Kalyan Jewellers plans to set up stores in New Jersey and Chicago in the next financial year

The leading jewellery house is gearing up to enter the US market in FY25, as part of its overseas expansion plan 

Mumbai: Kalyan Jewellers India Ltd. is gearing up to foray into the United States market in the coming financial year. The company plans to set up one store each in New Jersey and Chicago. This is part of the company’s plans to open six jewellery showrooms in overseas markets and 130 outlets in India in FY25.

Currently, the company has 219 showrooms in India, and 34 more in the Middle East. Four more would be added in the Middle East in FY25.

“For the next year (FY25), we plan to open at least 80 Kalyan Jewellers showrooms in India, at least 50 Candere stores in India and six showrooms overseas,” said Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers India in an interview with The Hindu. “In FY26 we plan grow 20% more,” he added. 

In the past year, the company had gone for the Franchise Owned Company Operated (FOCO) model and it would take this route to expand its base.  

“So, our expansion is completely fuelled by franchisee partners now. They will invest the money for the inventory and the capex for a store, and Kalyan Jewellers will run the store for them and it’s a margin share, which we do, wherein they get return on investment which they expect and we get the return that we want,” Kalyanaraman said.

He attributed growth in jewellery sales to the sector’s transition to becoming more formalized and the Government mandating hallmarking and levying Goods & Services Tax.

Notably, Kalyan Jewellers has seen significant growth so far in FY24. The company continues to witness healthy same-store sales growth and demand traction in new stores. Its consolidated revenue grew 30% YoY in both FY23 and the first nine months of FY24. EBITDA growth also came from the improved scale coupled with the adoption of a capital-efficient franchisee model. The management plans to divest non-core assets and convert certain company-owned showrooms to franchises, which is expected to contribute further to its growth.

The Thrissur-based company’s stocks have been consistently creating value for shareholders. In the last one year, Kalyan Jewellers’ stock has risen 298%, and was trading at Rs 427.80 on Friday, March 28, 2024. 

Courtesy: The Hindu, other sources