Cash-rich jewellery companies are now flying high. Set to the new paradigm, Kalyan Jewellers has now acquired an aircraft to help it save transit time between its various business centres.
A press release quoted its chairman and managing director, T.S. Kalyanaraman, as describing the acquisition as an act of innovation. “Most of the towns where we have showrooms and places where we are planning to open stores, don't have direct flights and lot of time is wasted on transit,” he said. The aircraft is not a luxury but a necessity since it helps save time.
The aircraft, a Phenom 100 from Embraer of Brazil, is a seven-seater that can fly non-stop for up to 3.5 hours. It costs Rs.30 crore, and the fixed annual cost is around Rs. 2.5 crore.
The company statement said Kalyan was set to become the country's largest jeweller in terms of retail turnover. It was expected to cross a turnover of Rs.8,500 crore this financial year. It had 30 retail stores and the maximum number of directly-owned retail outlets, it said.
An aircraft chartering firm run by jewellery group Joy Alukkas already owns a five-seater Embraer Phenom 100. It was acquired in 2010.
It is principally used for business purposes, sources from that company said.