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Kalyan Jewellers Targets 52 Showrooms In 52 Weeks; Mulls Franchise Model For Expansion
The retail expansion strategy is in tune with the company’s Vision 2025, which targets 50 per cent revenue contribution from non-south markets
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With concrete plans to increase its retail footprint by over 30 per cent, Kalyan Jewellers India is eyeing to open 52 new showrooms in the next 12 months. The company is targeting to launch 52 showrooms over the next 52 weeks (12 months), the company said in a statement on Thursday.
The Kerala-based company’s expansion will focus on the non-south region, which presently contributes 35 per cent to its India business. This retail expansion strategy is in tune with the company’s Vision 2025, which targets 50 per cent revenue contribution from non-south markets.
Kalyan Jewellers is mulling over franchise route to expand its retail footprint.
After the successful completion of its pilot franchisee phase in 2022, the company’s expansion will be majorly fueled by the franchisee arm, the statement added.
Kalyan Jewellers' franchise model is based on a capital-efficient and return on capital accretive FOCO (Franchise Owned Company Operated) model.
The company said there is a strong demand for jewellery in metro markets, and it will scale up existing operations in all the major metro cities. The company also looks towards extending its geographical footprint in tier-2 and tier-3 markets in the north, east and western region.
The company’s Middle Eastern business contributes around 17 per cent to its consolidated revenue and the growth has been consistent over the past three quarters. The company is initiating a franchise model in the Middle East as well. Further, a robust expansion plan will be laid out for its international operations, the jewellery retailer stated.
The Candere Effect?
Encouraged by the success of its first physical experience center in Malad, Mumbai, the e-commerce arm of the company, Candere, will also increase its Indian footprint,
According to Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, “The company has recorded an impressive trailing twelve months (TTM) revenue of approximately Rs 13,000 crore with a PAT of Rs 425 crore approximately as on 30 September 2022.”
“The Jewellery sector is shifting towards organised and more experiential retailing, and Kalyan Jewellers continues to be well positioned to capitalise on this trend. The overall expansion strategy aims to charter the next growth phase of the company and will increase our market share significantly and be accretive to our return on capital profile,” Kalyanaraman added.
Kalyan Jewellers consolidated net profit rose 54.78 per cent to Rs 106.38 crore in the quarter ended September 2022 as against Rs 68.73 crore during the previous quarter ended September 2021.The company posted a 20.22 per cent jump in revenue from operations to Rs 3,472.9 crore in the quarter ended September 2022 as against Rs 2888.70 crore during the previous quarter ended September 2021.