Kalyan Jewellers will focus on the southern States by setting aside ₹300 crore for expansion during the current fiscal, said a top official.
“In the past, our focus was to expand our operations in the non-south geographies and we made a foray into 10 new markets,” said T.S. Kalyanaraman, CMD, Kalyan Jewellers India Ltd. “This year, our key focus will be on consolidating our southern operations.”
8 more showrooms
The Thrissur-based jeweller currently has 136 showrooms across the country and 103 showrooms in different parts of the globe.
It is planning to open eight showrooms in the current fiscal by investing between ₹30-₹45 crore per showroom. “Currently, the southern market accounts for 50% of our revenue. Hence, the focus will be on southern states. Most of the showrooms will be large-format stores, as they have proven successful,” said Ramesh Kalyanaraman, executive director, Kalyan Jewellers.
“The expansion cost of ₹300 crore will be met partly through internal accruals and bank loans,” he said.
As per the plan, the jeweller will open two showrooms each in Andhra Pradesh, Tamil Nadu and Karnataka and one each in Kerala and Telangana, respectively. Plans are on to open similar number of showrooms pan-India during the year. Last fiscal, the firm registered a revenue of about ₹10,000 crore and aims to achieve ₹11,500 crore revenue this fiscal.
Claiming that the firm was in a healthy financial position, Mr. Ramesh said it had a bank loan of ₹3,000 crore and it was fully secured by way of immovable properties, fixed deposits and other assets worth ₹5,294 crore.