For the aspiring entrepreneurs who envision to enter into a India’s most lucrative and capital intensive jewellery industry, the first brand strikes their mind is Tanishq.
While its investment and rigours franchise selection process may demotivate you, but what if we told you that, you can still become a part of Tanishq group by investing a little less capital than Tanishq and can enjoy the similar growth and profit margin.
That’s indeed true. CaratLane, founded by the Sacheti Family in 2008, later joined forces with Tanishq to expand its portfolio and market presence in other cities. Currently, CaratLane is fully owned by the Titan Group, which recently acquired the remaining 27.18 percent stake in the firm for ₹4,621 crore in cash.
In this comprehensive piece, we’ll shed light on the Caratlane Franchise, including its estimated cost, potential profit margins, and a few alternatives to it. Furthermore, we have also covered a few FAQs on it and answered them based on our findings.
- Company: Caratlane
- Founded: 2008
- HQ: Chennai, India
- Industry: Jewelry
- No. of outlet: 233+
- Model: Franchise & Self-owned
- Area served: Worldwide
- Franchise Fee: ~ 20-40 Lakh
- Profit Margin: ~ varies
- Area Required: Min. 2000 sq ft
- Total Initial Investment: ₹2 Crore to ₹3 Crore
Table of Contents
Overview of Caratlane Franchise
CaratLane was established in 2008 by the renowned entrepreneurs, the Sacheti Family. We, as Indians, often consider jewelry as a one-time/significant investment, and after understanding the lag in the system, overall buying patterns, and customer issues, Mithun Sacheti and his team came up with the idea of Caratlane.
The chain has a precise focus on providing women access to modern, fine jewelry, and fashion for daily use.
While jewelry itself requires a significant investment, the Sacheti Family aimed not only to make beautiful jewelry but also to make it accessible and affordable for every category of customer.
In mid-2016, CaratLane partnered with Tanishq, India’s leading and most trusted jewelry brand, specializing in offering a variety of modern jewelry at affordable prices. The chain is also considered one of India’s largest omni-channel jewelers, which grew at a significant pace following Tanishq’s acquisition.
Currently, Caratlane boasts a presence of over 233 retail outlets spread across 93 cities pan-India. The chain added 11 stores in the most recent quarter in Q1FY24 that also posted a growth of 32.4% Y-o-Y in its total income.
With the launch of new campaigns and collections, such as #FirstSalary and Minion X CaratLane, and Ada, Caratlane has certainly created a significant customer base for its product ranges.
Therefore, owning a Caratlane stores at a high-traffic area in the city could ultimately pump up your investment. With that said, let’s dive in further into its Journey, Key Facts, costs, and more. Scroll down to read further.
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The Journey of Caratlane
In 2008, Caratlane embarked on its journey, led by Mithun Sacheti and his team, who actively engaged with a diverse range of customers.
This interaction unveiled a prevalent challenge encountered by women: the choice between high-priced jewelry for special moments and everyday pieces of subpar quality, failing to keep up with their dynamic lifestyles.
Over time, Caratlane expanded its presence to several Tier 1 and Tier 2 cities in India. Furthermore, after eight years of extensive growth and successful business operations, Caratlane decided to partner with Tanishq, a leading and highly trusted jewelry house in India.
Previously, Tanishq secured a controlling stake in Caratlane by acquiring over 72% of the company. Later, in August 2023, Tanishq completed the acquisition by purchasing the remaining 27% stake in the business.
Currently, Caratlane operates as a Partner of Tanishq and as a subsidiary of Titan company. Let’s understand more about its key facts and current revenue figures.
Key Facts on Caratlane
| Sr No. | Type | Public |
| 1 | Trade Name | Caratlane – A Tanishq Partnership Traded as Titan Company Limited at NSE and BSE |
| 2 | Industry | Jewellers |
| 3 | Founded | 2008 |
| 4 | Founders Or Parent Company | Mithun Sacheti and Team |
| 5 | Corporate Headquarters | Chennai |
| 6 | Number of locations | Over 233 outlets in Q1FY24 |
| 7 | Area served | Nationwide |
| 8 | Model | Franchise & Self owned |
| 9 | Product offering | Varieties of Jewellery |
| 10 | Revenue | Over ₹ 2000 Crores in FY22 |
| 11 | Website | https://www.caratlane.com |
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Why consider owning a Caratlane Franchise?
- Pioneer in the segment:
- As a franchisee, you’ll certainly leverage the Caratlane’s proven business model and its enormous customer base, which will undoubtedly put you ahead in the competition.
- Growing outlet’s presence:
- Caratlane has been strategically expanding its presence by carefully selecting partners and choosing optimal locations for its outlets.
- With the successful launch of over 11 stores in the last quarter (Q1FY24), Caratlane is poised to strengthen its brand presence and cultivate a loyal customer network in India.
- Caratlane has been strategically expanding its presence by carefully selecting partners and choosing optimal locations for its outlets.
- Booming jewellery industry in India:
- While the majority of the jewelry market in India is currently dominated by unorganized retailers, the establishment of outlets by chains like Caratlane, Tanishq, Kalyan Jewellers, and Malabar Gold will undoubtedly benefit the end customer by offering a diverse range of authentic and pure jewelry at competitive prices.
- Competitive pricing and attractive campaigns:
- The franchise have been introducing several campaigns and designs frequently. In the recent quarter, they introduced:
- #FirstSalary campaign focused on expressing gratitude to loved
- Minion X CaratLane was launched with exciting 20 designs as a perfect gifting solution for a new set of audiences comprising of kids, teens & twins.
- Ada, a specialized jewellery that stands out of crowds.
- The franchise have been introducing several campaigns and designs frequently. In the recent quarter, they introduced:
- Lowest inventory costs:
- Well, Caratlane embraces an omni-channel business model, which helps them avoid resellers costs and the store expenses.
- Additionally, partnering with a brand like Titan will eventually allow the chain to purchase the raw material at an affordable prices as compared to the local retailers.
- Well, Caratlane embraces an omni-channel business model, which helps them avoid resellers costs and the store expenses.
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How much does a Caratlane Franchise Cost?
The initial investment cost for a Caratlane store is highly dependent on the store’s locality, market potential, and the available retail space to put up a jewelry store.
According to the post published by the Economics Times in 2017, the initial capital required to become an approved Caratlane franchise owner was ₹70 lakh to ₹80 lakh, which we believe doesn’t include the initial inventory costs.
Additionally, considering the present scenario, to become an approved partner of the Caratlane Jewellery franchise, one may at least need an initial investment of ₹ 2 crore to ₹3 crore for a retail space of at least 2000 sq feet.
Furthermore, interested candidates are expected to have additional cash ready to buy the additional inventory and operate the store hassle-free.
What could be the Caratlane franchise fee?
While the chain hasn’t disclosed the investment breakdown for its franchises, it is highly anticipated that the franchise fee for Caratlane could range from ₹20 lakhs to ₹40 lakhs.
We at FranchiseGoal India strongly encourage franchise aspirants to reach out to Caratlane’s official team for the latest information on franchise investments (details are present in the How to Get Section).
| Type of Fee | Cost and Other Details |
|---|---|
| Franchise Fee | Approx. ₹20 lakh to ₹40 lakh |
| Floor Area | Min. 2000 – 2500 sq. ft. |
| Store Ambiance and Interiors | ₹30 lakh–40 lakh |
| IT Support and Online Platforms | ₹ 2 lacs |
| Initial Inventory | Varies |
| Agreement Period | Undisclosed |
| Total Initial Investment | ₹ 2 Crores – ₹ 3 Crores |
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How much is the Caratlane franchise profit margin?
Quoting the profitability potential for an unnamed location can be quite hypothetical and may be considered unreliable data.
The profitability of an outlet varies significantly depending on its specific location, market potential, average customer footfall, and the brand’s current reputation in the area.
Moreover, considering Caratlane’s growth trajectory and its year-on-year increase in revenue, outlet presence, and profit margin, the chain is certainly on a path to attract customers from across various categories, as are its franchise aspirants from different parts of the country.
Overall, taking its brand image into consideration, along with its diverse range of jewelry, competitive pricing, omni-channel setup, growing customer base, frequent launch of new collections, and attractive campaigns, a franchise owner can anticipate a healthy net profit margin of 5–10%.
Let’s look at some interesting figures on Caratlane:
Financial summary of Q1 FY24
- Titan finally acquired the remaining stake in Caratlane by investing over ₹4600 in cash, making it a fully-owned subsidiary unit of Titan Group.
- The chain posted ₹640 crore as total income in this quarter, showcasing a jump of 32.4% Y-o-Y.
- The revenue figures were also impressive, marking a jump of ~41% YoY.
- The chain also added 11 new stores, taking the total store count to 233.
- Additionally, Caratlane also launched several campaigns and collections to attract new audiences and retain the old ones.
Comments from Mithun Sacheti, Managing Director:
- Caratlane achieved an impressive growth rate of 73% in FY23, demonstrating a 3-year CAGR of 52%.
- During the same year, the chain also surpassed the milestone of serving over 1 million customers.
- Furthermore, Caratlane expanded its presence in Tier 3 markets by establishing locations in cities such as Mathura, Kangra, and Ajmer.
Source: Livemint
Is Caratlane worth the investment?
While you might assume that the initial capital could range between ₹2 crore and ₹3 crore, it is also important to learn that operating a jewelry business certainly requires an immense investment in stock procurement.
Like Tanishq or Kalyan Jewellers, one may need to have another capital backup of at least ₹5 crore to ₹10 crore, which can help you maintain the inventory during the festive or marriage seasons.
Hence, assuming an initial capital deployment of at least ₹10 crore, a profit margin of 5%, and a monthly revenue of approximately ₹50 lakh to ₹80 lakh, it could take nearly 4 years to 7 years for the Caratlane franchisee to recoup the initial investment.
What does it require to own a Caratlane franchise in India?
- First and most important, one should have the required funding to get a Caratlane outlet and should be ready to invest at least ₹2–3 crore with a floor area of at least 2000 square feet.
- Interested applicants are advised to dedicate themselves to the Tanishq Caratlane franchise business, follow the company standards, and maintain their legacy.
- Interested applicants must undergo and complete the necessary training program offered by the Caratlane Jeweler’s team.
- Interested franchisees should have a passion to work in the jewelry industry and should possess the leadership and financial skills to operate a Caratlane outlet.
- Applicants are advised to secure a suitable location that meets Caratlane Jeweler’s requirements, such as high visibility and easy accessibility.
Documents required to own a Caratlane Outlet
- Personal Documents: Aadhar and Pan Card
- Passport-size photographs
- Outlet rental agreement, if rented
- Bank Passbook
- PD checks, – If necessary
- GST License, ITR doc, and other necessary stuff
- Trading license
- Brand agreement
- NOCs from the concerned body
What are the alternatives to the Caratlane Franchise?
As mentioned in the previous section, whether you own a local retail jewelry shop or a franchise from a renowned brand, the required investment will be substantial compared to other retail businesses.
While conducting your research on Caratlane, you may want to consider a few more brands in your list, which can ultimately help you make an informed decision.
Let’s look at some of its alternatives:
Tanishq Franchise
If you have more funds available compared to Caratlane and are still exploring options, then considering Tanishq may be a viable choice in this segment.
Tanishq was founded in 2004 and is fully-owned subsidiary unit of Titan Group. The chain is specialized in offering a diverse range of jewellery product, including brackets, necklace, rings, and more.
The chain also boasts an impressive customer base for its products and is renowned for offering 100% authentic gold, diamonds and silver jewelry.
The initial investment for Tanishq could range between ₹10 Crore to ₹20 Crore for a floor space of 2000 sq feet. Don’t miss out to read our complete article on this.
Read more: Is Tanishq Franchise Really for You? – Cost & Profit
Kalyan Jewellers Franchise
Starting with an initial investment of just ₹75 lakhs and achieving a revenue figure of ₹1,08,179 million in FY22, Kalyan Jewellers is unsurprisingly one of the best choices in the industry.
The chain was established a year before Tanishq’s inception and has undoubtedly achieved remarkable success with over 150 outlets across the country.
Again, to become an approved Kalyan Jewellers franchise, one should have at least a few years of experience in the jewelry industry and should at least have an initial capital investment of ₹20 Crore to ₹30 Crore.
To know more about it, consider reading our in-depth article on this.
Read more: Kalyan Jewellers Franchise – Cost & Profit: The Future of Jewelry Retail
How to Get Caratlane Franchise?
Starting a new business with no prior experience and a significant capital investment can initially pose challenges and may take some time to become a profitable venture.
However, with Caratlane Franchise, one can anticipate earning decent returns within a few months of operation.
To become an approved Caratlane outlet owner, the franchise has mentioned the necessary steps and one can apply for its based on their ability and financial limitations.
- Visit Titan Company’ official website and scroll down and click on the business opportunities followed by franchising.
- Once you reach there, you need to select Caratlane as an “Interested business division” and proceed with filling in the necessary personal and business details accordingly.
Franchise form —-> Caratlane Franchise Form
Final Takeaway – Conclusion
Caratlane is unquestionably a fantastic business opportunity that not only offers a diverse range of jewelry products but also does so at affordable prices, ensuring 100% authenticity.
Eight years after its founding, Caratlane was primarily acquired by Titan, which partnered with Tanishq to expand their presence in Tier 2 and Tier 3 markets. Recently, Titan completed its acquisition of Caratlane by purchasing the remaining 27% share for ₹4,621 Crore.
The Bottom Line – The Jewelry industry in India is poised to grow at a rapid pace and partnering with Tata Caratlane Franchise could prove the investment worthwhile. However, one shouldn’t miss to perform the market research and the overall growth prospect of the brand.
Good Luck!! Happy Franchising!!
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FAQ
How much does it cost to start a Caratlane Franchise?
To become an approved Caratlane Jewelry franchise owner, one may need to have an initial investment capability of at least ₹2 Crore to ₹3 Crore. The initial stocking may vary depending on the location and the market demand.
Is Caratlane Franchise Profitable?
Over the past few years, Caratlane’s revenue has been consistently growing, as have its profit margins. Therefore, considering these factors, including its affordable prices, variety in jewelry, trendy designs, and strategic expansion plans, one can certainly anticipate a healthy profit margin of at least 5% from Caratlane.
