Introduction:
Kalyan Jewellers India has announced the signing of a definitive agreement with Rupesh Jain to acquire a 15% stake in Enovate Lifestyles Private Limited, the parent company of Candere, for a total consideration of Rs 42 crore. This strategic move is set to enhance Kalyan Jewellers’ presence in the e-commerce and omni-channel jewellery market.
Details of the Acquisition:
- Acquisition Stake: 15% in Enovate Lifestyles Private Limited
- Total Consideration: Rs 42 crore
- Share Distribution: 57,320 equity shares to be acquired
- 40% (22,928 shares) by June 03, 2024
- 40% (22,928 shares) by August 31, 2024
- 20% (11,464 shares) by November 30, 2024
Enovate Lifestyles, which owns the Candere brand, is an e-commerce company specializing in the retail sale of jewellery. Kalyan Jewellers had initially acquired a majority stake in Enovate Lifestyles in 2017. In the fiscal year 2023-24, Candere recorded an impressive annual revenue of Rs 130.3 crore.
Expansion Plans:
During the last fiscal year, Candere launched 11 physical showrooms across India. The brand aims to quadruple its offline presence in the current fiscal year, strengthening its position in the jewellery market.
Kalyan Jewellers Expands E-Commerce Presence with 15% Stake Acquisition in Candere:
With this acquisition, Enovate Lifestyles Private will become a wholly-owned subsidiary of Kalyan Jewellers. T.S. Kalyanaraman, Managing Director of Kalyan Jewellers, expressed enthusiasm about this development, stating, “Kalyan Jewellers has demonstrated its ability to grow a hyper-local consumer brand with size and scale while remaining agile to the evolving needs of customers.
With Candere, we are excited to explore an emerging market segment within the jewellery industry, focusing on lightweight, fashion-forward, and universally appealing designs.”
Rupesh Jain, Founder of Enovate Lifestyles, reflected on the journey, “The Candere journey has been a lifetime adventure, filled with immense learning and unparalleled value creation. Candere benefitted enormously when Kalyan Jewellers came on board about seven years ago. As it embarks on the next phase of growth, I am sure that Candere, true to its name, will continue to shine and consolidate its special place in the minds of Indian consumers.”
Kalyan Jewellers’ Financial Performance:
Headquartered in Kerala, Kalyan Jewellers is one of the largest jewellery retailers in India, with a significant presence in the Middle East. The company’s consolidated net profit surged by 96.3% to Rs 137.59 crore, and revenue from operations increased by 34.09% to Rs 4,534.93 crore in Q4 FY24 compared to Q4 FY23.
Conclusion:
This acquisition marks a significant step for Kalyan Jewellers as it continues to expand its footprint in the jewellery market, leveraging both online and offline channels to reach a broader customer base.
FAQ:
What is the latest acquisition by Kalyan Jewellers?
Kalyan Jewellers has signed a definitive agreement to acquire a 15% stake in Enovate Lifestyles Private Limited, the parent company of Candere, for Rs 42 crore.
What is Enovate Lifestyles Private Limited?
Enovate Lifestyles Private Limited is an e-commerce company that owns Candere, an omni-channel lifestyle jewellery brand. The company specializes in the retail sale of jewellery.
What is the significance of this acquisition for Kalyan Jewellers?
With this acquisition, Kalyan Jewellers will fully own Enovate Lifestyles Private Limited, making it a 100% wholly-owned subsidiary. This move enhances Kalyan Jewellers’ presence in the e-commerce and omni-channel jewellery market.
How many shares are being acquired and what is the timeline?
A total of 57,320 equity shares will be acquired. The acquisition will happen in phases:
- 40% (22,928 shares) by June 03, 2024
- 40% (22,928 shares) by August 31, 2024
- 20% (11,464 shares) by November 30, 2024
How did Candere perform financially in the last fiscal year?
Candere recorded an annual revenue of Rs 130.3 crore in the fiscal year 2023-24.
What are Candere’s expansion plans?
Candere launched 11 physical showrooms across India in the last fiscal year and aims to quadruple its offline presence in the current fiscal year.
What does T.S. Kalyanaraman say about this acquisition?
T.S. Kalyanaraman, Managing Director of Kalyan Jewellers, expressed excitement about the acquisition, emphasizing the company’s ability to grow a hyper-local consumer brand and explore new market segments within the jewellery industry.
What does Rupesh Jain say about Candere’s journey?
Rupesh Jain, Founder of Enovate Lifestyles, reflected on Candere’s journey as a valuable and learning experience. He is confident that Candere will continue to shine and consolidate its position in the minds of Indian consumers as it embarks on the next phase of growth.
How did Kalyan Jewellers perform financially in Q4 FY24?
Kalyan Jewellers’ consolidated net profit jumped 96.3% to Rs 137.59 crore, and revenue from operations increased by 34.09% to Rs 4,534.93 crore in Q4 FY24 compared to Q4 FY23.
Where is Kalyan Jewellers headquartered?
Kalyan Jewellers is headquartered in Kerala, India, and is one of the largest jewellery retailers in the country with a significant presence in the Middle East.
What is the strategic significance of this acquisition?
This acquisition strengthens Kalyan Jewellers’ omni-channel retail strategy, allowing it to reach a broader customer base through both online and offline channels and explore new market segments within the jewellery industry.