By IANS,
Chennai : As a business de-risking and diversification strategy, the Kerala-based $2.4 billion Malabar group with interests in jewellery retailing and real estate development has decided to venture into retailing of lifestyle items like apparels, perfumes, watches and focus on real estate development.
“We will be getting into retailing of premium watches like Rado and Tissot next month. We are also thinking of having multi-brand watch outlets and getting into retailing of perfumes, apparels and other lifestyle products. We are looking at being a franchisee of some international brands in India,” K.P. Abdul Salam, group executive director – looking after international operations – told IANS.
The group through its Malabar Gold Pvt Ltd (MGPL) operates the jewellery retail chain Malabar Gold and Diamonds.
According to Salam, the group is also mulling selling its jewellery sub-brands through other retail chains while ruling out creating a separate chain of stores for any one of them.
“We do not have any plans to have a separate chain of jewellery stores targeting the kids with our sub-brand Starlet,” Salam said.
Salam said the group would follow business model of operating the jewellery retail chain for its new formats.
“At the top is MGPL (Malabar Gold Private Ltd) that owns the Malabar Gold and Diamonds brand. The company takes stakes (30-51 percent) in the franchisee outlets and also attracts investments from several silent investors to the outlets. The company supplies the jewellery to the outlets and also have strict control over other systems,” O. Asher, group executive director – looking after domestic operations – told IANS.
He said each store is a separate company paying a franchisee fee to MGPL.
“Our model is different from what one sees in the hotel industry where a property is operated by a hotel brand owner. Here we take stakes in franchisee outlets, supply the stock and also take care of the systems,” Asher added.
Speaking about Malabar group’s real estate plans Salam said the group will be developing around 14 million sq.ft over the next four years comprising of malls and residential complexes.