Kalyan Jewellers plans Rs 800 crore expansion, to set up 22 new outlets this fiscal

Kalyan Jewellers, a South-India based jewellery manufacturer and distributor, has earmarked Rs 800 crore in an aggressive expansion drive to have a pan-India presence and a larger footprint in the Gulf region.

It plans to open 22 new outlets this fiscal, taking the total number of showrooms to about 101 from about 79 now.

“Jewellery consumption in the Indian market is increasing due to positive consumer sentiment and stable prices, and we want to tap into this growth," T. S. Kalyanaraman, Chairman and Managing Director, said explaining the rational behind the company’s expansion plans.

Of the total investment earmarked for this year’s expansion, Rs 175 crore will be used to launch four new showrooms shortly - one each in Bhubaneswar, Noida, Gurgaon and the UAE.

With the Bhubaneswar outlet, the company is making a foray into Eastern India.

“The investment in the UAE is in line with the buoyant demand in the Gulf region. We expect our international operations to contribute up to 10 percent of our revenues by the end of this financial year,” said Kalyanaraman. The new showroom will be the 10th outlet of the company in the Gulf region.

The expansion will be funded through private equity investment as well as from internal accruals and bank borrowings, said Kalyanaraman

“We are targeting 30 percent growth in topline to Rs 13,000 crore and enhancing the distribution network by 30 percent in the year. We are also ramping up our manufacturing operations and plan to have India’s biggest production house by 2017.”

In April, the company opened what it claimed to be the world’s largest gold and diamond jewellery collection at an investment of Rs. 200 crore.