The expansion will span domestic non-south markets and international locations including the UK, US and Middle East. Of the new stores, 90 will be under the Kalyan brand and 80 under Candere. Last fiscal, Kalyan Jewellers had reduced its debt by Rs 400 crore
Thrissur: Kalyan Jewellers plans to adopt the franchise model of expansion, by opening 170 new stores across both domestic and international markets in the current fiscal. The move is aimed at reducing its debt liabilities. The expansion focus on non-southern regions in India and select overseas locations.
According to a regulatory filing, the company currently operates 406 showrooms – 287 in India, 36 in the Middle East, two in the US, and 81 Candere outlets.
“We are planning to open 170 showrooms in 2025-26, of which 90 will be Kalyan, and of these, seven will be overseas – UK, US and Middle East. We are also looking at opening 80 stores under our lifestyle jewellery brand Candere,” Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers, was quoted as saying in media reports.
“The domestic expansion will be across non-south markets, including Tier I, II, III and IV markets through the franchise model. Going forward, the company will expand through the franchise model and will use the excess cash to reduce debt,” he added.
Last fiscal, Kalyan Jewellers reduced its debt by Rs 400 crore and is now targeting a further reduction of Rs 300 crore. “Last year, we reduced Rs 400 crore debt, and this year we are planning to reduce it further by Rs 300 crore, primarily targeting our Gold Metal Loan (GML) liabilities, which will make the company’s balance sheet lighter. We have land parcel collaterals mortgaged with banks for this overdraft facility. When we reduce debt, our collateral comes out, which can be further brought into the system that will make our balance sheet lighter,” said Kalyanaraman.
The company has earmarked Rs 350-400 crore for maintenance and inventory needs this year. “As the expansion is through franchises, we don’t have to invest. Our capex for maintenance and inventory for this financial year is around Rs 350-400 crore,” Kalyanaraman stated.
Candere’s expansion will focus on India for now, with a single overseas store planned in Dubai. “For Candere, our focus will be India, besides this store in Dubai, which will open in the next quarter. We need the brand to stabilize in the domestic market and then chalk out expansion plans outside of India, which will be around 2027-28,” said Kalyanaraman. The company also plans to enter the UK market this year.
“Our overseas expansion will be focused on the US, UK and the Middle East till next fiscal. We are getting enquiries from countries like Australia, Malaysia and Singapore, having a large Indian diaspora; however, our overseas expansion will be very calibrated,” he added.
Kalyan Jewellers is also planning to improve its manufacturing by setting up a hub in Thrissur to consolidate its contract manufacturing operations. Currently, the brand has more than 1,000 contract manufacturers across the country.
The company reported consolidated net revenue of Rs 5,557.63 crore in Q1 FY26 and expects growth in market share, currently estimated at around 8 to 9% in the organized segment.
Headquartered at Thrissur in Kerala, Kalyan Jewellers is one of the largest jewellery retailers in India with a presence in the Middle East and the USA. It has more than 400 showrooms across India, the USA and the Middle East.
Retail Jeweller India News
