Jeweller Tribhovandas Bhimji Zaveri (TBZ-The Original) plans to increase its retail space from 93,000 square feet to 150,000 sq ft in two-three years through the franchisee route. The listed 150-year old firm is looking to scale up its domestic operations in eastern and north-western India before expanding to other parts of the country.
"We are looking at places like Rajasthan, Chandigarh, Punjab, Uttar Pradesh, Ranchi, Patna, Siliguri, Bhubaneswar and Guwahati for opening franchisee outlets. The first such franchisee store is coming up at Dhanbad," said CMD Shrikant Zaveri.
At present, the jeweller has 29 stores in 22 cities across 10 states in the country. The company plans to focus more on the franchisee stores and reduce dependence on its own stores, said Zaveri. "It will be a 60:40 mix," he said.
The stores will be operated on 'franchisee-owned, franchisee-operated' model, which requires the entire store inventory to be on the books of the franchisee. This will help the company scale up its domestic operations at a faster pace without increasing its balance sheet size, resulting in improved return on capital employed and return on equity .
The company had clocked a turnover of Rs 1,930 crore in 2014-15.
The franchisee stores will increase the momentum of retail expansion across key markets and reach out to various communities in satellite townships, following launches in metro cities. This will help in adding incremental sales, expanding retailing space and enhancing the company's pan-India presence.
"Every franchisee store will offer a wide array of innovative and attractive jewellery designs, with an added attraction of custom-made products. They will showcase a vast range of contemporary and modern jewellery collection and a mix of gold, diamond and precious stones studded jewellery for discerning customers," said Zaveri.
He said the franchisee stores will provide the same standardised shopping experience to customers as company-owned stores. "We will handhold our franchisee partners in the initial stages to take them through the learning curve of doing business with us and serving customers the TBZ-The Original way. We intend to pace ourselves comfortably through the process to ensure we do not compromise on quality," he said.
Along with increase in retail space, the company also plans to leverage the growth of etailing in India. It has already tied up with Snapdeal to sell its diamond jewellery and gold coins. "We are also in talks with other etailers to use their platforms to sell our products. This is being done to attract the young crowd that finds it comfortable to shop online," said Zaveri.