Thursday, April 11, 2024
HomeJewellery FranchiseCan you Own a Malabar Gold Franchise? - Revenue, Cost, & Profit

Can you Own a Malabar Gold Franchise? – Revenue, Cost, & Profit

Are you a jewelry business owner looking to scale your operations through a collaboration with a renowned jewelry chain? Are you passionate about the growth prospects of the jewelry franchises in India? Have you been searching for information on Malabar Gold & Diamonds business but couldn’t find reliable sources?

Look no further! In this blog post, we will delve into the exciting world of Malabar Golds, which primarily offers a wide range of gold & diamond jewelry and has certainly created a wave in the jewelry industry.

Certainly, there is no exaggeration in the statement that “India’s jewelry industry has shown a stupendous growth rate and has proven to be a remarkable stable, safe, and profitable investment” even during challenging times.

If you are a serious investor, you might have noticed the sudden bump in Gold investment during the COVID times. Experienced or Pro investors oftentimes turn to gold to hedge against inflation and compensate market volatility.

Malabar Gold Franchise Opportunity
  • Company: Malabar Gold and Diamonds
  • Founded: 1993
  • Industry: Jewellery
  • Area served: Worldwide
  • No. of Outlets: Over 350
  • Model: Self-owned
  • Franchise: No
  • Space Required: 4000 sq feet
  • Est. Initial Investment: ₹36 Crores to ₹40 Crores

Overview of Malabar Gold Franchise

Overview of Malabar Gold Franchise
Overview of Malabar Gold Franchise

Founded in 1993 (One year prior to establishment of Tanishq Jewelry) in Kerala, India, Malabar Gold & Diamonds, A flagship company of Malabar Group, has emerged as a prominent and diversified Indian business conglomerate.

The chain was founded by a team of aspiring entrepreneurs, led by the visionary genius of Mr. M P Ahammed, who wanted to bring transparency, reliability, and authenticity to the jewelry industry in India.

Since its inception, the chain has been oftentimes renowned for its exquisite craftsmanship, superior quality, and wide selection of jewelry pieces, which helped them to position itself as pioneer and prominent leader in the jewelry industry.

With a growing market demand and continuous innovation in designs, Malabar offers an extensive range of jewelry collections that cater to diverse audiences, spanning various age groups and ethnicities.

It ultimately helped the chain expand its location not only in India but also to several international locations. At present, Malabar Gold and Diamonds operated in the countries, including the UAE, Kuwait, Bahrain, Oman, Qatar, and Saudi Arabia, Malaysia, Singapore, and the US.

Currently, the chain operates over 300+ outlets spread across 11 countries, in addition to multiple offices, design centers, wholesale units, and factories. According to the official information published by Indian retailer, the company has all set to invest ₹1200 Crore to open 33 showrooms in India.

With a bold vision, Malabar Gold and Diamonds aims to surpass Rs 75,000 crore in revenue and establish 750 showrooms, setting its sights on becoming the world’s largest jeweler by FY25.

However, considering its strong and steadily growing revenue figure with just 300 outlets, the Kozhikode-based jewelry retailer is well on its way to achieving this target.

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The Journey of Malabar Gold and Diamonds and its founder

The story of a spice merchant venturing into the jewelry industry and building a business that achieved a remarkable 35% revenue growth to reach Rs 30,000 crore in FY22 is both intriguing and inspiring.

With a target of reaching Rs 45,000 crore in revenue in FY23, this entrepreneur and chain has demonstrated remarkable success and ambition within the jewelry industry.

But how does the story unfold when it comes to store expansion?

Well, according to a detailed post published by YourStory, here’s how the storyline unfolds for store expansion.

Year 1993 – Store size of merely 400 sq feet

The brand started in a small outlet of 400 sq feet in Calicut in 1993. Ahammed, the founder, started it by purchasing gold bars and getting the jewelry manufactured from the goldsmiths.

Year 1995 – Shutting down old store, open a store of 4000 sq feet

Soon after recognizing enormous potential in the jewelry segment, Ahammed shuts down the old store and open a new store of 4000 sq feet.

Driven by innovation and employing leading marketing strategies, Malabar Gold and Diamonds made its mark in the international market with the opening of their first store in 2001. From there, the expansion journey continued.

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Key Facts on Malabar Gold Franchise

Sr No.TypePrivate
1Trade NameMalabar Gold and Diamonds
2IndustryJewelry
3Founded1993
4Founders Or Parent CompanyMr. M P Ahammed
5Corporate HeadquartersKozhikode, Kerala, India
6Number of locationsOver 300+
7Area servedCountrywide
8ModelSelf-owned entity
9Product offeringVarieties of Jewelry
10Revenue₹30,000 Crore in FY22
11Websitehttps://www.malabargoldanddiamonds.com/

Does Malabar Gold offer franchises?

Does Malabar Offer Franchises
Does Malabar Offer Franchises

Undoubtedly, the jewelry business offers immense potential in India. However, due to the substantial initial investment and specialized knowledge required, many businesses, including the Malabar Gold opt to pursue a self-operational model instead of franchising.

By choosing this approach, they gain enhanced control over their entire operation, ensuring the highest quality final products and an exceptional customer experience that is second to none.

Nevertheless, if you have come here for this specific question, let me inform you that Malabar Gold and Diamonds does not operate on a franchising model; instead it operates solely as a company-owned business.

Now, if you are truly interested to learn more about Malabar Gold and its cost and profit, You can read further as we have lot more to cover.

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How much does Malabar Franchise Cost?

How much will Malabar Franchise Cost
How much will Malabar Franchise Cost

As Malabar operates solely as a company-owned entity, it could be certainly difficult to comment on initial cost involved in setting up a single jewelry showroom of Malabar and Diamonds.

However, we will provide detailed information about its costs based on the investment figures mentioned by Malabar Gold and Diamonds, which have been published by several renowned media houses for opening a certain number of Malabar stores.

According to the verified source mentioned earlier, the Malabar Gold and Diamonds chain has ambitious plans to open 33 showrooms in the upcoming months with an investment capital of ₹1200 Crores.

This translates to a significant investment of ₹36.36 Crore for a single outlet of Malabar Gold Franchise, which is expected to occupy a substantial area of at least 4000 sq feet to 6000 sq feet.

But what constitutes the majority of this investment?

if you have read our other articles on Jewelry franchises, you might have got the answer.

Typically, the jewelry industry has quite a different business model, which often demands a significant amount of investment capital. The majority of this capital is allocated towards acquiring and maintaining inventory, while a smaller portion is dedicated to interior decor, furniture, and various marketing and promotional activities.

Type of FeeCost & other details
Required spaceMin. 4000 sq feet
Brand NameMalabar Gold and Diamonds
Royalty FeeNA
FranchiseNo, self-owned entity
Total Initial investment₹36 Crore to ₹40 Crore

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How much is Malabar Gold Franchise Profit?

Is Malabar Gold Franchise Profitable
Is Malabar Gold Franchise Profitable

Certainly, Malabar Gold and Diamonds chain on an aggressive expansion spree that has set an ambitious target of becoming the world’s largest jewelry retailers to generate revenue of ₹75,000 Crore by 2025.

According to the verified sources, Malabar has planned to open 97 showrooms, including 60 in domestic and 37 in international market. With this significant expansion, Malabar’s total showroom count will reach an impressive 373, solidifying its presence in 13 countries.

Nevertheless, taking into account the chain’s experience in the jewelry industry, its growing loyal customer base, diverse product range catering to all age groups, exceptional topline numbers, and the ongoing worldwide expansion plan, Malabar Gold has undoubtedly established a solid and profitable business foundation.

Overall, Malabar Gold and Diamonds has demonstrated a consistent year-on-year growth of 30-45% in its topline, indicating a strong performance. Additionally, the company has also witnessed a growing number for its bottom line, highlighting its sustained profitability.

Financial Figures of Malabar Gold and Diamonds

Stats & DetailsFY – 2025(Proposed)FY – 2023FY – 2022
Topline or Revenue₹75,000 Crores₹45,000 Crore₹30,000 Crore
Number of Showrooms~750~373276
Presence in countries20+1310

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What the USP of Malabar Gold Franchise?

  1. Experience team with Visionary founder:
    • Mr. Ahammed has successfully grasped the fundamentals and has adeptly identified the preferences and demands of the constantly evolving consumer market.
      • The chain employs a dedicated team of individuals who focus on innovating new and exceptional designs.
        • This enables the chain to consistently offer fresh designs and products each time customers visit their stores.
  2. Consistent growth in Revenue figures:
    • Once you have established a strong foundation, everything ultimately comes down to efficient operations. In regards to Malabar Gold, their exceptional site selection strategy, self-owned business operations, and global expansion have played a pivotal role in generating revenue from multiple chains and locations.
  3. Worldwide expansion:
    • Gulf countries have gained significant popularity for their gold and jewelry products, and Malabar Gold is no exception. The chain made its entry into the international market at a very early stage in 2001.
      • It certainly allowed the chain to establish a loyal customer base, reach, and reputation in the domestic market but also in the international market.
  4. Proper Marketing and promotional strategies:
    • Over time, Malabar has engaged in collaborations with various Bollywood and Tollywood artists to promote their designs and brand name to a wider audience.
      • These influencers or artists help them gain a quick brand image in no time. It is also worthy to mention that they have also followed proper online and offline marketing strategy to efficiently market their products among right consumers.

What are the range of Products Malabar Gold and Diamonds offer?

Malabar Gold and Diamonds offers a diverse range of products through multiple channels, including online(official website) and offline stores. Here are the range of products offered;

  1. Varieties of Solitaires
  2. Precious diamonds
  3. Gold Jewelry
  4. Gemstone
  5. Uncut Diamond
  6. Platinum
  7. Gold Coin
  8. Watches and more

How to Get Malabar Gold Franchise?

As mentioned earlier, Malabar Gold and Diamonds doesn’t offer franchising opportunities to any individuals or enterprises. The chain primarily operates as a self-owned entity that has expanded to multiple locations across the globe.

However, if you are super interested and looking to partner with Malabar Gold(if started), you can place query at its official website.

One can avail others franchise using below mentioned steps;

Official details:

Malabar Gold and DiamondsContact us

Final Takeaway – Conclusion

Malabar Gold and Diamonds is one of India’s leading and prominent jewelry chain, which operates over 350+ showrooms worldwide. They have strong presence in India, and other International market, including UAE, Kuwait, Bahrain, Oman, Qatar, and Saudi Arabia, Malaysia, Singapore, and the US.

Though Malabar has positioned itself as an renowned brand but they are yet to start its franchising program. Nevertheless, According to the verified sources, A single Malabar Gold and Diamonds showroom requires an initial investment of ₹36 Crores.

The Bottom Line – Overall, Malabar Gold and Diamonds may prove to be a lucrative business model but it is certainly not open for individuals or enterprises. If you are looking for Malabar franchise, then you might need to consider looking for other Jewelry franchise options available in the market.

Good Luck!! Happy Franchising!!

Want To Explore More? Then Check Out Below Franchising Opportunities.

Tea & Café FranchiseIce Cream FranchiseFood & BeveragesDeliveryDealership/DistributorshipBusiness Ideas, And Apparel Franchise


FAQ

  1. Is Malabar Gold and Diamonds a Franchise?

    Ans: Unfortunately, Malabar Gold doesn’t work on franchising model; instead it is a solely company operated unit, which has expanded its operations in 13+ countries with 350+ showrooms.

  2. How much will a Malabar Gold Franchise Cost?

    Ans: According to the report published by Indian retailers, to start a single Malabar Gold and Diamonds showroom requires an enormous capital of at least ₹36 Crores.

  3. Who is the founder of Malabar Gold and Diamonds chain?

    Ans: The founder is Mr. M P Ahammed.

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