Kalyan Jewellers is Aiming to Expand in India

India: Kalyan Jewellers is planning to invest USD134.40 Million, which also includes the opening of two new showrooms in Velachery and Anna Nagar, Chennai, covering 7500 square foot and occupying three floors. The company has invested around USD64.21 million till now in establishing its three outlets in the city, which are completely operational. Thus, the two new showrooms would take the total number of outlets to five in Chennai, Tamil Nadu.

In 2016, Kalyan Jewellers has set up six new outlets so far, and aiming to increase this number to 14 by the end of 2016. Currently, Chennai has 20 large showrooms and 150 mini stores. Backed by increasing number of showrooms, Chennai contributes around 10 per cent in total revenues of the company. The company has invested around USD123.94 till date, only in Tamil Nadu, as its majority of the revenues comes from the state.              

According to TechSci Research, India is considered to be the largest gems and jewelry market on account of its increasing middle class population and traditional inclination of consumers towards investing into gold in the country. Thus investing and expanding in the India, would help the companies in increasing its revenue share, combined with the sales from India. Moreover, the consumers in Tamil Nadu prefer quality, service and design, which are also the main strategies of Kalyan Jewellers on which they are consistently focusing, helped the company in increasing its sales from the state. New products launch on upcoming festive season would also help the Jewelry companies in India in driving its sales.

According to a recent report published by TechSci Research, “Global Gems & Jewelry Market Forecast & Opportunities, 2020”, the global market for gems & jewelry is projected to grow at a CAGR of around 6% during 2015-20. In 2014, the gold jewelry segment dominated the global gems & jewelry market, followed by diamond and platinum jewelry. Demand for precious gem stones has also been growing due to changing preferences of younger generation from gold to colored gemstone, platinum and palladium jewelry. Growing brand consciousness is also boosting sales of branded jewelry in developed as well as developing economies, and this trend is expected to gain strengthen over the next five years. Few of the major branded gems & jewelry companies with operations spread across the globe include Tiffany & Co., Gitanjali, Signet, LVMH, Chow Tai Fook, and Richemont.