Mumbai (Maharashtra) [India], August 28: Established in 1971 by Tarachand Mehta and incorporated in 1996, Khazanchi Jewellers Limited (KJL) has solidified its presence in India’s jewellery industry.
Based in Chennai, Tamil Nadu, the company is renowned for its extensive range of gold, diamond, and precious stone jewellery, catering to wholesale and retail markets.
KJL offers various products, including necklaces, rings, earrings, and bangles, which are suitable for everyday wear, festive occasions, and weddings.
According to a news release by Big News network, the Indian gold industry, contributing 1.3% to the GDP, has undergone significant changes over the past decade due to shifts in consumer behavior and new government regulations to formalize the sector.
The release added that the rise of chain stores has particularly transformed the market, with their share increasing to 35% by 2021 from just 5% in 2016.
This growth has driven innovation, focusing on product diversity and customization. Notably, 50% of gold purchases in India are linked to weddings, highlighting the importance of this market segment.
KJL has distinguished itself through its commitment to crafting exquisite wedding and festive jewellery. While the company’s business is primarily B2B, accounting for 90% of its operations, it also expands its B2C presence.
Per the release, KJL plans to open a new showroom on NSC Bose Road, Sowcarpet, Chennai, to bolster its retail footprint and increase its B2C market share to 25% within the next 2-3 years.
The company is also looking to expand beyond Tamil Nadu, which currently generates 90% of its sales.
KJL’s focus on plain jewellery, which offers high tradability and liquidity, has earned it a strong reputation in the market.
The company’s strategy of delivering exceptional value and competitive pricing has contributed to its growth and market leadership.
The release highlighted that in FY24, KJL reported a significant increase in revenue, reaching Rs 820.78 crore, up from Rs 480.66 crore the previous year.
EBITDA rose to Rs 41.78 crore from Rs 16.78 crore, and PAT increased to Rs 27.32 crore from Rs 7.56 crore, reflecting a compound annual growth rate (CAGR) of 47% in revenue and 72% in EBITDA over the past three years.
India’s position as the second-largest global consumer of gold continues to drive demand in the jewellery sector.
Recent reductions in import duties on gold, silver, platinum, and palladium, along with the Comprehensive Economic Partnership Agreement with the UAE, have further strengthened the Indian gems and jewellery industry.
The release noted that Khazanchi Jewellers continues to innovate and expand its operations, making it well-positioned for sustained success in the competitive jewellery market.
