Muthoot Exim Pvt. Ltd., the precious metals division of the Muthoot Pappachan Group (MPG), launched Muthoot Gold Point, a gold recycling centre, in the city on Wednesday.
CEO of the Muthoot Precious Metals wing Keyur Shah inaugurated the facility located at Rajagopalachari Street in Governorpet. “This is the seventh centre in the country, after Coimbatore, Chennai, Delhi, Mumbai, Kolkata and Ahmedabad,” he said.
Mr. Shah said the Muthoot Exim, 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.
Being the first organised player to foray into gold recycling, it assumed greater significance, as it helped the Government cut down the import of gold, by garnering and channelising domestic unused gold to productive use, he said. “According to estimates, gold recycling has not been tapped to its fullest in India and it mostly happens in the unorganised sector.”
The company, through its centres, will buy old and used gold items directly from customers, reprocess, refine and supply refined bars for domestic consumption, with the objective of reducing dependence on gold imports. After the initiative was launched in November 2015, the company was able to recycle 125 kg used gold, he said.
“Muthoot Gold Point has a strategic significant importance, as it aligns with the Government’s objectives and supreme priority of keeping Current Account Deficit (CAD) under control, by garnering and channelising domestic unused gold to productive use and also to provide a standardised, transparent and scientific platform to end customers to sell their gold,” said Mr. Shah.
“We plan to launch eight to nine more such centres in the next financial year,” said Thomas Muthoot, Executive Director of Muthoot Pappachan Group. Muthoot Exim Pvt. Ltd.