NEW DELHI: Jewellery retailer Malabar Gold and Diamonds said on Tuesday that it would invest Rs 620 crore to add 24 more outlets both in India and abroad over the next three months and hire 1,000-plus professionals.
Its existing manpower strength is 9,000 and the addition will help the firm cross the 10,000-employee mark by March this year, the company said. The new stores being planned will be set up in the January-March period of this year, taking the number of total outlets to 185.
“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 being planned, nine will be in the United Arab Emirates, seven in India, five in Saudi Arabia, two in Bahrain and one in Kuwait, the company said. 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.
Malabar Group Chairman M P 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.” 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, the company noted.
“This is one of our single largest vertical expansion drives and reflects our renewed confidence and strong commitment to the Gulf, India and Far East markets,” Ahammed added.