Khazana Jewellery defers northern foray

CHENNAI: One of south India's big retail jewellery chains Khazana Jewellery is training its sights on the northern markets, even as it awaits the financial situation to improve. The two-decade-old chain is also planning to open boutique-style showrooms with branded jewellery, managing director Kishore Jain said.

"We wanted to enter the north, mainly Delhi, by the year-end. But now we are waiting for the market situation to improve before we take the plunge," Mr Jain told ET, adding this move was likely to be sometime in 2010.

However, when the launch happens, it would be on a large scale, with 10-12 outlets opening over six months, he added.
The jewellery chain is also proposing to use the boutique-style formats to tap the branded jewellery segment.

"We intend using these opening boutique-style showrooms where jewellery will be sold at MRP, not by weight," Mr Jain said, but added details were yet to be worked out.

Though the new format would be launched next year, it would be tested first in the southern markets.
Khazana Jewellery, which has 16 stores across Tamil Nadu, Karnataka and Andhra Pradesh, has three stores under construction that would be ready for launch in two months - Rajahmundri in AP, Anna Nagar in Chennai and Tirunelveli district in Tamil Nadu.

Anticipating a 30% jump in its turnover, Khazana posted Rs 650 crore revenue in March 2008. This year,it is aiming at Rs 850 crore in the current fiscal.

Mr Jain attributed the increase in turnover on account of expansion. The brand added six showrooms to its kitty in 2008.

Although gold is currently ruling at an all-time high and sales are down, he said the situation was better than that prevailing a few months ago. "Sales were down by as much as 50% in November and December. With the wedding season on now, it has improved by 10-15%," he said.