PNG & Sons: A gem among luxury jewellers

PN Gadgil & Sons Ltd (known as PNG & Sons) is a respected name in the jewellery market. The brand is known for its gold and diamond jewellery designs, purity and quality commitments. The leading jewellery brand has a legacy of more than 188 years.

The company came into existence a decade ago under the leadership of Ajit alias Govind Gadgil and Renu Gadgil following the split of erstwhile P N Gadgil and Co in 2012. Together with the promoters, Director and CEO Amit Modak leads the company with his team of departmental heads. Modak joined the group in 1997 with a wide experience in the jewellery business, commodities and financial derivatives market.

PNG & Sons started its business with two showrooms and 8,000 sq ft. Over time the company expanded to 29 showrooms and 12,000 sq ft retail space. PNG & Sons became a public limited company in November 2017 with eight on its board of directors and four independent directors.


The jewellery business in India underwent transformations since November 2006 due to statutory changes such as demonetisation, GST, SFT compliance and forthcoming hallmark compliances. All these changes turned the traditionally unorganised jewellery business into an organised and disciplined format.

Since its inception, PNG & Sons has functioned in an organised fashion following good governance and a commitment to carry out business only in legally accepted terms. This has made it easy for the company to grow faster than others in a changed business scenario and establish itself as an ‘organised’ retail jewellery chain. Today, veterans of the jewellery industry acknowledge its good governance while customers compliment the business culture at PNG & Sons.

The changed business scenario made organised jewellery chains attractive to customers in tier-2 and tier-3 cities in India. As PNG & Sons spread its networks along with the urban market in tier-2 and tier-3 cities, the move contributed positively to the business model of the company.

A challenging year
The fact that PNG & Sons follows the best practices in the industry was highlighted during the pandemic and acknowledged by various industry experts. The company took care of its employees and other dependents during the Covid-19 lockdown. It did not retrench any employee.

Instead, it ensured that all are paid their salaries on the due date every month during the lockdown. Further, the company has not availed of any concessions or deferment for payment of dues to the bank towards principal or interest due to its robust financial solvency. The company did not avail of any concession even for statutory payments offered by the government.

Financial background
The jewellery brand has a business presence across 29 retail stores and online portal onlinepng.com. In FY ’20, even after missing the last 15 business working days due to lockdown, the company achieved a turnover of Rs 2,073 crore with EBITA margin of 6.5 per cent and PAT of Rs 64 crore which is almost 3.1 per cent.

With margins that are best in the industry, at the end of FY ’20 the company’s net worth stood at Rs 234 crore. The company has a practice of creating gold price risk reserves backed by setting aside cash equivalent to price risk reserve. This practice is exclusively adopted by the company to help face liquidity crunch during high volatility in gold prices. Studies show that this kind of practice is not seen in the jewellery industry. The practice is noted and appreciated by bankers and rating agencies.

Since the lifting of the lockdown in mid-June 2020, business started at a slow pace. By October, the business gained momentum.

Even after market odds in Q1 and Q2, the company achieved a turnover of Rs 1,462 crore with PAT of Rs 114 crore at Q3 ending. Further, the company’s EBITA margins have improved to more than 12 per cent from 6.5 per cent (FY ’20). PAT margin also improved from 3.1 per cent to more than 7.5 per cent. The company’s net worth has reached Rs 347 crore as on December 31, 2020.

Net debt to equity also improved to 1.1:1.0, which is very comfortable and got reflected in bank borrowing credit ratings of ‘A’ by CRISIL, ICRA, INDIA Ratings. (Audited financials since 2017 are available on the company’s website and ratings rationale are available on the respective rating agency’s website).

Long term plans
PNG & Sons is planning to consolidate its existing strengths to improve various ongoing efficiency parameters in the current setup by optimum utilisation of resources and conserving financial achievements for reduced dependence on debts. Once the net debts become zero, the company aims to start expansion within and around Maharashtra again. The company’s conservative approach has helped it overcome pandemic -driven uncertainties.

Brand building
The company is now focusing on brand building and it is involved in various marketing initiatives through various media like TV, radio, online and print along with display hoardings. PNG & Sons also has to its credit jewellery offered to various movies based on historical characters like Bajirao Mastani, Mohenjo Daro, Panipat, etc. To cater to young working women, the company has plans to create an exclusive costume jewellery brand in the near future, work for which is presently at an initial stage.

Social initiatives
Under the guidance of Ajit Gadgil, the company supports various art and culture-related initiatives as a part of its corporate social responsibility. PNG & Sons supports institutes that work with orphanages. The company has constructed six art galleries at various venues that are available free of cost to promising artists to showcase their work before the public at large.

The recognitions
In the year 2019, PNG & Sons won the prestigious ‘Best Work Wear Jewellery’ award from Retail Jeweller India. Apart from this, the company was felicitated in 2018 with IIGS Excellence award for being the fastest-growing jewellery retail chain. The Poona Merchant ’s Chamber has also awarded PNG & Sons for Best Business Practices.