Kalyan Jewellers to invest Rs 1000 cr in FY'15 on expansion
Mar 16 2014 , New Delhi
The Kerala-based company has 52 showrooms in India and six in the UAE. It is adding three more stores in the national capital this month with an investment of Rs 150 crore.
"We will open 19 new showrooms in the 2014-15 financial year, of which 10 will be in India and nine abroad. The total investment would be Rs 1,000 crore on the expansion," Kalyan Jewellers Executive Directors Ramesh Kalyanaraman said.
He said the investment would be funded through internal accruals and debt.
"After this expansion, the total number of stores would reach 80 by end of next fiscal," he added.
Asked about company's turnover, Kalyanaraman said the sales turnover is estimated to rise to about Rs 9,400 crore in this fiscal from Rs 8,400 crore in the previous year.
Out of total turnover estimated for this fiscal, about Rs 300 crore would be from overseas.
On the turnover outlook post-expansion, he said: "We are targeting a turnover of Rs 15,000 crore in 2014-15 fiscal, of which Rs 4,000 crore is expected from overseas".
Asked about reports of stake dilution, Kalyanaraman said the company has got offers from private equity players but there is no immediate plan to raise funds.
"We have been approached by many private equity players from past one year. They have offered Rs 1,000-1,500 crore for a stake less than 10 per cent. But, as of now there is no plan to dilute stake and raise funds," he added.
Elaborating on the expansion, Kalyanaraman said three stores each would be opened in Kuwait and Qatar and one in Bahrain and two in UAE.
In domestic market, the company would foray into the West Bengal market and would add more stores in Mumbai.