Kalyan Jewellers plan to grow from jewellery advance purchase schemes

By

Isabelle Crossley

Published
Mar 12, 2019

Kalyan Jewellers expects to see 25 percent growth from its jewellery advance purchase schemes, following the government’s move to ban unregulated jewellery deposit schemes.

On March 12, an official at Kalyan Jewellers reported that the business foresees growth in its jewellery advance purchase schemes. The schemes allow customers to make payments over 11 months before receiving the brand’s jewellery.

On February 21, the government passed the Banning of Unregulated Deposit Schemes Ordinance, which banned all unregulated jewellery deposit schemes, with or without interest. As Kalyan Jewellers’ scheme is regulated and duly approved by the Ministry of Corporate Affairs, it expects to reap the benefits of this new directive.

"Kalyan Jewellers is eyeing significant growth in its base of jewellery purchase advance scheme,” said Kalyan Jewellers’ executive director Rajesh Kalyanaraman in a statement as reported by the Press Trust of India. “We believe that there is a potential to grow our revenues from our jewellery advance schemes by 25 per cent." 

"The recent ordinance is consistent to the continued efforts to formalise the jewellery sector,” said Kalyanaraman. “The gap that existed in the governance of the jewellery advance purchase schemes has been corrected with sole proprietorship and partnership firms being brought under the regulatory environment. It will result in a level playing field for the industry."

Kalyan Jewellers has been running its jewellery advance purchase schemes since 2016 (after stopping a previous scheme in 2014 due to regulations) and offers “Dhanvarsha” and “Akshaya” schemes. The brand has 102 stores in India and 32 international stores and reported a turnover of Rs 10,500 crore ($1.6 billion) in the 2018 financial year.