Why Kalyan Jewellers Is Going Local

Kalyan Jewellers Bets On New Brand To Win Market Share. Will It Work?

By Pritha Pahari

What?

Kalyan Jewellers, headquartered in Kerala’s Thrissur, is opening its first store under a brand built just for Tamil Nadu, called Akshaya Thanga Maligai, or ATM. The Chennai store opens on August 21, with four more to follow.

Unlike Kalyan's usual approach of running one brand across the country, ATM is a separate identity altogether — a new name, a Tamil ambassador, and products designed around local festivals and buying habits.

If this works, ICICI Securities analyst Manoj Menon said that market leader Tanishq could try something similar someday, saying the possibility exists, "logically speaking."

It's a small move for now. Kalyan plans to open 426 Kalyan-branded stores this year against just five under ATM, so this is more of a pilot than a strategic pivot.

Why?

Even with a national footprint, Kalyan still struggles to win over shoppers who trust local jewellers more than an outside chain.

Analysts point out that having stores in a state isn't the same as being seen as a local brand; many so-called national jewellers are still tied to one community or region in people's minds. Kalyan has tried to work around this by tweaking its product mix city by city, but ATM goes a step further by building a brand that feels Tamil from the ground up.

The timing also lines up with pressure on Kalyan's core business.

The company's April-June results showed strong revenue growth but a real dip in profitability, gross margin fell to 11.9% from 13.9% a year earlier. This came down to more customers trading in old gold, discounts tied to a gold-exchange campaign, and a one-off gain last year that didn't repeat.

Analysts are clear that ATM isn't a fix for this margin issue, the two aren't officially connected, but they do think a leaner, franchise-based format like ATM could add volume down the line without adding much strain.

What Next?

The real test is whether ATM's stores can make as much money as regular Kalyan stores. It will depend on how the first five stores perform over the next few quarters.

If it works, industry watchers think this could become a repeatable model for Kalyan in other states, following the same regional-first playbook that companies like PC Chandra and PN Gadgil already use.

For now, though, ATM stays a small experiment inside a much bigger, faster-growing business.

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20%

That’s the share of India’s exports going to the US, a number that has remained largely unchanged over the past year despite president Donald Trump’s tariffs. Trump’s tariffs on Indian goods reached 50% at one point, before falling to 18% in February and then to 10%.

By the Numbers: India exported $87.31 billion worth of goods to the US in 2025-26, up slightly from $86.51 billion the previous year.

The Lead: Analysts believe the US remains India’s most attractive export market because of its sheer size and demand for a broad range of Indian goods, from electronics and engineering products to pharmaceuticals and textiles. Exporters have continued serving the market while simultaneously scouting new destinations to reduce their exposure to US trade policy.

Pivot: One way India is diversifying is by signing free trade agreements — it signed trade deals with the UK, EU, Oman and New Zealand over the past year.

Exports to China also surged 42% in the 12 months through July, reaching $21.5 billion, according to Bloomberg’s calculations.

RBI Hints At Rate Hikes

The members of the RBI's Monetary Policy Committee have signalled that interest-rate hikes could come sooner than expected as inflation could rise from its current levels, according to the minutes of the meeting held by the committee earlier this month. The six-member committee kept the repo rate unchanged at 5.25% when it met between August 3 and 5.

The Signal: Deputy Governor Poonam Gupta said a rate hike could become necessary as headline inflation is projected to peak at 5.9% in Q3 FY27. Governor Sanjay Malhotra also pointed to a possible “recalibration” of the policy rate as inflation has risen from last year’s 2% average. The policymakers are watching whether supply chain pressures remain elevated and uncertain. "Even though the situation is still evolving, deficient and uneven south-west monsoon amidst El Niño conditions poses some risks to agriculture sector’s outlook and rural demand," said the domestic outlook in the meeting.

Context: July inflation stood at 4.45%, within the RBI’s 2–6% tolerance band, but above its 4% medium-term target. Rising oil prices amid the West Asia conflict and pressure on the rupee are adding to the inflation risks.

Volkswagen Nears India Deal

With an aim to build scale in India, Germany’s Volkswagen (VW) Group expects to sign a deal with a local partner in the country this year, according to Skoda CEO Klaus Zellmer. The group currently has Volkswagen, Skoda, Audi, Porsche, Bentley and Lamborghini among its brands in India.

Overview: At an event in Mumbai, Zellmer said VW is confident of finalising the deal this year and is open to ceding control of its Indian operations. A partner would help share investment risk in a market where its overall scale remains limited.

Skoda leads the India strategy, where talks are underway with JSW Group for a joint venture, with JSW reportedly seeking a majority stake.

Critical Moment: The group holds just about 2% market share in the domestic market, even though it has been present for over two decades in the country.

Although the VW group is a leading global EV player, Volkswagen and Skoda brands have yet to launch a mass-market EV in India. The deal with a local partner is critical to share investment risk, even as VW needs to launch clean energy vehicles ahead of stricter 2027 emission norms, requiring board approval.

SpiceJet Escapes Fire

SpiceJet has got a fresh reprieve from bankruptcy proceedings after the National Company Law Tribunal (NCLT) ordered seven insolvency petitions against the airline to be heard afresh. Aircraft lessors had filed the petitions to recover unpaid dues from SpiceJet.

The Shift: The NCLT had prepared a judgment covering eight petitions, but one lessor withdrew its case after reaching a last-minute settlement with SpiceJet. With one tribunal member retiring on Wednesday, the bench could not rewrite and deliver the judgment in time. A new bench will now hear the remaining seven cases, giving SpiceJet more time to settle its debts and keeping insolvency proceedings at bay for now.

Context: SpiceJet has faced years of financial pressure, as it battles aircraft lessors over unpaid dues and struggles with other expenses, including delayed pilot salaries. The airline has also tapped a government-backed credit programme to support its operations. Its market share fell to 1.9% in June 2026 from around 15% at the end of 2019.

Used Cars Fuel Credit Boom

India's used-car loan market is growing faster than any other vehicle loan segment, according to a report by credit bureau CRIF High Mark. Between June 2021 and June 2026, used car loans grew at 26.2% a year on average, beating loans for commercial vehicles, new cars and two-wheelers.

The number of people taking such loans has more than doubled, and 75% of new used car loans in early FY27 went to first-time borrowers, showing more people are turning to formal loans instead of cash.

Catch Up Quick: Overall, vehicle loans grew 17.1% in the same period last year. Loans for commercial vehicles also grew fast, at 20.1% year-on-year. Meanwhile, new car buyers are borrowing more too, as the average loan size hit Rs 8.6 lakh.

Setup: Two-wheelers still have the most borrowers overall, growing from 2.3 crore to 3.6 crore, with 80% being first-time loan takers. This shows two-wheeler loans are often people's first step into formal credit.

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Why Indian Markets Are Drifting Down

On Episode 953 of The Core Report, financial journalist Govindraj Ethiraj talks to Dr Kishore Jayaraman, OBE, Group CEO at UK India Business Council as well as Abhishek Bisen, Head of Fixed Income at Kotak Mutual Fund.

• Why Indian Markets Are Drifting Down

• The Govt Steps Up Incentives For Piped Natural Gas Consumers

• Global Bond Markets Are Extremely Volatile, What That Means For India

• Why The US Is Still The Most Resilient Export Market For India

• A Month On, How Is The India-UK FTA Shaping Up And Early Signs