Muthoot Gold Point to open more retail outlets

The Muthoot Gold Point, a growing chain of retail outlets for buying and recycling old gold will be opening its fourth centre in Mumbai next month.

Three centres were earlier opened in Coimbatore, Chennai and Delhi earlier this year and have received an impressive response,Keyur Shah, CEO, Precious Metals Business, Muthoot Pappachan Group,said. About 40 kgs of used gold has been picked up in the last few months from these three centres. The group has plans to open another 3 outlets in this year and another 13 outlets in 2016. The precious metals business, which has achieved a turnover of Rs 100 crore last year, is set to more than quadruple in the next two years, Keyur said.

Transparency in pricing and in the recycling of gold( melting of used gold is done in front of the customer), has been the market-breaking strategy for Muthoot Gold Point, Keyur explained. The use of high end XRF machines (to check the purity of gold) has helped. Asked if the used gold buying business would not cannibalise the offering of its sister concern which offers gold loan, Keyur said that there was a distinction between the two types of customers. The customers who came to the Gold Point to sell gold (as against pledging the gold), did so in fulfilment of a saving goal (say funding college education or a wedding) or for a medical emergency, he said. Launching the recycling gold business was part of a well thought out strategy to create a self-sustaining ecosystem that would help other businesses in the group, he said.

Keyur said that through its recycling efforts, the group hopes to collect at least 1 ton over the next two years. This also aligns with national priorities of reducing gold imports as a long-term solution to improving current account deficit, he said.