The jewellery retailer on Thursday (8 December 2022) announced that it is planning to increase its retail footprint by over 30% and target to open 52 showrooms over the next 12 months in calendar year 2023 (CY23).
As part of its strategic expansion plans, the company will look to target launching 52 showrooms over the next 52 weeks (12 months).
The company said that CY23 expansion will mainly focus on the non-south region, which currently contributes 35% to the India business. This approach is in line with the company's Vision 2025, which targeted revenue contribution from non-south markets of 50%.
Following the successful completion of the pilot franchisee phase in CY22, the expansion plan for the company will be majorly fueled by the franchisee arm. Kalyan Jewellers' franchise model is based on a capital-efficient and return on capital accretive FOCO (Franchise Owned Company Operated) model.
Following the strong demand momentum in metro markets and renewed interest among millennial consumers, the company plans to scale up existing operations in all the major metro cities. Kalyan Jewellers said that it will also lay strong emphasis on extending its geographical footprint in tier-2 and tier-3 markets in the north, east and western region.
Kalyan Jewellers is witnessing positive demand momentum and buoyant customer sentiments in the Middle Eastern business, with the region contributing approximately 17% to its consolidated revenue. Growth has been consistent over the past three quarters, and the company is looking at initiating a pilot franchise model in the region, post which, a robust expansion plan will be laid out for its international operations, the jewellery retailer stated.
Candere, The e-commerce wing of the company, is also looking at increasing its retail footprint in India, encouraged by the success of its first physical experience center in Malad, Mumbai.
Ramesh Kalyanaraman, executive director of Kalyan Jewellers said, 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. Jewellery sector is shifting towards organized and more experiential retailing, and Kalyan Jewellers continues to be well positioned to capitalize 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.
Headquartered in Kerala, Kalyan Jewellers is one the largest jewellery retailers in India with a presence in the Middle East.
The company's consolidated net profit surged 54.78% to Rs 106.38 crore on 20.22% jump in revenue from operations to Rs 3,472.9 crore in Q2 FY23 over Q2 FY22.
Shares of Kalyan Jewellers India slipped 2.09% to Rs 107.60 on the BSE.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
