Companies

MMTC sees 50% jump in turnover on sales

| Updated on: Apr 18, 2011

State—run, MMTC, said on Monday that it expects about 50 per cent jump in turnover to Rs 67,500 crore in 2010—11 driven by robust growth in sales of precious metals.

In 2009—10, the firm’s turnover was Rs 45,124 crore.

“One of the major contributors to the topline of the company has been the precious metals division. The precious metals division turnover is likely to increase by about 55 per cent to Rs 50,000 crore in 2010—11 against Rs 32,130 crore in 2009—10,” MMTC, CMD, H S Mann, said in a statement.

The company said the demand for gold and silver has been increasing across the country. Gold prices are hovering at a high of Rs 21,780 per 10 grams, while silver touched all time of Rs 64,300 a kg today.

A jump in metal prices has also spurred the investment demand as bullion has proved to be a reliable hedge against inflation, he said.

MMTC had joined hands with Produits Artistiques de Metaux Precieux (PAMP) AG of Switzerland in 2007, for manufacturing gold and silver medallions in India and setting up a precious metals refinery in Mewat district of Haryana.

The project, MMTC—PAMP India Pvt Ltd, has an investment of Rs 200 crore and annual refining capacity of 100 tonnes of gold and 600 tonnes of silver.

The production of the silver medallions has commenced this month, whereas the refinery operations will start from July. The silver medallions weighing 5, 10, 20, 100 grams will be launched on April 29 (Akshaya Tritiya).

The joint venture has the facility to produce 2.75 million pieces of both gold and silver medallions per year.

“In the current fiscal, the expected sales of the medallions is 4 lakh pieces,” Mr Rajesh Khosla, Managing Director of MMTC—PAMP India Ltd., said.

Khosla further said MMTC—PAMP India is expected to breakeven by 2013—14 and also aims to become debt free by 2015—16. At present, the JV has a debt of Rs 140 crore.

MMTC would also increase the number of its retail outlets (exclusive showrooms and core showrooms) to 125 from the existing 63 across the country, Mr Mann said.

“We will initially sell the medallions at MMTC outlets and subsequently we may also tie up with banks to boost sales,” Mr Khosla added.

Published on April 18, 2011

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