Kalyan Jewellers to invest Rs 1,400 cr to open new showrooms

Written by PTI | Thrissur | Updated: Jul 27 2014, 21:19pm hrs
Kalyan JewellersKalyan Jewellers, India's leading directly owned jewellery chain, proposes to invest Rs 1,400 crore to set up 28 showrooms across India and Gulf countries.
Kalyan Jewellers, India's leading directly owned jewellery chain, proposes to invest Rs 1,400 crore this fiscal to set up 28 showrooms across India and Gulf countries and would aggressively focus on affordable diamonds.

At present, Kalyan Jewellers has 55 showrooms in India and will open 17 new ones with an investment of Rs 900 crore in the country and 11 in Gulf countries by investing Rs 500 crore, T S Kalyanaraman, Chairman & Managing Director, told reporters here.

Of the new showrooms planned in India, five would be in Kerala in Tier II and III towns, including Attingal, Angamally and Adoor; three in Kolkatta, two more in Mumbai and Bangalore, among others. In the Gulf, showrooms are planned at Qatar, Kuwait, Dubai, Abu Dhabi and Bahrain, he said.

The brand, which presently has six showrooms in the Gulf, will have 17 showrooms once the 11 more are opened, he said.

The six showrooms opened three months ago were doing good business and the turnover, so far, had crossed Rs 300 crore, he said.

Aiming to promote the concept of affordable diamonds, Kalyan Jewellers will convert its 'My Kalyan' customer service centres in Kerala, numbering 159 in Kerala, 145 in Tamil Nadu and 50 in Karnataka to mini diamond stores, Kalyanaraman said. The jewellery chain plans to have 1,000 'My Kalyan' centres by the 2016 fiscal end.

While 159 'My Kalyan' stores would be converted from tomorrow, 200 odd stores in Tamil Nadu and Karnataka would be converted by next month, he said.

The 200-250 sq ft 'My Kalyan' customer service centres, opened in 2010, were started with the aim of educating people in rural and city areas on purity and malpractices in the industry.

These centres also offered other services like wedding purchase planning, sale of gift vouchers, advancing facility for wedding purchase and also for remitting instalments of the purchase advance scheme, wherein customers do not have to go to the store in the city, Rajesh Kalyanaraman, Executive Director said.

At present, there are 551 'My Kalyan' stores across the four southern states, besides in Gujarat, Delhi, Punjab and Maharashtra.

"Customers always wanted us to provide jewellery through these outlets, but now, Kalyan has decided to sell diamonds to break the general misconception that diamonds are not meant for the common man," Kalyanaraman said.

A diverse range of diamond products, including ear rings, pendants, necklaces, rings and nose pins will be available at 'My Kalyan' stores, priced between Rs 5,000-Rs 10,000 and all diamonds sold here will be IGI certified with the accompanying gold being BIS certified, Executive Director Ramesh Kalyanaraman said.

Kalyan will be targetting a Rs 50 lakh turnover annually for the first few years, effectively translating into additional revenue of Rs 200 crore to Rs 250 crore from the 350 'My Kalyan' centres across the three states.

The same concept will be launched in the remaining states by the end of this fiscal, targetting an annual turnover of Rs 300 crore only from these stores in the next financial year.

Kalyan Jewellers will add 50 more 'My Kalyan' centres in the next six months in the southern states.

The total diamond sales in the country is growing by 10-15 per cent annually, T S Kalayanaraman said, adding presently 10 per cent of the total sales is from diamonds.

The jewellery's real estate arm was also doing well with four more ongoing flats and villa projects in Thrissur. Eighty per cent of the projects are already booked, he said, adding there were also plans to do affordable housing as a sub-brand. New flat projects have been planned at Ernakaulam, Kottayam and Thiruvananthapuram.