PN Gadgil & Sons rides on good faith, crosses $1 billion turnover mark for the financial year 2022-23

Amit Modak, Director and CEO of the Pune-based jewellery retail company, says despite the challenging environment, confidence in the team led to phenomenal performance in sales and margins

Leading jewellery retail company PN Gadgil & Sons Ltd (PNG Sons), based in Pune, has achieved a billion-dollar turnover in FY2022-23, touching the $1.33 billion mark. In rupee terms, the company crossed Rs 10,000 crore turnover. Overall, it posted a 90% growth in total performance and 32% growth in jewellery sales, in the retail jeweller category, compared to the last financial year.

“We are the first regional retail jewellery brand from Maharashtra to achieve this feat. Despite the challenging environment we had phenomenal performance in sales and in margins,” says Amit Modak, Director and CEO, PNG Sons.

Modak attributes this success to the founders of the company, who adopted a professional management system along with real time inventory and finance management systems at the right time. “Our founders, Ajit Gadgil and Dr Renu Gadgil, have shown confidence in the team. They have given a free hand to the captain of the organization. In 2016, they adopted a CEO culture to run and manage this highly complex business,” he says.

PNG Sons is likely to post Rs 115 crore plus PAT (profit after tax) in FY 2022-23 as against Rs 103 crore profit in FY 2021-22. It has posted Rs 10,127 crore turnover, out of which Rs 3,200 crore is from jewellery and Rs 6,900 crore from the bullion business. The company’s jewellery sales have reported a growth of 32%.

In 2021-22, PNG Sons started a B2B bullion business. “Our strong knowledge of gold procurement, able financial strength and a robust distribution network has made this business successful. In its second year of operations, it has doubled in value and volume. The bullion jewellery business has registered more than 75% growth in sales,” says Modak, adding that the business has opened new opportunity for the brand.

According to Modak, considering the changing needs of customers and price appreciation in gold, steps have been taken by PNG Sons to introduce designer and lightweight jewellery in gold and diamond. “This has helped us to keep our topline and bottomline as per target. In November 2022, our promoters launched the ‘Gargi’ fashion jewellery brand to fulfill the working woman’s needs,” Modak explains.

Talking of future plans of PNG Sons, both long and short term, Modak says, “Considering the gold price appreciation, PNG Sons is looking to launch lightweight and innovative products in the coming years. For youth who love to wear diamond jewellery, we plan to introduce 14ct diamond jewellery along with 18ct.”

PNG Sons’ journey from family jeweller to a billion-dollar company is replete with business milestones. In 2012, the promoters created a six-member core team culture, and as the company started expanding, by 2018, the core team had expanded to 14 members. Each department, such as Procurement, Finance, Marketing, Designing IT, Admin and HR, got a Head of Department. As a result, the company grew to 29 showrooms in 2019 from just two in 2012. Besides the showrooms, the e-commerce arm serves customers at a pan-India level. Thus, over the last decade, PNG Sons’ turnover grew from Rs 600 crore to Rs 10,000 crore+.

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