MALABAR GOLD AND DIAMONDS: EXPANSION, IPO PREPARATIONS, AND INDUSTRY OUTLOOK

29th August 2024

Mr Asher O., MD – India Operations, Malabar Gold & Diamonds India, shared insights into the company’s strategic direction over the next few years. With the jewellery industry undergoing significant transformations, Malabar is positioning itself for continued growth both domestically and internationally

Shaping the Future of the Industry:

Reflecting on the developments of the past five years, Asher O. emphasized the positive impact of initiatives such as hallmarking and the Standardization of Indian Product Approval (SIPA). These measures have boosted transparency and compliance across the industry, particularly benefiting organized players. “Organized players are not just large corporations; any business adhering to structured and compliant practices can be considered organized,” Asher O. explained. This shift from unorganized to organized businesses is expected to shape the industry’s future, with the next five to ten years looking promising.

IPO on the Horizon:

Discussing the company’s much-anticipated IPO, Asher O. revealed that Malabar is actively preparing for the public offering. “We are in the process of consolidating and preparing Malabar to be an IPO-ready company,” he stated. While the exact timeline remains uncertain, the company is positive about its prospects and is taking steps to ensure a successful entry into the public market.

Global Expansion and Market Presence:

Malabar’s global footprint continues to grow, with the company currently operating in 14 countries, including India. Asher O. highlighted ongoing expansion efforts in key markets like the US, UK, and Australia. “We don’t believe in just adding a country for the sake of it; wherever we enter, we focus on expanding and understanding the market potential,” he said, hinting at the addition of more countries to Malabar’s portfolio in the near future.

Evolving Consumer Categories and Market Trends:

Within the Indian market, Malabar is witnessing evolving consumer behaviours across various segments. Investment in gold bars and coins remains strong, while wedding jewellery continues to be a major driver of sales. “Wedding jewellery is still on top because, for any family, the biggest jewellery purchase is for weddings,” Asher O. noted. He also spoke about the growing luxury segment, emphasizing that luxury is relative and can be an affordable aspiration for many consumers.

Positive Outlook for the Upcoming Season:

Looking ahead, Asher O. expressed confidence in a strong performance for the second half of the year, driven by upcoming wedding seasons and festivals like Diwali. “The third and fourth quarters look very positive, with a lot of weddings and inquiries happening,” he shared. Malabar is also carefully planning its geographic expansion, with 60 new stores set to open in India this year alone, bringing the total to over 400 stores.

Malabar Gold and Diamonds is clearly gearing up for a significant phase of growth, both in terms of market presence and organizational strength. With careful planning and strategic investments, the company is poised to continue its leadership in the jewellery industry for years to come.

The Interview of Mr Asher O, MD – India Operations, Malabar Gold & Diamonds with CNBC TV18 can be seen at https://youtu.be/lDI132cR-C4