Written By: Bandana Gupta

Established in 1993 in Thrissur, Kalyan Jewellers has grown into one of India's largest jewellery chains. Moreover, boasting over 277 company-owned and franchise outlets. Starting with a single showroom, the brand has achieved nationwide recognition. This is through its exquisite collections of traditional and designer jewellery, celebrity endorsements, commitment to integrity, and transparent pricing. Under the leadership of its founder, T.S. Kalyanaraman, Kalyan introduced pioneering concepts like price tagging and self-service in the Indian jewellery industry. Capitalizing on its strong market presence and consistent growth, Kalyan Jewellers began offering franchise opportunities in 2017. With a network of 227+ showrooms across India, it has become one of the most sought-after and lucrative jewellery franchise options in the country.

Kalyan Jewellers Franchise Details:

• Brand Name: Kalyan Jewellers is a renowned name in the jewellery industry. Moreover, known for its exceptional designs, transparent pricing, and strong reputation in India.
• Industry: Operating in the jewellery sector, Kalyan Jewellers specializes in traditional and contemporary collections. Therefore, making it a trusted choice for customers.
• Number of Outlets: The brand operates over 230 outlets across India. Including a mix of company-owned and franchise stores, showcasing its extensive market reach.
• Franchise Investment: An investment of ₹40 lakh to ₹1 crore is needed to set up a Kalyan Jewellers franchise. This includes expenses for store setup, inventory, and initial operational costs.
• Royalty Fees: Franchisees are required to pay a royalty fee of 2% of their revenue. Moreover, which contributes to ongoing support and brand maintenance.
• Profit Margin: Franchise owners can expect a profit margin between 12% and 20%. Therefore, depending on factors such as location, customer base, and operational efficiency.
• Space Requirement: The outlet requires a retail space of 1,000 to 1,500 square feet, ideally located in a high-footfall area to attract maximum customers.
• Franchise Agreement Duration: The agreement is valid for 10 years, providing a stable and long-term business opportunity under the Kalyan Jewellers brand.
• Application Process: To apply for a Kalyan Jewellers franchise, visit their official website or contact their franchise team for detailed information and the next steps.

This opportunity allows franchisees to leverage Kalyan Jewellers’ established market presence, operational expertise, and extensive customer trust to build a profitable business.

How much does a Kalyan Jeweller Franchise cost?

The total cost to open a Kalyan Jewellers franchise ranges between ₹40 lakh to ₹1 crore, which covers various essential expenses. 

• Franchise Fee: ₹5 to ₹10 lakhs
• This fee gives you the authorization to run your business under the Kalyan Jewellers brand and benefit from its established business model.
• Store Establishment Cost: ₹20 to ₹30 lakhs
• This covers the expenses for setting up the physical store, including interior design, signage, and other infrastructure needs.
• Initial Inventory: ₹10 to ₹30 lakhs
• This is the cost of stocking your store with jewellery and related products to start operations.
• Working Capital: ₹20 lakhs
• This amount is needed to cover daily operational expenses such as salaries, utilities, and other ongoing costs until the business becomes profitable.
• Royalty Fees: 2%
• Franchisees must pay a royalty fee of 2% of net revenue, which supports training, marketing, branding, and other ongoing business support.
• Franchise Agreement: 10 years
• The franchise agreement is valid for 10 years, with an option for renewal after this period.
• Miscellaneous Expenses: ₹10 lakhs
• This includes various expenses such as employee salaries, insurance, licenses, and permits.
• Total Estimated Investment: ₹40 lakh to ₹1 crore

This comprehensive cost structure ensures franchisees are well-equipped with the necessary resources to run a Kalyan Jewellers outlet successfully.

Kalyan Jewellers Franchise Earnings:

The jewellery industry typically offers high-profit margins, and Kalyan Jewellers follows this trend. Here’s an overview of the profitability one can expect:

• Gross Margin: The gross margin on jewellery sales can vary between 15% and 25%, depending on factors such as the type of jewellery and prevailing market conditions.
• Net Profit: After accounting for operational expenses, the net profit margin usually ranges from 8% to 12%.

Given these margins, a well-run Kalyan Jewellers franchise can potentially generate an annual profit of ₹2 to ₹3 crores within a few years, provided there are consistent sales and effective management.

Pre-requisites for Opening a Franchise:

• Financial Capability: You must show proof of financial stability to cover the franchise investment, including the initial franchise fee, store setup expenses, and working capital requirements.
• Experience: While not mandatory, prior experience in retail or the jewellery industry is advantageous for effectively managing the franchise.
• Location Selection: Choose a prime location for your franchise store that meets Kalyan Jewellers' standards for visibility, accessibility, high customer footfall, and market potential.
• Market Research: Conduct thorough market research to assess the demand for jewellery products in your target area.
• Property Documentation: Provide property documents if you have either leased or owned the property where the franchise will be set.
• Franchise Fee: The franchise fee grants you the right to use the brand name and adopt the established operating model of the business.

Application process for Kalyan Jewellers Franchise:

To apply for a Kalyan Jewellers franchise, prospective franchisees must provide a set of important documents as part of the application process:

• Identity Proof: You will need to submit a valid identity proof, such as a PAN card, Aadhar card, or passport, to confirm your identity.
• Address Proof: Documents such as recent utility bills, a rental agreement, or property ownership papers are required to verify your residential or business address.
• Business Plan: A comprehensive business plan is essential, detailing your approach to operating the franchise. This should include market analysis, sales projections, marketing strategies, and an overview of how you intend to run the business effectively.
• Financial Documents: Proof of financial stability is necessary. So you must submit bank statements, income tax returns, and documentation showing available funds to cover the franchise cost and operational expenses.
• Legal Documents: Any relevant licenses or permits required for operating a retail store in your area must be provided. These could include business licenses, GST registration, and any other local regulatory documents needed to legally run the franchise.

Submitting these documents ensures that you meet the eligibility criteria. Also, are ready to manage the responsibilities of owning a Kalyan Jewellers franchise.

Investing in a Kalyan Jewellers franchise is considered a profitable and worthwhile opportunity.

Opening a Kalyan Jewellers franchise can be a great way to earn good profits and grow your business over time. Following are the reasons that make it a valuable business opportunity.

• Renowned Legacy:Kalyan Jewellers stands as a leading figure in India's jewellery market, celebrated for its authenticity, innovative designs, and unmatched customer experience.
• Established Customer Base: Kalyan Jewellers is ready for delivering exceptional customer service, and fostering trust and loyalty among its valued customers. With over 230 outlets across India and a strong customer base, new franchisees benefit from this existing footfall or customer base.
• Extensive Jewellery Collection: The brand provides an extensive collection of jewellery, featuring designs that appeal to a wide range of preferences, from classic traditional styles to contemporary modern pieces.
• Franchise Revenue Distribution: The brand directs a significant share of the revenue, around 96%, to the franchisee managing the outlet.
• Profitability Potential: The jewellery industry is highly profitable. Also, Kalyan Jewellers offers an average profit margin of 12% to 20%, which is in line with the standard margins in the sector.
• Franchisee Support and Training: The brand offers franchisees extensive training, marketing assistance, and operational support.

Some of the Cons the franchisee must consider when franchising with Kalyan Jewellers:

• Substantial Investment : Launching a Kalyan Jewellers franchise demands a substantial investment, which could be challenging for some individuals to manage.
• Strong Competition: The jewellery market is very competitive, with Kalyan Jewellers facing rivalry from other well-known brands.
• Market Changes: Jewellery demand can fluctuate based on changing trends and economic conditions. 

Conclusion: 

Launching a Kalyan Jewellers franchise offers a promising opportunity for entrepreneurs eager to enter the jewellery sector. Supported by a well-established brand, a diverse product selection, and top-notch customer service, this franchise sets itself apart in the competitive market. If you're considering this venture, make sure you meet the essential criteria. Also, submit the necessary documentation to begin your journey. 

FAQ about Kalyan Jewellers

Q.1 What is the profit margin by Kalyan Jewellers?

Ans-Opening a Kalyan Jewellers franchise requires an investment between ₹40 lakhs and ₹1 crore, offering a profit margin of 8% to 12%, with the potential for a return on investment within two years.

Q.2 How long does the franchise agreement with Kalyan Jewellers last?

Ans-The franchise agreement with Kalyan Jewellers usually lasts for 10 years, offering franchisees a secure and long-term business opportunity.

Q.3 What is the cost of opening a Kalyan Jewellers franchise in India?

The cost to open a Kalyan Jewellers franchise ranges from ₹40 lakh to ₹1 crore. Further, covering expenses such as franchise fees, initial inventory, working capital, and other associated costs.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.