The goal of Kalyan Jewellers is to steer the "Candere" brand in an independent direction

26 Dec 2023 , 11:07 AM

In an interview with Moneycontrol, a senior company executive stated that Kalyan Jewellers intends to expand the number of physical stores it opens in the upcoming quarters in order to boost the contribution of its Candere brand to its bottom line.

According to Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, Candere, which started out as an online store, hopes to become a destination for lightweight and studded jewellery, especially attractive to Gen Z and working women, with the opening of more freestanding offline stores.

The e-commerce segment of Candere recorded revenues of Rs 31 crore during the second quarter of FY23-24, down 16.21% from Rs 37 crore during the same time in FY22-23. However, the business is shifting gears, said Kalyanraman.

‘Candere is not hyperlocal, in contrast to Kalyan Jewellers, the flagship brand. ‘The company’s future outlook involves a synergistic relationship between Kalyan and Candere. It is a brand with standardised products available nationwide,’ stated Kalyanaraman. Now, Kalyan’s offline experience will be utilised in Candere’s retail locations.

He clarified that although Candere only makes up 1% of the company’s sales at the moment, its significance comes from its room for expansion.

Within the next two to three years, Candere hopes to reach a four-digit revenue figure, according to Kalyanaraman, who also noted that ‘the emphasis is on Candere’s independent growth trajectory, considering that both Kalyan and Candere are dynamic entities with promising futures, rather than focusing solely on the percentage contribution to the Kalyan Jewellers group.’

Supported by the Government of Singapore and the world’s largest private equity firm, Warburg Pincus, Kalyan now faces off against Titan, the leader in the jewellery business, which has 559 stores under the Tanishq, Zoya, and Mia brands.

In addition to Candere, Kalyan Jewellers intends to grow. To try to match Titan’s scale, it plans to raise the number of storefronts from 200 to roughly 400 over the next few years; but, since Titan is building 30–40 showrooms annually, a gap may still exist.

The organised jewellery market, which is now dominated by 14 major retailers, is expected to increase at a rate of 15–18% YoY in FY 2023–2024 due to the opening of new stores and a shift in customer preferences towards branded jewels.

Consolidated profit after tax (PAT) increased by 27.33% year over year to Rs 134.87 crore for the quarter that ended on September 30. Operational revenue increased by 27.11% to Rs 4,414.53 crore from Rs 3,472.91 crore during the same period in the previous fiscal year.

Credit rating agency ICRA predicts that organised jewellery retailers would beat the industry over the medium run due to retail growth and advantages from the industry’s quicker formalisation due to increased regulatory control.

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