Kalyan Jewellers to accelerate expansion through franchise model from H1 FY23

Currently, the company has 151 company-owned showrooms in 21 states and four countries in the Middle East.

New Delhi: Kalyan Jewellers is planning to enter the franchise model in the first half of the next financial year to accelerate expansion mainly in the non-southern India market, 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 told PTI.

After the evaluation of the performance of the pilot, the company will expand through the franchise route, which will be in addition to the usual opening of the Kalyan Jewellers-owned stores every year, he further added.

"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.