### **Overview** Pokarna Limited, founded in 1991 by Mr. Gautam Chand Jain, is one of India’s leading natural stone and engineered quartz surface manufacturers and exporters. Headquartered in Telangana, the company has evolved into **India’s largest exporter of premium quartz surfaces** through its wholly-owned subsidiary, **Pokarna Engineered Stone Limited (PESL)**. Built on over three decades of expertise in granite quarrying and processing, Pokarna has successfully diversified into high-growth engineered stone, leveraging innovation, vertical integration, and a global footprint. The company operates across three core segments—**Granite, Quartz Surfaces, and Apparel**—though it is strategically exiting the loss-making apparel business to focus on its high-margin, globally competitive stone divisions. As of FY24-25, **quartz surfaces accounted for ~92% of total revenue**, demonstrating a successful strategic pivot. --- ### **Core Business Segments** #### **1. Quartz Surfaces (via PESL) – Primary Growth Engine** - **PESL** is India’s largest manufacturer and exporter of quartz surfaces and a key player in the global engineered stone market. - Products are marketed under the **Quantra® brand** and through **private-label partnerships**. - Offers **over 100 innovative designs**, including premium collections like *Moon Walk, Champs-Elysees, La Dolce Vita, and Pantheon*. - Uses **state-of-the-art Bretonstone® technology** from Breton S.p.A., Italy—making Pokarna one of the few companies globally with access to this proprietary system. - Manufacturing is based in **Telangana and Andhra Pradesh**, with plants designed around **Industry 4.0 standards**, incorporating robotics, automation, and digital controls. - Produces **super jumbo (347×201 cm)** and **jumbo (330×165 cm)** slabs, catering to premium residential, commercial, and hospitality projects. #### **2. Granite Division – Vertically Integrated Legacy Business** - Engaged in end-to-end **quarrying, processing, and exporting of natural granite**. - Operates **captive quarries in Telangana, Andhra Pradesh, and Tamil Nadu**, sourcing over **75 varieties** from India, Ukraine, Saudi Arabia, Iran, and Madagascar. - Product portfolio includes **raw blocks, slabs, tiles, countertops, and monuments**. - Exports processed granite to the **U.S. and Europe**; raw blocks are primarily supplied to **China**, though volumes have declined due to geopolitical and macroeconomic challenges. - Despite weak demand in traditional markets, the segment remains profitable due to **vertical integration and cost optimization**. #### **3. Apparel Business – In Process of Divestment** - Operated under the domestic retail brand **STANZA**, with manufacturing in Telangana. - Approved for **exit on a going-concern basis** to improve financial health and focus on core stone operations. - Currently non-material (~0.4% of revenue) but was a drag on margins; full divestment expected within 12 months. --- ### **Strategic Transformation & Growth Drivers** #### **1. Innovation-Led Product Development** Pokarna is investing heavily in next-generation technologies to differentiate its offerings and capture premium market share: | **Technology** | **Key Features** | **Status & Impact** | |---------------|------------------|---------------------| | **KREOS** (from Breton Italy) | Enables production of **ultra-thin (7mm) full-body slabs** with enhanced aesthetics and design flexibility. Ideal for wall cladding, furniture, and lightweight applications. | Commissioned in FY25; commercial rollout underway. First revenue contribution expected in **current fiscal year (FY25-26)**. | | **CHROMIA** (from Breton Italy) | Enables **high-definition digital printing** on quartz slabs, allowing intricate patterns, vibrant colors, and customization. | Operational in Q4 FY25; initial revenue expected in FY25-26, with full impact in FY26-27. | | **Total Investment** | ~$13 million (~₹1,100 crore) | Aimed at **improving EBITDA margins** and strengthening leadership in **design-led, value-added products**. | > 🔹 These technologies position Pokarna as the **only global manufacturer capable of producing ultra-thin, full-body slabs with in-line digital decoration**, creating a **sustainable competitive edge**. #### **2. Global Expansion & Market Diversification** - **U.S. remains the primary market (~90% of quartz exports)** but faces tariff and pricing pressures (2.34% countervailing duty; anti-dumping duty currently zero). - Strategic focus on **reducing geographic concentration risk** through expansion into: - **Canada, Mexico, France, Czech Republic, and Russia** - Growing traction via strong distributor relationships; revenue from non-U.S. markets now in **single-digit percentage**, targeting double digits. - Participation in key trade shows (**KBIS, Marmomac**) to showcase innovation and attract international clients. #### **3. Domestic Market Penetration (India)** - Historically export-focused, but now building **local presence through a phased rollout**. - Appointing **distributors in metro cities** (Mumbai, Delhi, Hyderabad) with goal of **10% domestic revenue** medium-term. - Opening **Experience Centres**, starting with **Hyderabad (within 6 months)** to enhance brand visibility and B2C engagement. - Unique **360-degree service model** (measurement, fabrication, installation) — unmatched by local competitors — strengthens B2B and B2C positioning. - Partnered with **IKEA India** as exclusive supplier of made-to-measure quartz worktops. --- ### **Financial & Operational Highlights (as of FY24-25)** - **Consolidated Revenue**: Highest-ever levels achieved despite granite segment challenges. - **Quartz Sales Growth**: **+39% YoY** in FY24-25, driven by improved distribution, innovation, and global outreach. - **Profitability**: - **EBITDA up 22% YoY** - **PAT up 33% YoY** - **Capex Plans**: - **₹440 crore** invested to add a **third Bretonstone production line** in Mekaguda, Telangana (operational by **March 2026**), enhancing sustainable capacity. - Future expansions to be **demand-driven and incremental**, avoiding overcapacity. - **Sustainability**: Investments in **rooftop solar energy**, water recycling (5R principles), and low-emission manufacturing. --- ### **R&D & Sustainability Initiatives** - **Low Crystalline Silica Slabs**: Developing safer, regulatory-compliant quartz formulations in response to **California silica regulations** and global health concerns. - **Alternative Raw Materials**: R&D underway to ensure long-term supply chain resilience and compliance. - **Design Capability**: One of the largest design libraries in the industry (~10,000 patterns); ability to launch new designs in **under two weeks**. --- ### **Leadership & Governance** - **Founder-led** with strong executive continuity: - **Gautam Chand Jain** – Founder, Chairman & MD - **Paras Jain** – Former Company Secretary, now leading quartz business - **Shantilal Daga** – Active in day-to-day operations - **Rahul Daga** – Managing Director, driving strategic development - Management maintains **long-term EBITDA margin guidance of 30–35%** for FY25-26 and beyond.