The UAE-based Pure Gold Group, which currently has 25 retail jewellery outlets in India under its flagship brand Pure Gold Jewellers, has announced plans to invest USD 150 million in India in three major business sectors – retail, manufacturing (Diamond and Gold Jewellery) and hospitality over the next three years.
The company aims to strengthen its foothold in the Indian market which is poised for strong economic growth. Recent reports by the International Monetary Fund predict that India’s economy will overtake China in terms of its annual growth rate by 2016. It will grow at 6.3% and 6.5%, respectively, over the next two years, making it the fastest growing emerging economy in the world.
Commenting on the investment outlay, Firoz Merchant, Chairman and Founder of Pure Gold Group, said: “We believe in Indian economy’s strong long term outlook. This is also the right time for us to expand our gold and jewellery business as with the slump in oil prices, the price of gold is on the rise and we see investors with a long term vision benefitting from this. We already have a strong foothold in the Indian market for our gold jewellery outlets. Our new investment plans are aimed at increasing our reach across the country. We currently own a diamond manufacturing unit in India and we plan to increase its capacity. With the USD 150 million investment, we also plan to enter India’s booming hospitality sector which will be a new line of business for us. We will initiate our investment plans this year to be completed by 2017. After this phase is accomplished, I plan to start the second phase of a business plan in India.”
According to Merchant, Pure Gold Jewellers, the flagship company of Pure Gold Group, is the first and only jewellery retailer in GCC and India to adopt and introduce the World Diamond Mark’s Authorised Diamond Dealer (ADD) programme which leads to the prestigious ‘D’ certification. “The certification is an indication of the company’s commitment to transparency and quality of diamond jewellery and it will build further customer confidence in the company as it moves forward with its expansion plans,” he added.
Merchant also commented on the outlook for gold prices: “Gold prices are currently on the upswing and I expect this trend to continue. Usually when there is a dip in economy, gold is the first asset that investors turn to as it is a safe haven due to the ease of liquidity. In the coming months, I expect the market to be highly volatile and there will be fluctuations in the price of gold. And this sharp uptake in consumer confidence in gold prices will aid us in our expansion plans.”