Kerala-based Kalyan Jewellers has raised ₹1,200 crore from US-based private equity major Warburg Pincus, in return for a minority stake. The deal, which is the largest private equity investment in the country’s jewellery manufacturing and distribution industry, values Kalyan Jewellers at about ₹12,000 crore.
“This is a long-term investment, and there is no immediate exit plan. We intend to strengthen our portfolio and presence with this investment,” said Kalyan Jewellers Chairman and Managing Director TS Kalyanaraman told BusinessLine over the telephone.
“Investments for the next couple of years have been taken care of by this investment, in case we need capital we might look at an initial public offering,” Kalyanaraman said, adding there were no firm plans for an IPO.
The investment has been made by an affiliate of Warburg Pincus. Kalyan Jewellers, a Thrissur-based jewellery manufacturer and retailer will use the proceeds for expansion purposes.
Expansion plan
The jewellery retailer plans to open 28 new outlets in the next six months, of which 16 will be opened by the first week of December. The rest will be opened before March 31.
At present, Kalyan Jewellers has a total 61 retail outlets, of which six are on foreign locations.
“Warburg Pincus’ investment in Kalyan Jewellers is the largest private equity investment in the jewellery industry in India,” said Vishal Mahadevia, Managing Director and Co-head India at Warburg Pincus.
Axis Capital was the financial advisor to Kalyan.
The Thrissur-headquartered company was founded in 1993, and has presence across all major markets in South India, Maharashtra, Gujarat, National Capital Region and Punjab. At present, it has a network of 55 exclusive outlets in India and six outlets in the United Arab Emirates.