Kalyan Jewellers invests Rs. 175 crore for four new showrooms.

Kalyan Jewellers said that it will invest Rs. 175 crore to expand its distribution operations by launching four new showrooms. The company is making a foray into East India for the first time by opening a showroom in Bhubaneswar, Odisha and consolidating its presence in the National Capital Region with two showrooms in Gurgaon and Noida. Kalyan is also strengthening its presence in the UAE by adding a new showroom, marking the 10th for the company in the country.

Kalyan has been on an aggressive expansion drive and has earmarked Rs. 800 crore for expanding its distribution network. It is planning to set up 22 showrooms this fiscal, of which nine will be in the Gulf region. The company is also in the process of converting its 570 customer service centres into mini 'My Kalyan' stores, which will focus on selling affordable diamonds to capitalize on the potential of this category.

The company's Chairman & Managing Director T.S. Kalyanaraman said, 'Jewellery consumption in the Indian market is increasing due to positive consumer sentiment and stable prices, and we want to tap into this growth. We are entering the eastern market for the first time with Bhubaneswar as it holds tremendous potential. We are also consolidating our presence in the North. The investment in UAE is in line with the buoyant demand in the Gulf region. We expect our international operations to contribute upto 10% of our revenues by the end of this financial year. Funding of the expansion plans will be met through the funds we have received from the private equity investment as well as from internal accruals and bank borrowings. We are targeting 30% growth in topline to Rs. 13,000 crore and enhancing the distribution network by 30% in the year. We are also ramping up our manufacturing operations and plan to have India's biggest production house by 2017.'


TIMES OF INDIA