This expansion is scheduled for the non-South region, which accounts for 35% of the total business in India.
This strategy is consistent with Kalyan Jewellers’ Vision 2025, which aimed for a 50% revenue contribution from non-South markets.The company works on the FOCO model, a franchise-owned and company-operated model. The investor owns the outlet under the FOMO model, and the company manages the operations; the franchisee bears all initial startup costs.Kalyan Jewelers also plans to expand in Tier 2 and Tier 3 cities in the north, east, and west regions.The expansion will lead to an investment of 1,300 crores, which will be largely borne by the franchise.This year, Kalyan Jewelers has successfully opened 14 showrooms and plans to add 12.
As of September 2022, the company had a trailing 12-month revenue of Rs 13000 crores and a net profit of Rs 425 crores, which is marked by the change in the jewelry business from an unorganized to an organized market.In global terms, the company is enjoying high demand in the Middle East, which accounts for 17% of its revenue.The overall expansion strategy aims to charter our next growth phase and will increase our market share significantly and be accretive to our return on capital profile, Kalyan Jewellers Executive Director Ramesh Kalyanaraman said. Kalyan Jewelers has been a leading brand in the jewelry market. What are your thoughts on how the expansion plan will work?rnrnrnrnrnrnrnrnrnrnrnrnrn rnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnÂ
