Large retail jewellery chains are propelling forward at an unprecedented pace, with projections painting a picture of 500 new stores mushrooming from the top five chains in just a span of two to three years. This surge isn't limited to the big players alone; mid-size and smaller chains are also eagerly joining the fray.

Chirag Sheth, principal consultant at Metal Focus, a London-based bullion research fund, shed light on the ambitious plans of the leading retailers: "Our survey uncovered that the top five retailers are eyeing an expansion spree, aiming to add 400-500 stores over the next 2-3 years."

The market landscape is poised for a shift, with the market share of large chains in gold jewellery expected to climb to 45%, up from the current 37%. Names like Tanishq under the Tata group, Reliance Jewels, Kalyan Jewellers, Malabar Gold & Jewels, and Joyalukkas are all aggressively opening new outlets. Moreover, the Aditya Birla Group has announced a whopping Rs 5,000-crore investment under the brand name of Novel Jewels, marking its entry into this burgeoning segment.

Expanding horizons aren't limited to just a handful of giants. Kalyan Jewellers, for instance, is gearing up to launch a minimum of 130 showrooms in India, along with six showrooms across West Asia and the US in FY25. Similarly, Titan is on track to add 27 Tanishq stores in the March quarter alone, alongside the expansion of its digital jewellery platform, CaratLane.

This surge isn't confined to the metropolitan hubs; it's cascading into tier 2 and 3 cities, where small and mid-size jewellery players are realizing the need for organization and expansion. Surendra Mehta, national secretary of the Indian Bullion Jewellers Association, noted, "Small and mid-size players have recognized the imperative to streamline and grow." To fuel their expansion dreams, many are considering tapping into the capital market and contemplating IPOs.

As India solidifies its position as the world's second-largest market for gold used in jewellery, the demand trajectory remains robust. A Knight Frank report highlights the burgeoning growth of ultra-high net worth individuals, further bolstering the outlook for the jewellery sector.

However, with expansion dreams come financial considerations. The survey emphasizes the need for substantial capital to materialize these expansion plans, including funds for stocking jewellery inventory. This surge in demand for inventory translates into a significant boon for jewellery manufacturers.

Amidst this buoyant atmosphere, it's crucial to acknowledge the caution exercised by financial institutions, given the sector's history of fraud. Consequently, many smaller chains are exploring alternative routes, such as capital market avenues and SME segments of major stock exchanges, to fuel their expansion ambitions.