Muthoot Pappachan Group forays into retail gold recycling segment

November 5, 2014 Posted by admin

COIMBATORE: Muthoot Exim, the precious metals division of Muthoot Pappachan Group (MPG), has announced its foray into the multi-crore retail gold aggregation and recycling business segment.

MPG has launched ‘Muthoot Gold Point,’ a chain of retail outlets which buy scrap, old and used gold items directly from customers.

Muthoot Exim would subsequently reprocess, refine and supply refined bars for domestic consumption and thus help in reducing the over-dependence of imports.

The company is planning to launch three retail outlets in south India during the current financial year. The first ‘Muthoot Gold Point’ was inaugurated in Raja Street in Coimbatore on Monday.

“Muthoot Pappachan Group’s strategic focus has always been to partner government’s objectives and priorities towards financial inclusion, financial well-being of the lower to middle income group and initiatives that would encourage economic growth,” said Thomas Muthoot, executive director, Muthoot Pappachan Group.

“We believe there is a huge potential to recycle unused gold to put the asset to productive use,” said Keyur Shah, chief executive officer, precious metals business, Muthoot Pappachan Group.

“We have tied up with Mumbai-based Infinium Precious Resources for attaining technical training and also refining the scrap gold,” he said.

“We will aim at providing high levels of customer satisfaction via standardization and transparency through scientific assessment/valuation of the domestically garnered gold,” Shah stated. Traditionally, banks have been the major players in gold recycling. While banks recycle huge quantities of institutional gold, fringe retailers have been in the business of scrapping gold jewellery in the retail segment.

India is one of the largest importers of gold in the world and already has an estimated stock of more than 25,000 tonnes of the precious metal in the custody of private households and temple trusts.

It is estimated that out of the 25,000 tonnes of gold stocks in the country, only 200-300 tonnes get recycled annually leading to a very high dependency on imports.

The aggregation and recycling of gold are mainly conducted by the unorganized sector without any standardization or transparency in the system, Muthoot Pappachan Group said.

Gold has traditionally been a preferred asset class and an essential part of every Indian household mainly because of cultural reasons.

Article source: http://timesofindia.indiatimes.com/business/india-business/Muthoot-Pappachan-Group-forays-into-retail-gold-recycling-segment/articleshow/45019556.cms

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