Science & Environment
Expanding jewels in Maharashtra’s heart: PN Gadgil – Times…
MUMBAI: PN Gadgil Jewellers (PNG), the second biggest jewellery retailer in Maharashtra, has set its sights on expanding the business within the state rather than venturing into other regions.
Saurabh Gadgil, the chairman and managing director of PNG and a sixth-generation member of the PN Gadgil family, believes there is a lot of headroom for growth in Maharashtra.
The company has witnessed impressive growth over the past decade, with its business increasing to Rs 6,111 crore by the end of March 2024 from Rs 2,556 crore in FY14.
Maharashtra’s prominence in the jewellery industry, accounting for 17% of the total jewellery outlets in the country and 15% of the total retail spend in FY2023, coupled with the strong brand lineage of PNG, is motivating the company to focus its efforts on the state.
Currently, PNG operates a total of 39 retail outlets in Maharashtra, with 28 owned stores and 11 franchisee outlets. It plans to open an additional 12 stores in the state by fiscal 2026. The cost of establishing these new outlets, estimated at Rs 393 crore, will be financed using the proceeds from the company’s recent initial public offering (IPO).
The Purushottam Narayan Gadgil brand has a history dating back to 1832 when it was founded by Ganesh Narayan Gadgil in Sangli. His son, Purushottam Narayan Gadgil, later expanded the brand to Pune in 1958. Today, PNG’s flagship store on Laxmi Road in Pune is the company’s biggest revenue contributor, generating Rs 800 crore in sales.
Apart from its presence in Maharashtra, PNG also has a store in Goa and had ventured into the international market with outlets in California, US, and Dubai. However, the Dubai store was closed down in FY23 due to losses, resulting in a write-off of Rs 52 crore. The US store, which was profitable, was robbed by 20 masked men in broad daylight in June of this year. Saurabh said the company plans to reopen the US store soon, as the robbery did not have a significant impact due to insurance coverage.
The country’s jewellery industry is expected to benefit from the recent cut in import duties on gold and the absence of new sovereign gold bond issues by the Reserve Bank of India (RBI) since February. These factors, along with rising disposable incomes, a growing working-age population with a preference for lightweight and fashionable jewellery, and the traditional practice of acquiring gold during festivals, will drive the demand for physical gold, Saurabh said. Gold jewellery accounts for a substantial 92% (Rs 5,633 crore) of PNG’s business.
To support its expansion plans and retire its debt of Rs 349 crore, PNG recently raised Rs 1,100 crore through an IPO. The IPO consisted of a fresh equity issue of Rs 850 crore and an offer for sale of Rs 250 crore. Following the IPO, Saurabh Gadgil and his family hold an 83% stake in the company. PNG’s shares were listed on the National Stock Exchange (NSE) at Rs 830 apiece on Tuesday, representing a premium of 73% over the issue price of Rs 480 per share.
Saurabh Gadgil, the chairman and managing director of PNG and a sixth-generation member of the PN Gadgil family, believes there is a lot of headroom for growth in Maharashtra.
The company has witnessed impressive growth over the past decade, with its business increasing to Rs 6,111 crore by the end of March 2024 from Rs 2,556 crore in FY14.
Maharashtra’s prominence in the jewellery industry, accounting for 17% of the total jewellery outlets in the country and 15% of the total retail spend in FY2023, coupled with the strong brand lineage of PNG, is motivating the company to focus its efforts on the state.
Currently, PNG operates a total of 39 retail outlets in Maharashtra, with 28 owned stores and 11 franchisee outlets. It plans to open an additional 12 stores in the state by fiscal 2026. The cost of establishing these new outlets, estimated at Rs 393 crore, will be financed using the proceeds from the company’s recent initial public offering (IPO).
The Purushottam Narayan Gadgil brand has a history dating back to 1832 when it was founded by Ganesh Narayan Gadgil in Sangli. His son, Purushottam Narayan Gadgil, later expanded the brand to Pune in 1958. Today, PNG’s flagship store on Laxmi Road in Pune is the company’s biggest revenue contributor, generating Rs 800 crore in sales.
Apart from its presence in Maharashtra, PNG also has a store in Goa and had ventured into the international market with outlets in California, US, and Dubai. However, the Dubai store was closed down in FY23 due to losses, resulting in a write-off of Rs 52 crore. The US store, which was profitable, was robbed by 20 masked men in broad daylight in June of this year. Saurabh said the company plans to reopen the US store soon, as the robbery did not have a significant impact due to insurance coverage.
The country’s jewellery industry is expected to benefit from the recent cut in import duties on gold and the absence of new sovereign gold bond issues by the Reserve Bank of India (RBI) since February. These factors, along with rising disposable incomes, a growing working-age population with a preference for lightweight and fashionable jewellery, and the traditional practice of acquiring gold during festivals, will drive the demand for physical gold, Saurabh said. Gold jewellery accounts for a substantial 92% (Rs 5,633 crore) of PNG’s business.
To support its expansion plans and retire its debt of Rs 349 crore, PNG recently raised Rs 1,100 crore through an IPO. The IPO consisted of a fresh equity issue of Rs 850 crore and an offer for sale of Rs 250 crore. Following the IPO, Saurabh Gadgil and his family hold an 83% stake in the company. PNG’s shares were listed on the National Stock Exchange (NSE) at Rs 830 apiece on Tuesday, representing a premium of 73% over the issue price of Rs 480 per share.
