What Helps Pune-based PNG&Sons Jewellers Stay Profitable

Pune-based PNG Sons continues to stay profitable at store level even after 200 years. Here’s how

- Shiv Joshi

As the Chief Operating Officer and Chief Financial Officer of PN Gadgil & Sons (PNGS), thirty-four-year-old Aditya Modak shoulders the hefty responsibility of protecting a 200-year-old family legacy.

PNGS is one of the three entities that emerged out of the demerger of the 1832-established PNG & Co. in 2012. Helmed by Govind Gadgil & Dr. Renu Gadgil, PNGS became a limited company in November 2017.

Even though it separated from its parent, PNGS still has a centuries-old reputation to maintain, not only as a trusted jeweller but as a sustainable and profitable business. "Even today, the company is profitable not just at a group level but even at a store level, and that's something ingrained in us over generations," said Modak. And it is the young entrepreneur's job to ensure it continues to do so.

"The business has been there for six generations...they must have done something right for the last 200 years. And I should not be the one to spoil the game," said the young scion who joined the business in 2015.

So far, he seems to have been doing a decent job. In financial year (FY) 2023, PNGS clocked a turnover of ₹10,000 crore, from 30 stores and a gold bullion business, which contributes a little over 40% of its business. In the quarter ended December 2023, the company reported a turnover of ₹6,665 crore, gross profit of ₹331 crore, and profit after tax (PAT) of ₹138 crore. The retailer's gross profit (GP) margins are the best among brands that deal predominantly (read 90%) in gold.

"The industry standard is 10% and our GP is more than that," he said.

Here's what has helped the retailer maintain its sheen over the years...

Deliberate Expansion

At the core of the success of PNGS, which specialises in Maharashtrian style gold jewellery, is its focus on profitably. And this begins with its strategy to expand slowly and thoughtfully.