Vadodara | Kerala-based jewellery firm Malabar Gold & Diamonds is planning to set up manufacturing units in Ahmedabad and Kolkata, a senior official said today.
We are planning to expand our manufacturing facilities into more cities. We already have such facilities in Dubai, Mumbai, Bengaluru and Coimbatore. And now we are planning to set up such units in Gujarat and Kolkata as well, Malabar Gold & Diamonds managing director Asher O said while opening the showroom here.
There is good huge potential in Gujarat where investment climate is very favourable. The manufacturing units in Gujarat and Kolkata will be greenfield units, Asher added. Currently, the company is making only 20 per cent of its requirement and the balance is being outsourced.
The new units– one in Ahmedabad and the in Kolkata, will increase own manufacturing to 60-70 per cent. Similarly, one diamond jewellery manufacturing unit in Mumbai is also planned which is expected to become operational in the middle of the next fiscal, he added.
The company currently has seven gold manufacturing units, while it outsources its requirements for diamonds. In line with this expansion, the company is gearing up to strengthen its manufacturing facilities, Asher said. We have invested around Rs 800 crore during the current fiscal on enhancing our retail presence and in manufacturing units, he said.
The company has also decided to open 19 new showrooms across the country this year, he said, adding it is aggressively expanding its presence in the Eastern regions and the Middle East countries.
Three showrooms have been recently opened in Vadodara, Coimbatore and Abu Dhabi, he added.
When asked how the recently launched gold monetisation scheme would impact retail jewellery business, he said, we don’t foresee any adverse impact. While gold imports will come down with this step, I hope the consumers will continue to invest in jewellery rather than in gold bars and coins.