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Warburg Pincus invests Rs500 crore in Kalyan Jewellers

LiveMint logoLiveMint 03-04-2017 PTI

New Delhi: Kerala-based Kalyan Jewellers on Monday announced American private equity firm Warburg Pincus has invested an additional Rs500 crore in the company.

The proceeds will be used for expansion of its network in both domestic and overseas markets, a company statement said.

With the second round of investment, the American PE firm’s total investment in Kalyan Jewellers has increased to Rs1,700 crore. It had invested Rs1,200 crore in 2014.

“The investment by Warburg Pincus is a vindication of the strong growth trajectory of the company,” Kalyan Jewellers chairman and managing director T.S. Kalyanaraman said in a statement.

The company plans to nearly double its presence to 200-plus showrooms using a combination of equity, debt and internal accruals, he said. It is also working on a blueprint for a foray into the e-commerce segment which will complement the physical retail network.

“We believe that the curb in cash transactions will see a shift from the unorganised sector to organised players like Kalyan. The rationalisation of taxes under the GST (goods and services tax) regime will increase operational efficiencies significantly,” he noted.

Commenting on the development, Warburg Pincus India Pvt. Ltd managing director Vishal Mahadevia said that the company’s “additional investment will be used to accelerate the company’s growth efforts in network expansion and pursuing acquisition opportunities”.

In the next three years, Kalyan Jewellers said it plans to build its presence in central India including Uttar Pradesh and Madhya Pradesh and add new showrooms in Mumbai, Delhi and the southern region.

The company further said it is looking to expand international operations by entering into new markets such as Saudi Arabia, Bahrain, Oman, Singapore and Malaysia. It will also bolster presence in the UAE where it already has 13 showrooms.

At present, Kalyan Jewellers 106 showrooms across India and West Asia.

Affiliates of private equity funds raised by Warburg Pincus have invested close to $4 billion in about 50 Indian companies.

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