Kalyan Jewellers Eyes Franchise-Led Expansion to Slash ₹300 Cr Debt

Kalyan Jewellers, one of India’s most trusted jewellery brands, is taking a refreshingly bold approach this year. The company has set its sights on opening 170 new stores, but here’s the twist — it won’t be doing it alone. Instead of pouring in hundreds of crores to expand the old-school way, Kalyan Jewellers is letting franchise partners do the heavy lifting.

Now that’s a smart move, especially when you’ve got a debt target of ₹300 crore to slash this year.

🚀 Franchise First, Heavy Debt Last

If you’ve followed Kalyan’s story over the years, you know they’ve been steadily reducing debt. Last year alone, they brought it down by ₹400 crore. This year? They’re aiming for another ₹300 crore cut — and franchising is the key.

Why? Because owning every single store is expensive. Real estate, interiors, staff, security… it adds up fast. Franchising, on the other hand, lets local entrepreneurs invest in opening stores under the Kalyan banner, while the brand manages the operations. It’s what the industry calls a FOCO model — Franchise-Owned, Company-Operated.

Simple idea. Big impact.

🏪 170 Stores, 2 Brands, 1 Mission

Out of the 170 planned stores, 90 will be under the flagship Kalyan brand, and 80 under its younger, flashier sibling, Candere, which focuses more on the fashion-forward, digital-savvy crowd. Seven of these new stores will pop up outside India, including in the US, UK, and the Middle East.

Candere’s international plans, though, are being kept on the backburner for now. The brand still needs to settle into its groove in the Indian market.

📉 Debt Isn’t Glamorous — But Reducing It Sure Feels Good

Let’s be honest. Debt reduction isn’t as flashy as opening new showrooms or launching gold collections. But it’s incredibly important.

Much of Kalyan’s earlier debt was tied up in Gold Metal Loans — loans taken against mortgaged land or gold. As they repay these, not only do they clear the books, but they also get their land assets back. That’s land they can reuse, lease, or develop. Think of it as getting your old house keys back after years of being locked out.

And this fiscal, they’re doing it while keeping capital expenditure in check — just ₹350–400 crore, which is impressive for a business growing this fast.

🌍 Not Just India – The World’s Watching

As of June 2025, Kalyan had a footprint of 406 stores — with 287 in India, 36 in the Middle East, two in the US, and 81 under Candere.

Now they’re going further. Overseas franchisees will handle the front-end investment while Kalyan oversees the experience and branding. It’s a sweet deal — expand globally without stretching finances too thin.

They’re not diving blindly either. Kalyan’s international plans are cautious, focused, and frankly, a little wise. No “let’s open in every country at once” vibes here. It’s more like, “Let’s win the Indian diaspora and build from there.”

📈 Revenue’s Good, Market Share’s Better

If you’re wondering whether all this is a sign of desperation, not at all. Kalyan is riding high. Q1 FY26 revenue stood at ₹5,557 crore, and the same-store sales growth has been solid for 8–9 quarters in a row.

They’ve captured about 8–9% of India’s organised jewellery market, and they’re gunning for more. According to analysts, the branded jewellery space is expected to grow at around 20% CAGR through 2028.

Kalyan wants a big piece of that pie — and their strategy suggests they know exactly where to cut and where to invest.

🏗️ Behind the Curtains: Manufacturing Overhaul

On the backend, they’re setting up a contract manufacturing hub in Thrissur. Why does this matter? Because Kalyan currently works with over 1,000 contract manufacturers, centralising that means better quality control, faster production, and, hopefully, fewer headaches.

Smart move.

⚠️ Risks? Of Course. But They’re Calculated.

Sure, this all sounds great, but no plan is bulletproof. Here are a few things Kalyan will need to watch out for:

• Franchise consistency – Brand image could take a hit if franchisees don’t maintain standards.
• Profit pressure – Opening too many stores too fast can eat into margins, especially in smaller towns.
• Gold price volatility – Always a wildcard in the jewellery business.

But they’re aware of this. They’ve slowed Candere’s international growth. They’ve centralised manufacturing. They’re cautious about overseas expansion. All signs of a company that’s learning as it grows.

Read: How to Start an Artificial Jewellery Business

💡 Final Thoughts

Here’s the thing — Kalyan isn’t just expanding. They’re evolving.

This isn’t the same Kalyan that was scrambling to stay competitive in the early 2010s. This is a leaner, smarter, more strategic version of the brand. They’re still deeply rooted in tradition, but they’re not afraid to modernize the way they grow.

They’ve got a dual-brand approach. They’ve got a FOCO model that keeps costs down. They’re cutting debt while expanding faster than ever. And if they keep at it, don’t be surprised if they soon challenge the dominance of Tanishq.

One thing’s for sure — this isn’t a brand just selling jewellery anymore. It’s building a business empire — one franchise at a time.