Muthoot Exim is targeting the collection of 3 tonnes of gold, valued at ₹4,500 crore based on current market rates, for recycling over the next two years. This aim coincides with the company’s plan to expand its outlets from 109 to 200.
Muthoot Gold Point, a collection center under the Muthoot Pappachan Group, successfully gathered 1 tonne of gold worth approximately ₹1,500 crore in the last fiscal year, a significant rise from 600 kg in FY’25.
As reported by the World Gold Council (WGC), gold recycling surged by 44% in the first quarter of this year compared to the previous quarter of 2025, with a year-on-year growth of 20%. Increased consumer exchange of old gold jewelry for new pieces has contributed to the rising trend, coinciding with a peak in gold prices.
To meet growing demand, Muthoot Exim plans to open an additional 50 outlets this fiscal year, particularly in smaller cities, and aims to collect 2 tonnes of gold for recycling during this period.
Keyur Shah, CEO of Muthoot Exim, noted that the transparency offered by the collection center—including purity checks via XRF machines, buyback rates aligned with IBJA and MCX prices, and a clearly stated 3% service charge—serves as a unique selling proposition. Shah emphasized that although jewellers also engage in buyback transactions, they often encourage customers to purchase new jewelry, resulting in fluctuating rates. This practice leads many consumers to prefer the Gold Point Centre for its profitability.
To date, Muthoot Gold Point has recycled nearly 5 tonnes of old gold from over 55,000 customers, with around 40% returning for additional transactions. The company sources gold directly from consumers, refines it, and reintroduces it to the domestic market as 24K pure gold for jewelry and coin manufacturers.
According to Shah, this initiative could minimize the need for new mining activities, bolster the domestic gold supply chain, and promote responsible consumption of gold.
The WGC reported a 2% increase in gold supply in the first quarter, driven by higher mine production and enhanced recycling efforts. Globally, recycling saw a 5% rise to 366 tonnes from January to March this year.
Earlier this month, the Indian government doubled the customs duty on gold to 10% and increased the agriculture, infrastructure, and development cess from 1% to 5%, raising the overall import duty on gold to 15%, a level last seen in 2022. Additionally, Prime Minister Narendra Modi has advised consumers to refrain from gold purchases for a year to help maintain the country’s foreign exchange reserves, which are impacted by high oil imports amidst the depreciating rupee.
India’s annual gold consumption ranges from 700 to 800 tonnes, with over 90% being imported.
In the March quarter, gold imports surged by 58%, amounting to 186 tonnes, according to WGC data. The first two months of the year saw average imports of 83 tonnes, surpassing the monthly average of 53 tonnes in 2025. Notably, gold ETF demand in January represented 16% of monthly imports. Recycled gold in Q1 totaled 31 tonnes, marking a 20% increase year-on-year and a 44% rise quarter-on-quarter.
Published on May 28, 2026.
