New Delhi: To cash in on the festive fervour, Reliance Money, a part of ADAG’s financial services unit Reliance Capital, launched low-end variants of gold coins on 15 October weighing as low as half a gram.
While launching coins of 0.5 gm, 1 gm and 2 gm, the company has unveiled a Diwali offer ‘Buy a gold coin, get a silver coin free´ to accelerate sales. “Gold today is a costly metal with limited usage. We intend to change this by making pure gold available to a larger set of consumers by offering it at a convenient price point,” Reliance Money CEO Sudip Bandyopadhyay said.
A coin weighing half a gram would cost around Rs500 per unit and 1gram coin would cost Rs1,000, he said. He added that Reliance Money would be tapping the huge gift market in India with these lower denomination coins. The domestic gift market is estimated at Rs 20,000 crore. Reliance Money also 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 tonnes a year, of which 10% or 80 tonnes are the in the form of gold coins. The Rs8,000 crore gold coin market is dominated by unorganised jewellery stores.
Of the organised market of just four tonne, ICICI Bank is the market leader with a share of about 2.5 tonnes, while Tata Group’s jewellery retail unit Tanishq makes up for 0.75 tonnes.
“The credibility of Reliance Money and Valcambi, coupled with Reliance’s unique distribution strength, significantly expand the gold coin retailing market in India,” a retailing parter of World Gold Council said.
The coins will be sold through its over 3,000 outlets, which the company may raise to 10,000 by this fiscal-end.