Indian Economy
The year 2017, for India was marked by a number of key structural
initiatives to build strength across macroeconomic parameters for sustainable growth in
the future. The growth in the first half of the year suffered despite global tailwinds.
However, the weakness seen at the beginning of 2017 seems to have bottomed out as 2018 set
in. Currently, the economy seems to be on the path to recovery.
2017-18 was a year of uncertainties. The second half, however, saw a
much better consumer sentiment despite demonetisation. Businesses are still taking time to
adjust in the new tax regime.
The overall retail inflation tapered down to 3.8% in March 2018, from
5.6% in April 2017.
Call it disruption or structural reform, demonetisation (or note ban)
did have dampening effects on the economy. However, even as its negative impact was
fading by the time 2017-18 began, the announcement of another reforms or
"disruption" — the goods and services tax, which was to be implemented by
July 1, 2017, shock the economy and businesses.
The result of these two reforms was evident as the gross domestic
product ("GDP") growth came crashing down to a three-year low of 5.7 per
cent in the first quarter of 2017-18. It was largely because of pre-GST jitters and
lingering effects of demonetisation.
The economy did recover thereafter to 6.5 per cent in the second
quarter and to 7.2 per cent in the third quarter.
Major external risks include oil price shocks, tax rate
competitiveness, and growing barriers to trade. However, the Indian economy remains
predominantly a domestically-driven one, so the major downside risks will be domestic in
nature, such as continuing disruptions from the implementation of the GST.
It is expected to further strengthen the GDP in FY 2018-19, helping
India retain its status as the worlds fastest growing large economy. The revival of
consumer interest, hopes of a good monsoon, and Indias underlying economic strength are
factors supporting growth prospects.
World Economy
2017 is the year which saw global economy accelerating although UK
economy is evidently slowing, while the US economy continues to grow at a modest pace. The
Chinese economy continues to grow strong. However, the Euro zone and Japan shows sign of
acceleration, as do many of the major emerging economies such as Turkey and Russia. The US
economy grew at 2.7% in Fiscal 2018, supported by broad based strength in domestic demand,
especially investment. The economy may be near its productive potential, as both capacity
utilisation and the employment rate are moving toward peaks attained prior to the
financial crisis.
About Us
Opal is a premium home dcor products manufacturing and marketing
company. Opal is focusing on creating a line of high-end products that moved with
high-quality, precision movements and incorporated stunning designs that were works of art
all by themselves. By refocusing Opal Clocks, this once-floundering division is now
recognized for its cutting-edge designs and state-of-the-art manufacturing processes. The
end result is a lifestyle-focused brand that delivers highly desirable timepieces for any
style across the globe.
Our brand ‘Opal has a wide presence with the products marketed by
a network of distributors, dealers and organized retailers which includes popular brands
such as Shoppers Stop, Home Town etc. We have also ventured into online sales by way of
tie up with popular online shopping portals and also have our own shopping portal at
www.opalclocks.com.
We look forward to being the most desired brand in lifestyle products
through undeviating up gradation in technology and creativity - through leadership, team
education and enhancing facilities.
Key Consumer and Market Trends
Goods and Services Tax: - The Goods and Services Tax is a
seminal tax reform that is expected to drive more transparency and compliance. The tax
reform is also expected to impact GDP growth positively in the long-term.
Formalisation: Governments focus on black money, very stringent
tax rules, increased curbs on cash purchases, and a push on digital payments will attract
more consumers.
Premiumisation: A rising level of disposable income has resulted
in a wave of premiumisation of products. While this has attracted several foreign brands
to the Indian market, domestic brands too are adapting to capture market share.
Overview
The watches category has witnessed a tepid, single-digit compounded
Annual Growth Rate in sales in the past four years. Our Vision is to build globally
–respected organisation manufacturing and delivering best wall clocks. We are guided
by our value system which motivates our attitudes and actions.
Your Company has a favourable work environment that motivates
performance, customer focus and innovation while adhering to the highest degree of quality
and integrity.
Our Core Values are:-
i. Client value; ii. Transparency; iii. Fairness; iv. Integrity; and v.
Excellence
Our strategic objective is to build a sustainable organisation that
remains relevant in changing environment.
Design Differentiation
Watches under the Opal have always been guided by great design. This
year too, the division engaged with several design experts to take design and
functionality offerings to new levels of consumer delight.
Talent Acquisition, Talent Development and Retention
To cope with the demands of a Business world, characterized by profound
and rapid technology change, Opals HR strategy is focused on reskilling and transforming
its workforce while providing a stimulating environment which is flexible, nurtures social
contract, fosters innovation, builds a result-oriented, high performance culture.
Nurturing of talent and best human resource practices will continue to differentiate and
provide strength to company. Benchmarks:-
1 Diverse Workforce;
2 Talent Development; and
3 Talent Retention
SWOT ANALYSIS
Competitive Strengths
The following are our principal competitive strengths:
Established Brand
We have established ‘Opal as a brand which reflects quality,
service and a distinctive design in a largely unorganized market. With ‘Opal, we aim
to majorly incorporate an elegant design element and a premium appeal to our products
matched with technology and brand attachment. Our established brand has enabled us to tap
additional selling platforms like organized retail, e-commerce, gift shops, crockery
stores, etc.
Experience of buying and using an Opal product is unique because of the
distinctive service provided from the time of purchase of the product and continuing
thereafter, thereby reinforcing the essence of the brand.
We believe that, having an established brand provides us an opportunity
to enter into new product categories.
Multiple sales-channels
Our growth over the years is largely owing to our ability to leverage
multiple sales-channel viz. distributors & dealers, organized retail, e-commerce, etc.
In addition, we believe that we have been one of the pioneers in extending our
distribution network beyond the traditional modes of watch & clock trade. These
channels include departmental stores, hypermarkets, gifts shops, home dcor stores,
furniture stores, crockery dealers, etc. Presently, we market our product line through
over 333 counters and 11 online shopping portals.
Lean Business Model
Our business model is focused on product designing, marketing and brand
building. Hence, our investments are limited to that in moulds, in-house assembling
facilities and working capital. We believe that our focus on product designing has helped
us to roll-out new products on a regular basis. Certain manufacturing processes are
delivered by third-party vendors who form an integral part of the entire process. We have
an in-house 4-member product-design-team whose expertise is key to our designing process
and who is also supported by free-lance designers to design products based on current
trends. Strong product development with contemporary designs and a regular roll-out of new
products has helped us to grow rapidly in a short span of time.
Diverse products
We offer a diverse product mix which varies with the following
parameters: -
1. Price Range;
2. Mould-component-make (wood, metal, acrylic, glass, etc.), and;
3. Styles (statue, table, digital, contemporary, etc.);
Such diverse product mix helps us in catering to diverse customer
segments. We believe that our ability to translate latest fashion trends into actual clock
designs differentiates us over our competitors. We believe that with our diverse product
mix, we have transformed the clock from a mere timepiece to a piece of art.
Experienced Management Team
Our Company is managed by a team of professionals who have been
successful in bringing in a right blend of youth and experience. We believe we have a
strong and experienced management including our key managerial personnel some of whom have
been working with us since incorporation. We believe that our management team has played a
vital role in the growth of our business and in the development of consistent procedures
and internal controls. Our management, supported by capable employees, will continue to be
an important driver for growth and success in our business activities.
Prowess to introduce and redesign consumer trends.
Opportunities
Virgin rural markets which are proven to have high per capital
disposable income;
New and innovative retail formats. For e.g.: sudden emergence of
electronic retail chains makes it easy for OPAL to market its ‘CYBER range of
digital clocks; Rising penetration of internet and e-commerce websites which may allow
reach to interiors of the country.
Threats/Challenges
Slow-down of economy, construction, and consumer spend, etc.;
Cost issues associated with accessing the bulk of (65% ) rural
population in India; Infrastructure challenges to reach interiors of the country; Threats
from local / unbranded substitutes at throw-away prices.
Weaknesses
High dependence on state of economy, disposable income and overall
growth of the economy;
Lack of avenues to do a research driven marketing as lots of products
have ‘emotional appeal which cannot be documents; Increasingly changing taste of
consumers when it comes to ‘visual appeal driven products; Rural India does not form
a substantial part of customer base; Kids are fascinated with mobile phones & watches
and incidentally, they show the time.
Looking Ahead
The Opals team is excited and looking forward to the future. Opal
intends to build on this momentum while stepping into 2018-19, armed with a new set of
initiatives designed to take the recrafting journey forward.
CERTIFICATION BY MANAGING DIRECTOR ON THE FINANCIAL STATEMENTS OF THE
COMPANY
I, Sameer Gujar, Managing Director of Opal Luxury Time Products
Limited, to the best of my knowledge and belief herby certify that: -
1. I have reviewed the Financial Statements and Cash Flow Statement for
the year ended on 31st March, 2018 and that to the best of my knowledge and belief: -
These statements do not contain any materially untrue statement or omit
any material fact or contain statements that might be misleading; These statements
together present a true and fair view of the Companys affairs and are in compliance with
existing Accounting Standards, applicable laws and regulations.
2. To the best my knowledge and belief that, no transactions have been
entered into by the Company during the year which is fraudulent, illegal or violating the
Code of Conduct of the Company.
3. I accept the responsibilities for establishing and maintaining
internal controls for financial reporting and that I have evaluated the effectiveness of
the internal control systems of the Company pertaining to financial reporting and I have
disclosed to the Auditors and the Audit Committee regarding, deficiencies in the design or
operation of internal controls, if any, of which I am aware and the steps have been taken
or proposed to be taken to rectify these deficiencies.
4. I have indicated to the Auditors and the Audit Committee of the
following matters: -
Significant changes in internal control over financial reporting during
the year;
Significant changes in accounting policies during the year and that the
same have been disclosed in the notes to the Financial Statements; and Instances of
significant fraud of which I have become aware and the involvement therein, if any, of the
management or an employee having a significant role in the Companys internal control
system over financial reporting.
For Opal Luxury Time Products Limited
SAMEER GUJAR Managing Director
Place: Pune Date: 29th May, 2018
DECLARATION AFFIRMING COMPLIANCE OF CODE OF CONDUCT
To,
The Members,
I, Sameer Gujar, Chairman & Managing Director of the Company, do
hereby declare that all Board Members and Senior Management Personnel have affirmed
compliance with the Code of Conduct for Board of Directors and Senior Management of Opal
Luxury Time Products Limited for the financial year 2017-18.
SAMEER GUJAR Managing Director
Date: 20th April, 2018
Place: Pune
+91-9892691696
