 "Kalyan Jewellers to invest Rs 600 crore to support expansion plans")
Jewellery retail chain Kalyan Jewellers is planning to invest around Rs 600 crore into expansion of distribution capabilities in India and overseas. The company is also targeting a topline of Rs 13,000 crore during the current fiscal year.
The company plans to invest Rs 350 crore to expand its distribution network, especially in Northern and Eastern regions of the country, and another Rs 250 crore for its proposed entry into Qatar. It plans to have 100 showrooms by the end of the financial year by adding 14 new showrooms of which seven would be in India and seven would be in West Asia.
The firm seeks to improve its presence in eastern region, where it has forayed earlier this year with a showroom in Bhubaneswar, with two more showrooms in Kolkata. It would enter Rajasthan with three showrooms and open two showrooms in Chennai. In West Asia, the company plans to make a foray into Qatar with seven new showrooms.
T S Kalyanaraman, chairman and managing director of Kalyan Jewellers said that the company gradually expanded its footprint in the North and East regions of the country and the new launches in Rajasthan and Kolkata will further strengthen its presence.
The success in West Asia has prompted it to enter new GCC markets, where there is a sizeable Indian population.
"Qatar presence is critical for us to push the Gulf's share of the group turnover to 40% mark, which is our medium-term target. We are confident of reaching the Rs 13,000 crore topline target set for this fiscal and also achieve the milestone of 100 showrooms."
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In the current financial year, Kalyan launched eight new showrooms and with the new additions, the company will have 80 showrooms in India and 20 showrooms in West Asia.
In 2014, the India arm of US Private Equity major Warburg Pincus had picked up a minority stake in the Kerala-based jewellery maker and retailer Kalyan Jewellers for Rs 1,200 crore.