Kalyan Jewellers is shifting part of its expansion strategy towards localisation, building a multi-brand portfolio to compete with regional jewellery chains that have traditionally held an advantage through deep community ties and knowledge of local tastes.
The jewellery retailer, which has grown from a single showroom in Thrissur into a pan-India and international player, is preparing to scale a new regional brand, Akshaya Thanga Maligai (ATM), initially in Tamil Nadu. The brand is targeted at value-conscious customers looking for traditional Tamil designs and will compete directly with local organised and unorganised jewellers on design and pricing.
The move marks a shift from Kalyan’s earlier strategy of building one national jewellery brand towards a multi-brand model where different formats target different customer segments, price points and regional preferences.
In its latest annual report, Kalyan said Indian jewellery customers differ substantially in terms of age, purchasing power, lifestyle and regional traditions, making it difficult for a single retail format to serve every market with equal relevance. Its portfolio now comprises the flagship Kalyan Jewellers brand, digital-first lifestyle brand Candere and ATM, its new regional brand.
The local brand is designed specifically around this gap.
The company aims to offer pure, traditional Tamil designs at competitive prices, targeting customers who currently prefer regional jewellers over national chains. The brand is also intended to act as an entry point into the broader Kalyan ecosystem.
The company has said regional brands will form part of its FY27 strategy to widen its reach and strengthen distribution in underpenetrated markets.
Moving beyond South India
The regional-brand push comes as Kalyan seeks to reduce its dependence on its traditional South Indian base.
As of March 31, 2026, 70% of Kalyan’s showrooms were outside South India. The company had 342 Kalyan showrooms in India, 41 international showrooms and 124 Candere stores at the end of FY26.
Kalyan’s domestic expansion is increasingly being driven by the Franchisee-Owned, Company-Operated (FOCO) model. Under the model, franchise partners invest in showroom infrastructure, while Kalyan controls merchandising, inventory, customer experience and brand standards. This allows the company to expand without a proportionate increase in capital deployment.
The company added 129 showrooms across the Kalyan and Candere formats in FY26, taking its global showroom network to 507, including its first UK store.
For FY27, Kalyan’s focus is to continue expanding through the asset-light FOCO model, increase its contribution from non-South India, accelerate Candere and launch the first regional jewellery brand.
The strategy also extends to product design. The jewellery retailer is using regional design expertise, local sourcing relationships and hyperlocal insights to speed up design turnover and tailor collections to individual markets. It has also introduced 14-karat and 9-karat studded jewellery to cater to demand for lighter and more affordable products in markets where lower-karat jewellery has an established customer base.
Opportunity in rural markets
Kalyan’s regional strategy is also tied to the large opportunity in India’s rural and semi-urban jewellery market.
Citing industry estimates, the annual report stated that rural and semi-urban India account for more than 60% of the country’s gold jewellery demand. It also notes that organised retail penetration remains limited in these markets because of infrastructure and cost challenges.
As of March 2026, non-metro markets accounted for 73% of its standalone Indian showroom network. The company is also using its 1,139 My Kalyan centres and 4,375 outreach personnel to reach customers without holding retail inventory at these neighbourhood centres. The network focuses on lead generation, customer outreach and doorstep engagement, and connects potential customers with nearby Kalyan showrooms.
The My Kalyan network established more than 10 million customer connections annually and contributed around 20% of India’s operating revenue, according to the company’s annual report.
Kalyan plans to further expand this network in FY27, alongside the launch of its regional brand. The company says the new format will offer affordable, community-specific staple jewellery reflecting local traditions and regional heritage.
The broader backdrop is a shift towards organised jewellery retail. Kalyan’s report highlights that buying decisions are increasingly influenced by brand trust, transparency, hallmark certification and official billing, while unorganised retailers continue to have a significant presence in smaller cities and rural areas.
Kalyan to repay remaining India non-gold debt this year
Alongside expansion, Kalyan is continuing to work on its balance sheet.
The company’s standalone gross debt declined from ₹24,152 million in FY23 to ₹16,001 million in FY26, with non-Gold Metal Loan (non-GML) debt falling sharply from ₹13,241 million to ₹3,168 million over the same period.
Kalyan’s FY27 outlook targets ₹13,000 million of gross debt, entirely comprising Gold Metal Loans, implying zero non-GML debt. The company has also said proceeds from the sale of non-core assets will support balance-sheet optimisation.
The company expects its return profile to improve further, with return on capital employed (ROCE) having risen from 17.4% in FY23 to 28.8% in FY26.
Kalyan says the FOCO model has allowed it to expand its network while reducing the amount of capital required for each new showroom, freeing operating cash flow for debt reduction, existing-store investments and new growth opportunities.
From jewellery counters to AI
Kalyan is also trying to make jewellery shopping more technology-led as it builds its multi-format retail network.
The company is investing in virtual try-ons, 3D product views, assisted selling through video and chat, real-time inventory visibility, customer analytics and store-to-door fulfilment.
The technology push is particularly relevant for Candere, which began as a digital-first jewellery business and is now rapidly expanding its physical footprint. Candere’s revenue surged 160% to ₹4,253 million in FY26, while it turned PAT positive in the second half of the year. Its showroom network expanded to 124 stores, and Kalyan plans to add another 50 Candere stores in FY27.
Its FY27 priorities include deeper data-driven customer engagement and stronger lifecycle marketing.
