Dear Shareholders,
As we conclude FY 2023-24, I am proud to share Khazanchi Jewellers Limited's
significant achievements and progress. Our dedication to merging tradition with innovation
has not only fortified our position in the jewellery industry but has also set new
benchmarks in craftsmanship, design, and customer satisfaction.
Since our humble beginnings in 1971 in Chennai to becoming a publicly listed company in
2023, our journey has been marked by substantial milestones and consistent growth. Our
evolution from a small retail outlet to a leading name in the jewellery sector reflects
our unwavering commitment to quality and innovation.
The Indian jewellery industry, integral to the nation's cultural and economic
landscape, continues to thrive. Gold jewellery remains central to weddings and festivals,
and while bridal jewellery demand remains strong, everyday gold accessories are also
gaining popularity. This market's resilience is supported by gold's investment appeal and
traditional significance. In South India, the preference for 22-carat gold jewellery
highlights both cultural practices and economic growth.
In FY 2023-24, we achieved notable financial success, with Total Income reaching
'821.53 crore. EBITDA grew significantly to '41.78 crore, and Profit After Tax rose to '
27.32 crore. These results highlight our strong performance and the effectiveness of our
strategic initiatives.
Our strategic focus includes a particular emphasis on high-value jewellery such as
Temple jewellery, which not only reflects our rich heritage but also offers high margins.
This segment will play a crucial role in our growth strategy, catering to discerning
customers seeking premium and unique pieces. Additionally, we are focusing on lightweight
jewellery to appeal to a wider range of customers looking for elegant yet affordable
options.
Our B2B segment is expanding significantly, with our jewellery now reaching major
multi-stores and renowned generational jewellers throughout South India. This strategic
expansion will further enhance our market presence and cater to a wider customer base.
In light of this, we will be recalibrating our revenue distribution. Currently, 90% of
our revenue comes from B2B and 10% from B2C.With the new showroom expansion, we will be
concentrating 100% on the B2C segment in this new showroom. This adjustment will enhance
our market presence and allow us to effectively serve a broader customer base.
Expansion of Our Retail Space
Our new flagship showroom at Sowcarpet, Chennai, is opening later this year. Spanning
10,000 sq. ft., the showroom will showcase an extensive range of gold, silver and diamond
jewellery, designed to offer an exceptional shopping experience. It will also highlight
our commitment to innovation through lab-grown diamonds, providing a responsible and
ethical alternative while aligning with evolving customer preferences.
Looking forward, our strategy will focus on broadening our product range, strengthening
our digital presence, and exploring new markets. By staying true to our core values of
quality and innovation, we are confident in our ability to achieve sustainable growth and
deliver exceptional value to our stakeholders.
In conclusion, the Union Budget 2024-25's reduction in the custom duty on gold and
silver from 15.00% to 6.00% is a significant development that will benefit Khazanchi
Jewellers Limited. This reduction will enhance the affordability of precious metals,
positively impacting the jewellery industry by driving growth and accessibility.
I extend my heartfelt gratitude to our shareholders for their steadfast support and
confidence. We also thank our loyal customers for their trust and our dedicated employees
for their commitment to excellence. With your continued support, Khazanchi Jewellers
Limited is poised to achieve new heights of success and deliver value to all stakeholders.
| Warm regards, |
| Tarachand Mehta |
| Promoter & Managing Director, |
| Khazanchi Jewellers Limited |