Gold jewellery retailer Malabar Gold ropes in local celebrities and industrialists as equity partners for its proposed flagship store in Chennai.
The retailer has floated a special purpose vehicle – Malabar Diamond Gallery Pvt Ltd - for the purpose, with several individuals including music composer Ilayaraja (who is already the retailer's brand ambassador in Tamil Nadu), Malayalam and Tamil film star Mohanlal, and West-Asia based industrialist Mr Ravi Pillai and Mr A.V. Anoop (Managing Director of AVA Cholayil Health Care Pvt. Ltd) as equity partners.
In the new entity, while Ilayaraja and Mohanlal have 2 per cent stake each, Mr Pillai has 10 per cent stake and Mr Anoop 5 per cent, said sources.
Malabar Gold currently has 60 stores across West Asia and India. And almost all the showrooms are separate entities and have local celebrities as partners. “That's our business model,” said Mr Asher, Group Executive Director. According to him, in addition to the promoter family's investment in each store, these local celebrities will have anywhere from 2-10 per cent stake in the respective entity.
The Chennai store, scheduled to be launched on October 2, will have 25,000 sq ft of floor space and will showcase “a fair mix of trendy designer jewellery and traditional collections,” said Mr M.P. Ahammed, Chairman of the Group.