National News

US hits India with 25% tariffs; GJ sector to be adversely affected

Published

3 months ago

July 31, 2025

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US President Donald Trump has imposed a 25% tariff on a wide range of goods from India, effective August 1, 2025, triggering alarm across the export sector and raising the spectre of a broader economic fallout. The sweeping measure, aimed at correcting what Trump described as “obnoxious” non-tariff barriers, is being seen as both a protectionist move and a pointed diplomatic signal.

Trump accused India of imposing higher tariffs on US imports and also having the “most strenuous” trade barriers.

The Indian gem and jewellery sector, in particular, stands to be severely impacted. The United States is India’s single largest market, accounting for over $10 billion in exports—nearly 30% of GJ industry’s total global trade.

The increase in tariff from Aug 1 would be 19 percentage points in the case of gold and silver jewellery (plain or studded).

These tariffs could have far-reaching repercussions across India’s economy, disrupting critical supply chains, stalling exports, and threatening thousands of livelihoods.

National News

Kalyan Jewellers to expand in non-South markets via franchise model

Published

1 hour ago

November 8, 2025

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Kalyan Jewellers said it will accelerate the rollout of franchise-owned company-operated (FOCO) showrooms to drive expansion in India and overseas. Nearly half its revenue now comes from franchised stores, and most new openings in FY26 will follow the capital-light FOCO model as the company focuses on improving returns and reducing debt.

Thrissur-based jewellery retailer Kalyan Jewellers plans to sharpen its focus on franchise-owned company-operated (FOCO) showrooms as it scales both in India and overseas, according to its Q2FY26 earnings investor presentation. The jeweller said future incremental expansion will be driven largely through capital-light franchise formats, aimed at improving returns and reducing balance sheet leverage.

The company, which has 174 FOCO showrooms in India as of September 30, 2025, has signed letter of intents (LOIs) for 89 new FOCO outlets to be opened in FY26. Its digital-first brand Candere will also expand primarily through the FOCO route, with 54 such showrooms already in place. Internationally, Kalyan said calibrated expansion in the Middle East and entry into the US market will similarly rely on franchise-led stores.

The shift is part of a broader strategy towards capital-efficient growth. The company aims to use 40-50% of profits to repay debt and invest in shareholder returns. Since April 2023, Kalyan has repaid Rs 6,461 crore in working capital loans in India and declared a dividend payout of over 20% for FY25.

The jeweller reported about 31% revenue growth in Q2FY26, supported by 16% same-store sales growth and continued strong new customer additions, which accounted for over 38% of sales. Nearly 49% of quarterly revenue came from franchised showrooms. Margin gains were driven by improved procurement efficiencies and operating leverage.