Khazanchi Jewellers Limited: A Legacy of Excellence and Expansion

Founded in 1971 by Tarachand Mehta, Chennai-based Khazanchi Jewellers Limited is renowned for its high-quality gold and diamond jewellery. KJL is set to expand its retail presence with a new showroom in Chennai. The company has reported significant financial growth and aims to increase its B2C market share.

PNN Mumbai (Maharashtra) [India], August 28: Since its foundation in 1971 by Tarachand Mehta and its incorporation in 1996, Khazanchi Jewellers Limited (KJL) has established itself as a leading name in the Indian jewellery sector. Headquartered in Chennai, Tamil Nadu, KJL is celebrated for its premium range of gold, diamonds, and precious stones, serving both wholesale and retail customers. With a vast selection of products including necklaces, chains, rings, and bangles, KJL caters to daily wear and special occasions such as weddings.

The gold industry is a cornerstone of the Indian economy, contributing 1.3% to the GDP. The sector has undergone significant changes in the past decade due to evolving consumer behaviour and government policies aimed at increasing industry organization. The rise of chain stores has been particularly transformative, with their market share growing from 5% in 2016 to 35% by 2021. That has spurred jewellers to innovate with varied and customized offerings. Wedding jewellery remains a key segment, with 50% of gold purchases in India being for matrimonial events. KJL's exceptional wedding collections highlight its focus on this crucial market. Predominantly a B2B company, KJL is gradually increasing its B2C footprint.

To boost its retail presence, KJL plans to open a new showroom at 286, NSC Bose Road, Sowcarpet, Chennai. This move aims to enhance KJL's regional reach and increase its B2C market share to 25% within the next 2-3 years. Currently, 90% of its sales are localized in Tamil Nadu. KJL's strategy revolves around providing high-value, competitively priced plain jewellery which is highly tradable and offers substantial liquidity. This focus, combined with repeat business and innovation, has established KJL as an industry leader.

For FY24, KJL reported robust financial growth, with revenues surging to Rs 820.78 Cr from Rs 480.66 Cr the previous year. EBITDA increased to Rs 41.78 Cr from Rs 16.78 Cr, and PAT climbed to Rs 27.32 Cr from Rs 7.56 Cr. Over the past three years, KJL has achieved a CAGR of 47% in revenue and 72% in EBITDA. India's role as the second-largest gold consumer globally, along with reductions in import duties and favorable trade agreements, has further strengthened the gems and jewellery sector.

KJL continues to innovate and expand while maintaining a commitment to quality and service excellence. Its strong financial performance and rapid growth underscore its positioning as a key industry player poised for continued success.

(With inputs from agencies.)