SENCO Bullish From Here
Incorporated in 1994, Senco Gold Limited is a Pan-India jewelry retailer and is the largest organized jewelry retail player in the Eastern region of India based on the number of stores
Promoters
It is run by 4th generation professional entrepreneur as Promoter with PE investment
from Elevation Capital (SAIF Partners India IV Limited) 2014 and Oman India Joint Investment Fund II-2022.
Largest jewellery retail player in East India
Senco Gold is primarily involved in the business of selling gold and diamond jewellery and also sells jewellery made up of silver, platinum and precious and semi-precious stones and other metals. They are the largest retail player based on the number of stores in East India with 97 stores including large format and small format.
It is India’s 2nd Most Trusted & 2nd Most Desired Jewellery Brand and Largest organized jewellery retail player in Eastern India
Product Portfolio
As of Q3FY24, Co. has a catalogue offering 130,000+ designs for gold jewellery and 72,000+ designs for diamond jewellery. Its products are sold under the brand name - '' Senco Gold & Diamonds"
Brand Ambassadors
Kiara Advani, Sourav Ganguly, Vidya Balan etc.
Geographical Footprint
The company has 155 showrooms out of which 90 are COCO and 65 are Franchisee showrooms. It is present in 16 states and 105 cities.
Store Count - Q3FY24
East : 117 (west bengal - 90)
North : 22
Central : 4
West : 7
South : 5
Store Count
Metro Cities - 40
Tier 2 Cities - 37
Tier 3 cities - 8
Tier 4 & Below - 5
Franchise showrooms count stood at 65 in Tier 2 and 12 in Tier 1 cities.
In 9MFY24, 32% revenue came from Franchisee showrooms.
Showroom bifurcation
Classic - Traditional Customer, ATV : ~Rs. 63,700
D’Signia - Premium and HNI, ATV : ~Rs. 73,700
Everlite - Younger generation & millennials, ATV : ~Rs. 34,900
Modern - Upcoming Geographies , ATV : ~Rs.72,400
House of Senco - Super Luxury; ATV : ~Rs. 48,300
Sennes - Lifestyle and accessories, ATV : ~Rs. 33,500
Manufacturing Facility
Co. has a manufacturing facility located at the Gems and Jewellery Park, Ankurhati in Howrah, West Bengal.
Hub and Spoke Model The company uses a hub and spoke approach to enter new geographies and for optimizing their inventory management, which means that it typically forays into large or new cities by way of Company Operated Showrooms and then leverages its franchise model to expand into tier- 2 and tier-3 locations.
Geographical Revenue Bifurcation
As of 30, Nov 2021 the Eastern and North Eastern regions of India accounted for 85.42% of its revenue, North India contributed 8.78% and West, South India, exports and online sales
contributed to 5.80% of the revenue. Major revenue of 34.74% is from Tier-2 cities, 33.27% from metros and 29.35% from tier-1.
Revenue Bifurcation - Product wise
Gold jewellery – 92.20%
Diamond and precious stones – 4.84%
Silver jewellery and articles – 1.03%
Platinum jewellery – 1.42%
Fashion jewellery – 0.15%
Novelty and accessories – 0.10%
Franchisee fees – 0.26%
FinTech and online presence
SGL has also launched an online platform for purchasing digital gold and silver - MyDigiGold, My DigiSilver and which allows customers to accumulate gold of 99.9% purity in a physical third-party locker and to subsequently sell the same online or redeem the gold in the form of jewellery at any of their showrooms.
Sennes
Under this brand company sells leather accessories for men and women like laptop bags, wallets, handbags, kits etc. It ranges from Rs. 1000 - 30,000. It is present in 9 SIS formats and 2 MBOs( in Del & Chandigarh).
IPO Details
Co. raised 405 Crs through the IPO and got listed on 14th July 2023 of which 270 Crswere a fresh issue which will be utilised for:
A) Funding working capital requirements
B) General Corporate purposes
Focus
The company is focused on light weight jewellery across various price points starting from Rs. 2,000 to maximise customer base.
