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The Company
S. B. & T. International
Limited is a 100% EOU in the business of manufacture and export of studded
jewellery at SEEPZ (a free trade zone) in Mumbai. The promoters are Mr.
Surendra Kumar Sethi and Mr. Varij Sethi with Technical, Financial and
Marketing collaboration with S. B. & T. Gem Imports Inc., Houston, USA. The
company takes pride in being one of the very few companies that has the entire
studded jewellery manufacturing facilities under one roof with a fully
computerized inventory management system.
The Company has a proven track
record of over a decade, and is a profit making and dividend paying
company. The turnover of SB&T has
gone up from Rs. 25.91 crores in 1994-95 to Rs. 106.13 crores in 2002-2003. The
Net profit has gone up from Rs. 2.68 crores in 1994-95 to Rs. 346.07 crores in
2002-2003 after writing off of Rs. 4.69 crores as one time exceptional
extraordinary items pertaining to raw material, stock and diminution in value
of investment as per the limited review carried out by International Auditing
Firm. The book value was Rs. 28 in 1994-1995 on equity of Rs. 3.55 crores and
now in 2002-2003 it is Rs. 57.66 ( on Consolidated account )on equity of Rs.
13.50 crores. The reserves of the company have gone up from Rs. 4.07 crores in
1994-95 to Rs. 60.14 crores in 2002-2003.
The Company was incorporated on 14th October 1986
IPO
The company was the 1st Jewellery
Manufacturing Company to go public in April 1994. The initial public offering
was made at a premium of Rs. 40 per share, which was over-subscribed 37 times.
Since the issue, the company has acquired another plant through internal
accruals in SEEPZ, which is fully operational. The Equity shares of the Company
are listed on the Mumbai Stock Exchange in the B1 group, the National Stock Exchange,
Ahmedabad, Delhi and Jaipur Stock Exchanges.
S. B.
& T.’s USP
v
Easy and efficient procurement of
raw materials
¨
Biggest
advantage lies in procuring and sourcing diamonds with a corporate buying
office in the hub of the diamond market in Mumbai.
¨
Also
the advantage of procuring gold, the main raw material, both locally and also
through imports without any restrictions.
v
Technologically
advanced
¨
Fully
computerised inventory management system
¨
Fully
computerised jewellery portfolio of over 3000 designs
v
Strategic
Focus on retailing
¨
Enhanced
profitability as retail segment is a high mark up segment
¨
Acquired
Soft Touch Jewellers LLC. (STJ), a chain of retail jewellery stores in the
Middle East in May 2000.
¨
Developed
a web-based shopping store.
v
Foreign
collaborators, S. B. & T. Gem Imports Inc., USA.
¨
Technical,
marketing & financial collaboration
¨
Buy-back
commitment of atleast 75% of the Company's production
¨
Input
of latest international designs and trends
v
Large-scale
operations give the advantage of economies of scale.
v
Established
Goodwill as a Quality supplier in the International markets
v
Value
Addition
Business Strategies
Strong
“Retail Push” through Acquisition of Retail Jewellery Chains in Dominant Jewellery
Markets
SB&T after a careful analysis
of international markets has decided to venture into jewellery retailing. This ensures greater visibility and higher
margins. To pursue this objective, the
Company has adopted a more aggressive strategy of acquisition of exiting retail
chains instead of establishing them afresh
Association with Giant International Retail
Chains
The Company has strategically set
up its retail stores in the hypermarket Carrefour. This association is an important step towards creation of brand
awareness along with rapid expansion of presence in the retail market.
Implementation of and Adherence to Strict
Security Standards for Risk Management
As the Company is dealing in high
value products, it attaches a great deal of importance to strict security
standards for risk against inventory theft, pilferage and fraud. A detailed note is provided as Annexure III.
Effective use of Information Technology
Based on the current trends,
SB&T sees a big opportunity in setting up its own e-commerce web site. It proposes to have an increased market
penetration by launching a jewellery vortal with strong back-end software
support to match online expansion.
Efficient Supply Chain Management
The Company has also identified,
that to achieve the desired results in the e-commerce initiative it will have
to be adequately supported by an efficient supply chain management system.
This can be achieved through :
w
Establishment
of distribution hubs on a world-wide basis
w
Efficient
Inventory Management
w
Online
connection to all retail outlets
w
Growth
through Partnerships and Alliances
The Company believes in growth
through partnerships and alliances. These partnerships and alliances help the
Company to effectively synergise its various initiatives.
PARTNERSHIPS
AND ALLIANCES
S. B. & T. Gem Imports Inc,
(Houston), USA
SB&T-US is one of the promoters
of SB&T. SB&T-US is in the jewellery business since 1972. It has an
assured buy-back arrangement of upto 75% of the Company’s production which is
valid till July 2012. However, SB&T
exports less than 60% of its production to SB&T-US.
SB&T-US provides technical,
financial and marketing assistance to the Company. It provides SB&T with the latest designs and current trends
in the international market. This helps SB&T to keep abreast with the
changing tastes of the international consumers.
Currently, SBT-US has two Directors
on the Board of SB&T and holds 13.57% equity of the Company.
Carrefour
The retail jewellery stores of the
Company under STJ are located in the leading hypermarket – Carrefour. Carrefour has a widespread presence in the
Middle East after its takeover of the “Continent” chain of retail stores.
Carrefour is the second largest
retail store chain originating from France with around 5400 stores world-wide.
It sells everything from food to computers in its hypermarkets. CarrefourUAE is
UAE’s most dynamic, fast-moving and exciting hypermarket chain. It is a joint
venture company by Majid al Futtaim and Carrefour France. Carrefour France
serves more than 2 billion clients per year in its stores, which are present in
more than 31 countries spread across 3 geographic zones. At the end of
November, the Group had 5425 integrated stores: 580 hypermarkets, 1318
supermarkets, 2726 deep discount stores, 135 convenience stores, 163 cash and
carry and 503 frozen food stores. Today, Carrefour is present throughout the
world in the form of its hypermarkets, a concept which it invented and has
continually nurtured and developed. Carrefour also has created a strong
portfolio of global and local private label products.
Carrefour acquired Continent in the
second half of 2000 and is now Europe’s largest – and the world’s second
largest – supermarket chain. Continent has had a presence in the UAE since the
mid-1990s, and Carrefour is now looking at expanding in the other Gulf States.
Late last year, Carrefour opened a hypermarket in Doha, and the company plans
to launch in Bahrain and Oman within the next two years. It has 134
hypermarkets in France, and also operates supermarkets under the Stoc, Picard
and Marche Plus brands.
SB&T (UK) Limited
In July 2003 SB&T ( UK) Limited, a joint venture
company has been formed along with Gerald Ratner and Gary O’Brien to undertake
SB&T’s foray in the UK markets.
