US-based PE fund Warburg Pincus-backed Kalyan Jewellers to invest around Rs 800 crore during the current fiscal. The Kerala-based jewellery brand said that it will open 22 showrooms during the current fiscal.
T S Kalyanaraman, chairman and managing director, Kalyan Jewellers, who was in Chennai to announce Kalyan Jewellers new showroom, which he claims is the world's largest jewellery showroom, said that with the new showroom in Chennai number of Kalyan Jewellers showroom will be increased to 78 and by end of this fiscal this it will be increased to 100.
The new showroom, which will spread over in 40,000 sq ft in Chennai, was set up at a cost of around Rs 200 crore. "This will be the largest investment by us in a single store," said Ramesh Kalyanaraman, executive director, Kalyan Jewellers.
He noted, average investment by the company in a store was around Rs 40-50 crore.
At present the company got 65 exclusive showrooms in India and 12 exclusive outlets in West Asia, including nine in the United Arab Emirates and three in Kuwait.
The company is launching in Qatar with six showrooms and is also consolidating its existing presence in the NCR, Maharashtra and Kerala by opening showrooms in Gurgaon, Noida, Pune, Mumbai and Kodunagallor.
The proposed expansion will be funded through internal resources. Recently Warburg Pincus picked up minority stake in Kalyan Jewellers for Rs 1,200 crore.
To a question whether the company will look at going for an IPO or will go for further fund raising, Kalyanaraman said “as of now the company dont have any plans.”
He added, the company clocked around Rs 10,000 crore turnover in 2014-15 and targeting around Rs 13,000 crore in 2015-2016.
Commenting on the new store, he said the flagship showroom will be inaugurated on April 17 by Amitabh Bachchan along with other filmstars and brand ambassadors of Kalyan Jewellers. The Chennai store will be 50th showroom in South India and five lakh designs and 600 kg of jewellery will be stocked here.
With the launch of Chenani showroom, Tamil Nadu will be one of the largest markets, outside of Kerala, for Kalyan Jewellers with a cumulative investment of Rs 600 crore across 16 showrooms in the State. The company will open four more showrooms, which will attract around Rs 300 crore, he said.