Muthoot Aurum influences gold investment, ropes in Amitabh Bachchan as face of ad campaign promoting gold coins  

Transitioning into a private limited company, Muthoot Aurum presents a 99.99 purity buillion range including bars and coins between 0.5 – 50 gms 

Mumbai: Muthoot Aurum, formerly known as Muthoot Gold Bullion, recently roped in Bollywood megastar Amitabh Bachchan for an ad campaign for their 99.99 purity gold bullion range, which includes coins and bars weighing between 0.5 gms to 50 gms. In conversation with The Retail Jeweller India, Mr. Haridas, Assistant G.M. at Muthoot Aurum, delved deeper into recent shifts within the organization and its future plans. 

Haridas confirmed that the transition from Muthoot Gold Bullion to Muthoot Aurum involved more than just a name change; it also marked a shift from a partnership model to a private limited company structure. This strategic move aims to align the company’s operations with its evolving business goals. 

When asked about the current promotional focus on gold coins and bars, he noted that while gold investment has traditionally been less popular in India, recent market dynamics are shifting this trend. The price of gold has surged by approximately 60% since mid-2022, impacting jewellery sales but boosting interest in bullion investments. Haridas revealed that despite a 15-20% drop in jewellery sales, there has been a substantial increase in bullion investments, particularly among the ultra-wealthy. 

He also highlighted a significant change in market behaviour. Historically, Indian gold was traded at a discount compared to international rates, but this discount is now disappearing, reflecting increased investment in bullion. In 2024, gold has appreciated by about 20% in US dollar terms. 

Muthoot Aurum is also adapting to these shifts by offering investment schemes, including savings plans where customers deposit a fixed amount monthly which usually hovers around the range of Rs.5000 and upwards to redeem gold coins or bars after a set period. Additionally, the company has introduced lightweight daily-wear ornaments to cater to evolving customer preferences. 

Regarding limitations with respect to e-commerce channels, Haridas addressed challenges faced with major platforms such as Amazon and Flipkart, citing issues with fraudulent claims and return policies. Consequently, Muthoot Aurum has scaled back its presence on these platforms in favour of direct sales through its website and WhatsApp. 

The company’s loyalty programme, designed for customers of Muthoot Finance, rewards gold loan customers with loyalty points that can be redeemed for gold coins. Although this being their primary customer base, the representative further adds that this programme is part of a broader strategy to integrate Muthoot Aurum’s offerings with its existing financial services. 

As for future plans, Haridas indicated that Muthoot Aurum is exploring additional e-commerce opportunities and financing options to make its products more accessible. 

Written by Amaan Kasu 

Retail Jeweller India Exclusive