Khazanchi Jewellers Focuses Steady Economic Growth In Gold & Jewellery Segment

Business

Mumbai (Maharashtra) [India], August 28: Founded in 1971 by Mr. Tarachand Mehta and incorporated in 1996, Khazanchi Jewellers Limited has emerged as a prominent name in the Indian jewellery industry. Based in Chennai, Tamil Nadu, KJL has built a strong reputation for its exquisite range of gold, diamonds, and precious stones, catering to both wholesale and retail markets. With a focus on high-quality jewellery, including necklaces, chains, rings, earrings, bangles, bracelets, pendants, nose pins, mangalsutras, and kadas, KJL offers a diverse selection suitable for daily wear, festive occasions, and weddings.

The gold industry plays a vital role in the Indian economy, contributing 1.3% to the GDP. Over the past decade, this sector has seen significant transformations driven by shifts in consumer behaviour and evolving government regulations aimed at increasing industry organization. Also, the rise of chain stores over the last 10-15 years has reshaped the market, with chain stores expanding their share to 35% by 2021, up from 5% in 2016. This growth has spurred innovation, with jewellers focusing on product variety and customization. Surveys reveal that 50% of gold purchases in India are made for wedding ceremonies, underscoring the importance of this segment.

KJL stands out for its commitment to creating exquisite wedding jewellery and festive pieces. Although the company has a strong B2B presence, contributing 90% of its business, it is also making strides in the B2C market.

To further enhance its retail presence, KJL is planning to open a new showroom at 286, NSC Bose Road, Sowcarpet, Chennai. This new showroom will not only enhance KJL’s B2C share but also expand its regional retail reach. The company aims to increase its B2C market share to 25% in the next 2-3 years and broaden its presence beyond Tamil Nadu, where 90% of its sales are currently concentrated.

KJL’s dedication to providing exceptional value and competitive pricing has earned it a distinguished place in the market. The company emphasizes plain jewellery, which is highly tradable and offers greater liquidity for customers. This approach, combined with a focus on repeat business and innovation, has positioned KJL as a leader in the industry.

In FY24, KJL reported impressive financial results, with revenue rising to ₹ 820.78 Cr from ₹ 480.66 Cr the previous year. EBITDA surged to ₹ 41.78 Cr from ₹ 16.78 Cr, and PAT increased to ₹ 27.32 Cr from ₹ 7.56 Cr. This growth reflects a CAGR of 47% in top-line revenue and 72% in EBITDA over the past three years.

India’s gold consumption is a significant contributor to global jewellery demand, with the country being the second-largest consumer worldwide. The reduction in import duties for gold, silver, platinum, and palladium, along with the Comprehensive Economic Partnership Agreement with the UAE, has further strengthened the Indian gems and jewellery industry.

As KJL continues to innovate and expand, it remains committed to delivering high-quality products and exceptional service. The company’s strong performance and rapid growth in the jewellery sector underscore its position as a key player in the industry, poised for continued success in the future.

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