It also plans to enter new markets such as Saudi Arabia, Bahrain, Oman, Singapore and Malaysia. The company will also bolster its presence in The United Arab Emirates (UAE) where it already has 13 showrooms.
Over the past three years, Kalyan has nearly doubled its retail presence in India and West Asia to 106 showrooms, including 23 in West Asia. The company has opened showrooms in West Bengal, Orissa and Rajasthan markets while shoring up its presence in the western and northern regions of the country.
T S Kalyanaraman, chairman and managing director, Kalyan Jewellers, said investment by Warburg Pincus is a vindication of the strong growth trajectory of the company.
The company plans to nearly double its presence to 200 plus showrooms using a combination of equity, debt and internal accruals.
Kalyan is also working on a blueprint for a foray into the e-commerce segment which will complement our physical retail network.
“We believe that the curb in cash transactions will see a shift from the unorganised sector to organised players like Kalyan. The rationalisation of taxes under the goods and services tax (GST) regime will increase operational efficiencies significantly,” he said.
Kalyan Jewellers has emerged as the largest branded jewellery player in India by revenue. Kalyan has initiated the process of converting its 630 ‘My Kalyan’ customer service outlets into mini diamond stores to tap into the growing demand for diamond jewellery.
Vishal Mahadevia, managing director, Warburg Pincus India Pvt Ltd said: “We see a tremendous opportunity for Kalyan Jewellers to build a strong branded design-led jewellery business. Warburg Pincus’ additional investment will be used to accelerate the company’s growth efforts in network expansion and pursuing acquisition opportunities."
Headquartered in Thrissur, Kerala Kalyan Jewellers is one of the largest jewellery manufacturers and distributors in India.