Malabar Gold charts Rs 620 cr expansion plan

The largest domestic gold and diamond jewellery retailer Malabar Gold & Diamonds today unveiled a major expansion plan entailing an investment of Rs 620 crore towards adding more footprints across the country and the Gulf region.
The expansion involves adding 24 stores by March, taking the number of its outlets to 185 and will make Malabar one of the top five gold and diamond retailers globally.
The Kozhikode-based company operates 161 outlets across India, Middle East and Far East now -- 82 in the domestic market and 86 overseas and had a revenue of USD4.5 billion in 2015.
Out of the Rs 620 crore proposed investment, Rs 220 crore will be in domestic market and the rest Rs 400 crore in the Gulf markets where it is a leading player.

Late last year, Malabar Group, which is also into real estate, had announced a Rs 10,000-crore investment into various projects, primarily townships and apartments.
Of the 24 new outlets, nine will be in the UAE, five in Saudi Arabia, two in Bahrain and one in Kuwait. Of these, seven outlets will be opened tomorrow. The company will also open seven stores in the domestic market. Currently it operates 86 stores internationally, which apart from the Gulf also includes, Singapore and a few Southeast Asian markets.

Expansion will also see the company hiring over 1,000 people, taking the total headcount to over 10,000 by March. Out of this around 400 will in the Gulf and the rest here.

Expansion comes amidst tough market conditions following the noteban and rising prices. Explaining the rationale behind the move, Malabar Group chairman MP Ahammed said, "this is one of our single largest vertical expansion drive till date and will make us the one of the five top global gold and diamond jewellery retailers. The expansion reflects our renewed confidence and strong commitment to the markets wherever we are present."
He also said expansion is aimed at serving more nationalities, especially those from the Philippines, Africa, the Arabs, the Levant as well as the Western consumers.
He also said bad times for the bullion market are already over with the past 12 months witnessing 10 per cent rise in bullion prices, adding the current jewellery price is ideal for buyers.

When asked about the impact on noteban on retail sales, Ahammed said hardly any as his company has not selling without bills or accepting heavy cash payments.
Set up in 1993, Malabar Group is present in nine countries, 10 wholesale units, design centers and factories spread across India, West Asia and the Far East and had USD 4.5 billion in sales last year.