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Kalyan Jewellers to invest Rs 1500 crore for expansion this year

The Economic Times :  July, 2014

Kochi: Gold jewellery chain major Kalyan Jewellers will invest Rs 1500 crore this year to increase its network of showrooms across India and Middle East and to convert its cutomer service centres to mini diamond outlets to make diamonds available to the customers at affordable rates.

Considering the rising demand for diamonds, Kalyan Jewellers is converting its customer centres set up to raise awareness on the purity of jewellery,the malpractices in the industry and for services like wedding purchase planning, tostores selling diamonds in the range of Rs 5000 to Rs 15,000.

Titled My Kalyan, the company will initially pump in Rs 100 crore for the programme for changing over 350 customer centres in Kerala, Tamil Nadu and Karnataka , starting from this week.

"We want to break the misconception that diamonds are not meant for common man. We expect a revenue of Rs 200 to 250 crore in the first year from these mini diamond outlets alone," TS Kalyanaraman, chairman and managing director of Kalyan Jewellers told mediapersons. The company is planning 1000 such centres across the country by the end of 2016.

Major chunk of this year's outlay will go for expanding its retail showroom foot print. Kalynaraman said it will add 17 more showrooms in India to its existing 55 outlets at an investment of Rs 900 crore. New shops will come up in Kerala, Mumbai, Kolkata, Bangalore, Noida, Gurgaon and Bhubaneswar.

Another Rs 500 crore has been earmarked for widening its network of shops in the Middle East. where it currently has six outlets. These showrooms will come up at Dubai, Abu Dhabi, Kuwait, Qatar and Bahrain.

Kalyan Jewellers has targetted a sales turnover of Rs 9600 crore in the current year. At present 10 per cent of its sales is from diamonds. The group expects diamond sales to shoot up after the opening of mini diamond stores.