Are you interested in starting a gold shop franchise? Look no further than Kalyan Jewellers, one of the leading jewelry franchises in India. With a rich history and a strong brand presence, Kalyan Jewellers offers a unique opportunity for entrepreneurs to join a successful and growing business. In this article, we will delve into the details of Kalyan Jewellers franchise, including the costs, requirements, and potential returns on investment. By the end of this blog, you’ll have a clear understanding of whether a Kalyan Jewellers franchise is the right investment for you.
Franchise Brand Profile
| Brand Name: Kalyan Jewellers |
| Founder Name: T.S. Kalyanaraman |
| Founded Year: 1993; 31 years ago |
| Last year Revenue: Approximately INR 10,100 crore |
| Key people: T. S. Kalyanaraman (Chairman & MD), Sanjay Raghuraman (CEO) |
| Total Outlets: 190+ (stores across India and the Middle East) |
| Parent organization: Kalyan Jewellers FZE |
| Number of employees: 8,000 |
| Headquarters: Thrissur, Kerala, India |
| Brand ambassadors: AMITABH BACHCHAN, KATRINA KAIF, PRABHU GANESAN, AKKINENI NAGARJUNA, SHIVA RAJKUMAR |
About Kalyan Jeweller brand:
Kalyan Jewellers is a renowned jewelry brand founded by T.S. Kalyanaraman in 1993 in Thrissur, Kerala. Over the years, the brand has expanded to become one of the largest jewelry retailers in India, with over 190 stores across the country. Kalyan Jewellers is known for its exquisite designs, high-quality products, and exceptional customer service. Kalyan Jewellers is one of the oldest business families in India with a family legacy of 112 years in business.
Kalyan Jewellers entered International markets by opening 6 showrooms on the same day in UAE. Since then it has grown to operate 30 showrooms in the Middle East across UAE, Qatar, Kuwait and Oman.
Product lines:
Kalyan Jewellers has launched various product lines. Some of their jewellery collections are:
- Muhurat – Wedding jewellery
- Mudhra – Handcrafted antique jewellery
- Nimah – Timeless heritage jewellery
- Anokhi – Uncut diamond jewellery
- Rang – Precious stones jewellery
- Tejasvi – Polki diamonds jewellery
- Ziah – Diamond jewellery collection
- Laya – Contemporary gold & diamond jewellery
- Glo – Dancing diamond jewellery
- Vedha – Heritage jewellery with Uncut diamonds
- Apoorva – Diamonds
- Hera – Daily wear diamonds
Kalyan Jewellers franchise investments (Breakdown👇🏻)
To become a Kalyan Jewellers franchisee, you’ll need to be prepared for a significant investment.
The investment required to start a Kalyan Jewellers varies depending on several factors such as location, store size, and product range. Here is a general breakdown of the investment requirements:
Key Details of Kalyan Jewellers franchise investments:
| Franchise Fee: ₹50 lakhs to ₹1 crore |
| Infrastructure Investment: ₹1 crore to ₹5 crores |
| Marketing and Advertising: ₹50 lakhs to ₹1 crore |
| Working Capital: ₹50 lakhs to ₹1 crore |
| Required Space: 1,000 – 1,500 sq ft |
| Other Expenses: Marketing, legal, and operational costs |
| Franchise Agreement period: 10 years |
| The layout should allow space for 8-10 employees to work comfortably. |
Franchise Fee: The initial franchise fee is approximately INR 1 crore. This fee grants you the license to operate under the Kalyan Jewellers brand name.
Setup Cost: This includes the cost of setting up the store, which can range from INR 3 to 5 crores, depending on the location and size of the outlet.
Inventory Cost: An initial inventory investment of around INR 10 to 15 crores is required to stock the store with a wide variety of jewellery.
Working Capital: You should have a working capital of at least INR 2 crores to manage day-to-day operations.
Other Costs: Additional costs may include marketing, staff training, and miscellaneous expenses, summing up to around INR 50 lakhs.
Total Estimated Investment: INR 16 to 22 crores
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Kalyan Jewellers Franchise Profit
The profit margins in the jewellery business are generally high, and Kalyan Jewellers is no exception. Here’s what you can expect in terms of profitability:
Gross Margin: The gross margin on jewellery sales can range from 15% to 25%, depending on the type of jewellery and market conditions.
Net Profit: After accounting for operating expenses, the net profit margin typically falls between 8% and 12%.
Considering these margins, a well-performing Kalyan Jewellers franchise can expect to generate an annual profit of INR 2 to 3 crores within a few years of operation, assuming steady sales and efficient management.
Documents Required for Kalyan Jewellers Franchise
Aspiring franchisees will need to submit the following documents during the application process:
- Identity Proof: PAN card, Aadhar card, or passport.
- Address Proof: Utility bills, rental agreement, or property documents.
- Business Plan: A detailed business plan outlining your strategy for operating the franchise.
- Financial Documents: Bank statements, income tax returns, and proof of funds.
- Legal Documents: Any necessary licenses or permits required to operate a retail store in your location.
Kalyan Jewellers Media
Kalyan Jewellers Franchise Worth the Investment? (Advantages & Disadvantages)
Advantages
- Established Brand: Kalyan Jewellers is a well-established brand with a strong reputation in the Indian jewelry market.
- Diverse Product Range: The brand offers a diverse range of jewelry products, catering to various tastes and preferences.
- Exceptional Customer Service: Kalyan Jewellers is known for its exceptional customer service, ensuring customer satisfaction and loyalty.
- Financial Viability: The franchise offers a lucrative business opportunity with an average ROI of 80% within two years.
Disadvantages
- High Investment: The investment required to start a Kalyan Jewellers franchise is substantial, which may be a barrier for some entrepreneurs.
- Competition: The jewelry industry is highly competitive, and Kalyan Jewellers faces competition from other established brands.
- Market Fluctuations: The demand for jewelry products can fluctuate based on market trends and economic conditions.
Conclusions:
Starting a Kalyan Jewellers franchise can be a lucrative business opportunity for entrepreneurs looking to invest in the jewelry industry. With a strong brand reputation, diverse product range, and exceptional customer service. If you are interested in starting a Kalyan Jewellers franchise, ensure you meet the necessary requirements and provide the required documents to get started.
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FAQ:
Kalyan Jewellers offers a lucrative business opportunity with an average ROI of 80% within two years. However, the investment requirements are substantial, and the franchise faces competition from other established brands.
No, franchisees are required to exclusively sell Kalyan Jewellers’ products and are prohibited from offering competing brands within the same premises
Yes, Kalyan Jewellers may assist qualified franchisees in securing financing options through their partner banks or financial institutions.
The franchise agreement typically lasts for a period of 5 to 10 years, with an option for renewal upon satisfactory performance.
To apply for a Kalyan Jewellers franchise, you need to provide the following documents: franchise agreement, proprietor Aadhaar copy, proprietor photo, proprietor / business PAN copy, business TAN copy, GST registration certificate, proprietor / business address proof, unit / shop address proof, and NOC of unit / shop.
The royalty fee is 5% of monthly sales.
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