Jewellery retailer Malabar Gold and Diamonds today said it will invest Rs 620 crore to add 24 more outlets both in India and abroad in next three months and also hire more than 1,000 professionals.
The company said 24 stores will be set up in the January- March period of this year, taking total outlets to 185. About seven outlets will be opened tomorrow, it added.
"Malabar Gold and Diamonds announces a major investment amounting Rs 620 crore in expansion plans of its retail network," the company said in a statement.
Of this, Rs 220 crore will be invested in India, while Rs 400 crore will be invested in Gulf nations.
Out of 24 new outlets, 9 will be in the UAE, 7 in India, 5 in Saudi Arabia, 2 in Bahrain and 1 in Kuwait.
The company said that the expansion will add more than 1,000 professionals to the group's existing manpower strength of 9,000 and cross the 10,000 employee mark by March this year.
"This is one of our single largest vertical expansion drives. The expansion at a crucial time reflects our renewed confidence and strong commitment to the Gulf, India and Far East markets," Malabar Group Chairman MP Ahammed said.
"Investment in downturn market requires courage and strong risk appetite. Our latest expansion demonstrates our long-term vision and a sustainable business development roadmap that we can manage mostly with our own resources," he added.
According to the company, the move marks a major investment in expansion at a time when many gold and jewellery retailers have struggled to manage their existing operations due to challenging global economic environment.
Despite the tough market conditions resulted by lower demand, higher price of gold and demonetisation process in India, Malabar Gold & Diamonds has decided to push ahead with expansion, which demonstrates its confidence in the growth of market in future, it added.
Malabar Gold and Diamonds is the flagship company of Malabar Group, a leading diversified Indian business conglomerate. The group owned by over 1,700 investors was ranked among the top five jewellery retailers globally.
Established in 1993 in Kerala, Malabar Gold and Diamonds today has a strong retail network of over 161 outlets spread across nine countries.
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