New Delhi: Kalyan Jewelers plans to enter the electoral rights model in the first half of next fiscal year to boost growth primarily in the non-southern Indian market, according to a senior industry official.
“We intend to pop into the franchise model to increase our momentum. To date, all stores of Kalyan Jewelers are owned by us. Our first plan to enter the franchise franchise model is from 2025.
“However, considering the type of impact and acceleration demand seen for 3-4 regions back then, we have decided to tap into this expansion model with the pilot of 2-3 stores in the first half of the next budget,” said Executive Director Kalyan Jewelers India Ramesh Kalyanaraman told PTI.
Following the evaluation of the pilot’s work, the company will expand through the franchise, which will be in addition to the regular opening of Kalyan Jewellers’ property stores every year, he added.
“In the franchise model, the cost per store will be around Rs 20 crore, most of which will be inventory and capex (capital expenditure) will be minimal. Much of our expansion for the next 2-3 years will come. on non-south (India) markets.
“In the south, we will continue to expand but will be smaller than we already are in cities I, II and III,” Kalyanaraman adds.
The company regularly opens 12-15 exhibition rooms every year with a capex of Rs 30 crore per store, he said that by the end of FY22, Kalyan Jewelers will have 15 additional exhibits funded by interccruals accruals .
Currently, the company has 151 exhibition centers in 21 states and four countries in the Middle East. Of these, 121 are in India and 30 are in the Middle East.
The Middle East contributes 15 percent to the company’s total integration revenue.