Kalyan Jewellers eyes 25% revenue rise from advance purchase schemes
New Delhi: After the government banned unregulated deposit schemes offered by jewellers, Kalyan Jewellers India Ltd (KJIL) expects 25 per cent revenue growth from its ongoing regulated jewellery purchase advance schemes, its top official said Tuesday. On February 21, the government passed the Banning of Unregulated Deposit Schemes Ordinance, prohibiting all deposit schemes (with or without interest) except those with regulatory approval.
"Kalyan Jewellers is eyeing significant growth in its base of jewellery purchase advance scheme. ...We believe that there is a potential to grow our revenues from our jewellery advance schemes by 25 per cent," the company's Executive Director Rajesh Kalyanaraman said.
The schemes offered by the company are regulated and duly approved by the Ministry of Corporate Affairs, he stressed adding that the company is "not affected" by the promulgation of the ordinance.
Since 2016, the Kerala-based jeweller has been offering 'Dhanvarsha' and 'Akshaya' purchase advance schemes, under which customers pay monthly instalment for 11 months and thereafter redeem jewellery for the total amount paid along with benefits.