INDUSTRY OVERVIEW

• Worldwide, the gems and jewellery industry is estimated at over US$ 130

billion.

• The Indian gems and jewellery industry grows at the rate of 15 % annually.

• Domestic market is estimated to be around US$ 16.1 billion.

• India is the largest diamond processor .

• India’s gems and jewellery industry has been allowed 51 per cent foreign direct

investments.

Indian Retail Jewellery OverviewYesterday Today

Unbranded Branded

Silver & Gold jewellery Gold & Diamond jewellery

Investment Investment + Fashion

Traditional design Fashionable & innovative design

Marriage & festival is peak season Wearability and gifts

Jewellery sold on commodity basis

with labor charges

Jewellery being sold on a per piece

basis

GITANJALI GEMS Established presence The company is one of India’s largest integrated diamond and jewellery

companies Established in 1966. Sight holder status with DTC through a promoter group company

Sophisticated and scalable diamond and jewellery manufacturing facilities Approximately 1,246 retail outlets in India and 143 outlets in the U.S.Leading brands

VISION• To be globally diversified in infrastructure and integrated operations

efficiently linking diamonds from rough to retail.• To create a single value chain that spans the distance from mines to the

market stand in doing so transform the Indian jewellery market into one dominated by brands offering certified and trustworthy jewellery through a contemporary shopping experience.

MISSION•To develop, produce and sell high quality jewellery and accessories worldwide and help our customers to get the maximum value for money.•To create incremental enterprise and brand value to increase the net worth of the group.

BUSINESS MAP

Gitanjali Gems

Diamond and Jewellery InfrastructureLifestyle

Manufacturing and whole selling

Diamond Processing

Retail

India USA

LINE OF BUSINESSES The Diamond and Jewellery arm of Gitanjali Gems is divided further:

• Diamond processing• Jewellery manufacturing• Jewellery retailing in India and Aboard• Branded jewellery• Gems & jewellery SEZs

STRATEGIES USED FOR MARKETING• The company has various exhibitions all throughout the world.• Leading Jewellers of the World (LJW)• The company has taken various famous personalities to endorse and

promote their brands eg. Katrina Kaif, Kareena Kapoor, Bipasha Basu and so on.

• The company sponsors various Fashion Weeks for the promotion and visibility of their brand.

• The company partners with Force India for“Speed Nights VIP Access.”

BRANDS RECALL

2008

KEY FACTS

• Has won many awards from the Ministry of Commerce.

• Today its a $900 million multinational group.

• Integrated multi-location operations.

• Product range and innovation.

MERGERS AND ACQUISITIONS• Gitanjali Gems acquires Samuels Jewellers Inc, USA.• Gitanjali USA Inc acquires 70% equity stakes in Tri-Star worldwide LLC.• Gitanjali Gems acquires 100% stakes in Rogers Limited,Inc.• Gitanjali Group Acquires "LUCERA" - Flagship Jewellery Brand of

Renaissance Retail - Buys over the Retail business of Renaissance for Rs. 25 Crores.

• The Company’s wholly owned subsidiary Gitanjali USA Inc., has acquired 51% stake in Diamlink Inc. Diamlink, a US based Company is engaged in the business of diamond and diamond studded jewellery.

• GGL has acquired 100% shares of Decent Securities & Finance Pvt. Ltd. and Eureka Finstock Pvt. Ltd.

• The company has acquired the balance stake in its Gili brand to make it a wholly owned subsidiary.

• The company has acquired the balance stake in Modali Gems to make it a wholly owned subsidiary.

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Rs. In Crores 33.22 91.57 127.39 178.82 207.66

25

75

125

175

225

NPATRs

. in

Cror

es

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

0.9

1.14

1.29 1.3

1.19

CURRENT RATIO

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

3.24

3.96

3.21

2.89 2.86

QUICK RATIO

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

1.27

0.68

1.43

0.590.670000000000002

DEBT EQUITY RATIO

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

% 5.78 7.54 6.64 6.13 6.36

0.5

1.5

2.5

3.5

4.5

5.5

6.5

7.5

RETURN ON CAPITAL EMPLOYED

%

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

2.92

8.1

13.88

16.24

14.9

EARNING PER SHARERs

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Rs. In Crores 1353.84 1621.26 2219.32 2654.46 2694.02

250.00

750.00

1,250.00

1,750.00

2,250.00

2,750.00

NET SALESRs

. in

Cror

es

SHARE PRICE TREND

SHARE PRICE

VALUE CHAINDiamond Polishing

Direct From Mines

Rough Distribution

Diamond Distribution

Jewellery Manufacturing

Jewellery Whole Selling Jewellery Branding

Jewellery Retailing

Shopping Experience

COMPETITORS ANALYSIS

CURRENT HAPPENINGS• The company divested its stake in Ivida technologies pvt.ltd with a

view to concentrate on its core business.

• The government approved 180 cores of investment proposal of

damas LLC for setting up a retail joint venture with gitanjali

lifestyles for opening jewellery and lifestyle store.• Launch of luxury lifestyle brand Giantti

• The Company’s wholly owned subsidiary, Gitanjali Lifestyle Limited

has entered into an agreement for 70% stake in MobileNXT

Teleservices Pvt. Lt

•Expanding stores in India

•Acquisitions including Samuels, Rogers

and Tri-Star

•Plans to make further inorganic growth

in the U.S. & Far-east.

•Expanding manufacturing capabilities to

address increasing demand

•Gitanjali Lifestyles to focus on

Manufacture and distribution

Of luxury and lifestyle products

•Developing 200 acres gems & Jewellery

SEZ in HyderabadPlans to develop more SEZs at Panvel, Nanden, Nashik, Nagpur,Aurangabad and Calcutta.

Expansions Diversification

FUTURE

FUTURE• Gitanjali plans to open 60 stores• Gitanjali to open 150 stores in Tier-II cities• Gitanjali to foray into apparel biz• Gitanjali Gems to add 150 stores in US• Gitanjali Group to invest $30 m to expand retail presence in

China• Moralleto, Gitanjali Group to set up assembly plant in

Himachal• Training institute to be set up at the Mani Kanchan SEZ• Gitanjali Group Plans Tie-up With Japanese Designer• Gitanjali Lifestyle to hold stake in ‘MobileNXT’

Targets 70% stake in MobileNXT

CHALLENGES• Increase in the price of Gold & Diamonds.

• Other local competitors. According to the data 94% jewellery sales are by family jewelers.

• Emergence of Low-Cost Brands in the upcoming market.

• International Competition:China, Sri Lanka and Thailand's entry in small diamond jewellery.

• Threat from producing nation like S.A. & Russia.

RECOMENDATIONS

• New markets in Europe & Latin America.

• Growing demand in South Asian & Far East countries.

• Industry moving from a phase of consolidation.

• Expansion possibilities in lifestyle and luxury products in India.

• Increase exports.

THANK YOU!