1. The enhancement of Rs.9 croreswill be solely used for the purpose of acquisition of paid stocks of the said unit. No assets and liabilities relating to the said unit will be taken over by PRIL.
2. There is no scheme of demerger. Only the stocks and the Brand dealership agreements of M/s Meena Jewellery Pvt. Ltd. will be transferred toPRIL.
3. Details of stocksof luxury watch unit of M/s. Meena Jewellery Exclusive Pvt. Ltd. to be acquired is attached herewith.
4. The core business of M/s. Meena Jewellery Exclusive Pvt. Ltd. is Jewellery.Promoters of the said unit have the expertise in the jewellery section and they want to expand their business in jewellery section only, by focusing on the same. Moreover, they aren’t experts in retail…show more content… We have introduced a number of unique value added services like insurance on luxury watches, extended warranty and EMI that are absolutely novel in the luxury watch market.
h. Massive E-commerce penetration in Tier 2 and Tier 3 cities through our website by www.theprimewatches.com
6. There is no ageing of stock in the luxury segment as every year there is a price increase of approx. 8% on MRP, which automatically leads to increase in margin. Further, to liquidate such stocks we organize a ‘Friends & Family’ sale every year.
7. During the Financial Year of 2015-16 we are expecting a turnover of Rs.103 crores (approx.)
8. The current stock holding period in the luxury watch sector is 8-9 months which is very normal in consistent to other luxury watch players in the same segment. Recent studies by Google, show that in India 75% of the cars are bought are researched online. A similar policy also works in the mind of prospective customers who are looking for luxury watches. With customers becoming more Internet savvy with each passing day, they research online and gather knowledge of the whole range of the products in a particular brand. Thus, to cater to all customers, we need to keep the whole range of stock for each brand,to positively influence the buying decisions of the customers. Thisin-turn leads to a biggerinvestment in…show more content… Brands like Omega and Longines have models, which have continued since theearly 2000’s. For example, the Constellation Family in Omega was launched in the mid 1900’s; but it is still the #1 selling series in Omega, to date. Hence, there is a very low probability of a luxury watch becoming obsolete or low in demand.
9. The reason for BOB not considering the proposal after initial interestwas that BOB reported the highest ever quarterly loss in the nation’s banking history at Rs.3342 crores for the Oct-Dec’15 quarter. They were very positive in the proposal initially, but as the quarterly result of BOB declared, the DGM of the respective branch has diverted their focus on recovery from NPA’s rather than extending any further loan facilities for F.Y.2015-16. The respective branch has put on hold all the proposals for a while.
10. The proposed collateral security is 28.44%, which will be on pari-passu basis with SBI. It will be maintained on pro-rata basis post