Malabar Gold to expand network and production

Chalking out an ambitious plan, leading gold and diamond jewellery maker Malabar Gold has announced that it would expand its production by setting up two gold and one diamond jewellery manufacturing units, besides investing more than Rs 800 crore for establishing about 20 showrooms.

Malabar Gold and Diamonds Managing Director India Operations Asher O said that apart from setting up two manufacturing units, the company also planned to increase its own manufacturing capacity.

According to him, the company is generating only 20 per cent of its requirement and the balance is being outsourced. “Our new two gold units, one in Ahmedabad and another in Kolkata. is expected to increase the company’s own manufacturing to about 70 per cent,” he said.

Stating that one new diamond jewellery manufacturing will be soon operational in Mumbai, Asher said similarly diamond jewellery making will also increase.

The company currently has seven gold manufacturing units in the country, while it outsources its requirements for diamonds. To a query on the expansion of the showroom, he said Malabar Gold will be investing Rs 800 crore during this fiscal to take up the number to 157 from the current 137, located across nine countries.

Stating that the company had a turnover of Rs 26,000 crore, with 90 per cent sales from gold and 10 per cent from diamond, he said within two years the share of sales will be 80 per cent gold and 20 per cent diamond, indicating more concentration on diamond jewellery. Asher also said that company is taking a survey to identify the locations and the number of new showrooms to be established, particularly in tier-II and tier-III cities.