From small cities to big dreams: Khandelwal Jewellers’ 2027 IPO strategy

In an era of intense market competition, Khandelwal Jewellers has carved a unique niche by focusing on Tier-3 and Tier-4 cities in Maharashtra’s Vidarbha region, where competition is relatively limited. Director Rajesh Khandelwal speaks with The Retail Jeweller about this approach and the brand’s ambitious goal of launching an IPO by 2027

In the competitive landscape of Indian jewellery retail, Khandelwal Jewellers represents a compelling narrative of entrepreneurial innovation. Founded by first-generation businessman Rajesh Khandelwal, the brand has carved a distinctive path by systematically bypassing major retail chains. What began as a 2,000-square-foot showroom in Amravati in 1996 has now evolved into a seven-city network with a strategic roadmap leading towards a planned initial public offering (IPO) by 2027, challenging conventional growth models in the sector.

EDITED EXCERPTS:

MAITHILI PATANGE (MP): What inspired your entry into the jewellery business?

RAJESH KHANDELWAL (RK): As a first-generation entrepreneur with an MBA from Symbiosis College, Pune, I saw an untapped opportunity in 1996. We introduced Amravati’s first modern showroom, complete with advanced facilities like a Karatmeter. Our initial focus on gold jewellery gradually expanded to include gemstones and diamonds, reflecting our commitment to continuous learning and adaptation. Today, we have seven stores across Vidarbha, each tailored to its local market, establishing us as a well-known regional brand.

MP: What are the advantages of these markets?

RK: The strategy to expand in these markets is deliberate and data-driven. Unlike saturated Tier-1 and Tier-2 markets with numerous competitors. these smaller cities offer unique advantages. We can operate with an optimised inventory as we know the audience’s tastes, face minimal competition, and build a loyal customer base more effectively. Our showrooms, all about 5,000 sq. ft on average, stand out, creating a distinct brand presence. We serve a diverse spectrum of buyers. Our Varud showroom, for instance, attracts customers from surrounding villages and even bordering towns in Madhya Pradesh like Betul and Multai. Previously, these customers would travel to larger cities like Nagpur or Amravati. Now, they prefer our local presence, indicating a significant shift in regional consumer behaviour.

MP: What marketing strategies are working out the best in these less-urbanised markets?

RK: Offline, we allocate Rs. 1.5 crore annually to regional print media such as Lokmat, Navbharat, and Dainik Bhaskar, complemented by radio, cinema advertising through Cinepolis theatres, and the strategic placement of 60–70 hoardings during wedding seasons as traditional media works best in these regions. Online, we are actively exploring influencer marketing and have launched the Khandelwal Jewellers app, which now has 2,000 regular users. The app focuses on digital gold, and silver, allowing customers to invest in gold SIP and gift others in gold and silver digitally. It is supported by a dedicated team that tracks customer behaviour and ensures a seamless user experience.

MP: Your IPO ambitions by 2027 seem bold. How has been the journey so far?

RK: Preparation has been meticulous. Since 2014, we have systematically built market understanding, exhibited across cities, expanded our showrooms, and prepared for a franchising model. The jewellery business is inherently capital-intensive. We are focusing on maintaining transparent billing, comprehensive record-keeping, and ensuring robust profitability. We have been methodically preparing, understanding that an IPO requires not just financial strength but comprehensive organisational readiness. We plan to launch a further new asset (FNA) IPO before transitioning to the main market. The jewellery sector’s improved regulatory environment—driven by standardised hallmarking, improved banking policies, and increased confidence in the jewellery sector from equity markets—supports our vision.

MP: What is the long-term plan for Khandelwal Jewellers?

RK: We aim to strengthen our presence in Vidarbha by adding showrooms in Nagpur and other small towns. After that, we also plan to expand in eastern and northern India within one to two years. While Tier-3 and Tier-4 cities remain a priority, we will explore Tier-2 markets based on potential. Digitally, we plan to expand into e-commerce with a website launch before the IPO.

By Maithili Patange