MMTC now eyes medallions
Trading giant MMTC Ltd is eyeing the medallion segment to cash in on the growing demand for the category. Himani Chandna Gurtoo reports.business Updated: May 03, 2011 21:04 IST
Trading giant MMTC Ltd is eyeing the medallion segment to cash in on the growing demand for the category.
The company's profit margins have come under pressure due to rising competition in the bullion market. "Wafer thin margins are an issue for trading companies because the whole area is overcrowded. There are over 40 competitors in the bullion market" said HS Mann, chairman and managing director, MMTC.
MMTC is increasing its medallion production from 20 tonnes to 100 tonnes, in a move that will make MMTC the biggest unit of medallion manufacturing and refining in the world, overtaking China. MMTC recently signed a joint venture for medallions refining with South Africa's PAMP and is eyeing more such deals.
The trading giant is also foraying into retail business. "Our retail strategies will include addition of outlets, commencement of joint ventures and capacity expansions," said Mann.
The company also plans to raise retail outlets under flagship MMTC Jewels to 125 from the current 75. Besides, Shudhi Jewels - a partnership of MMTC and Gitanjali Gems - will add 46 showrooms to the current 17 in the next few months.
The company also plans to host exhibitions with festival-based themes to boost its retail strategy. In the on-going exhibition for Akshat tritya, the target is to sell over Rs 30 crore against Rs 20 crore last year.