Gold multinational in Lanka

Pure Gold, a multinational jeweller based in Dubai, has arrived in Sri Lanka.

"We warmly welcome the Pure Gold Group to Sri Lanka. Its entry enhances our gold industry profile. Pure Gold's initial investment here is $ 50 m," said an official of the Ministry of Industry and Commerce when he met the Chairman of Pure Gold Group (PGG), Dubai, UAE Firoz G. Merchant recently.

"Sri Lanka's current gold needs are met by gold imports and the annual gold imports are in the range of $ 30 m (and upwards) and more than 6,000 metric tonnes imported are used for domestic consumption as well as in export manufacture. No clear estimates are available on the domestic retail sector value but the value of the gold pawning industry in Sri Lanka is estimated to be around $ 52 m (Rs 7 b)."

The Commercial Bank and Bank of Ceylon are among top importers of gold to Sri Lanka.

"Of Sri Lanka's total exports in 2011 which was worth $ 10.9 b, the "diamonds, gems and jewellery" sector was 4.9 percent at $ 531.57 m registering a strong 30.04 percent growth compared to 2010 exports ($ 408.77 m)," he said.

"In 2011 Sri Lanka exported jewellery worth $ 28 m up 55 percent from 2010 and the US, Hong Kong and Belgium being our top three buyers out of 39 countries in 2011."

"We are pleased that Pure Gold has joined the supply chain of our jewellery export industry sector so that the export jewellery manufacturers get their gold at competitive prices," he said.

Merchant PGG which is an ISO9001:2008 certified retail jeweller of the Middle East, has over 100 stores across UAE, Oman, Bahrain, Kuwait, Qatar and India.

Merchant said, "We plan to start immediately in Sri Lanka. Our first round investment proposal for Sri Lanka is $ 50m to enter Sri Lanka's gold retail sector first, followed by wholesale and manufacturing for export thereafter. In Sri Lanka, we will be setting up 30 sales outlets by 2015/2016 - this includes duty free shops and shopping mall-based outlets.

We will also be introducing our trademark "Pure Gold 18 carat gold jewellery with diamonds" which is widely sold in the EU markets to Sri Lanka."

Asked about the source of supply Merchant said, "We get all our supplies from just one country - Switzerland."

Merchant said: "We are a top supplier to the Dubai Duty Free shopping complex.

Also among the services offered are the 'exclusive gold and diamond concessionaires' at the prestigious Abu Dhabi International Duty Free as well as at the Duty Free complexes at the International Airport in Kuwait.

It is the only 'exquisite Gold and Diamond Jewellery store' in the Duty Free complex at the Muscat International Airport, Oman. Pure Gold is also available at the Queen Alia International Airport in Jordan and at Hurghada Airport in Egypt. PGG will also be available at the Qatar airport when it opens at the end of 2012."

Merchant said that PGG is in a $ 272 m expansion drive during the next five years and would enter Saudi Arabia, Sri Lanka, the Maldives and Malaysia with new stores.