Malabar Gold to invest Rs 7000 crores for new showrooms and to double jobs to 25,000 within 5 years

Last Updated: Thu, Oct 11, 2018 09:07 hrs
FILE PHOTO: Salesperson attends to customer, inside a jewellery showroom during Akshaya Tritiya, a major gold-buying festival, in Mumbai

Malabar Gold and Diamonds, the Kerala-based jewelry store will be investing nearly Rs 7000 crore as part of a plan to triple its retail footprint.

Malabar's Group Chairman Ahammed was quoted in a PTI story as saying that the brand will utilize the funds to expand retail presence to 750 outlets and also raise group turnover to $7 billion by FY23.

"We have a global growth plan that will see the company triple its retail network from 250 showrooms this year to 750 outlets in the next five years with the Group turnover to $ 6.85 billion (Rs 50,000 crore) by 2023," said Ahammed.

Growth and expansion is mostly planned via a franchisee based model, and there are no plans for an IPO at the moment, explained Ahammed

Another senior official was quoted as saying that funds will also be tapped via bank loans and existing investors.

Malabar Group's retail expansion plan in north and central Indian states like Punjab, Maharashtra, Delhi and Madhya Pradesh will be supported by a new set of investors from these regions. It plans to expand its investor base from 2,752 and include more investors.

In terms of jobs, the company's growth is likely to improve headcount. Senior officials explained that the Group would nearly double headcount from 13,000 to 25,000 professionals on direct payroll within the next five years to manage the growth and expansion.

The Malabar Group currently operates retail outlets spread across ten countries in the India, Middle East, Southeast Asia and America.

In India, it plans to expand its footprint across all Tier I and Tier II cities in north and central India. Internationally, it is looking to start operations in Bangladesh, Sri Lanka, Australia, Canada, Egypt and Turkey.

Approximately 40% of the group turnover will be generated from the company's operations outside India, said company officials.

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