00:00Namaskar, my name is Digvijay Singh and I welcome you to GoReturns.
00:03In terms of gold prices, we are seeing a sharp rise this year.
00:07If we talk about 2024, till now the price of gold has increased by 20%.
00:12The festive season has also started and there is a lot of excitement in the country.
00:15Dussehra is in the coming days and there is a lot of wealth.
00:18This is a good time to buy gold.
00:21What trend is visible when prices have increased and gold is trading at an all-time high?
00:27We will understand the sentiment of the buyers at the ground level.
00:32Today, we have with us a 200-year-old company, which is associated with the jewelry business.
00:37The management of P.N. Gadgil and Sons is joining us.
00:40The CEO and CFO of the company, Mr. Aditya Modak, has joined us.
00:44Sir, welcome to you.
00:45How is it going, sir, when the price of gold has increased and is at an all-time high?
00:50What is the situation in the stores?
00:53What kind of gold and jewelry are being sold?
00:58As you said, the price of gold has increased at an all-time high.
01:06If we look at last month, when the duty was reduced, there was a little relief.
01:11There was a plunge of customers who were coming because the rate was lower.
01:19But now we are seeing a unique trend when you are a retailer.
01:25When the rate increases rapidly, the customer's FOMO is created.
01:31They want to grab the best price for them.
01:34When the rate increases rapidly, the attraction towards gold increases.
01:43We are anticipating that the festival season is coming up.
01:49So we book a lot of customers for that.
01:52They want to buy gold on auspicious days.
01:56If you look at the trend so far, the prices have increased rapidly.
02:02How much impact has the sale of gold had on your sales?
02:07How much price are you seeing that it can increase further?
02:11Most of the commodity market experts are hoping that it will increase further.
02:15The price of gold is increasing and it will continue.
02:20This is what we are also anticipating.
02:22The actual sale of this year compared to last year is 10-15% in terms of gramage.
02:34I can see an increment there.
02:38People's attraction towards branded jewellery has increased.
02:43Like you said, we are 200 years old.
02:45We are known as a brand in this particular area where we work.
02:49People's attraction towards branded jewellery has increased.
02:53Secondly, people look at investment.
02:56They invest in commodities that are likely to increase in price.
03:05This year, till Diwali, we have seen an increase.
03:11This we anticipate to continue in the remainder of the year.
03:16What kind of tips will you give to our viewers?
03:22For investment or as a guidance.
03:26If you want to invest in gold, what kind of options should you pick?
03:30Is it coins, bars, jewellery?
03:33If you want to invest, you should invest in gold and silver.
03:39Financial experts say that you should invest 20-25% in gold and silver.
03:48For two reasons.
03:51First, it is a purge from the share market.
03:54It is not directly dependent on it.
03:57When there is uncertainty in the world,
03:59when the share market starts to perform negatively,
04:03this particular portfolio starts to move upward.
04:07There is a kind of hedging.
04:10If you ask me, being a CEO and a business man,
04:17if you ask me, you should invest 20-25% of your total portfolio in gold.
04:25Second, the rate of return is better than banks and R&D.
04:33It has been performing consistently in the last few years.
04:37We can see gold as an investable commodity.
04:41If I talk about the demand pattern,
04:45there is a theme for every year.
04:49What kind of theme or pattern do you see in demand?
04:53What kind of demand is coming from the customers?
04:56What kind of demand is coming?
05:03I told you that you need branded jewellery.
05:08Secondly, diamond is rising in the Maharashtra market.
05:15The diamond market is getting a good attraction.
05:19We have seen a lot of buyers in the last 6 months.
05:24In gold, the rate of per gram is so high,
05:28the customers say 14-18 carats.
05:31They don't want weight reduction,
05:33but they want purity reduction, price reduction.
05:36For price reduction, 14-18 carat jewellery is in high demand.
05:40Or everyday jewellery,
05:42corporate wear jewellery.
05:44The demand has been increasing in the last 2 years.
05:48In the coming days,
05:50there is Dussehra, Dhanteras, Diwali.
05:52There is an auspicious time for all these.
05:54Does the pattern of buying jewellery
05:56differ in the auspicious time?
05:58Does the pattern of buying jewellery
06:00differ in the auspicious time?
06:02There are 3.5 auspicious times in a year.
06:04Two of them are between Diwali and Dussehra.
06:08On Dussehra, there is Dhanteras.
06:11That day is considered to be very auspicious.
06:13There is a lot of spurt on that day.
06:15Usually, those who get married in winter,
06:17their buyers are in this period.
06:19Marriage is a very auspicious event in everyone's life.
06:23People also think that
06:25their buyers are on auspicious day.
06:27Because of that,
06:29from Ghatasthapana to Diwali,
06:31there is a lot of demand.
06:33Out of the total year's sale,
06:35almost 30-35% of jewellery sales
06:37happen on Dussehra.
06:4030-35% of jewellery sales happen
06:42between these 40-50 days.
06:44Talking about the wedding season,
06:46it is going to start soon.
06:48What are your expectations
06:50regarding the growth of your business?
06:52What are your expectations
06:54regarding the growth
06:56of your business
06:58when the financial year ends?
07:00When we talk about the financial year,
07:02how much gold are you expecting?
07:04Look at both the questions.
07:06So far,
07:08there has been a lot of rally.
07:10But still,
07:12I can see a 10-15%
07:14top in the financial year.
07:16Obviously,
07:18it will settle after that.
07:20But still,
07:22in this year,
07:24when the custom duty came down,
07:26everyone was anticipating
07:28that the rate will come down by 9-10%.
07:30But you will see that
07:32the gap that was created has increased.
07:35If the custom duty was the same,
07:37then we could have seen
07:39around 85-87,000 gold.
07:41So,
07:43what we are anticipating is
07:4510-15% more rally
07:47in this year.
07:49So, I think it is a good time
07:51to buy as an investment.
07:53And if you want to buy jewellery
07:55in the future,
07:57you can do a little prepayment.
07:59So, they should do it.
08:01And in terms of business,
08:04if I ask you,
08:06what is the Haryana economy like?
08:08Like I said,
08:10when the growth rate is high,
08:12the customer gets a little hope
08:14that the rate will go up
08:16to 80,000, 90,000, 1 lakh.
08:18So, when people are in the upper trend,
08:20it is a very positive buying
08:22for a business perspective.
08:24So, at the right time,
08:26if we see a festival,
08:28like I said,
08:3030-35% if my sale is in this particular period,
08:32then this growth rate
08:34will increase.
08:36So, obviously,
08:38for a business,
08:40it is going to be a very positive thing.
08:42In the budget,
08:44when the duty cut was announced,
08:46how much impact did it have
08:48on your business?
08:50And what was the benefit
08:52and loss to the customers?
08:54When the duty cut was announced,
08:56there was an unprecedented
08:58kind of sale
09:01because suddenly
09:03the rate of gold went down
09:05by almost 9%
09:07because of the duty element
09:09which had gone from the base value of gold.
09:11So, because of that,
09:13it is very good.
09:15The people who have invested
09:17are already enjoying the
09:19benefits of gold.
09:21Because gold is such a thing
09:23that its price generally increases.
09:259-10% never benefits anyone.
09:27But due to the duty cut,
09:30the price of gold has increased.
09:32So, that trend
09:34is continuing.
09:36As I said,
09:38the price is increasing.
09:40So, overall, for business
09:42as well as for the customers,
09:44it is a very positive environment for both.
09:46So, we are looking
09:48at it as a very positive.
09:50In terms of percentages,
09:52since the duty cut
09:54has been announced,
09:56we will see that
09:5820-22% of the sale
10:00is increasing
10:02for the month over month.
10:04The presence of PN Gargill & Sons
10:06is in Maharashtra, Karnataka,
10:08and Gujarat.
10:10Are you planning to focus
10:12on other states as well
10:14or are you planning
10:16to expand
10:18wherever you are present?
10:20If you see in Maharashtra,
10:22out of our 30 stores,
10:2428 stores are in Maharashtra.
10:27We haven't been able to cover all of Maharashtra.
10:29So, obviously,
10:31our focus will be in Maharashtra
10:33or in adjacent states like Gujarat,
10:35Chhattisgarh,
10:37Madhya Pradesh, Karnataka.
10:39But lucrative options
10:41that we are looking into.
10:43In the existing market,
10:45almost 70-80% of the concentration will be there.
10:47And in the adjacent market,
10:4920-25% of the concentration
10:51for the expansion.
10:53So, sir, in December 2022,
10:56Gargi Fashion Jewelry's SME IPO
10:58was launched.
11:00Is the company planning
11:02to launch the IPO on its main board?
11:04Gargi was a very good success overall.
11:06PN Gargi & Sons,
11:08which is a business
11:10of gold and diamond,
11:12immediately,
11:14in the next couple of years,
11:16there is no plan for IPO.
11:18But as Gargi matures,
11:20obviously, Gargi will move
11:22from SME to MEC.
11:24Okay. You have almost
11:26200 years of experience in the business.
11:28Tell our viewers
11:30some interesting things
11:32that your company has achieved so far.
11:34Some things that you want to share.
11:36So, as you know,
11:38PN Gargi
11:40is there from like 200 years.
11:42So, if we look at
11:44the biggest changes
11:46in the journey so far,
11:48we maintain the archive.
11:50Every generation has maintained
11:53some archive of the changes
11:55in their career.
11:57So, this particular generation
11:59has the biggest archive.
12:01Because the market dynamics,
12:03the design dynamics
12:05are changing,
12:07the rates are increasing,
12:09the speed is increasing,
12:11the overall competition is increasing,
12:13India is flourishing,
12:15the overall market is changing.
12:17So, as a company,
12:19the biggest changes
12:21this generation is experiencing.
12:23And in this,
12:25as we said,
12:27there was a lot of involvement.
12:29Like 2 years ago,
12:31we achieved a monumental
12:3310,000 crore number.
12:35Then Gargi
12:37had a new birth
12:39and we listed it.
12:41We listed a 30 CR company.
12:43That last couple of months,
12:45within 21 months,
12:47we achieved a 1000 crore market cap.
12:50So, such monumental numbers
12:52have been achieved in 2-3 years.
12:54And this is what we intend
12:56to continue doing.
12:58To expand more and more
13:00as a company,
13:02to become a big group
13:04and achieve new things.
13:08Thank you very much, sir.
13:10You gave us time
13:12and you told us about the
13:14strength of the jewelry market
13:16and what kind of demand will be there
13:19in the future.
13:21Thank you so much, sir.
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