“Action is the Foundational Key to Success” the famous quote by Pablo Picasso was actually proved in reality by the Indian Jewellery Business tycoon MP Ahammed founder of Malabar Gold and Diamonds. Mr. MP Ahammed did things so differently that he build Rs 27000 crore Jewellery Business that too within a span of two decades. Let’s have a look at his Journey so far.
Early Life of Mr. AP Ahammed
Mr. MP Ahammed was born to Mammad Kutty Hajee and Fathima on 1st November 1957. He was born in the family of merchants and landlords. At the age of 20 he started by setting up spice trade business in the year 1979. He first used to trade cardamom, pepper, and coconut to the retailers of Kozhikode (now known as Calicut) in Kerala. Somewhere he realized that this business will not give him success which he is aiming for. At the age of 20, he learned business lessons which even top institutes could not provide. He then started to do market research and thoroughly analyzed market demands and then found that people are willing to invest in gold and jewellery business could be an option for him to achieve his dream.
Mr. M.P. Ahammed Family Background
Mr.M P Ahammed is married to K. P. Subaida and they have two children. His son Shamlal Ahammed is the company’s managing director of International Operations.
The Jewellery Business Idea
Mr. MP Ahammed was born in Malabar Region of Kerala. Malabar is known for trade and Commerce. It was obvious that he chose to become an entrepreneur. The lucrative value for gold both as an adornment and investment amongst the local populace attracted him to the world of jewellery. Gold Jeweller held quite an exalted position in people’s mind and set to capitalize on the sentiment by providing the folks of Malabar a brand that offered finest jewellery without any compromise in the quality.
The Startup Story of Malabar Gold and Diamonds
Mr.MP Ahammed discussed the idea of starting Jewellery business with his relatives and seven of them got ready with the plan. But finance was the biggest problem. They finally decided to dispose their property and gathered 50 lakhs to invest in the business. Thus they became the first investor of Malabar Gold and Diamonds. The first branch was set up in the year 1993 the company started a small 400 sq.ft. shop in Calicut. He purchased gold bars and then got the jewellery manufactured from goldsmiths. The designs and collections fascinated the customers and more people started visiting the stores. Thus the Jewellery businessman managed to set up two more shops at new locations i.e. Tirur and Tellichery in Kerala. As the business started booming Ahammed closed the old shop and started new shop of 4000 sq. ft. in the year 1995. Now as the business grew Ahammed realized that the quality of the gold should not be compromised and it should be promoted. So in the year 1999 he promoted his jewellery stating BIS Hallmark jewellery which is 916 carat gold. The BIS hallmark is a hallmarking system for gold as well as silver jewellery sold in India. It certifies the purity of the metal and it confirms the standards laid down by the Bureau of Indian Standards. This attracted more and more customers to his shop and thus the success door opened up for Mr. Ahammed.
Current Position of Malabar Gold and Diamonds
In the year 2001, Malabar Gold and Diamonds started its business in Gulf Region and thus stepped outside India. The company had 10 directors by then. Its 50th store was opened in the year 2011 at Riyadh. By this year company already had a turnover of Rs 12000 crore. In the year 2013 it had 103 outlets across seven countries, 10 wholesale units in addition to offices, factories in India and UAE. By 2016 Malabar Gold and Diamonds had strong presence in India and Middle East and also it had set up its 150th store at Belgaum. In the year 2017, Malabar Gold and Diamonds opened its 200th store that too in Dubai.
In the year 2018, Malabar Gold and Diamonds reached among top 5 Jewellery Brands across the globe and opened 11 more showrooms across six countries in one single day on January 12, 2018. In the year 2019, the company made a grand entry in USA by opening its 250th Outlet in Chicago. In the year 2023, Malabar Gold and Diamonds now has a turnover of Rs 27000 crore with 4600 investors.
How Malabar Gold and Diamonds Stands Out from others??
Malabar jewellery is known for its exquisite designs, high quality craftsmanship and wide range of traditional and contemporary jewellery pieces. It is currently ranking 6th largest jewellery retailer in the world in terms of its revenue. Malabar Gold and Diamond offer a diverse selection of traditional jewellery and that too according to the taste and preference of each customer. It also believes in doing business ethically and with responsibility. The beautiful gold and diamonds collections include an assorted variety of jewellery starting from neckpieces to bangles to necklace , rings and bracelets. It suits the mood and occasion of the wearer. The company claims that it is the first brand that provides 100% BIS Hallmark product which is an essential hallmark for buying gold.
Mahendra Brothers and Malabar Gold Collaboration
Kerala based jewellery retailer Malabar Gold and Diamonds has collaborated with Gujarat based diamond manufacturer and marketer Mahendra Brothers to launch their exclusive diamond store in Mangalore under the brand name MINE. The brand is named MINE as it comes straight from the diamond source and the store is going to offer a wide variety of diamond studded jewellery in Gold and platinum with contemporary and tradition designs. The brand is set up for the new generations and their increasing demand for diamond studded jewellery. This collaboration was done with Rs 300 million investment as partnership and there will be seven stores more which are included in the list.
Malabar Gold And Diamonds Future Plans
The future plans include expansions and create 6000 job opportunities in retail, manufacturing, technical and management areas related to jewellery business. Now the aim is to craft unique experience for each customer according to their preference. The brand is now focusing on strengthening its omni channel retail strategy as the customers are nowadays selecting their jewellery and the cost through online medium. For which Malabar Gold and Diamonds is now making use of services like Microsoft, IBM, Accenture, E&Y, Deloitte etc. Malabar Gold and Diamonds aims to provide incomparable quality and service assurance which includes lifetime maintenance from any showroom across 10 countries, guaranteed buyback, IGI and GIA Certified diamonds ensuring 28-point quality check of global standards, zero deduction gold exchange, complete transparency, 916 hallmarked pure gold, fair price policy and fair labour practices.
Malabar gold and Diamonds is also exploring its new markets in UK, Bangladesh, Australia and Canada, Egypt, Turkey and South Africa. In India it is planning to expand to North and Central Indian states by setting new standards in the jewellery trade. The Company aims to bolster ‘Make in India, Market to the World’ process. It also promises the world to utilize 5% of their profit to support socially responsible purpose both in India and Abroad.
Celebrities with Malabar Gold and Diamonds
The first brand ambassador of Malabar Gold were tennis star Sania Mirza and Malayalam Actor Mohanlal. In the year 2013, Kareena Kapoor was signed as the brand ambassador of the jewellery brand. In 2016, Malabar Gold and Diamonds roped Tamannah Bhatia as the new face of the jewellery brand. Manushi Chhillar was signed as the new brand ambassador for the brand in 2018. She was the face for the brand’s global campaigns and charity events. In 2019, Mr. Anil Kapoor was announced as the new brand ambassador for Malabar Gold and Diamonds and was seen in TV Advertisements series called Malabar Promises. Now Malabar Gold and Diamonds have launched a new ad campaign titled Brides of India 2023. Now she is brand ambassador for Malabar Gold and Diamonds.
Success Lessons from MP Ahammed and Malabar Gold and Diamonds
Mr. M.P. Ahammed believes that winning the confidence of the people specially of the customers is most important factor. It is the first step. The next step is the mantra to build up a brand to become successful. He through his commitment, transparency and quality of the product won the hearts of many. He took the society and their need along with his journey which gave him huge success.
He believes that manufacturing the product within the country and supplying it abroad can benefit the crores of people within the country. Gold is the hard currency all over the world. It has huge investment value. Therefore he believed that everyone will invest in gold for sure. He knew that Hallmark is not implemented fully all over the country. And this could be his Unique selling preposition. There are major hunk of gold which are sold without hallmark. He believed that if he provide the customer with hallmark gold and that too with full transparency he will surely achieve success. He was very much aware about the fake HUID markings for hoodwinking the government and evading tax. This is were he stood out from all the other existing brands.
He believes that success comes to those who are willing to learn from their mistakes and shortcomings and adopt to the world. An entrepreneur should be true to the commitments to the society and the customers. If one person are earns from the society one should give back to the society too. A business man should act responsibly for every aspect be it to the nation , to the society , to the employees or to the customers.