Kalyan Jewellers Unveils Initiative to Lower Annual Gold Imports by 5 Tonnes

Kalyan Jewellers Launches Initiative to Activate Dormant Gold Reserves

In response to Prime Minister Narendra Modi's appeal to delay the purchase of gold and alleviate stress on the country's foreign exchange reserve, Kerala-headquartered Kalyan Jewellers has announced the launch of a strategic framework to activate dormant household reserves of the precious yellow metal. The company's 'Nation First – Gold4India Initiative' aims to drive old gold exchange programmes, promote the adoption of lighter 18 carat jewellery, and gold monetisation schemes, as well as a gold recirculation drive.

The initiative aims to reduce imports by five tonnes of gold over the financial year. India has one of the largest privately-owned gold reserves in the world, with much of it lying idle in bank lockers, household vaults, inherited collections, and unused jewellery accumulated over decades. A stronger domestic recirculation ecosystem can sustain employment in the jewellery sector and help states preserve GST revenues linked to organised trade.

As part of the programme, customers at Kalyan Jewellers' 342 stores will be encouraged to exchange old, unused, broken, or outdated jewellery, thereby reducing the need for equivalent quantities of newly imported gold. The company also plans to open dedicated 'Encash Gold' counters to provide consumers with a professionally managed and transparent gold monetisation experience, wherein patrons can unlock liquidity options by using idle gold.

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Kalyan Jewellers is looking to build awareness around responsible gold recirculation and further promote wider adoption of contemporary 18K jewellery. Historically, the Indian jewellery market has been dominated by higher purity gold formats, particularly 22K jewellery. However, with rising gold prices, more people are now choosing to lower caratage products.

"The initiative will strive to spark a behavioural shift in consumers, from viewing gold solely as a static asset preserved indefinitely, to recognising it as a renewable domestic resource capable of continuously generating economic value within the country," said T S Kalyanaraman, Managing Director at Kalyan Jewellers India. Even a fraction of this inactive gold brought back into circulation can potentially reduce incremental dependence on imported gold.

Kalyan Jewellers' recent financial performance saw its net profit more than double to Rs 409.5 crore, while sales rose 66 percent in its March quarter results announced last week.

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