Warburg Pincus invests Rs 1,200 cr in Kalyan Jewellers

Warburg Pincus invests Rs 1,200 cr in Kalyan Jewellers

Private equity firm Warburg Pincus has taken a minority stake in Thrissur-based Kalyan Jewellers for Rs 1,200 crore, the jewellery firm said on Monday.

A Kalyan Jewellers release said that an affiliate of Warburg Pincus had taken the minority stake in the firm, adding that this is the largest private equity investment in the jewellery manufacturing and distribution industry in the country.

T S Kalyanaraman, Chairman and Managing Director, Kalyan Jewellers, said that the firm is eyeing Rs 25,000 crore revenues by foraying into new markets, and enhancing its global presence to drive growth. He did not give a timeline for the revenue target.

“Jewellery is one of the largest consumption categories in India. We look forward to working with Warburg Pincus as we continue to build on our foundation and move onto our next phase of growth,” Kalyanaraman said.

Kalyan Jewellers has established a presence across all major markets in South India, Maharashtra, Gujarat, National Capital Region (NCR) and Punjab. Presently, it has a network of 55 exclusive outlets in India and six exclusive outlets in the United Arab Emirates designed to provide customers with a unique, premium shopping experience.
Kalyaranaraman said that Kalyan Jewellers was the first to pioneer the use of detailed price tags, thus demystifying making charges and providing increased transparency to customers, which has become a best practice in the industry.

The company’s customer-centric approach will be enhanced by offering more choices in the bespoke design segment and strengthening its ability to offer affordable studded jewellery to the consumerism Kalyanaraman said.

Kalyan Jewellers is pursuing a two-pronged approach its distribution and product strategy. In the domestic market, the company plans to enhance the number of exclusive outlets in existing markets as also foray into newer regions with emphasis on the North and the West of the country.

The company also plans to rapidly scale up its global presence in the Middle East (foray into Kuwait and Qatar) and South East Asia (foray into Singapore and Malaysia). It will add over 28 new outlets in the next six months enhancing its distribution network significantly.

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