Gold and jewellery retailers have struggled to manage their existing operations due to the challenging global economic environment. Despite the challenging market conditions, Malabar Gold & Diamonds has decided to push ahead with expansion and invest Rs.750 crore in Telangana to set up manufacturing facilities and a refinery. The project will generate at least 2500 jobs upon its completion. At present, Malabar has 15 retail showrooms in Telangana employing 1000 persons. The company has also decided to expand its retail chain in Telangana.
The decision came after the meeting between K T Rama Rao, Industries and IT Minister and M P Ahamed, Chairman of Malabar Group at Hyderabad. Jayesh Ranjan, Principal Secretary of Industries and IT and senior officials of Industries and IT Department also represented Telangana Government. Malabar Group MD (India Operations) O Asher, vice chairman K P Abdul Salam, Chief Finance Officer S Ramakrishnan, Retail Head (Rest of India) P K Siraj were also part of the discussion.
While commenting on the expansion plan, Malabar Group Chairman MP Ahammed said, “the proposed investment in Telangana was aimed at the domestic market as well as export. Malabar now has more than 260 stores in 10 countries. It has 13 manufacturing units in various States in India and overseas.” The support of Telangana Government in general and Industries Minister K T Rama Rao in particular prompted Malabar Group to make more investment in the State. “I must congratulate the industries - IT Minister for taking all major decisions at a single meeting and giving necessary directions to his department heads to facilitate the investment. The Government is so proactive and quick in taking decisions. This is worth emulating. We are investing in the State with full confidence,” he added.
Malabar’s new facility will be coming up at the Industrial Park in Hyderabad. Minister K T Rama Rao offered all infrastructure facilities for the project. Malabar requires 3.7 acres of land for the new facility.
Amid the ongoing fear of the coronavirus, how Malabar conduscts hiring at scale for these facilities will be key. While it brings some relief to the sector, the company still need to work on creating a robust strategy to attract, onboard, train, and retain 2,500 new hires.