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MMTC-PAMP, a joint venture between government undertaking MMTC Ltd and Switzerland-based bullion brand, PAMP SA, is looking to ramp up its B2C business by setting up retail outlets across the country and launching “innovative” products to tap into the growing demand.
The company, which has around 14 stores at present, plans to take its total point of sale presence to 300 in the next couple of years. “These would be a mix of company-owned and franchisee model,” said Vikas Singh, MD & CEO, MMTC-PAMP.
The share of B2C in the company’s total business has grown by around 42 per cent over the last two years. MMTC-PAMP’s total turnover stood at around ₹21,204 crore in FY21. B2C’s share in this is in “high double digit”, and has been witnessing a steady traction due to its high level of purity and finest Swiss craftsmanship.
“We were planning to ramp up our consumer business last year but were constrained due to the pandemic and lockdowns in various parts of the country. But now we expect a sharp surge in business. The B2C category has been witnessing high double digit growth and we expect to ramp this up sharply by setting up close to 300 stores across the country,” Singh told BusinessLine.
Expanding geographical footprint
MMTC-PAMP, which is India’s only London Bullion Market Association (LBMA) Good Delivery gold & silver refinery, has a strong presence in northern and central India. It plans to strengthen its presence in the eastern and southern parts of the country by setting up retail outlets.
The company, which launched its first store in Kolkata recently, is aiming to clock a revenue of around ₹1,000 crore from the eastern region over the next five years. It also plans to expand the presence in key regional markets by targeting Jharkhand, Bihar and the North East.
According to Singh, the store in Kolkata will not only cater to the huge demand of gold recycling in the region, but will also offer the company’s flagship 999.9 purest gold and silver coins and ingots to consumers and trade channels.
“MMTC-PAMP’s first presence in the eastern market assures the entry of an organised player in the gold minting and recycling business. Despite Kolkata being a regional hub for gold recycling business, the region has a very limited presence of refiners. This move assumes significance for the industry as it ensures quality, trust and credibility as nearly hundreds of tonnes of gold is recycled in Kolkata annually through jewellery shops and neighbourhood stores that employ opaque and non-standard methods,” he said.
The company, which has a capacity of refining 300 tonnes of gold and 600 tonnes of silver, caters to nearly 40 per cent of India’s total consumption.
MMTC-PAMP, which currently offers digital gold, is looking to roll out digital silver moving forward. It also has several innovative product offerings such as coins launched in association with WWF, Disney collection as well as those on Incredible India.
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