MMTC to launch jewellery brand to ramp up sales

In an effort to ramp up sales in the domestic market, state-run MMTC Ltd plans to launch its own brand of gold jewellery soon. The company already has its own silverware brand Sanchi. The jewellery would be marketed under the firm's name, a senior MMTC official said.

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MMTC is expected to achieve a turnover of over Rs 67,500 crore for the fiscal 2010-11, of which the precious metals division is expected to contribute about Rs 50,000 crore, up from the previous high of Rs 45,124 crore recorded in 2009-10. The company plans to sell its jewellery through exclusive showrooms. MMTC plans to increase the total number of retail outlets to 125, including company-owned stores, within this year.

Also, MMTC had entered into a joint venture (JV) deal with Switzerland-based Produits Artistiques de Metaux Precieux AG (PAMP) in 2007 for setting up an integrated precious metals processing unit, including a gold and silver medallion manufacturing plant and refineries. The facility, located in Haryana, commenced production of silver medallion this month while the refineries are expected to become functional in July. The company plans to launch the first batch of five, 10, 20 and 100 gm silver medallions on the auspicious occasion of Akshay Tritiya on April 29.

The JV firm, MMTC-PAMP India Pvt Ltd, set up with an investment of Rs 200 crore has an annual refining capacity of 100 tonnes of gold and 600 tonnes of silver. The current equity capital of the JV is Rs 60 crore with MMTC's contribution being 26 per cent, amounting to Rs 15.60 crore.

The unit, India's first integrated bullion refinery and medallion maker, has the capacity to mint 2.75 million medallions per annum. Of this, the company hopes to sell at least 20 per cent during this fiscal - about four lakh pieces of gold and silver coins.

Meanwhile, MMTC plans to cash in on the growing demand for silver from investors by importing 50 per cent more silver this fiscal at 1,200 tonnes, the firm said on Tuesday. It also expects gold imports to rise to 275 tonnes this year from 245 tonnes last year.

India, the world's largest consumer of gold and silver, imports more than 4,000 tonnes of silver and 960 tonnes of gold annually.

Courtesy: Mail Today