SRS Limited (RHP) - Karvy

SRS LimitedRetail SectorOver the last five years (2004-05 to 2009-10), the retail sector in India has grown at a CAGR of 10-12 percent driven by favourable demographics, rising disposable income and increasing urbanisation. The retailsector has evolved dramatically over the last two decades mainly with the growing urbanisation anddevelopment of the mall culture.During 2004-05 to 2009-10, organised retail grew rapidly at 28 per cent due to under penetration (i.e., theshare of organised retail as a proportion of total retail), ambitious expansion plans by existing retailers andentry of several new players. Over the past 2 years, even though the pace of growth of the sector wasimpacted by the economic slowdown, the impact was not too severe. In the long-term, the industry isexpected to revive with an anticipated recovery in consumer sentiments.(Source: CRISIL Research Report, April 2011)Gems & Jewellery SectorThe gems and jewellery market is one of the leading contributors to India’s export revenues. The Indianjewellery retail market was estimated to be about Rs. 973 billion ($14.6 billion) in 2009-10. Of this, theurban jewellery market is valued at Rs. 280 billion ($5.8 billion) and the rural and semi-rural market isvalued at Rs. 420 billion ($8.8 billion).Based on its characteristics, processing techniques, preciousness (in terms of price range andmarketability), the gems and jewellery sector can be categorised into the following sub-sectors:Gemstones - Diamonds and coloured stones (precious, semi-precious and synthetic)Jewellery - Plain gold, studded, silver, costumePearlsGold and diamond jewellery are the two major segments in the Indian gems and jewellery market. Whilegold jewellery accounts for around 80 per cent of the Indian jewellery market, the balance comprises offabricated studded jewellery (including diamond jewellery). A sizeable quantity of gold jewellerymanufactured in India is consumed in the domestic market.(Source: CRISIL Research Report, April 2011)2