltd. Circle Jewellery) Retail Pvt. Ltd. SEZ Ltd. D'Damas D Damas Shuddhi Tristar Worldwide D'damas Jewellery MMTC Gitanjali Pvt. LLC (USA). (India) Pvt. Ltd Ltd. Asmi Maya Lifestyle Diamlink Inc (Asmi Jewellery (Salasar Retail Pvt. (USA). India Pvt Ltd ). India Pvt. Ltd.) Ltd ). Ltd. ). Maya Gold & Diya Diamlink Jewellery (Fantasy Jewellery Inc (USA).

6 Pvt. Ltd.). Jewellery Mkting Co. Sangini Sa g LLC (USA). C( S ). (Spectrum Jewellery). Note: Key subsidiaries listed Not exhaustive Capitalizing on Value Chain Advantage Value Chain Advantage Maximum Value Creation in downstream Exports Exports International Retail Sourcing rough & Diamond Manufacturing Gold Jewellery Jewellery Domestic Retail uncut diamonds uncut diamonds Processing Diamond Jewellery Diamond Jewellery Branding Sourcing Processing Manufacturing Branding & Retailing Branding & Retailing o DTC sight holder o Three modern o Six state of the art o Pioneers of position through diamond facilities for Jewellery branded jewellery promoter concern processing facilities Manufacturing in India o Enables Enables quality quality o Additi Additionall facilites f ilit o Excellent set of Excellent set of

7 Supply at efficient commenced in SEZ brands prices o Exhaustive sales & distribution networks Market Trends and Market Trends and Outlook Changing preferences of Indian Customer Yesterday Today Market Potential Unbranded, From U b d d F. Family Jeweller Branded INDIA India has the 2nd largest India has the 2 largest population and the largest youth population Diamond in the world Gold Jewellery Studded Jewelleryy Jewellery for Jewellery for Investment Fashion Traditional Ethnic Fashionable, and Chunky light weight and designs innovative designs Marriage and Wearability Festival Season as Festival Season as and Gifts and Gifts peak seasons demand through the year Emerging market Growing economy World's third largest Jewellery sold on Jewellery being One of the fastest growing diamond jewelry market, y commodity basis sold on a per p economies in the world growing swiftly growing swiftly with labour piece basis ($5bn by 2013)

8 With 6% growth over the charges last decade Source: Published Information Understanding Indian Jewellery Market Indian Jewellery One of fastest growing jewelry markets globally with an annual growth rate of ~16%. Domestic market size estimated at ~US$22bn with gold jewellery accounting for nearly 80% of total D i t d by Dominated b unorganized i d sector t players, l accounting ti for f nearly l 90% off market k t Organized retailing of branded jewelry increasingly gaining share Growing at double the pace of the overall jewellery market. Traditional and emerging demand drivers: Festivals & Special occasions half of market volume comprises wedding jewellery dominated by the unorganized segment and local designs Changing buyer perception of jewellery now seen as a fashion accessory & not just an investment option Focus on Branded Jewellery Focus on Branded Jewellery Retail Retail business driving aggressive growth aggressive growth Jewellery Over all 50%+ of total Jewellery revenues of India Gitanjali come from domestic market International Branded Own stores and Wholesale and USA Middle East Exports to other jewellery sales franchise stores private label 130 stores Stores in international through channel jewellery sales through partnership with markets partners.

9 Acquisition of leading jewellery Samuels and Samuels and chains like Joy chains like Joy Rogers. Alukkas Brands across all Expansion of Increasing supply market segments. single and multi to family Multiple brand store jewellers. Growth to To grow further Distribution of distribution network across Launching continue through jewellery in platforms and l tf d th the country. t various i through through partnership partnership Europe Russia Europe, Russia, presence in malls aggregation inorganic route route and owned Far East, and shop in shop initiatives. and margins stores. Australia, Other formats through Indian Asian Countries manufacturing support ~60% of the organized mall space in the country within jewellery category belongs to the Gitanjali Group 50 60% of advertisement spend on jewellery PAN India is done by Gitanjali Strong retail Expansion Plans in India Plans in India Continuous retail expansion plan intact for next 3 years Number of CAGR 20% ~ 400 25% of all Points of Sales (2400 in all) in India were ~230.

10 Exclusive Distributors 2009 - 2010 2012 - 2013. added in FY 2009 10. Actual Projected Primary focus of expansion through Franchise and Primar foc s of e pansion thro gh Franchise and Number of ~2000. CAGR 26% ~ 4000 Shop In Shop routes Outlets (SIS + Retailers) Revenue Share with property owner preferred mode 2009 - 2010 2012 - 2013. Actual Projected of expansion for Exclusive stores CAGR 18% ~300 Flagship stores being set up to establish brand ~ 185. Number of Exclusive Exclusive presence as enablers for Franchise and SIS networks p 2009 - 2010 2012 - 2013. Stores Actual Projected Present retail network occupies about 1 mn sq feet CAGR 32%. PAN India Number of ~215. ~ 500. Franchisee Franchisee Stores 2009 - 2010 2012 - 2013.