Mumbai: Kalyan Jewellers, one of India’s most trusted jewellery brands, expects a positive impact from the recent ordinance on its jewellery purchase advance schemes.
The Government of India had recently promulgated “The Banning Of Unregulated Deposit Schemes Ordinance 2019” targeting entities, which are not subject to any regulatory authority, collecting funds as advances for jewellery purchase.
“The recent ordinance is consistent to the continued efforts to formalise the jewellery sector. The gap that existed in the governance of the jewellery advance purchase schemes has been corrected with a sole proprietorship and partnership firms being brought under the regulatory environment. It will result in a level playing field for the industry,” said Rajesh Kalyanaraman, Executive Director, Kalyan Jewellers.
“As a Public Limited Company, Kalyan Jewellers India Limited (KJIL) is not affected by the promulgation of the ordinance. The jewellery purchase advance schemes run by KJIL are ‘Regulated’ and duly approved and sanctioned by the Ministry of Corporate Affairs, and we file returns in the manner mandated under the Act, with the Registrar of Companies (RoC). We, therefore, believe that our vast network of 102 showrooms in India and over 650 My Kalyan stores are poised to drive growth for our Dhanvarsha and Akshaya Purchase Advance Schemes,” Mr Rajesh Kalyanaraman added.
Kalyan Jewellers had discontinued its earlier jewellery purchase advance scheme in 2014 following the enactment of the Companies (Acceptance of Deposits) Rules 2014 (“Rules”). By the said Rules, private limited companies were barred from running conventional jewellery schemes which included paying of bonuses, benefits etc. However, the said restrictions were not mandated upon jewellers which were partnerships, sole proprietorships, LLP etc. KJIL, thereafter became a public limited company w.e.f June 2016 and since then have been operating the jewellery purchase advance schemes in strict adherence to the rules and regulations.
KJIL presently operates the Dhanvarsha and Akshaya purchase advance schemes. Customers enrolled in the said schemes can pay a monthly instalment for 11 months and thereafter redeem jewellery for the total amount paid along with benefits in the manner approved under the Companies Act. Dhanvarsha and AkshayaPurchase Advance Schemes are statutorily compliant and well accepted among consumers. Monthly instalments can be paid by cash, cheques, DD and online payments.
Kalyan Jewellers is eyeing a significant growth in its base of jewellery purchase advance scheme customers. Kalyan Jewellers will seek to position itself as a brand of choice for the customers seeking to avail compliant and credible jewellery advance purchase schemes. “A segment of Customers understand the benefits of availing such schemes and we believe that there is a potential to grow our revenues from our jewellery advance schemes by 25%.