New Delhi: To cash in on festive fervour, Reliance Money, part of ADAG’s financial services unit Reliance Capital, will launch low-end variants of gold coins weighing as low as half a gram.
“We are planning to launch gold coins of 0.5 gm, 1 gm and 2 gm before Diwali to meet the demand from lower-income segments,” said Reliance Money CEO Sudip Bandyopadhyay.
A coin weighing half gram would cost Rs500 per unit while those weighing 1 gm would cost 1,000, he said.
Currently, Reliance Money offers coins of 5 gm and 8 gm priced at Rs5,200 and Rs8,000 respectively excluding taxes.
India is the world’s largest gold importer with total demand of about 800 tonne a year, of which 10% or 80 tonne are the in the form of gold coins.
The country’s Rs 8,000 crore gold coin market is dominated by unorganised neighbourhood jewellery stores.
Out of the organised market of four tonne, ICICI Bank is the market leader with a share of about 2.5 tonne, while Tata Group’s jewellery retail unit Tanishq makes up for 0.75 tonne.
“All the organised players put together account for just four tons worth gold coins, which is 5% of total imports in a year,” Bandyopadhyay said, adding that while it is too early to set an exact target, the company was confident to become the largest organised retailer in this segment.
Reliance Money will sell its own branded gold coins it is importing from Switzerland through its outlets across India.