FUELLING GROWTH DRIVING EXPANSION
Dear Shareholders,
I am excited to share yet another Annual Report, which highlights our robust progress.
The demand for jewellery, particularly in organised retail formats, has significantly
increased, driven by rising incomes and evolving consumer preferences. This year, we are
committed to reaching new heights, achieving greater milestones, and continually evolving
to meet the aspirations of our diverse customer base.
THE MACRO OVERVIEW
India's economy has demonstrated remarkable resilience and growth, emerging as one of
the world's fastest-growing major economies. Despite global economic uncertainties, India
has maintained a robust GDP growth rate, driven by strong domestic consumption,
substantial foreign investments, and a booming digital economy.
The positive macroeconomic environment in India has had a direct and favourable impact
on the jewellery industry. Increased disposable incomes have fuelled a growing demand for
jewellery, particularly in organised retail formats. As the economy expands, consumers are
becoming more aspirational, seeking quality and branded jewellery. The government's push
for digital transactions and formalisation of the economy has also enhanced transparency
and trust in the sector.
A notable shift is underway from unorganised to organised retail, driven by changing
preferences among younger consumers, government initiatives to formalise the sector, and a
demand for a superior shopping experience. Our ability to capture a significant share of
this shifting demand is a testament to our strategic positioning and brand strength. Also,
immediately after the pandemic- induced lockdowns, a significant number of customers who
transitioned from the unorganised segment have remained loyal, contributing to higher and
more profitable business over the last couple of years. This trend underscores the
enduring appeal and trust in our brand, ensuring sustained growth and evolution in the
jewellery industry.
"This year, we are committed to aspiring to new heights, achieving greater
milestones, and inspiring the next generation. Our goal is to create a meaningful
connection with younger customers, ensuring that our brand evolves with time."
OUR PERFORMANCE
In FY24, our Company achieved impressive financial results, surpassing previous
benchmarks with a revenue exceeding C185,000 million and a Profit After Tax (PAT) of
C5,963 million. This marked a substantial revenue growth of approximately 32% and a Profit
After Tax (PAT) growth of approximately 38%. As we embarked on the financial year, our
objectives were clear: to drive revenue growth, enhance cash flow, optimise return on
capital, and deliver value to our shareholders. Looking ahead, we are strategically
planning to utilise the free cash generated in the current financial year to further
reduce our Non-GML loans, aiming to achieve a significant reduction by March 2025, thereby
strengthening our financial position and enhancing shareholder value.
CANDERE'S NO EXPANSION AND DIGITAL DOMINANCE
Candere made significant strides in its expansion, launching its first FOCO showroom
and reaching eight FOCO showrooms by March 31, 2024. With 50 Letters of Intent signed for
the ongoing fiscal year, growth prospects are strong. We have shifted to an omnichannel
approach.
By the end of FY24, we had 13 showrooms (eight FOCO and five COCO). In the first three
months of FY25, we added 11 more, totaling 24 active showrooms, with plans to open another
30 before Diwali. Our omnichannel strategy will drive growth. Last year, we achieved
C1,303 million in revenue, primarily from digital channels. This digital-first approach,
combined with showroom experiences, enriches the consumer journey. Our aggressive showroom
expansion will enhance this channel, integrating our digital capabilities and physical
storefronts to boost revenue and market presence.
THE JOURNEY TOWARDS VISION 2025
In the ongoing financial year, our expansion strategy is multifaceted and strategic. In
FY25, Kalyan Jewellers in India is set to increase its footprint by 40% and for Candere we
are planning to add 50 showrooms. Simultaneously, our focus extends to the Middle East and
international markets, where we plan to open six new showrooms in FY25, while converting
existing stores to franchised ones to optimise capital investment. This shift reflects our
goal to transition the Middle East into a predominantly franchisee driven market in the
coming years. Despite receiving inquiries from diverse regions like Singapore, the UK,
Canada, and Australia, our immediate priority remains the Middle East and our US market
entry, with the first store expected to be operational by the end of first half of FY25.
We are taking a methodical approach to our digital-first platform, Candere, handling
operational and managerial transitions.
I express my deepest appreciation to all our stakeholders— our dedicated staff,
loyal customers, and supportive shareholders. It is their trust in Kalyan that forms the
bedrock of our success. Together, with our shared vision and collective efforts, I am
confident that we will continue to evolve, thrive, and surpass the expectations of each
stakeholder.
Warm regards,
T. S. Kalyanaraman
Managing Director