The retailer is scaling Akshaya Thanga Maligai while using its FOCO model and My Kalyan network to deepen its presence in regional and non-metro markets
Kalyan Jewellers is expanding its retail strategy beyond a single national brand, with plans to scale regional jewellery formats to compete with local players that have stronger community relationships and a closer understanding of regional tastes.
The retailer is preparing to expand Akshaya Thanga Maligai (ATM), its regional jewellery brand, initially in Tamil Nadu. The format will target value-conscious consumers seeking traditional Tamil designs at competitive prices, putting it in direct competition with organised regional chains and local jewellers.
The move marks a shift in Kalyan’s approach from building one national jewellery brand to developing multiple formats aimed at different consumer segments, price points and regional preferences.
According to the company’s annual report, Indian jewellery consumers vary significantly by age, purchasing power, lifestyle and regional traditions. Kalyan’s portfolio now includes its flagship Kalyan Jewellers brand, digital-first jewellery retailer Candere and ATM.
Regional Push
ATM has been designed around the demand for traditional Tamil jewellery at accessible prices. Kalyan intends to use the format to reach consumers who continue to favour regional jewellers while creating an entry point into its wider retail network.
Regional brands form part of Kalyan’s FY27 expansion strategy, alongside efforts to strengthen its presence in markets where organised jewellery retail remains relatively underpenetrated.
The strategy comes as the company reduces its reliance on its traditional South Indian markets. As of 31 March 2026, 70 per cent of Kalyan’s showrooms were located outside South India. The company had 342 Kalyan Jewellers showrooms in India, 41 international showrooms and 124 Candere stores at the end of FY26.
Kalyan added 129 showrooms across its Kalyan and Candere formats during FY26, taking its global showroom network to 507. The expansion included its first store in the UK.
For FY27, the company plans to continue using its Franchisee-Owned, Company-Operated (FOCO) model to drive expansion. Under the model, franchise partners invest in showroom infrastructure, while Kalyan manages merchandising, inventory, customer experience and brand standards.
Rural Markets
Kalyan is also targeting rural and semi-urban markets, where organised jewellery retail remains relatively limited despite significant demand.
The company’s annual report, citing industry estimates, said rural and semi-urban India account for more than 60 per cent of the country’s gold jewellery demand. However, infrastructure constraints and the cost of establishing stores have limited organised retailers’ reach in these markets.
Non-metro markets accounted for 73 per cent of Kalyan’s standalone Indian showroom network as of March 2026.
The company is using its My Kalyan network to reach customers in smaller markets without maintaining retail inventory at these centres. The network comprised 1,139 centres and 4,375 outreach personnel at the end of FY26, focusing on lead generation, customer engagement and doorstep outreach.
The network generated more than 10 million customer connections annually and contributed around 20 per cent of Kalyan’s operating revenue, according to the annual report.
Kalyan plans to expand the My Kalyan network further in FY27 alongside the regional-brand rollout. ATM is expected to focus on affordable staple jewellery reflecting local traditions and regional heritage.
The company’s strategy comes amid increasing consumer preference for organised jewellery retailers, driven by factors such as brand trust, transparency, hallmarking and formal billing. However, independent jewellers continue to maintain a strong presence in smaller cities and rural markets.
Debt Reduction
Kalyan is also working to strengthen its balance sheet while expanding its retail network. Standalone gross debt declined from Rs 2,415.2 crore in FY23 to Rs 1,600.1 crore in FY26. Non-Gold Metal Loan (non-GML) debt fell from Rs 1,324.1 crore to Rs 316.8 crore during the same period.
For FY27, Kalyan is targeting gross debt of Rs 1,300 crore, entirely comprising Gold Metal Loans. This would bring non-GML debt to zero. The company also plans to use proceeds from the sale of non-core assets for balance-sheet optimisation.
Return on capital employed (ROCE) increased to 28.8 per cent in FY26 from 17.4 per cent in FY23.
The company has attributed part of this improvement to the FOCO model, which reduces the capital required for new showrooms and allows operating cash flow to be directed towards debt reduction, investments in existing stores and further expansion.
Technology-Led Retail
Kalyan is also increasing its use of technology across the jewellery shopping journey as it expands its multi-format retail network.
The company is investing in virtual try-ons, 3D product views, video and chat-based assisted selling, real-time inventory visibility, customer analytics and store-to-door fulfilment.
The technology push is particularly relevant to Candere, which began as a digital-first jewellery business and has expanded into physical retail.
Candere’s revenue increased 160 per cent to Rs 425.3 crore in FY26, while the business turned Pat positive in the second half of the year. Its showroom network reached 124 stores, with Kalyan planning to add another 50 Candere stores in FY27.
The company’s priorities for the format include greater use of customer data, targeted engagement and stronger lifecycle marketing.
Kalyan’s regional-brand strategy, combined with its FOCO expansion model, rural outreach network and technology investments, signals a move towards a more segmented retail structure designed to address local consumer preferences while continuing its national expansion.
