Gold & Silver

BullionIndia eyes higher online sales

Our Bureau Ahmedabad | Updated on August 22, 2014




Retailing of gold and silver through online platform is set to leapfrog with Bullionindia.in, an arm of Mumbai-based bullion trading major RiddiSiddhi Bullions Ltd (RSBL), planning to treble its sales through e-commerce site this fiscal.

Set up in October 2012, BullionIndia offers gold and silver online, deliverable in physical form at wholesale market prices. BullionIndia offers as low as 0.1 gm gold and 1gm silver units that can be bought or sold online. The units are backed by physical gold or silver bought and kept in vaults monitored by an independent trustee.

“Our prices are lower by some 8 per cent from other branded retailers or bank coins. We do not keep high margins, but we are eyeing higher volume,” said Ketan Kothari, director, BullionIndia.in.

The purchased quantity reflects in the e-statement, while the physical gold remains in the vault of RSBL with zero storage fees. On delivery, the customer gets the bars/coins in tamper-proof packing with certification of purity.

For online purchase, the payment is made through online gateways such as Internet banking and credit cards.

The company achieved turnover of ₹50 crore for 2013-14, which Kothari expects to increase to ₹150 crore by this fiscal-end.

“The volumes will come from silver, while from gold we will have higher turnover. While most of the transaction will take place through e-commerce, we also have empanelled brokers who will also offer physical gold if anyone prefers,” he said.

The company eyes Gujarat as a major market as about 15 per cent of its business comes from the State, mainly Ahmedabad and Surat.

“In Gujarat, we have set up delivery centres in Ahmedabad and Surat, for those who want to take physical delivery of gold. Alternatively, the customer can sell their holding online as well and encash their holdings,” he said.

It has also announced festive scheme of flat 2 per cent discount on gold/silver purchases during Diwali.

Published on August 22, 2014

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