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Kalyan Jewellers is set to significantly ramp up its footprint by opening 170 new stores in FY 2025-26 through a franchise-led expansion strategy, aiming to lighten its debt load and strengthen its presence in domestic and international markets.
Of the 170 planned outlets, 90 will be under the flagship Kalyan brand, with seven located overseas in the US, UK, and Middle East. The company also plans to add 80 stores under its lifestyle jewellery brand Candere, primarily in Indian markets, according to Executive Director Ramesh Kalyanaraman.
“We are focusing on non-south Indian cities across tier I to IV segments. The franchise model allows us to scale quickly without significant capital outlay, and excess cash flow will be directed towards debt reduction,” Kalyanaraman told PTI.
As of June 30, Kalyan Jewellers operated 406 stores globally, including 287 in India, 36 in the Middle East, 2 in the US, and 81 Candere outlets.
The company, headquartered in Thrissur, has allocated ₹350–400 crore in capital expenditure for maintenance and inventory this fiscal. Because new stores will follow the franchise model, Kalyanaraman noted there will be no direct investment from Kalyan for expansion.
The jewellery major is also targeting a ₹300 crore reduction in its Gold Metal Loan (GML) liabilities this year, following a ₹400 crore debt reduction in the previous fiscal. “As we reduce debt, mortgaged land assets will be released, which can be reinvested to strengthen our balance sheet,” he added.
Candere’s international expansion will remain limited in the short term, with a new store in Dubai expected next quarter. Broader global growth for the brand is slated for 2027-28.
Internationally, Kalyan will enter the UK market this fiscal while continuing to expand in the US and Middle East. The company is also evaluating future opportunities in Australia, Malaysia, and Singapore, where it sees strong demand from the Indian diaspora.
In manufacturing, Kalyan is developing a dedicated contract manufacturing hub in Thrissur, consolidating its supply chain. The company currently works with over 1,000 contract manufacturers nationwide.
Despite economic uncertainties, Kalyanaraman expressed optimism, citing consistent double-digit same-store sales growth over the past 8–9 quarters and favorable monsoon conditions supporting consumer sentiment.
Kalyan Jewellers posted consolidated net revenue of ₹5,557.63 crore in Q1 of FY26. Its current market share in India’s organised jewellery segment stands at 8–9%, with expectations to grow by over 1% annually.
“We are confident the expansion strategy and improving macro trends will drive strong performance ahead,” Kalyanaraman said.
(Source: PTI)
