Malabar Gold & Diamonds, one of the world’s largest jewellery retailer, has announced an ambitious global growth plan on the eve of its Silver Jubilee (25 years) celebrations that will see the company triple its retail network from 250 showrooms this year to 750 outlets in the next five years with annual turnover exceeding US$6.16bn and the group turnover to US$6.85bn by 2023.
The group currently operates retail outlets spread across ten countries in the India, the Middle East, Southeast Asia and America. Its massive expansion plan will see the company expand its footprint across all Tier 1 and Tier II cities in North and Central India in order to cater to the growing jewellery market. The company’s plan of major expansion in international market includes new territories such as Bangladesh, Sri Lanka, Australia, Canada, Egypt and Turkey. As much as 40 per cent of the group turnover will be generated from the company’s operations outside India.
Considering the characteristics of the new market planned to enter, Malabar Group introduced a new concept – MGD Lifestyle Jewellery – a smaller format store offering daily wear small-ticket jewellery and lifestyle articles.
The company plans to invest US$960mn to manage the growth and expansion. The expansion will see Malabar Group expand its investor base from 2,752 and include more investors from North and Central Indian states, so that they could also be a part of the success of Malabar Gold and Diamonds. Malabar Gold & Diamonds is the jewellery retail arm of the diversified business conglomerate Malabar Group that includes other business verticals such as real estate developments, shopping malls, hypermarket, technologies, retailing of home appliances and electronics, watches, franchisee retailing and services. The new expansion will see Malabar Group nearly double its headcount from 13,000 to 25,000 professionals on direct payroll within the next five years to manage the growth and expansion.
“Silver Jubilee is a major milestone in any company’s history and during this time Malabar Group grew from a local entity to an Indian International brand with a large loyal customer base. “Malabar is a name to reckon with and known to almost every consumer. During the last 25 years, Malabar Gold & Diamond has grown from strength to strength and rose from being a small outfit to an international player across a number of verticals including gold and diamond jewellery retail, jewellery manufacturing and multi-retail concepts,” MP Ahammed, Chairman of Malabar Group, told the media at a press conference in Mumbai.
“The culture of gifting lives along with human beings to express their love, affection and emotion for their loved ones. Our aim is to be No 1 in this segment and we will strengthen the gifting aspect of jewellery that is fast growing in India and other countries and use it as a growth-driver of our jewellery business.” he added.
Abdul Salam KP, Group Executive Director of Malabar Group, said, “As a responsible business, we are very mindful of our obligations to our societies. Our expansion will create more well-paid jobs and we are very excited about our future growth plan. We ensure our entire operation in a very transparent way. We understand the sensitivity of the industry and ensure compliance through responsible sourcing, ethical business practices, transparent and professional fund management. We associate with trade bodies, financial houses, government regulators to make sure that our operations are infallible globally.
The group has a unique business model where its expansion is fuelled by investors who become shareholders in different entities in a very transparent ownership model. Malabar Gold & Diamonds currently have over 2,752 investors under different entities who share the same vision, dedication and passion. Around 19.4 percent of these investors are full time employees with the Group, including the front-end managers and directors.
Added Asher O, Managing Director – India operations, said, “Our ambitious retail expansion plan in North and Central Indian states like Punjab, Maharashtra, Delhi, Madhya Pradesh, etc will be supported by a new set of investors from these regions. We will also continue to strengthen our retail foot print in the states where we currently have strong presence. Our unique business model of sharing and caring has worked for us very well and it makes us a transparent and accountable organisation with a solid foundation where all investors have a financial and moral stake in the company. We want our North and Central Indian brothers also to join the movement and share our success.”
The company’s expansion will help generate about 12,000 new jobs and help the youths to earn a better living. We are also planning to set up three more manufacturing units and in order to manage the expansion and to fix the skill shortage in jewellery manufacturing, we are in the process of setting up a skill development centre to groom the youth and absorb them in various job profiles, in line with the Skills India campaign,” Asher added
Shamlal Ahamed, Managing Director of Malabar Gold & Diamonds’ International Operations, said, “As an Indian-born international jewellery brand, we take pride in our roots in India and help connect the global consumers to the Indian heritage and art. Our strong retail presence across 10 countries coupled with the jewellery manufacturing capabilities that mostly produces Indian culture-inspired designs that are exported to the rest of the world through our international retail network. Our further expansion in the international arena will lead to Indian artisanal jewellery being showcased at prominent global destinations.”
The group has earmarked 5% of its annual profit for CSR activities in five key areas such as housing, health, environment, women empowerment and education.
The group is also in the process of formally opening its new global headquarters at Montana Estate in Kozhikode, Kerala. Montana Estate has been set up at a sprawling 150-acre green tract as an eco-friendly township with signature bungalows, villas and apartments, international school, convention centre, organic farming, mini theatres, business clubs, etc.