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Malabar Gold to invest Rs 70 bn to triple retail footprint to 750 outlets

Press Trust of India/Mumbai 10 Oct 18 | 05:30 PM

Kerala-based Malabar Gold and Diamonds is looking to invest Rs 70 billion to triple its retail footprint to reach 750 outlets and raise the group turnover to $7 billion by FY23, a senior company official said.

"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," Malabar Group chairman Ahammed MP told reporters here, on the eve of its silver jubilee celebrations.

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The company also plans to invest $ 960 million (Rs 7,000 crore) to manage the growth and expansion mainly through franchisee model, he added.

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.

As much as 40 per cent of the group turnover will be generated from the company's operations outside India, he said.

It has no immediate plans to raise funds through initial public offer (IPO) but funds will be raised through bank loans and from its investors, Malabar Group India operations managing director, Asher O said.

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. "We will also continue to strengthen our retail foot print in the states where we currently have strong presence," Asher said.

This will also 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, he added.

Asher pointed out that in order to manage the expansion and to fix the skill shortage in jewellery manufacturing, they are in the process of setting up a skill development centre to groom the youth.

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