Muthoot Exim Pvt. Ltd., precious metals division of the 128-year-old Muthoot Pappachan Group (MPG), which was the first to launch gold recycling in the organised sector, plans to have 16 Muthoot Gold Point centres by the end of 2017 and recycle about two tonnes of scrap gold by 2018.
Muthoot Exim today extended its footprint in the Western India by opening Muthoot Gold Point at Borivali, Mumbai. This is the fourth centre in the country, after Coimbatore, Chennai and Delhi.
Muthoot Exim is the first organised player to foray into gold recycling that would directly cut down the import of gold and control the account deficit, which the Government also in the recent times is aggressively pursuing through gold monetization schemes.
The company through its centres will buy old and used gold items directly from the customers and reprocess, refine and supply refined bars for domestic consumption, with an objective of reducing dependence on gold imports. After the initiative was launched in last November, the company was able to recycle 45 kgs of old gold.
"Our idea is to launch three more such centres by March 2016. The next phase will include Telengana, Andhra Pradesh and Gujarat this year," said Mr. Thomas Muthoot, Executive Director of Muthoot Pappachan Group. He said by the end of 2017, the number of the centres will be 16.
"It gives us immense pleasure to announce the launch of Muthoot Gold Point centre at Borivali in Mumbai. Muthoot Gold Point has a strategic significant importance, as it aligns with Government's objectives and supreme priority of keeping Current Account Deficit (CAD) under control, by garnering and channelizing domestic unused gold to productive use," said Mr. Keyur Shah, CEO, Muthoot Precious Metals Division.
According to estimates, gold recycling has not been tapped to its fullest in India and it mostly happens in the unorganized sector.
Elaborating on this new business, Mr Keyur Shah added, "We have tied up with Mumbai based Infinium Precious Resources Ltd for attaining technical training and also for refining the scrap gold".