High gold prices wouldn't deter Indian buyers: M P Ahammed, Chairman, Malabar Gold Group
In an interview, group chairman MP Ahammed tells PK Krishnakumar about its objective of establishing a global brand identity, current gold price trends and its impacts
By ET Bureau | Updated:
The Rs 4,000-crore Malabar Gold, a leading jewellery chain from south India, is expanding its footprint abroad. Many jewellery chains have prominent presence in the Gulf region but Malabar Gold is going beyond that by foraying into the Southeast Asian and European markets.
In an interview, group chairman MP Ahammed tells PK Krishnakumar about its objective of establishing a global brand identity, current gold price trends and its impacts.
What is your current turnover and what are the future plans?
The company achieved more than Rs 4,000-crore turnover from both our Indian and Gulf showrooms. Of the 58 showrooms, 22 are located in the Gulf. The new outlets are coming up in Qatar, Abu Dhabi, Visakhapatnam, Chennai and Delhi. In future, we will be the jeweller with the maximum variety ornament collection and maximum number of customers and branches.
How do you plan to fund the expansion? Private equity investment or IPO?
The company has 1,200 investors and many are coming forward to join us. Yes, we are looking at private equity investments besides bank loans.
What is your take on high gold prices?
We provide our customers special gold purchase schemes and advance bookings to facilitate buying as prices are rising. Gold is a value-appreciating asset as well as a gift item.
So, the demand for gold is self-sustaining despite price escalation. Moreover, the upward trend in gold rates open up a great opportunity for investment especially in gold ETFs. Rising demand, weaker global currencies, and increasing mining costs will push up the prices further.
What has price rise impacted sales?
The price rise hasn’t affected sales. There may be a reduction in the percustomer purchase volume of gold but the expanding market will nullify it. The price hike will have a positive effect on jewellery business.
How is the sale of gold coins and bars? Are more people coming forward to exchange old jewellery?
Gold coins are selling well in our outlets especially when prices go up. Gold jewellery exchange is taking place in a moderate way. The exchange compensates for the reduction in fresh purchase when the prices shoot up.
Is the consumer preference for jewellery changing? Are diamonds becoming popular?
The changes in jewellery are wellaccepted... youth prefer both lightweight and heavy items. Diamonds have their own space among ornament lovers. Gold is profitable investment for ordinary people and its value of gold in Indian culture will be stable despite high prices.
In an interview, group chairman MP Ahammed tells PK Krishnakumar about its objective of establishing a global brand identity, current gold price trends and its impacts.
What is your current turnover and what are the future plans?
The company achieved more than Rs 4,000-crore turnover from both our Indian and Gulf showrooms. Of the 58 showrooms, 22 are located in the Gulf. The new outlets are coming up in Qatar, Abu Dhabi, Visakhapatnam, Chennai and Delhi. In future, we will be the jeweller with the maximum variety ornament collection and maximum number of customers and branches.
How do you plan to fund the expansion? Private equity investment or IPO?
The company has 1,200 investors and many are coming forward to join us. Yes, we are looking at private equity investments besides bank loans.
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What is your take on high gold prices?
We provide our customers special gold purchase schemes and advance bookings to facilitate buying as prices are rising. Gold is a value-appreciating asset as well as a gift item.
So, the demand for gold is self-sustaining despite price escalation. Moreover, the upward trend in gold rates open up a great opportunity for investment especially in gold ETFs. Rising demand, weaker global currencies, and increasing mining costs will push up the prices further.
What has price rise impacted sales?
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The price rise hasn’t affected sales. There may be a reduction in the percustomer purchase volume of gold but the expanding market will nullify it. The price hike will have a positive effect on jewellery business.
How is the sale of gold coins and bars? Are more people coming forward to exchange old jewellery?
ADVERTISEMENT
Gold coins are selling well in our outlets especially when prices go up. Gold jewellery exchange is taking place in a moderate way. The exchange compensates for the reduction in fresh purchase when the prices shoot up.
Is the consumer preference for jewellery changing? Are diamonds becoming popular?
The changes in jewellery are wellaccepted... youth prefer both lightweight and heavy items. Diamonds have their own space among ornament lovers. Gold is profitable investment for ordinary people and its value of gold in Indian culture will be stable despite high prices.
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