Kalyan Jewellers Expands to Drive Accelerated Growth Beyond South India

Kalyan Jewellers (NSE: KALYANKJIL), a jewelry chain rooted in South India, is gearing up for rapid expansion by shifting its focus to regions beyond its traditional stronghold. In 2023, the company opened 24 new stores in non-South Indian states, a sharp contrast to just two new stores within its home region. Historically, Kalyan Jewellers has primarily focused on South India, which accounted for 50% of its revenue in 2023. However, it is shifting focus towards northern regions to drive further growth. In addition to exploring new states, the company is experimenting with franchising for store expansion. Most of Kalyan Jewellers’ new stores in non-South India are via franchisees.

According to consensus estimates from Visible Alpha, non-South India is projected to contribute 58% to the company’s total revenue by 2026, a significant increase from its 33% share in 2023. Between 2024 and 2026, revenue from non-South India is expected to grow at a CAGR of 50%. In contrast, the company’s South India revenue is projected to grow at a CAGR of 9% in the same period.

Furthermore, the company is boosting its ecommerce focus through the online platform Candere, with revenue expected to grow at a 68% CAGR to ₹3 billion by 2026 from an estimated ₹1.1 billion in 2024. The company also plans to expand the offline presence of Candere. Analysts expect Candere’s store count to increase from 2 in 2023 to 22 in 2024.

Sector: Consumer Services
Industry: Specialty Stores and Retailers
Ticker: KALYANKJ_IN