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Reliance Money to enroll 10,000 jewellers, distributors

The company has made the move for its gold accumulation plan

Press Trust of India  |  Lucknow 

Precious Metal (RMPM), part of Anil Ambani-led Limited, today said it is targeting enrolling over 10,000 jewellers and distributors across the country for its recently-launched My Gold Plan.

"We are aiming to aggressively increase our distribution and fulfilment reach across India for our gold accumulation plan by enrolling around 10,000 jewellers and distributors within the current financial year," Precious Metals Business Head-Gold Rishit Sanghvi told reporters here.

At present, RMPM has over 2,000 approved distributors and jewellers across the country.

The company targets to add another 10,000 distribution points and fulfilment partners by the end of 2012-13.

Recently, launched My Gold Plan whereby customer can invest a minimum of Rs 1,000 per month which would be used for buying gold and customer can redeem the same for 24 karat pure gold coins or jewellery at the end of scheme.

The plan can be subscribed for a tenure ranging from 1 year to 15 years. Daily average pricing methodology splits the monthly subscription into equal parts and allots gold grams over 20 successive business days.

"Uttar Pradesh accounts for 8% of India's gold demand which translates to Rs 25,000 crore at current prices. Nearly 65% of this demand is from rural areas that largely buys gold from the unorganised sector," Sanghvi said.

The plan would target the unorganised gold market that accounts for 75% of total gold sales in India, he said pointing out that the new plan is different from schemes offered by unorganised jewellers which only allowed consumers to buy gold at prices prevalent at the end of the tenure.

"We are confident that the increased distribution network and points will help us tap over one lakh customers for My Gold Plan by March 2013," Sanghvi added.

The plan makes gold accumulation transparent and straightforward, allowing customers to convert accumulated gold grams into coins or jewellery at multiple outlets across India, the company said.

First Published: Wed, December 12 2012. 14:28 IST