Interview of Prithviraj Kothari, MD of RiddiSiddhi Bullions Limited.

MUMBAI, India - Sept. 3, 2013 - PRLog -- University, Kothari has been in the family business of gold trading since over 30 years. He has been the pioneer in introducing 'Instant International price based INR denominated bullion trading in India'. He is also on the advisory committee of the Multi-Commodity Exchange of India (MCX) and has advised MCX and NCDEX for devising successful gold and silver contracts. In the past, He had served as the President of the Bombay Bullion Association (BBA). As a president, he had played a crucial role in promoting BBA in the international markets. He has played a vital role in the introduction of gold ETFs in India. Under his vision, RSBL has successfully launched India's first and only electronic over the counter bullion trading system, RSBL SPOT. He is one of the founding members and directors of the Jain International Trade Organisation (JITO), an organisation promoting trade and welfare amongst it community members.

RiddiSiddhi Bullions Limited (RSBL) is a leading company in India which deals in bullion, specializing in bars and coins of various precious metals like Gold, Silver and Platinum.RSBL endeavors to combine technical and market experience with hard work and dedication to provide our clients the ability to make informed investment decisions. Founded in 1994, RSBL is proud of holding the largest variety of bullions and coins across India. RSBL's success is based on customer trust. RSBL's dedication to continuous improvements enables to meet the exacting requirements of our customers.

Replying to YashVed of IIFL, Prithviraj Kothari says, “Consumers nowadays consider jewellery not only as a fashion/status statement but also a form of investment.”

How many locations are you planning to open in FY14?

Currently, we do not have any concrete plans to commence new centres. The primary reason behind this is that we intend to support the government towards the rectification of the CAD (Current Account Deficit). In fact, we plan to condense our business in the smaller markets.

RiddiSiddhi Bullions Limited has taken the initiative to extend the best possible support to the government in its endeavour to curb imports.

What is your outlook on gold, Platinum and silver prices over the 6-8 months?

The trade range for the next six–eight months for gold, silver and platinum is as follows:

Gold- 1200$ on the lower side and 1500$ on the higher side

Silver- 18.5$ on the lower side and 22.5$ on the higher side

Platinum- 1400$ on the lower side and 1700$ on the higher side

Your comments on recent RBI move on gold?

There is still not much clarification on the customs policy implemented by the apex bank of the country. We can only put forward our views once we get further directives on customs.

Your outlook on gems and jewellery industry?

Currently, India is the leading diamond cutting and polishing hub in the world and also the third largest consumer of polished diamonds (after the US and Japan). Urbanization and rapidly expanding middle class have triggered Indian consumerism, especially in the gems and jewellery sector in India. Approximately, (92%) of diamonds sold all over the world are processed in India, irrespective of the mining locations.

There is significant potential for growth in the gems and jewellery industry. However, the need of the hour is designer jewellery as consumers prefer a different and unique look. People are ready to pay an extra premium for the uniqueness.

Although partly unorganised, this industry offers great scope. A little positive nudge from the government will be like an icing on the cake.

Consumers nowadays consider jewellery not only as a fashion/status statement but also a form of investment. The outlook for the industry is positive, with better growth expected than that in 2012–13. All we need to concentrate on is R&D, and better organisational and regulatory policies.

How is your flagship product ‘RSBL SPOT’ and Optionally Convertible Debentures undergoing?

RSBL SPOT has grown to have over 3000 clients across 18 centres in India. The response has been exceptionally good. We offer Optionally Convertible Debentures on invitation basis only.

What is your turnover?

The turnover for the financial year 2012-13 stood at Rs. 25,000 crore.

Are you planning to expand your business globally?

We are awaiting policy clarification from the RBI, the Finance Ministry and customs. Any further expansions or ventures will be decided once we have a clearer picture.

What are your plans on online gold trading?

We plan to support the government in its endeavour to curb imports. RSBL SPOT, India's benchmark platform for quoting prices and trading, is launching a new contract for export jewellers. Only exporters will be able to benefit out of this product. These contracts will be valued in dollars and are designed keeping in mind the export jewellery market.

What are the new initiatives RSBL is undertaking?

We are in the process of launching a new segment through RSBL SPOT, our flagship product. This segment will facilitate exporters, wherein RSBL will provide gold exclusively for export purpose. New contracts will be added to the RSBL SPOT system, which will be quoted in dollar terms and settlement shall be done in rupee terms.

These clients will also be able to see the equivalent price in Indian rupees (view mode only). RSBL will provide duty free Gold. Moreover, the company’s jewellery brand, DIA Jewels, will participate in noteworthy exhibitions over the next few months.

You have recently forayed into diamond jewellery under its arm RSBL DIA Jewels? What are the new collections?

We offer a host of new occasion-centric products. To begin with, we have introduced diamond studded gold rakhis, ranging from Rs. 12,000 to Rs. 25,000, for Rakshabandhan this year.

We are also coming up with diamond studded accessories for the Ganesh festival. We had initially planned to introduce entire Ganesh statues made of gold.

However, a recent research of ours indicated that people prefer gold accessories over gold idols as the former have a longer shelf life. Moreover, due to price constraints, an average Indian would rather buy gold accessories like mukut, shankh, kavach, modaks, mouse, etc. over a gold idol.

What are your investment plans?

We do not have any further expansion, diversification or investment plans as of now. We do intend to explore the mining sector once opportunity presents itself. We will come up with a strategic investment module once there is some clarity on RBI and custom policies.