MMTC Plans to Launch New Gold Jewellery Brand in Domestic Retail Market

Strategic Insights -

State-owned Indian trading firm MMTC, a leading player in the domestic retail market, is poised to expand its footprint by launching a new gold jewellery brand. The company, which has an estimated turnover of Rs 67,500 crore (US$15 billion) in 2010-11, plans to contribute Rs 50,000 crore from precious metals. MMTC aims to set up over 30 retail outlets to sell the branded jewellery, in addition to its existing 15 outlets across the country. The company has already appointed a consultant to draw a road map for its branded jewellery forays, with a report expected in the next three months.

Key Takeaways:

  • MMTC plans to launch a new gold jewellery brand to expand its footprint in the domestic retail market.
  • The company expects to contribute Rs 50,000 crore from precious metals to its estimated turnover of Rs 67,500 crore (US$15 billion) in 2010-11.
  • MMTC plans to set up over 30 new retail outlets to sell the branded jewellery, in addition to its existing 15 outlets across the country.
  • The company has already appointed a consultant to draw a road map for its branded jewellery forays, with a report expected in the next three months.
  • MMTC has a joint venture with Gitanjali Group for gold and diamond jewellery retail.
  • The company expects a 50 per cent jump in turnover to Rs 67,500 crore in 2010-11 driven by robust growth in sales of precious metals.
  • MMTC's turnover in 2009-10 was Rs 45,124 crore.
  • The company has a silverware brand named 'Sanchi' and has joined hands with Produits Artistiques de Metaux Precieux (PAMP) AG of Switzerland in 2007 for manufacturing gold and silver medallions in India and setting up a precious metals refinery in Haryana.

Statistics:

  • MMTC's estimated turnover in 2010-11: Rs 67,500 crore (US$15 billion)
  • Contribution from precious metals in 2010-11: Rs 50,000 crore
  • Number of retail outlets: 15 (existing) + over 30 (new)
  • Investment in MMTC-PAMP India Pvt Ltd: Rs 200 crore
  • Annual refining capacity: 100 tonnes of gold and 600 tonnes of silver
  • Production capacity: 2.75 million pieces of gold and silver medallions per year

Sources:

  • PTI (Press Trust of India) dated April 20
  • MMTC (Metal Corporation Ltd) Press Release
  • PTI (Press Trust of India) dated April 29 (for silver medallions launch)