India’s Malabar Group, the world’s fifth-largest jeweller, launched a fully integrated manufacturing facility in Hyderabad with an investment of ₹1,000 crore, earlier this monsoon. Despite strong headwinds, record-high gold prices and trade tariff woes, the Malabar Group is pushing ahead to secure its future. Its new integrated manufacturing facility is spread over 3.45 lakh sq. ft and is the group’s largest among its 14 manufacturing units across India and the GCC countries. The facility will bring together functions such as design, refining, manufacturing, quality assurance, hallmarking, warehousing and supply chain management under one roof. In an exclusive interview, M. P. Ahammad, Chairman, Malabar Group discussed the company’s new milestone and expansion plans.
What led you to integrate the entire jewellery-making value chain in-house with this new facility?
India has a rich legacy of jewellery craftsmanship. Artistry is at the core of what the country’s jewellery manufacturers supply to various global jewellery retailers and luxury brands. However, to command a premium in the global market, we must move up the value chain. If we want to see India capture its rightful place in the global luxury jewellery space, we must move beyond just jewellery manufacturing.
In line with that idea and our vision — ‘Make in India, Market to the World’, we have been strengthening our manufacturing capacity so that we can create design-led distinctiveness for our brand and draw global recognition for our artisans. The launch of our largest fully integrated jewellery manufacturing facility in Hyderabad marks a significant landmark in that mission.
Our new unit has an annual production capacity of over 4.7 tonnes of gold jewellery and 1.8 lakh carats of diamond jewellery apart from an annual gold refining capacity of 78 tonnes. It employs over 2,750 skilled artisans from 18 states while ensuring the safety, security, well-being and convenience of the workforce.
With the establishment of this facility, what is your long-term strategy for the brand’s growth?
With the launch of the Hyderabad facility, our annual production capacity of gold and diamond jewellery of Malabar Gold & Diamonds has risen to over 40.68 tonnes and over 3.61 lakh carats, respectively. We currently have 400+ showrooms across 13 countries and plan to open 60 showrooms in FY26.
In India, we have positively disrupted the jewellery retail narrative with our transparent pricing (One India One Gold Rate) as well as quality and purity standards. We also earned 19th position in Deloitte’s Global Powers of Luxury Goods 2023 ranking which has, in a way, validated our credentials as one of the prominent names in the global luxury jewellery market. In addition, the jewellery retail market in India is in a phase of transition on the back of growing consumer awareness and growth of organised jewellery retail. Therefore, we expect healthy growth in business both in India and internationally.
How will you use the facility to boost India’s jewellery exports? What should India do to lead the global gold jewellery market?
The Hyderabad facility will help us establish a new yardstick in design innovation and manufacturing excellence. Our goal is to set up a robust manufacturing ecosystem capable of catering to the evolving preferences of customers in both domestic and global markets.
Manufacturers in India have been supplying gold and other precious jewellery to renowned global jewellery brands. Visibility and prominence in the global jewellery retail are critical if our jewellery manufacturing sector wants to earn the recognition it deserves. Brand-led approach will give us an edge in the global markets and ultimately fuel our jewellery export ambitions.
Currently, which is your biggest export market, and how do you forecast its growth for your jewellery exports over the next 5 years?
Our largest international market at present is the GCC, with nearly 80% of our retail footprint concentrated across the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain. The region continues to perform strongly, driven by the constant influx of expats, dual perception of gold as an adornment and investment, as well as a deeply ingrained culture of gifting and celebration.
Looking ahead, we foresee significant growth potential in markets such as Europe, the USA, Australia and New Zealand, where consumers are increasingly appreciating the artistry of Indian jewellery. Leveraging the legacy that has made us a global brand in the international jewellery space, we are also expanding into new value chains to reach out to the diverse population.
How does Malabar Gold & Diamonds plan to expand its footprint globally and locally in the next one year?
We have an ambitious expansion plan in place that involves strengthening our retail presence in existing regions with more showroom launches, as well as charting expansion into new countries such as New Zealand and Ireland in the current financial year, increasing our total presence to 15 countries. In India, we will be strengthening our presence, reaching a total of 22 States and 3 Union Territories by the end of this financial year.
Have diamond jewellery sales seen an uptick, and how significantly are they contributing to your total revenues?
India has emerged as the second-largest market in the world for natural diamond jewellery replacing China. The demand for diamond jewellery in India has been steadily growing due to evolving consumer sensibilities and greater consumer awareness. For us, the contribution of diamond jewellery in our revenues is sizable and is on a steady upward trend.
While India still depends heavily on Switzerland for refined gold. How will Malabar’s in-house refinery reduce this reliance? Where will you source raw gold from?
India currently grapples with a heavy dependence on imported refined gold, with about 90% of its supply coming from Switzerland. This reliance stems from the country’s limited domestic refining capabilities.
In a strategic response, Malabar Gold and Diamonds has launched a cutting-edge refinery in Hyderabad, boasting an annual production capacity of 200 kg per day. This facility allows for the local refinement of raw gold into high-purity products, significantly reducing gold import reliance.
Moreover, the refinery will improve supply chain management by adhering to the quality standards set by the London Bullion Market Association (LBMA) while speeding up manufacturing processes.
Malabar Gold and Diamonds is also leveraging the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which permits duty-free gold imports, further mitigating the company’s reliance on external gold procurement.
The firm’s raw gold sourcing strategy emphasises ethical partnerships with international refineries to ensure fully traceable gold. In addition, it actively recycles domestic scrap gold and utilises a Directorate General of Foreign Trade (DGFT)-approved tariff rate quota (TRQ) for cost-effective access to global markets, complemented by strategic partnerships in the UAE under CEPA.
Will you expand the refinery’s capacity in the near future?
The Hyderabad refinery is part of a global network of manufacturing units focused on significantly enhancing its refining capacity, as and when the situation arises. Upgrades include advanced technologies such as hydrogen peroxide-based soldering, laser cutting, and AI-driven purification to improve efficiency.
Additionally, the refinery supports vertical integration, enabling the export of Indian-refined gold to multiple countries, while employing a substantial number of artisans and providing in-house training to nurture local talent.