More Stories

Informist, Thursday, Aug. 7, 2025

 

Please click here to read all liners published on this story

--Plan to add 80 Candere stores in India this year
--Plan to launch new regional brand by Dec-end
--Have new business strategy for regional brand launch
--To reduce credit period for discounts in regional brands
--To monetise land collateral with banks for regional brands
--In talks with banks to release land held as collateral
--Planning only one regional brand this year in one state

 

By Avishek Rakshit & Arya S. Biju

 

KOLKATA/MUMBAI – Kalyan Jewellers India Ltd. is planning to launch regional brands targeted towards specific states which will be housed in an upcoming subsidiary with a new business model, Executive Director Ramesh Kalyanaraman said Thursday. The first such regional brand will be launched by the end of December. 

 

"We have decided to launch the third format, which will essentially be an entity that will house regional brands offering exclusively localised jewellery competing with strong regional brands. We have drawn up plans to launch the first regional brand under this entity during this calendar year", Kalyanaraman told sector analysts in a post-earnings call.

 

Under this strategy, Kalyan Jewellers will launch multiple regional brands, each tailored to meet regional preferences. The first such brand is expected to come up on one state by December. Kalyanaraman did not specify in which state a regional brand will be launched and what the first of many regional brands will be named.

 

In the jewellery industry, regional brands, especially bigger brands having state-wide presence like Anjali Jewellers Pvt. Ltd. in West Bengal, command a substantial market share and consumer trust. Kalyan Jewellers, which is present across the country although south India remains its key revenue generator, will be taking on such a regional brand head on with its upcoming regional play. Although Kalyan Jewellers offers designs and products which have a universal appeal, at least 30% of its designs are hyperlocal, suited to local preferences.

 

"There will be a new company which will be formed, which will be having multiple brands and each brand will be in a particular state and it will be very regionalised by its name, by its inventory, by its campaigning, positioning, etc.," Kalyanaraman said.

 

The company is in talks with banks to release land parcels which are held as collateral to fund this new venture, according to Kalyanaraman. The company is also piloting a new credit model aimed at reducing the credit period it gets from vendors to increase cost efficiency and margins. As against a credit period of 32-33 days which the jeweller currently gets from vendors, Kalyan Jewellers is aiming to reduce it to one-third, which will not only increase the company's upfront payment but also help it bag discounts from the vendors. Such discounts, backed by optimal cash management, are expected to better the margins.

 

The company is already piloting this lean credit period model at one of its stores. "Pilot was also done to exactly to know the savings and cost efficiencies which can happen if we do a leaner credit arrangement with the vendors, which was successfully done," the top company official said, adding that at a later date, the company plans to roll out such credit model across its jewellery stores under the Kalyan Jewellers brand of stores which will lead to an improvement in margins.

 

"We already started by maybe March last year and this full quarter, we actually did the pilot project at Kalyan (Jewellers). Now, we will implement it fully from day one in the new regional brand", Kalyanaraman said. 

 

The company is also planning to increase the count of its Candere brand of stores by 80 units in India this year.

 

JEWELLERY PARK

 

Kalyan Jewellers is planning to set up a jewellery park in its hometown, Thrissur in Kerala, and have already got the requisite land from the state government.

 

"Kerala government has allocated land for us, where we will actually bring in all our contract manufacturers. It will not be a margin driver, but more of an efficiency driver. And again, younger generation will come in (into the park) because facilities will be there. It will have more infrastructure facilities where youngsters will also be motivated to come and join there," Kalyanaraman said.

 

The jewellery chain will identify the vendors who will work exclusively with the company and house them in the park. The product will be initially sold in Kerala once the jewellery park is commissioned, and at a later date, the jewellery made in this park will be sold to other states in south India.

 

Thursday, shares of Kalyan Jewellers closed 0.13% up at INR 590.95 on the National Stock Exchange. End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Deepshikha Bhardwaj

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.