Zoya launches 10th boutique store in Kalaghoda, is poised for 25-30% annual growth

In the last fiscal year, Zoya achieved revenues just under Rs 300 crore. Over the past 4-5 years, the brand has seen a growth rate of 40%

Mumbai: The historic vicinity of Kala Ghoda in Mumbai, known for its rich blend of culture, luxury, and heritage, sees an ambitious addition of Zoya. Noel Tata, Vice Chairman of Titan Company Limited, and Ajoy Chawla, CEO of Titan’s Jewellery Division, were in presence as the 10th boutique store of Zoya was launched.

Situated in the iconic Brady House, which has retained its grand ornate moldings and columns, the Zoya boutique pays its ode to an Indo-Saracenic influence. It features traditional karigari fused with modern design, with delicately crafted paper art and wall etchings that narrate the inspirations behind Zoya’s creations. The high ceilings and large windows flood the boutique with natural light, creating a bright and airy ambiance.

On the occasion of the new store launch, Ajoy Chawla engaged in a conversation with a leading business magazine. As a standalone entity, Zoya had revenues of just under Rs 300 crore last year, Chawla revealed. “In the last 4-5 years, we have grown by 40% and from here, we are hoping to grow at over 25-30% each year,” he said.

Zoya’s strategy for growth involves selecting locations with discerning customers and ensuring that the address and neighbourhood enhance the brand’s exclusivity. The standard size for Zoya boutiques ranges from 3,000 to 5,000 square feet.

There are 10 boutique stores by the brand in Mumbai, Delhi, Bengaluru, Hyderabad, and Gurugram respectively. There are five Zoya shop-in-shops located in Mumbai, Ahmedabad, Kolkata, Chennai, and Chandigarh respectively.

In the last fiscal year, Zoya achieved revenues just under Rs 300 crore. Over the past 4-5 years, the brand has seen a growth rate of 40%. Looking ahead, Chawla expects Zoya to grow at an annual rate of 25-30%. In comparison, Titan Company reported consolidated revenues of Rs 47,624 crore in FY24, with the jewellery division contributing over Rs 42,000 crore and a net profit of Rs 4,726 crore. Titan’s other business segments include watches, eyewear, Indian dresswear, fragrances, and fashion accessories.

One challenge for Zoya’s expansion is the limited supply of luxury real estate. Chawla mentioned that it takes about 1.5 to 2 years to complete a boutique from the time a location is identified, with 6-8 months dedicated to store setup. Each boutique requires a capital expenditure of Rs 25-30 crore, including product value. The goal is to achieve breakeven within the second or third year based on retail margins.

The luxury market in India is on an upswing, driven by increased disposable incomes and a growing number of high-net-worth individuals. Zoya strives to create an inclusive, luxury brand for the expanding bracket of luxury customers in India.

Retail Jeweller India News