Warburg Pincus invests Rs 500 cr in Kalyan Jewellers

Priya sundarajan | | Updated on: Apr 03, 2017
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The American PE firm had invested Rs 1,200 crore in 2014

Kalyan Jewellers has announced that an affiliate of Warburg Pincus, a global private equity firm focused on growth investing, is investing ₹500 crore, taking the total investment to ₹1,700 crore in the company.

The Kerala-based jewellery company had raised ₹1,200 crore from US-based private equity major Warburg Pincus, in return for a minority stake in 2014.

The second round of investment comes at a time when the company is looking to grow its distribution network exponentially in India and expand its overseas operations.

In the next three years, Kalyan Jewellers will build its presence in the central region of the country including Uttar Pradesh and Madhya Pradesh and add new showrooms in Mumbai, Delhi and the Southern region.

Kalyan is also looking to expand international operations by entering into new markets such as Saudi Arabia, Bahrain, Oman, Singapore and Malaysia. The company will also bolster its presence in the UAE where it already has 13 showrooms.

TS Kalyanaraman, Chairman and Managing Director, said the investment by Warburg Pincus is a vindication of the strong growth trajectory. The company plans to nearly double its presence to 200 plus showrooms using a combination of equity, debt and internal accruals.

Vishal Mahadevia, Managing Director, Warburg Pincus India Pvt Ltd, said: "We see a tremendous opportunity for Kalyan Jewellers to build a strong branded design-led jewellery business. Warburg Pincus’ additional investment will be used to accelerate the company’s growth efforts in network expansion and pursuing acquisition opportunities."

Published on January 15, 2018

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