Malabar Gold to enter Sri Lanka, Hong Kong, boost presence in Gulf countries

By

Maverick Martins

Published
Jun 19, 2017

India’s leading jewellery retailer will spread its wings and foray into new markets of Sri Lanka and Hong Kong this year and also boost its presence in the Gulf countries. The company has earmarked Rs 2,000 crore on its international and domestic expansion for the financial year.
 

“Sri Lanka will be our first new overseas market followed by Hong Kong. We will also add 40 new stores in the Gulf markets”, Malabar Gold & Diamonds Chairman M P Ahammed told a news agency.
 
Ahammed also added that the company is planning to expand its presence in India and will add 30 new stores across the country as it expects sales to pick up post GST. He expected jewellery sales to grow 10-20 percent this year as a result of lower taxes under GST.

The GST Council earlier in a meeting had fixed GST on precious metals and diamonds, including jewellery, at 3 per cent.

The Rs 26,000-crore Malabar Group, which is also the top five jewellery retailer in the world in terms of turnover, had Rs 11,500 crore coming in from overseas sales and Rs 10,700 crore from domestic sales in 2016.

The company is investing heavily with the objective to become the world's largest jewellery retailer. Its 95 overseas showrooms are spread across six Gulf Cooperation Council (GCC) countries, and Singapore and Malaysia, and the chain is on course to enter Sri Lanka and Hong Kong this year.
 
Malabar Gold & Diamonds is the flagship company of Malabar Group, a leading diversified Indian business conglomerate. The group is also planning an initial public offer (IPO) to aid in its expansion plans in the next two years.