Warburg Pincus invests Rs 1,200 crore in Kalyan Jewellers

Mumbai: Private equity firm Warburg Pincus today said it has invested Rs 1,200 crore in Kerala-based Kalyan Jewellers for an undisclosed stake.

Proceeds from the investment, which the company claimed is the largest by a PE fund in a jewellery manufacturer and distributor, will be used for expansion of its network.

"We are delighted to welcome Warburg Pincus as our growth partner. We continue to be guided by our core values of integrity, transparency and customer focus that have enabled us to gain our customers' trust over the past two decades," Kalyan Jewellers Chairman and MD T S Kalyanaraman said.

The 21-year-old company currently has 55 outlets in South India, Maharashtra, Gujarat, National Capital Region (NCR) and Punjab, and six in United Arab Emirates.

It is targeting to up the network to 100 outlets by 2016 and add 28 outlets in the next six months, it said, adding that plans are also afoot to have presence in Kuwait, Qatar, Singapore and Malaysia.

Without disclosing the current revenue, the company said it is targeting to touch Rs 25,000 crore in revenues. However, it did not state any time frame to touch the mark.

"Warburg Pincus' investment in Kalyan Jewellers is the largest private equity investment into the jewellery industry in India, and is an acknowledgement of the company's highly-talented team, its pioneering role within the industry, and its commitment to the highest levels of customer service," Vishal Mahadevia, Managing Director and Co-head India, Warburg Pincus said.

It also has many firsts like a loyalty programme which has two million members now, introducing detailed price tags in interest of transparency and introducing BIS certification on gold jewellery, he said.

Warburg's past investments in the country include Ambuja Cements, Bharti Airtel, Dainik Bhaskar, Diligent Power, Capital First, Gangavaram Port, HDFC and Kotak Mahindra Bank, among others.