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Dubai: Aiming to be
third largest jewellery retail chain in the world with a $6
billion turnover by 2015, Kerala-based Malabar Gold & Diamonds
(formerly Malabar Gold) plans to expand its retail footprint
across the world at a $700 million outlay and also increase its
jewellery production units to 10 from the current four, said a top
company official.
As a part of the expansion game plan, the group has come out with
a new name, brand logo and a tag line - "Celebrate the Beauty of
Life" and will be positioned as the "Champions of Contemporary
Tradition".
Announcing the group's expansion plan and the rebranding exercise,
chairman M.P. Ahamed told reporters here: "Malabar Gold &
Diamonds, in its endeavour to become the world's leading retailer
in value appreciating gift articles, is undergoing a brand
transformation to blend with its future business vision."
The group will be investing about $100 million to roll out more
than 20 retail outlets in 2012 itself, thereby taking the number
of stores to 84 from the current 64 spread across India and in the
Middle East.
Malabar Gold & Diamonds has undergone a name change for the third
time since 1993 when it was founded. It was first named Malabar
Jewellery and later got changed to Malabar Gold and now Malabar
Gold & Diamonds.
Malabar Gold & Diamonds had hired Brand Union part of the WPP
group for the rebranding exercise after evaluating nine companies.
"The group sales is around Rs.12,000 crore ($2.4 billion). In
India we will be opening outlets in Maharashtra, Gujarat, West
Bengal, Madhya Pradesh, Uttar Pradesh and other states," said
group executive director K.P.Abdul Salam.
According to him, the group will also open outlets in Malaysia,
Indonesia, Bangladesh, Europe, US and Canada.
It has also tied up with Indian Institute of Management-Kozhikode
for building the needed human resources.
The group's advisor, Tiny Philip, chief executive of Results
Consulting Group, said: "Malabar Gold & Diamonds group has grown
at 60 percent between 2002 and 2012. All the overseas markets will
also turn towards 'value for money' concept and the jewellery
retail company would like to be the first mover."
To a query as to group's accelerated growth plans instead of
consolidating the growth achieved between 2002-1012, Philip said:
"For other companies depend on debt for expansion, consolidation
of operations has to be there. But for Malabar Gold & Diamonds
which is mainly dependent on equity investments, the issue of
consolidation does not apply."
According to Salam, the group is not changing its business model
even in the US and other western markets.
Malabar Gold & Diamonds follows a hybrid version of franchisee
model. The company takes minor stakes in the franchisee outlets
and also attracts investments from several silent investors in the
outlets. It supplies the jewellery to the outlets and also have
strict control over other systems.
"In the US and Canadian markets we will look for Non-Resident
Indians (NRI) to invest in our stores," Salam said.
Philip does not foresee the Kerala-based jewellery chain failing
in the US and Canadian markets like some other Indian companies
that opened outlets there.
"We will study the market there and have appropriate stocks," he
said.
(Venkatachari
Jagannathan can be contacted at v.jagannathan@ians.in)
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