Muthoot enters retail gold biz

Last Updated: Thu, May 09, 2013 05:10 hrs

Muthoot Pappachan Group has announced its entry into gold sale business through Muthoot Exim, the group's precious metals division. The new division plans to make use of the group's NBFC network (Muthoot Fincorp) to sell the metals.

"We will not stock gold in our branches for sale, however, interested customers should lock their buying only to see the delivery at a later date," said Keyur Shah, CEO, Muthoot Exim, while launching the company's Swarnavarsham Jewellery scheme.

To begin with, the company plans to market hallmarked gold jewellery of low ticket sizes (2-8 gram) in tamper-proof packaging and later would sell silver and platinum, he said. Shah declined to comment on the investment and the kind of business the new division was expected to clock.

On Swarnavarsham Jewellery, Shah said the scheme allows customers to purchase gold jewellery by paying a small sum upfront and the balance in installments. Under the scheme, the jewellery would be available at 'Live Pricing', ie price at the time of booking.