PNGS Gargi Fashion Jewellery director interview: No cannibalisation of sales, company caters to different clients

Modak: Yes, Gargi by P N Gadgil & Sons is a new brand by P N Gadgil & Sons for the fashion jewellery segment. Demand for the lifestyle of fashion jewellery is growing in India for the last couple of years. And the young generation in the age group of 15-25 years is the main buyer of such products. Their percentage in India’s population is very high. And the fashion jewellery market is currently catered to by unorganised players.

But, young buyers want quality and branded products as they have aspirations. To give them quality products, meet their lifestyle needs, and considering future business opportunities, P N Gadgil & Sons has forayed into the fashion jewellery market as a branded fashion jewellery player. To unlock the value and to create aspirations about the brand, P N Gadgil & Sons has decided to list PNGS Gargi Fashion Jewellery instead of P N Gadgil & Sons Ltd.

Q. What is the total amount you have raised?

Modak: PNGS Gargi Fashion Jewellery Limited came out with an initial public offering of 26,00,000 equity shares of Rs.10 each for cash at a price of Rs. 30 per equity share aggregating to Rs. 7.80 crore. The company successfully completed its public issue on December 13, 2022. IPO received bids of over 56.90 crore shares against the total issue size of over 26 lakh shares, data available with BSE showed. The issue was subscribed to more than 215 times. The issue price was fixed at ₹30 per share. The equity shares offered in the offer have a face value of ₹10 each. The market lot size was 4,000 which was also the minimum bid quantity.

Q. From the Draft Red Herring Prospectus, it appears that Gargi will be housed in the same stores as P N Gadgil and Sons. Will it not eat into your original business or affect Gargi’s business? Are there plans to have stand-alone outlets for Gargi later?

Modak: P N G S Gargi Fashion is engaged in the retail business of costume and fashion jewellery under the brand name Gargi by P N Gadgil & Sons launched in 2021 under the fashion jewellery segment. Gargi has sterling silver jewellery and brass jewellery, idols, and other silverware and related gift items.

P N Gadgil & Sons offers gold, gems, and studded jewellery. Its customer base has a broader vision and is more informed. They buy precious jewellery for statement and for social security or investment purposes. Both brands offer different products and cater to various age groups. We don’t see any cannibalisation of sales.

Q. Give us an overview of your original business and how do you plan to take it forward with Gargi.

Modak: Gargi is a young and aspirational brand. We are currently offering products pan India online and via P N G Sons showrooms offline. We are looking at shop-in-shop and Point of Sales at multi-brand showrooms. We are currently doing a pilot with a leading multi-channel brand.