Shah: Reaching out
Mumbai, Jan. 3: Muthoot Exim, the precious metals division of Kerala-based Muthoot Pappachan Group, is taking its gold recycling initiative to the east.
It is set to foray into the region by launching a gold point centre at Bhowanipur.
The centre will buy old and used gold items, which include coins/bars and ornaments, directly from the customers, following which the yellow metal will be reprocessed, refined and supplied as bars for domestic consumption.
This will be the company's fifth such centre in the country after Coimbatore, Chennai, Delhi and Mumbai. The plan is to take the number of centres to seven by the end of this fiscal and ramp it up to 17 by 2016-17.
At present, most of the gold recycling is done in the unorganised sector. Households sell gold to the neighbourhood jewellery shop during emergency or to meet a pre-determined goal.
Keyur Shah, CEO (precious metals business) of Muthoot Pappachan Group, told The Telegraph that one of the unique selling propositions of its centres was the transparent and standardised platform offered to its customers.
"This is done so that the customers get the best valuation for their gold. When a customer walks into our store, the exact buying price is displayed. The weight and purity is also communicated in a transparent manner,'' he said.
Shah added that these centres used scientific process and latest machines to measure the weight and the purity (percentage of gold) of the ornament.
No charge is levied on an individual who only wants to know the purity of gold. However, a fee of Rs 80 is charged for melting the metal. If a customer is interested in selling the item, 2 per cent is deducted from the purity.
Since the opening of its first centre at Coimbatore in Tamil Nadu last year, Muthoot Exim has recycled around 60 kg of gold from over 1,300 customers. This is expected to rise to 80 kg by March-end and to two tonnes by 2018.
Shah said transactions of up to Rs 20,000 were done in cash, but deals involving a greater amount were done through banking channels.