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Pure Gold Plans $150M India Expansion
Feb 1, 2015 5:21 AM
By Avi Krawitz
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RAPAPORT... Pure Gold Group, a Dubai-based jewelry retailer, is planning to invest $150 million over the next three years to expand across India. The funds will be used to grow the company’s retail, diamond and gold jewelry manufacturing and hospitality operations in India.
“We believe in the Indian economy’s strong long-term outlook,” said Firoz Merchant, the chairman and founder of Pure Gold Group. “This is also the right time for us to expand our gold and jewelry business, given the slump in oil prices, and that the price of gold is on the rise, we see investors with a long term vision benefiting from this.”
Pure Gold currently has 25 jewelry retail outlets as well as a diamond manufacturing unit. Merchant said the company intends to use part of the funding to increase its capacity at the factory.
Entering India’s hospitality sector will also be a new line of business for the company. Merchant added that the company will start a second phase of its strategy in India once the current investment is completed in 2017.
Merchant maintained a positive outlook for gold prices, which he expects will boost consumer confidence.
“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,” he said. “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.”
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Tags:
Avi Krawitz, diamonds, Dubai, India, pure gold, Rapaport
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