Raj and Shilpa Shetty Kundra forays into gold business with ‘Satyug Gold’
Raj Kundra, a business entrepreneur whose business spreads across different verticals in India and abroad, along with his celebrity wife Shilpa Shetty Kundra stepped into business of gold with Satyug Gold.
The gold bullion and jewellery company has opened seven stores cross major cities in India including Mmbai, Delhi, Jaipur, Ahmedabad, Pune, Chandigarh and Ludhiana. Satyug Gold will feature the regular collections of jewellery designed by Bollywood star Shilpa Shetty herself. It will also have its own minted 24 karat (999) purity gold in all sizes with exclusive packages and the Satyug Gold Purchase Plan in association with India Bullion Jewellers Association (IBJA).
At the grand launch of Satyug Gold at IBJA House, Shilpa Shetty Kundra, Chairman of the group and Raj Kundra, CEO told Jewel Trendz about the vision and mission behind launching the company. “Gold has an intrinsic place in our lives both in terms of auspiciousness and value. It is integral part of our every occasion and we buy this precious metal all through the year. We believe gold should be available to everyone, at a price that is affordable to everyone. Satyug Gold is our pioneering initiative to make gold affordable to every Indian,” said Shilpa Shetty Kundra.
Raj Kundra, who co-leads the venture with Shilpa, believes in wife’s dream and believes that this path breaking venture will definitely attain new heights of success. When asked about, how come Kundra stepped in gold business all of sudden, he replied, “The gold business is not something new to me, given that I have been trading in the precious metals since last 15 years. I have been into mining as well in London, Peru, Atwerp etc, so Satyug Gold is just an extension of it.”
Satyug Gold business can be majorly divided into import of precious metals, refining through its refineries and the Satyug Gold Plan. “We have entered into long-term contracts with gold mines from all over the world and own two licensed refineries in India. Some of the margins we make in our gold business will be passed on to our customers in the form of discounts. This is possible because we are complete mine-to-refinery customer set up,” shared Raj Kundra. Satyug owns 42 per cent stake in AuPtAg Refinery and 50 per cent in Royal Refinery, both located in Navi Mumbai. They have refining capacity of 18 tonne and 150 tonne per annum, respectively.
Speaking further about the venture, Shilpa expresses, “It’s a dream come true for me, I have been longing to be part of this industry since a long time. I am glad that India Bullion and Jewellers Association (IBJA) believe Satyug Gold has lots of potential.” The Satyug Gold Plan has been launched in association with IBJA. They have signed a 5-year deal with IBJA worth ` 25 crore. This gold plan is a unique way of investing in gold coins and bars with 24 karat purity. The Satyug Gold Plan is an initiative to make gold reasonably priced to all since possessing gold is such an emotional and integral part of our Indian culture. “I had this idea since long time, the idea is to cater directly to consumer taking off the middleman,” adds Raj.
The purchase plan allows the customer to purchase any quantity of gold at the prevailing rate on the date of purchase at ‘Various Discounts’ linked to Delivery tenures i.e. 2, 3, 4 and 5 years. Shilpa adds, “Under this plan anyone can get up to 37% discount on gold coins/bars linked to various delivery tenures.” Understanding the importance of gold as an investment in India, Raj clarifies that there is no scope for change in the existing Satyug Gold Plan. “The customers can buy gold at the IBJA gold rate for that day and if customer buys 10 g then for 2 years he pays 85% of gold price, for 3 years – 76%, for 4 years -70% and for 5 years -63% of the gold price. And at the end of the delivery tenure, he will be delivered his gold regardless of the then current market price,” explains Raj.
He further clarified that once the gold is purchased it is non-transferable and non-refundable and 1% of taxes will be applicable while the purchase of gold. Satyug Gold has long-term contracts with gold mines around the world to deliver their production to us. They buy from South America, South Africa and Ghana presently. In future, the company aims to acquire gold mines to be a Mine to Consumer business. Since, the company owns refinery company, the interference from Government bodies are minimal. Raj says, “We as company want to work in-hand with the policies of government. We do follow the 80:20 scheme introduced by the government but due to ownership of refineries, SEBI or RBI doesn’t involve with our work.”
After being a successful actress and entrepreneur, Shilpa turns into jewellery designer for her own company. The Evil Eye Charms collection exclusively designed by the Bollywood star will be available at all outlets of Satyug Gold for a brief period. Excited Shilpa says, “It has been a hidden talent. I have always been very creative in life and a lot of avenues opened for me after being an actress.” With the company, the actress launched 12 creatively designed evil eye charms made in 22 karat gold. “The evil eye is currently trending in India and as it helps keeps you and your loved ones protected, I have come up with this collection at an affordable range between ` 5000-50,000.”
‘Satyug’ in Hinduism means ‘Yuga or Era of Truth’. Committed to give the best to consumers, Shilpa shares, “We want to transcend in the gold business by whole and sole. For the karigars of the jewellers, we will get their daughters married and offer 4 gm gold mangalsutra. This will be one way of CSR as well as we would be taking business forward simultaneously.” Shilpa also highlighted the fact that gold is bought more than diamonds. “In fact, 11% of gold in market is consumed by Indian housewives. And gold is more important than husband for Indian women,” quips Shilpa.
Taking their dream of making gold available to everyone in all the cities, Satyug has tied up with one of the leading bullion company RiddiSiddhi Bullions Limited (RSBL) that specializes in bars and coins of various precious metals like Gold, Silver and Platinum. The company is connected close to two and a half thousand jewellers across the nation. Shilpa says, “The tie-up will allow us to reach maximum jewellers and people across India.”