Kerala-based Kalyan Jewellers plans to open 20 stores this financial year to meet its revenue target of Rs 13,000 crore.
After entering the Chennai market last year, the jewellery manufacturer inaugurated two stores here today, taking the total number of outlets in the city to five with investments of up to Rs 430 crore, according to its Executive Director Ramesh Kalyanaraman.
“We are on expansion mode now. We have opened two showrooms in Chennai with investments of Rs 150 crore. As of March 2016, we were the first to cross revenues of Rs 10,000 crore. This year, we are looking at revenues of Rs 13,000 crore,” he said.
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The company plans to open 20 showrooms this financial year, he said, adding that six had already been inaugurated.
The jewellery major has earmarked Rs 900 crore for its expansion plans and is entering Madhya Pradesh and Uttar Pradesh markets.
“We have earmarked Rs 900 crore for expansion. We are also looking at entering Malaysia and Sri Lanka next year,” he said, adding the company has emerged as the preferred jewellery brand, particularly for Indian customers in the Middle East.
With the launch of two showrooms in Chennai, the firm’s total number of outlets will reach 102. “About 20 showrooms are there in Middle East, and the remaining in India,” he said.
The company has seen 2,500 footfalls on an average every week and has looked at expanding schemes with the launch of the Kalyan Priority Programme.
“What we are launching is a different scheme programme. For example, a customer pays Rs X amount in the first month, he needs to pay the remaining amount after completion of 11 months.
“The priority scheme is targeted at different customers, while the gold chit scheme is for another set of customers. This is a first of its kind scheme to be launched by a jewellery retailer,” he said.
Kalyan Priority membership starts from Rs 2,000, enabling customers save up to Rs 30,036 in one year as there are no making charges, he said.
Noting that Tamil Nadu ranked first in terms of revenue for the company, followed by Kerala, he said the company is on track to achieve breakeven. “Last year, we invested in the Chennai market. We are on track of achieving breakeven.”
To a query, he said the company allocates 1.5 to 2 per cent of their total revenue for brand promotion.