Kerala-based jewellery chain Malabar Gold is planning to increase the number of its stores to 500 over the next five years from the current 42 stores. The company has said foreign markets will also be a focus as part of its expansion plan, which involves an investment of nearly Rs 9,000 crore.
M P Ahammed, chairman, Malabar group, said that the company has 42 stores of which 28 are in India and 14 abroad including in the United Arab Emirates, Saudi Arabia, Oman and Bahrain. “One of the thrust areas will be foreign countries including US and in Europe apart from South East Asia,” the company said.
“We are planning to use franchise model for the proposed expansion, by which the company doesn't have to invest,” said O Asher, group executive director, Malabar group. The proposed expansion would require around Rs 9,000-10,000 crore, including investment on gold, Asher said.
Currently, one third of the business comes from foreign countries, which the company plans to raise to 40 per cent, according to Asher.
Last year the company registered a turnover of Rs 4,000 crore and set a target to reach Rs 20,000 crore in five years, said Ahammed. The company announced well-known music director Ilayaraja as its new brand ambassador.