Kalyan Jewellers plans to invest ₹300 crore to expand its presence in southern States by opening eight new showrooms. It plans two showrooms each in Tamil Nadu, Andhra Pradesh, Karnataka, and one each in Telengana and Kerala.

The expansion is line with the company’s strategy to more than double the number of showrooms to nearly 250 in the next five years from the present 137 globally, including 103 in India. In the past year, the company’s focus was to expand operations in non-south geographies and forayed into 10 new markets, including Assam, Chhattisgarh and Jharkhand. This year, the focus is to consolidate in the South, TS Kalyanaraman, CMD, Kalyan Jewellers, told newspersons.

Funding plan

Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers, said the funding for the expansion would be through a combination of internal accruals and bank loans. Investment in each showroom is ₹30-45 crore, he said.

The Thrissur-based jewellery house expects nearly 50 per cent growth in revenue in the current financial year to around ₹15,000 crore. Many customers are moving from unorganised to organised players like Kalyan Jewellers. This is pushing up demand for gold among organised players. The Goods and Services Tax has brought in transparency, which is good for the industry, he said.

Assurance certificate

Kalyan Jewellers also announced the new four-level assurance certificate, which gives customers an assurance on purity, manufacturing quality, resale/ exchange value and quantity of raw materials used in the product. This also guarantees customers free lifetime maintenance of jewellery along with value on purchase, exchange and resale, he said.

On IPO, he said, it is being planned but was too early to talk about it now.

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