Kalyan Jewellers to invest Rs 10 bn to open 20 stores, enter US market

Kalyan Jewellers is planning to invest Rs 10 bn to add 20 stores in the country and also enter the US market in this financial year, a senior company executive said.

"We will first invest Rs 5 bn to open 10 new stores in the next three weeks - one each in Indore, Kanpur, Ranchi, Raipur, Siliguri, Guwahati and Nagpur, and three in Delhi-NCR," Kalyan Jewellers chairman and managing director TS Kalyanaraman told PTI here.

The company is also planning to open another 10 stores with an investment of Rs 5 bn in the last two quarters of FY19, and also enter the US market, he added.

"The investment for expansion is being funded through internal accruals. There will not be any additional bank borrowings or capital dilution," he added.

Kalyan Jewellers at present has 122 company-owned stores, of which 90 are in India and 32 are in the Middle East, including Kuwait, Qatar, Oman and the UAE.

Kalyanaraman said the company will continue to focus in the domestic market and would keep the overseas revenue contribution at about 20-25 per cent.

The jeweller is expecting a 8-9 per cent growth in revenues this financial year, and in the next few years as well. Its revenue stood at Rs 10.5 bn in FY18.

Kalyan Jewellers currently has 8,000 employees, and expects to add another 1,000-1,200 for this expansion, Kalyanaraman said.

Further, he said, the company also has an e-commerce presence through acquisition of Candere in FY18, which will be 100 per cent acquired in three years.

"E-commerce is a very small part of our business, with Kalyan Candere contributing only 1-1.5 per cent of the total business," he said.

The company expects the e-commerce platform to grow its share to 2-3 per cent of the overall business in two to three years, he added.