The country?s largest bullion importer, the Rs 23,300-crore public sector enterprise MMTC, is likely to set up a mega gold refinery and medallion manufacturing joint venture unit.
Talking to FE in Bangalore on Thursday, MMTC chief general manager (South Zone) S Guruswamy said the proposed plant is expected to manufacture gold medallions worth Rs 2, 000 crore per annum.
Currently, MMTC has a small medallion plant in Delhi, where the company has been producing medallions worth Rs 100 crore per annum. The Indian medallion market size is estimated at Rs 8,000 crore.
An optimistic Guruswamy said, ?At least, we are looking at 20-25% marketshare through our proposed unit.?
While declining to name the company?s joint venture partner, he said, ?We are negotiating with a European firm that already has an expertise in gold refining and medallion production. With gold prices zooming in the last few months, people are showing interest in purchasing medallions for investment purposes. Currently, more than 90% of the local gold medallion requirement has been met through imports,? he said.
MMTC alone imports around 150 tonne of gold out of the 750 tonne of India?s total imports every year.
Being the largest importer of gold, MMTC believes that it could strenthen its position in the domestic medallion market by establishing mega production unit in the country.
He also said the company has plans to foray into gold jewellery retail segment. To take its hallmark sealed jewelleries across the country, the company has been organising mega exhibitions during festival seasons in Mumbai, Delhi, Bangalore, Kolkata and Goa. By organising an exhibition for the first time in Bangalore, the company is testing the Southern gold jewllery market ahead of foraying into the active retail segment.