Muthoot plans expanding its gold aggregation centres in India

Muthoot Pappachan Group plans to open a number of its 'Muthoot Gold Points', gold aggregation centres pan India, in effect enhancing its presence in the gold recycling business of the organised sector, reports say. Typically, a Muthoot Gold Points centre purchases old gold from a customer, melts and refines it in Mumbai, and further sells it in the market, reports say.

It opened its first such centre in Coimbatore, three months ago and is planning to multiply the number to 20 centres, with locations in Chennai to tap a major gold consuming market in - Tamil Nadu; Mumbai, Delhi, other metros and tier-1 cities, reports say.

The Coimbatore centre has mobilised around 10 kg until now, reports say.

The centre weighs and tests the gold to know its true value, directly in the presence of a customer, as such ensuring confidence unlike the unorganised sector, reports say. The company believes that recycling of gold would enable the country to reduce the pressure for the industry to depend upon gold imports for supplies, reports say. Also, consumers gain the advantage to sell at a time when prices are favourable and buy when prices are low.