Tata Group backed jewellery brand CaratLane is gearing up for a steady phase of retail expansion, with plans to open around 40 new stores in FY27 as part of its broader growth strategy. The company, which currently operates approximately 369 stores across India, intends to take a calibrated approach to this expansion, focusing first on identifying the right locations before accelerating store rollouts later in the financial year. According to Managing Director Saumen Bhaumik, the first quarter will primarily be dedicated to evaluating potential markets and store opportunities, while the second quarter is expected to mark the beginning of active expansion. Around 10 percent of the upcoming stores will be company owned, reflecting a balanced strategy between owned and franchise operated outlets, while maintaining capital efficiency.
At present, roughly 13 percent of CaratLane’s existing store network is company owned, and the brand appears committed to maintaining a similar mix going forward. Geographically, the upcoming expansion will be skewed towards North, East, and South India, where the company sees stronger headroom for growth and increasing consumer demand. In contrast, the western region will witness a relatively slower pace of store additions, as the brand has already established a significant presence there. The current focus in the west is on improving store level productivity and ensuring that existing outlets exceed their expected performance benchmarks before any aggressive expansion is resumed in that market. This region specific strategy highlights the company’s emphasis on optimizing returns rather than pursuing uniform expansion across all geographies.
The planned store additions will be funded entirely through internal accruals, underscoring CaratLane’s strong financial position and disciplined capital allocation approach. While the company has not disclosed the exact capital expenditure for the expansion, its ability to self fund growth initiatives reflects robust cash flows and operational stability. In FY25, CaratLane reported revenue of ₹3,983 crore, and it is now targeting high double digit growth in the current financial year. This optimistic outlook is being driven by a combination of factors including consistent product innovation, accessible pricing, and sustained marketing efforts that have helped build strong consumer demand. The company has focused on launching new collections at regular intervals while maintaining affordability, ensuring that it continues to attract a wide customer base across different segments.
Beyond domestic expansion, CaratLane is also strengthening its international footprint as part of its long term growth vision. The brand already operates a physical retail store in New Jersey in the United States and is preparing to launch its second store in Dallas in the near future. In addition to its brick and mortar presence, CaratLane has built a robust global shipping network, catering to customers across nearly 30 countries including the United States, Canada, the United Kingdom, and Australia. As part of its next phase of international growth, the company is actively exploring opportunities in West Asia, a region that offers significant potential given its large base of Indian diaspora and strong affinity for jewellery consumption. This international expansion strategy reflects the brand’s ambition to evolve from a domestic leader into a globally recognized jewellery retailer.
On the manufacturing front, CaratLane continues to invest in strengthening its backend capabilities to support future growth. The company currently operates three manufacturing units, two located in Mumbai and one in Chennai. The Chennai facility has recently undergone a comprehensive revamp, with an investment of approximately ₹24 to ₹25 crore funded through internal accruals. Once fully operational, the upgraded unit is expected to employ between 200 and 300 people initially, contributing to both production capacity and employment generation. These investments in manufacturing infrastructure are aligned with the company’s broader strategy of maintaining quality control, improving operational efficiency, and supporting its expanding retail and international operations.
Overall, CaratLane’s growth roadmap reflects a well balanced approach that combines disciplined domestic expansion, strategic international forays, and continued investment in product innovation and manufacturing capabilities. By prioritizing market specific strategies and leveraging internal resources, the company is positioning itself to sustain strong growth while maintaining operational efficiency and financial prudence in an increasingly competitive jewellery retail landscape.
