1 VAIBHAV GLOBAL LIMITED

HISTORY OF THE COMPANY

Vaibhav Global Limited is an electronic retailer of fashion jewellery and lifestyle accessories
around different parts of the world like U.K, U.S, Canada and Republic of Ireland. VAIBHAV GLOBAL
LIMITED is a listed company registered on 08/05/1989. Its registered office is situated at K-6b,
FatehTiba ,adarsh Nagarjaipur 302 004, , Rajasthan, India. They have access to over 100 million
households in these countries through our own TV Shopping networks - Liquidation Channel in USA and
Canada, The Jewellery Channel in UK and Republic of Ireland. Our TV shopping channels reach
customers directly 24x7 on all the major cable, satellite and DTH platforms Dish TV, DirecTV,
Comcast, Verizon Fios, Time Warner, AT&T, Sky, Virgin, Freeview, and Freesat etc. Our e-commerce
websites in the US www.liquidationchannel.com and UK www.thejewellerychannel.tv complement our
TV coverage, while diversifying customer engagement.
2004-05 VGL ventured into international retail market by setting up its wholly owned subsidiary
Jewel Gem Inc. USA. The company set up retail chain stores at major tourists destinations like
Alaskaand Caribbean under the brand name GenoA Jewelers.
VGL also commissioned diamond-processing unit at Adarsh Nagar, Jaipur for captive consumption in
manufacturing jewellery and exports.
2005-06 Acquisition of a manufacturing facility at Thailand and marketing facilities at USA, UK, Japan,
Hong Kong and Canada Retail Chain stores at Alaska, Caribbean Islands, Mexico, St. Kitts, St. Thomas,
St. Maartin was set up Warburg Pincus Group, one of the leading private equity investors in the world,
invested USD 47 million (Rs. 245 crores) in the company by way of private equity placement.
Moreover, VGL also marketed products on the UK-based Jewellery TV channel (launched in April 2006)
under the brand name of Iliana, FH (For Him) and Kara.
Completion of USD 70 Million GDR issue
2006-07 Set up seven more retail stores at high-end holiday destinations, taking the total count of stores
at holiday destinations to nineteen outlets.
Started twenty four hour online jewellery shopping channels The Jewelry Channel Inc. in USA in
April 2007. Started a 24-hour jewellery TV channel in Germany.

2007-08 Nalanda Capitals India Fund acquired 14.9% share of the company in the form of Global
Depository receipts and an additional 5% stake through warrants. The total transaction size was about
US $25 million.
2008-09 Global turmoil took a toll on the companys financial health. Company took various
restructuring initiatives to counter the ill-effects. The company exited business in German TV retail
market and Caribbean and Alaska B&M Retail Markets. VGL consolidated Gemstone manufacturing
operations in Jaipur.



2 VAIBHAV GLOBAL LIMITED
ABOUT THE COMPANY
In addition to electronic Retailing, VGL Group engages in traditional B2B wholesale distribution through
STS Jewels, serving various retail chains in USA and UK. STS Group with headquarters in Austin, TX
(STS Jewels Inc.) is amongst the better-known organizations in the colour gemstones and jewellery
industry. Tanzanite Jewellery is STS Groups specialty.
Product range of the company includes: VGL is manufacturing studded (both diamonds
and colour stones) yellow as well as white gold jewelry items viz. Rings, Earrings, Pendants and Bracelets,
etc out of divine passion with a touch of Indian tradition. Major Brands of the company are RHAPSODY,
ILIANA, J FRANCIS, ELANZA, KARIS, EON 1962, STRADA AND GENOA.
Fine & Fashion Jewelry- Product catalogue includes: bracelet, bangle, earrings, studded jewelry etc.
Fashion Accessories- Product catalogue includes watches, bags, phone protective shell etc.
Other Lifestyle Products- Product catalogue includes office and home dcor, etc
VGL Group is a professionally managed public limited company listed on BSE and NSE, India. VGL
Group employs progressive HR practices, focused on talent acquisition, engagement and retention,
including employee ownership, performance incentive and reward programs.
Basically, there vision and mission are to be the Value Leader in Electronic Retailing of Jewellery and
Life Style Products.

Mission:
Build a Learning Organisation with High Performing People
Offer Low Priced High Quality Products
Delight Our Customers Every Day.





3 VAIBHAV GLOBAL LIMITED
Management of the company

Basically, the management of the company is distributed in much different top executive management.
As, they have board of directors, core management team, mangers and then workers which are working
under these people. There are 10 boards of directors in the company and 9 members are the top level
executives which hold different section of the company.
Sri Burugapalli
Senior Vice President, Group Strategy

Sri is currently the Group Senior Vice President, Corporate Strategy for VGL Group.
Prior to that Sri served as Managing Director of The Jewellery Channel, UK and President
of The Jewellery Channel, USA, where he was Instrumental for the development and
successful deployment of Corporate Restructure/Turn Around and Rebranding strategies.

Hemant Sultania
Group Chief Financial Officer

Hemant joined VGL in December, 2013 as Group Chief Financial Officer. He is CA, CS
and CWA and having 17 years of rich experience in strategic financial planning, budgeting,
project evaluation, commercial and legal affairs, taxation, fund management, finalization
of accounts, revenue assurance, auditing, MIS development & Merger and acquisition. He
has worked as CFO with Dr. Lal Path labs, Vice President with Bata India Limited and
Senior Tax Manager at Ernst & Young India Private Limited.

Gerald Tempton
President, Liquidation Channel USA

Gerald Tempton joined VGL Group in 2009 as President of Liquidation Channel, USA.
Having over 25 years of Sales & Marketing, Operations, Merchandising, Financial
Services, Commercial Real Estate, and Retail/Consumer Products experience, Tempton
served in key positions with highly regarded multi-national companies such as, Group
Sales Manager for the Gordon Jewelry Corporations Traditional (High End) Division,
Director of Store Operations for Limited Brands, Director of Sales Southern Region for
Gap, Inc.

Colin Wagstaffe
Managing Director, The Jewellery Channel UK

Colin Wagstaffe joined VGL Group in April 2013 as Managing Director of The Jewellery
Channel UK. Previously he was at Signet Jewelers the largest specialty retail jeweler by
sales in the US and UK. As Director of Marketing for the UK division for six years, Colin
lead all aspects of marketing and ecommerce for Signets three retail brands in the UK and
The Republic of Ireland. Prior to that Colin has held a number of leadership marketing
roles in major UK businesses.


Charlie Curnow
Chief Information Officer, Group


Charlie joined VGL Group in October 2013 as Chief Information Officer. During his
career he has served in both the public and private sector, holding leadership positions
with many Fortune 500 companies. As an IT business partner, he has focused on driving
technology strategy to create efficient business processes across organizations with a
penchant for pragmatic innovation. He has a tremendous track record of success with
large-scale deployments allowing for productivity gains and competitive advantage. Most



4 VAIBHAV GLOBAL LIMITED
recently, Charlie was SVP and CIO of Academic Partnerships where he reengineered the
technical foundation on which state universities offered online graduate degree programs
while expanding the companys e-commerce marketing and tracking capabilities of
potential students.

Pushpendra Singh
Vice President, HR Asia

is our Vice President HR and has total 17 years of experience in HR. He was previously
employed with companies like NTPC, Kalptaru and Reliance Communications. He has
successfully implemented many Talent Acquisition, Talent Retention and Talent
Management initiatives in his career. He is now set to structure and streamline various HR
processes of VGL Group to help make it a Vibrant Organization.

Nitin Dugar
Vice President Strategy, Liquidation Channel USA

Nitin is associated with VGL group since 2003. He joined the group at the Bangkok unit
looking after Silver factory operations, moved to Gold unit and finally relocated to USA in
2006. Currently, Working as Vice President of Strategy at Liquidation Channel, he
oversees the companys Key Strategic Projects, New initiatives and Process improvements .

Gaurav Vishal Soni
Chief Operating Officer, VGL

Gaurav joined VGL in 2013 as COO India Operations. He has done his BE in
Instrumentation and Control and is having over 17 plus years of Extensive Experience in
dealing with Automotive giants (like Suzuki, Hero Moto Corp, Yamaha, General Motors,
Honda etc), FMCG Sector (like Hindustan Unilever, Reckitt Benckiser & Colgate
Palmolive) and Power Sector (Like Abb Areva, Crompton Greaves & Helstron).

Praveen Tiwari
Vice President, STS Gems

He is currently heading the China & HKK operations unit of the Group. He is an MBA by
qualification and joined VGL group in 1997; started his career as sales executive with the
group. He has been Instrumental in turning around the group with many initiatives to his
credit. His interests are rowing, hiking and poetry. He is married and has a beautiful
daughter.






















5 VAIBHAV GLOBAL LIMITED
COMPETITERS
There is no direct competitor of VGL in India as the company deals in retailing of jewellery through TV
channels, so we have compared VGL with HSN and QVC (Liberty Interactive Corp) of USA which deals
into the same products and function of the business is also same. If we compare VGL with HSN and
QVC, VGL is relatively much smaller in size. VGL trades at a lower PE multiple and EV/EBITDA
compared to HSN and QVC. The plus point which sets VGL apart from HSN and QVC is selling a
product by discounted model through TV channel. VGL is able to control the cost as the company is
backward integrated and sources the raw-material at a very low price and get the material manufactured
in low cost area like India, China, Thailand, etc. This helps the company to lower the average selling
price. VGL like HSN and QVC has extended its product line where it has added other fashion accessories
like scarves, handbags, etc. VGL is available at a PE of 6x FY13E and 4.4x FY14E compared to 21.5x
FY13E and 17.4x FY14E of HSN and 21.1x FY13E and 16.3x QVC. With the ability to grow strong and
focus on the discounted segment where it differentiated with its competitor, we feel that VGL valuation
can also improve.

INR Net Sale EBITDA EBITDA% P
A
T
PAT
%
EV/EBIT
DA
EV/Sales ROE PE
COMP
ANIES
FY13
E
FY14
E
FY13
E
FY14
E
FY13
E
FY14
E
FY
13E
FY13
E
FY
13E
FY
14E
FY
13E
FY
14E
FY
13
E
F
Y
14
E
FY
13E
FY
14E
VIABH
AV
GLOBA
L
838.5 1021.
5
87.8 112.6 10.5
%
11.0
%
5.4 0.6% 4.6 3.5 0.5 0.4 23.
7%
26
.6
%
6.0 4.4
HSN 18083
.6
1911
1.0
1778.
0
1920.
1
9.8% 10.0
%
850.
3
4.7% 10.1 9.4 1.0 0.9 26
%
41
%
21.5 17.4
QVC 55959
.8
5889
3.2
6879.
5
7702.
3
12.3
%
13.1
%
318
4.5
5.7% 12.2 10.9 1.50 1.4 9
%
10
%
21.1 16.3








6 VAIBHAV GLOBAL LIMITED
Future Plans of the company
The financial highlights of Vaibhav Global Limited for the year 2013-14. During the year,there
consolidated total revenue grew by 45% to Rs.1298 crores, EBITDA margin (excluding exchange
gain/loss) increased from 9% to 12 % at Rs.157 crores and profit after tax was higher by 95% to Rs. 153
crores. Free cash flow of Rs.160 crores was generated which was used judiciously to grow the business
and rationalize business liabilities. During 2013-14, outstanding debt reduced by Rs.63 crores and
preference shares including dividend thereon of Rs. 46.89 crores were redeemed entirely out of internal
accruals. We expect to further pay down our outstanding debt in the current year to emerge as zero net
debt company. Strong cash generation from the business has allowed us to expand returns on the capital
employed in the business from 34% to 60% over the last year.

Underlying this strong performance is the growing customer engagement with our proprietary television
and e-commerce platforms. They delivered significant value driven by taking a vertically integrated
business model to over 1.3 million customers over the last seven years in the developed markets of the US,
UK, Canada, and Ireland. Our TV business and web business grew by 23% and 90% respectively during
the year in dollar terms. They believe that we have hit the sweet spot on product pricing, creating a
unique customer proposition that has seen retail sales volumes grow by 35% last year and by more than
four times over the last three years. Currently, they ship out over 25,000 unique products every day on an
average to our customers who have been constantly increasing their repeat buying on their sales
platforms.
They continue to make meaningful investments in our transition to the next level of competence and
performance as a global corporation. This includes expansion and improvement in customer offerings,
sales platforms, supply chain mechanisms, physical infrastructure and management resources. Last year,
they introduced 2.4 million new unique products to our collection across fashion jewellery and lifestyle
accessory offerings, closely following market trends. They initiated work on a robust SAP web platform
that will become operational this year. During the year, we expanded our integrated US operations
located in Austin, Texas, to over 65,000 sq. ft. and also moved our UK operations to a new 30,000 sq. ft.
facility in London, which is an integrated operation comprising of warehouse, studio, customer service, IT
and management resources. These facilities will support our growing volumes over the next few years.
Further, we continue to expand our supply chain establishments in India, China, Thailand and Indonesia.
They have also expanded our manufacturing capacity in Jaipur,India to 4 million pieces annually, which
increases our annual aggregate global supply capability to 12 million units.

Following up on the additions to the senior management team last year, they have appointed Pulak
Chandan Prasad, Vikram Kaushik, Mahendra Kumar Doogar and Peter Duncan Whitford to our Board
of Directors and Hemant Sultania as Group CFO. They bring significant experience in management,
finance and operations domains and we look forward to their continuing contribution to our onward
journey of evolution. They also continue to invest in a robust senior and middle management team at both
strategic and operational levels that will help create a strong bandwidth of capability.

They will continue to invest in products, operations, facilities, people development, marketing and
technology to build on our strong execution capabilities and customer experience. They are also
committed to follow the highest standards of corporate governance and organizational integrity, while
consistently creating value for all stakeholders.




7 VAIBHAV GLOBAL LIMITED
SWOT ANAYLSIS OF THE COMPANY
Strengths
The various strengths that the company can capitalise on comprise the following:
International acceptability of the entire product range.
World-class quality.
Global cost competitiveness.
Availability of a wide and well-accepted product range addressing various segments of the retail market.
Synergy leading to end-to-end vertical integration in the product value chain.
Product consistency across batches and time.
Stable supply relationships with corporate customers.
Weaknesses
Relatively small size compared to global standards.
Excessive concentration on USA could affect sustainability.
Exposure to foreign exchange and raw material price fluctuations.
Dependent on the international market for raw material.
Opportunities
The various opportunities that the company expects to capitalise on comprise the following:
Opening of retail stores through wholly-owned subsidiary Jewel Gem USA Inc., the final step towards
total vertical integration and a face-to-face interaction with the customer.
Branding opportunity to unlock vast value, created over decades. .
Starting point of building lasting value
Ever-changing but ever-growing demand.
Worldwide market of 120 bn USD
Threats
The various threats faced by the company comprise the following:
Competition from Indian and international companies.
Indias reputation as a sub-quality supplier.
Probable loss of goodwill and dependability in the event of under-performance.
Variations in customer requirements in terms of quality.
Lower than expected off take from the companys retail outlets.


8 VAIBHAV GLOBAL LIMITED