Reliance Money Precious Metals Private Ltd (RMPM), a Reliance Capital company, and World Gold Council on Thursday rolled out the ‘My Gold Plan’ scheme in Kerala, eyeing the Rs 75,000 crore gold market in the state.
The first of its kind gold accumulation plan was launched by Amresh Acharya, Director Investment WGC and Rishit Sanghvi, Business Head Gold Reliance Money.
Later talking to reporters, Acharya said the plan makes gold accumulation transparent and straight forward, allowing customers to convert accumulated gold grams into coins or jewellery at multiple outlets across India.
In 2006, India consumed 700 tonnes of gold while in 2011, it was 986 tonnes, he said. The WGC has successfully launched gold accumulation products in China and Japan, he said.
Describing the scheme as ‘next generation’ product that allows consumers accumulate pure gold in a systematic and transparent manner, Sanghvi said the plan would help consumers move away from the unorganised sector and would emerge as the most preferred option for accumulating gold in future.
Kerala is the ‘gold capital’ of India and enjoys 25 per cent market share of the Indian gold demand valued at over Rs 75,000 crore. This demand has been predominantly met by large number of gold retailers in the unorganised sector.
The state has the highest number of gold retailers in the country. There are five lakh jewellers in India and an equal number in the unorganised sector. There are only 9,156 licensed jewellers.
The plan is available at a minimum subscription of Rs 1,000 per month and can be subscribed for a tenure ranging from one year to 15 years.
At the end of the selected plan, customers have the option to exchange their accumulated gold grams into 24 karat gold coins or jewellery at designated fulfilment outlets across India.
Sanghvi said over 65 per cent of gold is bought during marriages and festivals and price does not play a dominant role. India accounts for 28 per cent global demand for gold.
Reliance which has 2,000 distribution outlets across India, plans to touch 10,000 soon, he said.