Kalyan Jewellers to invest Rs 1,000 crore on expansion

Kalyan Jewellers to invest Rs 1,000 crore on expansion

Jewellery retailer Kalyan Jewellers will invest Rs 1,000 crore next fiscal to expand its presence in India and overseas as part of its growth plan.

The Kerala-based company has 52 showrooms in India and six in the UAE. It is adding three more stores in the national capital this month with an investment of Rs 150 crore.

“We will open 19 new showrooms in the 2014-15 financial year, of which 10 will be in India and nine abroad. The total investment would be Rs 1,000 crore on the expansion,” Kalyan Jewellers ED Ramesh Kalyanaraman said. He added the investment would be funded through internal accruals and debt.

“We have been approached by many private equity players from past one year. They have offered Rs 1,000-1,500 crore for a stake less than 10 per cent. But, as of now there is no plan to dilute stake and raise funds,” he added.

Elaborating on expansion, he said, “After this expansion, the total number of stores would reach 80 by end of next financial year.”

Kalyanaraman said the sales turnover is estimated to rise to about Rs 9,400 crore in this financial year, up from Rs 8,400 crore in 2012-13.