Kalyan Jewellers, one of the country’s leading organised jewellery retailers, is turning to regional brands to deepen its presence among traditional jewellery consumers. The retailer launched ATM (Akshaya Thanga Maligai) in Tamil Nadu in August seeking to fill the gap between its national flagship brand, Kalyan, and digital-first jewellery business, Candere.
The company opened ATM’s first showroom, a 20,000-square-feet flagship store in Chennai on August 21, ahead of the festive season. Kalyan Jewellers Executive Director Ramesh Kalyanaraman told FE that the company planned to open at least four more ATM outlets in Tamil Nadu over the next six months, including locations within and outside Chennai.
“Regional markets offer significant long-term growth opportunities when approached with a local proposition. ATM is a step in that direction. Tamil Nadu is also one of India’s largest jewellery markets, making it a good choice for our first regional brand,” he said.
Tamil Nadu is estimated to account for more than 20% of India’s jewellery demand, making it one of the country’s most important regional markets, according to sector experts.
Over the next couple of years, Kalyan Jewellers plans to expand into more regional markets with local brands, although Kalyanaraman declined to specify which ones. Sector analysts, however, expect the company to target markets such as Coastal Karnataka, Telangana and Andhra Pradesh.
In recent analysts calls, Kalyan Jewellers had indicated that it was setting aside Rs 330 crore for broader regional expansion this financial year, starting with the launch of ATM.
The launch is expected to expand the retailer’s total addressable market by allowing it to cater to segments that prefer locally positioned jewellery brands, experts said.
The move marks a strategic shift for the company that has spent years building Kalyan Jewellers into a pan-India brand. Kalyanaraman said consumers increasingly distinguish between organised jewellery brands based on the occasion and type of jewellery they seek, with the same customer potentially shopping across multiple brands.
That thinking has spurred the company’s three-brand architecture.
Kalyan Jewellers remains the national, aspirational brand, with an average ticket size of roughly Rs 75,000-80,000 and a studded jewellery ratio of just over 30%. Candere, acquired by Kalyan and now being expanded offline alongside its digital presence, targets lifestyle, gifting and everyday jewellery, with an average ticket size of about Rs 30,000-35,000 and a 60-70% studded ratio.
The company says ATM’s average ticket size is currently just below Kalyan, with analysts estimating it at around Rs 70,000. But its merchandise mix is sharply different. Its targeted studded ratio is just over 10%, with roughly 95% of inventory expected to be regional, in keeping with the preferences of traditional buyers.
“It is not about the price point. It is about the kind of inventory,” Kalyanaraman said. “In ATM, 95% of the inventory will be local.”
That distinction matters in a market where gold jewellery remains deeply tied to regional culture and buying habits. The World Gold Council has highlighted the South’s strong preference for plain 22-carat gold jewellery, even as studded and lower-carat products gain traction among younger consumers.
Tamil Nadu’s jewellery market is also competitive, with players such as GRT Jewellers, Lalithaa Jewellery, NAC Jewellers, Thangamayil Jewellery, Joyalukkas, Malabar Gold & Diamonds, Khazana Jewellery and several other chains having established customer franchises in the state, experts said.
Kalyanaraman acknowledged that ATM will face competition from precisely the regional players it is seeking to emulate.
“The set of consumers whom they (competitors) are targeting versus ATM is targeting are almost the same,” he said. The differentiator, he argued, would be store experience and jewellery planning, backed by Kalyan’s existing operating infrastructure.