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Safe Harbor
Certain statements in this document may be forward-looking statements. Such
forward-looking statements are subject to certain risks and uncertainties like
Positive customer engagement metrics customer base, retention rate, repeat purchases
Outsourcing from China, Thailand, Indonesia and India, aggressive trend spotting initiatives
Investments in customer interface, production, warehousing facilities, supply chain and CRM
Professional, experienced management team having in-depth knowledge and industry experience
Talent pool across marketing, merchandising, operations, technical and strategy functions
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Table of Contents
12
20
Operating Highlights
Chairmans Message
Commenting on Q4 & FY16 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said:
In FY16, we have managed to deliver some significant transitions in a tough
business environment. Over the year, we have successfully implemented
technology platform improvements, launched installment payments and
returnability for customers, introduced a bouquet of brands and enhanced our
leadership team.
We are already seeing initial improvements as is evident from our Q4 results
TV revenues have largely flattened out, overall gross revenues have expanded
6.6%, working capital remained stable over the quarter and free cash of Rs. 14
crore was generated.
We have invested in capacity expansion by adding 10 million additional
households and making substantial programming content and backend capability
improvements. These fixed costs are already built into our numbers. One area for
improvement is the customer experience on our web platform, which we are
addressing along with the new business and technology leadership team in
place.
We now enter FY17 with positive momentum and are seeing growth in net
revenues. Gross margins are expected to remain healthy at current levels, fixed
cost commitments may not increase substantially. We expect to see lower
inventory levels and stable working capital during the year. Our capex visibility is
$ 3-4 million, therefore continuation of positive cash flow momentum is expected.
With these key business dynamics, we now look forward to a stronger operating
performance in the current year.
359
Q4 FY15
1,276
347
Q4 FY16
FY15
FY16
932
256
248
244
72
Q4 FY15
Q4 FY16
FY15
B2B Sales
Web Sales
FY16
Q4 FY15
223
60
Q4 FY16
FY15
FY16
161
39
44
Q4 FY15
Q4 FY16
FY15
121
FY16
6,829
1,796
Q4
FY15
5,854
22
23
24
1,298
Q4
FY16
FY15
FY16
Q4
FY15
Q4
FY16
FY15
FY16
Web Sales
Sales Volumes ('000s)
2,960
2,264
823
Q4
FY15
14
15
515
Q4
FY16
FY15
FY16
Q4
FY15
Q4
FY16
FY15
FY16
Gross Profit
Gross margin
900.00
70%
63%
800.00
700.00
59%
61%
61%
65%
60%
600.00
55%
500.00
50%
400.00
45%
300.00
200.00
40%
100.00
35%
211
211
838
804
30%
Q4 FY15
Q4 FY16
FY15
FY16
Note: Direct costs for calculation of gross profit includes material cost, job work charges
and manufacturing cost
EBITDA
Rs. crore
EBITDA margin
90.00
70.00
12.0%
144
10.5%
9.7%
10.0%
8.0%
5.6%
50.00
4.0%
72
6.0%
4.0%
30.00
2.0%
35
10.00
14
0.0%
Q4 FY15
Q4 FY16
FY15
FY16
Note:
EBIDTA excludes exchange gain/loss;
EBIDTA margin including exchange gain/loss stood at 5.9% in FY16 v/s 10.7% in FY15
EBIDTA margin including exchange gain/loss stood at 4.2% in Q4 FY16 v/s 8.7 % in Q4 FY15
PAT *
Rs. crore
PAT margin
100
18.0%
80
15.0%
12.0%
60
9.0%
7.3%
40
5.9%
6.0%
2.4%
20
2.9%
3.0%
21
101
37
Q4 FY15
Q4 FY16
FY15
FY16
0.0%
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Table of Contents
12
20
11
1,298
1,276
893
647
FY12
FY13
FY14
FY15
FY16
TV Sales
911
958
B2B Sales
932
687
483
225
73
FY12
FY13
FY14
FY15
FY16
FY12
256
223
91
117
FY13
162
FY14
FY15
FY16
FY12
161
121
89
FY13
FY14
FY15
FY16
12
6,829
5,854
5,239
23
24
23
24
3,268
Web Sales
Sales Volumes ('000s)
2,960
2,264
12
13
14
15
1,700
762
357
FY12 FY13 FY14 FY15 FY16
13
Gross Profit
Rs. crore
Gross margin
900
64%
63%
800
63%
700
62%
600
61%
500
61%
60%
59%
200
58%
100
384
533
789
838
804
FY12
FY13
FY14
FY15
FY16
EBITDA
Rs. crore
180
14%
12%
11%
9%
120
57%
EBITDA margin
12%
13%
140
10%
8%
100
6%
80
40
61%
59%
300
60
60%
400
160
6%
4%
86
2%
20
0
FY12
81
157
144
72
FY13
FY14
FY15
FY16
Note:
EBIDTA excludes exchange gain/loss;
0%
14
PAT
Rs. crore
PAT margin
180
14%
160
12%
12%
12%
140
10%
120
8%
8%
100
8%
80
6%
60
3%
4%
40
2%
20
79
78
153
103
40
FY12
FY13
FY14
FY15
FY16
0%
EPS
48
32
25
24
12
FY12
FY13
FY14
FY15
FY16
15
Shareholders Equity
Rs. crore
367
328
265
Fixed Assets
Rs. crore
203
233
129
159
58
FY12
FY13
FY14
FY15
FY16
* During FY13, Shareholders Equity was adjusted lower by Rs. 163.7 crore due
to goodwill written off (Rs. 151.1 crore), provision for CDR recompense interest
(Rs. 11.2 crore) and write off on liquidation of subsidiary (Rs. 1.5 crore)
Rs. crore
146
Net Debt
FY12
FY14
77
FY15
FY16
During FY13 fixed assets were adjusted lower by Rs. 151.1 cr due to
goodwill written off
Includes 11 crore for New channel in UK and around 28 crores for HYBRIS
which were lying in work in progress.
Rs. crore
115
FY13
66
208
219
294
231
55
52
-20
FY12
FY13
FY14
FY15
FY16
FY12
FY13
FY14
FY15
FY16
Net current Assets are impacted due to capital advances against new
channel in UK and SAP based software, SEZ project and stock build up.
16
Rs. crore
Rs. crore
152
169
106
129
52
26
66
34
FY12
FY12
FY13
FY14
FY15
FY13
FY15
FY16
-59
FY16
-10
FY14
Table of Contents
12
20
18
Market Opportunity
US market size (US$ Bn)
Fashion
Accessories
17
Fashion
Accessories
6
Fine and
Fashion
Jewelry 67
Fine and
Fashion
Jewelry
8
19
Product Profile
FASHION JEWELLERY
Bracelets
Bangles
Earrings
Studded jewelry, etc.
FASHION ACCESSORIES
Watches
Handbags
Scarves, etc.
LIFESTYLE PRODUCTS
Home Dcor
Bed linens
Pillow Covers
Towels, etc.
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Channel #399
& 1399
Channel #159
Channel #75 &
226
https://www.liquidationchannel.com
*
*
* Different channel # across various locations
21
Channel #49
Channel #650&
#652
Channel #815
Channel #757
www.thejewellerychannel.tv
22
E-Commerce
Retail formats:
Catalog
Rising Auctions
Technology enhancements:
23
Charter Communication
AT&T
Cord Cutters dont wont to pay for any channel or satellite fees, the can catch the feed directly via antenna
Samsung SMART TV
LG Smart TV
Android TV
ROKU
Google Chromecast
Amazon Fire HD
24
25
Sourcing Markets
Manufacturing facility in Jaipur, India
Production Capacity (3 units)
Additional Capacity
4 mn pieces p.a.
2.1 mn pieces p.a.
Over 2,600 people in India across corporate, manufacturing, design, sales & marketing, customer service, logistics etc
China
Guangzhou, Haifeng,
Hauadu Shenzhen,
Dongguan, Zhuji,
Wenzhou, Wuzhou, Yiwu,
Hunan
Thailand
Bangkok, Chang Mai,
Mae Sai, Kanchanaburi,
Chanthburi
Indonesia
Bali, Yogyakarta,
Sumatra, Madura
Surabaya
India
Noida, Jaipur,
Nagaland, Kashmir,
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Consumption Markets
Access to over 110 million (FTE) households on TV homeshopping in the US, UK and Canada
Liquidation Channel
UK
USA
Sourcing Methodology
Assessing
value
perception
design /
fashion trend /
price in target
markets
Competitive
Pricing
Mapping latest
fashions
Rapid
turnaround
Vendor
evaluation
process
Sourcing from
appropriate
micro-markets
in China/Asia
Focus on best
price to
customer
Low
investment
Scale
flexibility
Access to
latest
manufacturing
technologies
Sourcing
price to
deliver
excellent
value
Core
competency
of vendor
Delivery/
quality/
timeliness
Size of
product line/
capacity
Proprietary
design/
development
capability
Multi-vendor
quotes to
gauge bottom
price
discovery
28
Management Team
Sunil Agrawal
Chairman and Managing Director
Established Vaibhav in 1980 as a first generation
entrepreneur and has led the companys transition
into a leading brand for fashion jewelry and lifestyle
accessories
Travels extensively across the world, overseeing
operations, sourcing raw material globally and
representing the company at major trade shows and
jewelry fairs in the US, Europe and Asia
Puru Aggarwal
Kevin Lyons
Group CFO
29
Management Team
Jeff Allar
Nitin Dugar
Pushpendra Singh
Koteswara Rao N
30
Contact Information
For more information on Vaibhav Global Limited, please contact:
Puru Aggarwal
Vaibhav Global Limited
+91-141-2770648
Puru.Aggarwal@vglgroup.com
Ghanshyam Gupta
Vaibhav Global Limited
+91-141-2770648
Ghanshyam.Gupta@vglgroup.com
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Thank
You
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