Kalyan Jewellers is planning to expand through the franchise model in the first half of the next financial year, according to a top company executive.
“We decided to make a foray into the franchise model to accelerate our expansion. Till date, all stores of Kalyan Jewellers are owned by us. Our initial plan to enter the franchise model of expansion was from 2025.
“However, looking at the kind of momentum and accelerated demand that we saw for the past 3-4 quarters, we have decided to enter into this model of expansion with a pilot of 2-3 stores in the first half of next fiscal,” Kalyan Jewellers India Executive Director Ramesh Kalyanaraman said.
“In the franchise model, the cost per store will be around Rs 20 crore, a majority of which will be inventory and the capex (capital expenditure) will be minimal. A majority of our expansion for the next 2-3 years will be on non-south (India) markets.
“In the south, we will continue to expand but it will be minimal as we are already present in almost all tier I, II and III cities,” Kalyanaraman added.
The organization usually opens 12-15 stores annually with a CAPEX of Rs 30 crore for every store, he said adding that before the finish of FY22, Kalyan Jewelers will have extra 15 stores financed through inter accruals.
At present, the organization has 151 company-owned stores in 21 states and four nations in the Middle East. Out of this, 121 are in India, and 30 are in the Middle East.