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Malabar Gold eyes tier II cities in K'taka

Anil Urs  |  Chennai/ Bangalore 

Malabar Gold, the flagship division of the Rs 500 crore Malabar Group of Companies, after entering Bangalore's gold jewellery market, is now planning a Rs 150 crore strategy to enter smaller cities like Mangalore and Mysore.
According to N P Ahamed, chairman of Malabar Gold, the company entered the Bangalore market about two years ago by roping in tennis player Sania Mirza. After setting up a couple of outlets in the city, the company has gained a sizeable market share in the 900-1,000 kg per day Karnataka gold market.
"Since many customers are from smaller cities in Karnataka, we have decided to set up shop in Mangalore and Mysore by June this year," he added.
For entry into smaller cities in Karnataka, the company plans to adopt a 'hub and spoke' model with Bangalore as a base. By adopting the model in Kerala, the company has been able to double its sale and service customers in a short time, he further added.
In addition to tier II cities in Karnataka, the company has chalked out a strategy to open more stores in residential localities of Bangalore. "We want to be closer to the customers and to achieve this we plan to have six stores in the city by end of the year," he said.
As part of the company's expansion to other sectors, Malabar Group of companies, has set its eyes on real estate and has also launch branded diamond jewellery.
Following the success of its gold business under its Malabar Gold brand, the group is launching a dedicated division for diamonds, which is to be sold in all its jewellery outlets.
Ahamed said we are eyeing construction of shopping malls, townships and apartments through the Malabar Builders India Private.
Initially in phase I the firm plans to focus on Kozhikode, Kochi and Thiruvananthapuram market and later in phase II after two years Bangalore, Chennai, Coimbatore, Mangalore and Hyderabad markets are to be tapped.

First Published: Tue, March 27 2007. 00:00 IST