In order to expand it's presence in the southern states of India, Kalyan Jewellers plans to open eight new stores with a budget of Rs 300 crore. It plans two showrooms each in Tamil Nadu, Andhra Pradesh, Karnataka, and one each in Telengana and Kerala. The company has devised a strategy to more than double the number of showrooms to nearly 250 in the next five years from the existing 137 globally of which 103 are located in India.
In the past year, the company’s focus was to expand operations in non-south geographies and forayed into 10 new markets, including Assam, Chhattisgarh and Jharkhand. This year, the focus is to consolidate in the South, shared TS Kalyanaraman, CMD, Kalyan Jewellers. Ramesh Kalyanaraman.
Executive Director, Kalyan Jewellers, said the funding for the expansion would be through a combination of internal accruals and bank loans. Investment in each showroom stands at ₹30-45 crore. The Thrissur-based jewellery house expects nearly 50 per cent growth in revenue in the current financial year to around ₹15,000 crore.
Many customers are moving from unorganised to organised players like Kalyan Jewellers. This is pushing up demand for gold among organised players. The Goods and Services Tax has brought in transparency, which is good for the industry. Kalyan Jewellers also announced the new four-level assurance certificate, which gives customers an assurance on purity, manufacturing quality, resale/ exchange value and quantity of raw materials used in the product. This also guarantees customers free lifetime maintenance of jewellery along with value on purchase, exchange and resale. When asked about a possible IPO, he revealed that it is being planned but was too early to talk about it now.