Khazanchi Jewellers Ltd (KJL), a gold, diamond and precious stones specialist, has outlined plans to more than double the contribution of its retail (B2C) business to 25% over the next two to three years, as part of a broader strategy to strengthen margins and enhance brand positioning.
KJL aims to increase retail contribution from the current 10% level by expanding its product portfolio, onboarding new brands and strengthening its retail presence, said Chairman and Joint Managing Director Rajesh Mehta during an earnings call.
“As our retail mix improves, it will naturally enhance our margin profile, drive strong profitability and create greater operating leverage in the years ahead,” Mehta said.
Flagship Chennai showroom drives early traction
The company recently inaugurated a 10,000 sq ft large-format flagship showroom in Chennai, marking a significant step in scaling up its retail footprint. The store has recorded sales of around ₹20 crore within the first 10 days of operations, reflecting strong consumer response.
He said the new flagship outlet strengthens the company’s position in the premium jewellery segment, enhances customer experience and is expected to play a pivotal role in increasing retail contribution and supporting margin expansion going forward.
While the company’s revenue mix has historically been skewed towards B2B operations, with wholesale accounting for nearly 90% and retail 10%, the impact of the expanded retail footprint is expected to become more visible from the fourth quarter onwards.
Focus on diamonds and premiumisation
KJL’s expansion into the natural diamond category under its premium brand, Vajraa by Khazanchi, is also gaining traction. The company said positive responses at trade exhibitions and healthy order inflows validate its strategic move into higher-value categories.
The diamond jewellery push is expected to support profitability and brand premiumisation over the medium term, he said, adding that investments in design innovation, brand building, inventory discipline and customer experience have further strengthened its market position.
Balanced growth across B2B and B2C
On the wholesale (B2B) front, KJL continues to expand its partner ecosystem and deepen relationships with jewellery houses, wholesalers and organised retail chains across India. Its ability to execute large-volume orders with precision, timely delivery and differentiated designs remains a key competitive advantage in the wholesale gold segment.
During the quarter, growth remained broad-based across both B2B and B2C segments. While the wholesale business expanded its network and market reach, the retail segment benefited from festive demand and improved realisations.
He said this balanced performance reinforces its diversified business model and positions the company to accelerate sustainable growth in the coming years.
Expansion plans focused on South India
In terms of geographic expansion, the retail jeweller plans to deepen its presence in South India, where it already has a strong footprint, before considering pan-India diversification at a later stage. Future retail expansion will be through company-owned stores.
With a strong nine-month performance, a strengthened retail presence and momentum in the premium diamond segment, KJL remains confident of sustaining growth and delivering long-term value for stakeholders.