- Gems & Jewellery
TS Kalyanaraman, Chairman, Kalyan Jewellers
"The company has set an ambitious target of 100 showrooms by 2015. We plan to invest Rs20bn in FY14."
TS Kalyanaraman, Chairman, Kalyan Jewellers was born in Thrissur City to Seetharamaiyer. He learned the business from his father when he was 12 by helping his father in his shop. Later he joined Sree Kerala Varma College and studied commerce. He started his first jewellery shop named Kalyan Jewellers in Thrissur City in 1993 with a capital of Rs 75 lakh. Later he expanded the business to 32 showrooms all over South India.
Kalyan Jewellers is the flagship of the 100-year old Kalyan Group with its origins in textile manufacturing and retailing. The group’s forayed into jewellery retailing two decades ago in 1993, and has retail store strength of 45 showrooms across the 4 southern states and Gujarat. Kalyan Jewellers is a clear market leader in most of the markets it operates. Kalyan Jewellers is in the midst of a major expansion spree and is poised to enter Gujarat and Maharashtra in 2013.
Replying to Yash Ved of IIFL, T.S. Kalyanaraman says "The company has set an ambitious target of 100 showrooms by 2015. We plan to invest Rs20bn in FY14."
How many retail stores are you planning to open for FY2013 and FY2014?
Kalyan Jewellers is all set to open three showrooms in Mumbai. All three showrooms will open on 24th March 2013 .The showrooms are located in Vashi, Thane, and Borivali
The company is planning to open 20 more showrooms in the financial year 2013 -2014 and internationally in FY 2013-14 with an investment of Rs 13bn.
The next showrooms in Surat, Mumbai and Pune will be opened in the first quarter of 2013.
The company has set an ambitious target of 100 showrooms by 2015
What is your outlook on the jewellery industry?
The outlook is positive. India’s gem and jewellery industry is a bright star of the economy and an important foundation of the country’s export led growth. The country is the largest consumer of gold, accounting for more than 20% of the total world gold consumption. Gold jewellery forms around 80% of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes diamond and gemstone studded jewellery. A predominant portion of the gold jewellery manufactured in India is consumed in the domestic market.
The size of the Indian gems and jewellery market was US$30.1 bn in 2011 and is expected to be USD 45 billion by 2015 on the back of increasing domestic demand. The country is one of the largest exporters of gems and jewellery and the industry is considered to play a vital role in the Indian economy as it is a leading foreign exchange earner. The sector is expected to generate up to USD 35 billion of revenue from exports by the year 2015. The countries where demand is increasing for Indian jewellery include the UAE, the US, Russia, Singapore, Hong Kong, Latin America and China.
What are your investment plans?
We plan to invest Rs20bn in the financial year 2013 -2014
Which are your target cities?
We would like to expand our footprints pan India. But we are doing the same in a phased manner with a combination to Metro’s and tier one & two cities. Life Mumbai will be followed by Pune. Likewise Ahmedabad was followed by Vardodra & Rajkot.
Is there a right time to buy Gold?
Every day is a good day to buy gold. In India there are occasions like Dhanteras and Akshay Trithya where it is considered auspicious for households to buy gold. Diwali, rakhee and the wedding season see a huge surge in demand for gold.
Any new initiatives to educate the customer?
Kalyan has been at the forefront of pioneering efforts to educate the public of cheating and malpractices in gold quality and pricing through their campaign ‘Fight against Impure Gold”.
Where do you see gold prices headed?
Gold price in the coming few months can't be predicted but we don't expect a huge growth nor a downfall.