In an exclusive conversation with IMAGES Business of Fashion, Aditya Modak, Chief Operations Officer & Chief Financial Officer, P N Gadgil & Sons talks about the brand’s history, innovation capabilities, and market presence. 

Product Development 

Innovation and Functionality in Design

One of PNGS’s major USPs is its investment in cutting-edge customer relationship management (CRM) solutions across all its stores, enhancing customer engagement and satisfaction. It leverages innovative technology such as the Karatmeter and empowers its customers to make informed decisions about their gold purchases. All its designs are made keeping up with the latest trends of the industry.

Latest Accessories and Innovation

PNGS recently launched its ‘temple jewellery collection,’ crafted with precision using the innovative electroforming technique. The collection combines fashion with comfort, perfect for the modern bride and discerning jewellery enthusiasts alike.

Modak says, “Each piece has elaborate detailing while remaining lightweight and the use of electroforming reduces the weight of the jewellery and makes it more affordable than traditional gold pieces without compromising on quality.”

The collection features complete sets, including necklaces, earrings, bangles, and more. The temple collection is a must-have addition for any jewellery aficionado.

Recognised Products

“During 2018, we received several suggestions for our wedding jewellery collection, which we proudly dubbed our ‘award-winning necklace’ and this recognition culminated in an actual award within its specific segment. Subsequently, we consistently sold this acclaimed piece for 4 consecutive years at a large scale,” Modak highlights. 

Custom Designs and Branding 

Modak explains, “Customers sometimes bring their designs, and when they’re handmade, we ensure precise replication, however, since our specialisation is handcrafted designs, we endeavour to create a similar piece if the design is machine-generated but cannot guarantee an exact match to the original.”

He adds, “Our custom jewellery segment accounts for approximately 25% of our sales, showcasing our capability in this domain and as sixth-generation jewelers, our lineage boasts artisans with over a century of combined experience who are adept at crafting any jewellery design by hand.”

Marketing Strategy

• Trends Align with Demands 

PNGS’s marketing team visits many fashion brand stores and exhibitions and travels to marketplaces in India and other countries, especially in jewellery. It attempts to incorporate insights about industry events and new trends into its designs. To top it off, its committed research and development staff never stops trying to innovate in this space. When customers give them good feedback, it moves on to production and quickly stops producing or improving jewellery designs that don’t appeal to its target audience.

• Successful Marketing Strategies 

In today’s dynamic marketing landscape, PNGS’s approach to connecting with the audience continues to evolve. Among its array of strategies, one that has consistently delivered impressive results is its utilisation of WhatsApp marketing. This platform offers a unique advantage in facilitating direct, one-to-one customer communication. Through personalised interactions, it can provide tailored messages that resonate with individual preferences and interests.

WhatsApp marketing stands apart because it effectively provides precise and timely information that meets the specific needs of the brand’s audience. PNGS prioritises fostering meaningful customer relationships by leveraging this platform as a cornerstone of its Customer Relationship Management strategy. Engaging in real-time conversations allows it to address inquiries promptly, offer personalised recommendations, and provide exceptional customer support.

Sourcing and Sustainability 

PNGS commits to environmental protection through initiatives such as solar power installations, tree plantation campaigns, and encouraging employee engagement in environmental conservation efforts.

On its sustainability practices, Modak reiterates, “Our products don’t generate waste as we deal in gold. Gold is metal and can be repurposed and recycled and we also make handmade jewellery, which again contributes to the cause of recycling and repurposing.”

Expansion Strategy

“While we are committed to traditional retail, PNGS is also planning significant online expansion, which currently constitutes 1.5% of our business,” Modak says. 

Geographical Expansion

PNGS aims to open a store every quarter, although the process is subject to various dynamic factors. Securing an optimal location at a favourable rate in a prime area is crucial for its decision-making. While it intends to maintain this quarterly expansion pace, the feasibility of each new store opening depends on aligning these essential factors.

“We currently have 30 company-owned stores in Maharashtra, Gujarat, and Karnataka, and plan to expand online in the coming years while keeping traditional retail as the mainstream revenue model, as well as to other geographies, we may look at metros and tie-1 and two cities in the coming years,”  Modak explains. 

Sales Expectations and Yearly Income

In FY 2023, PNGS achieved a turnover of Rs 10,000 crore, driven by operations across its stores and a robust gold bullion business, contributing over 40% to its revenue stream. In the quarter ending December 2023, PNGS reported a turnover of Rs 6,665 crore, with a gross profit of Rs 331 crore and a noteworthy profit after tax (PAT) amounting to Rs 138 crore.

“In FY 2025, we anticipate a 12% increase in jewellery revenue from the previous year and we project a closing revenue of Rs 8,000 crore, with a substantial portion of approximately Rs 3,500 crore originating from B2B bullion sales,” Modak adds. 

Market Overview and Future Forecast

Modak says, “Gold is getting expensive, but love for gold is not and we are already seeing the trend of people shifting from 22-carat to 19-carat gold, but as we understand, people will eventually move to 14-carat and 9-carat gold.” 

“Though 9-carat gold is right now not hallmarked, this will ultimately happen also, jewellery made of diamonds but with a lower carat in gold is something people will eventually move towards; as people want to wear gold but want to watch the cost, this would be the best alternative for them,” he concludes.