NBFC`s in Bullion

India Gold Conclave

19h July 2008
Chennai

A Reliance Capital company

 We are the new Reliance…

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 Reliance Anil Dhirubhai Ambani Group
 Over 150 million customers – 1 in every 10 Indians
 11 million shareowners – among the largest in the world
 100,000 young, trained and motivated people
 Group net worth of over US$ 14 billion
 Group market capitalization of over US$ 75 billion, over US$ 15 billion owned
by foreign investors
 Flagship stocks included in Sensex, Nifty, MSCI and Futures & Options

Reliance ADA Group

Communications Financial Services Power Infrastructure

Media & Natural resources Diversified

Entertainment & Energy

Among India’s top 2 business groups

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 India’s fastest growing financial services company…

 India’s #1 mutual fund

 Among the top 3 general insurers and top 4 life insurers
 India’s largest broker and distributor of financial products
 14 million customers
 Unparalleled distribution network with over 10,000 outlets &
250,000 distributors in 4,300 locations across India
 21,823 employees – Average age of 29 years
 Among India’s 25 most valuable private sector companies

…..targeting leadership in all its businesses

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 Reliance Money - Largest Indian brokerage & distributor of financial products

 2.2 million customers

 Daily average turnover – Rs. 30 billion

 Revenue for FY08 – Rs. 2.4 billion

 Break even in first year of operations

Effective, anytime-anywhere integrated transaction capability

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 Reliance Money has Maximum Reach
 20,000 plus touch
points

 10,000 plus outlets

 over 4,250 locations

across India

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 Services Offered: Online & Offline
Financial Markets Distribution

 Equity Trading
 Mutual Funds
 Derivatives Trading
 Life Insurance
 Commodities Trading
 General Insurance
 Offshore Investments
 Credit Card
 PMS
 Consumer Loans

Other Services

 Money Changing (FFMC)

 Money Transfer (Western Union)
 Gold Coin retailing

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 Filling the void…..

Banks
Jeweller

Non-
Banking
Private
Sector

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 Looking for the Gold consumers

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 Bridging the gap….
 Non-availability of a Standardised Branded gold coin in the market
­ E.g.. 995, 24 carat or a 916, 22 carat

 Flexibility in pricing

 Highly service oriented

 Buy back options

 Reaching out to the customer – High network of branches, Both Urban &
Rural

 Focused approach

 Availability of lower denominations for the common man

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Private Sector joining the Gold bandwagon
 A welcome opportunity to fill in the gap offered by the traditional market and
the Banks

 Leveraging an already established physical infrastructure.

 A means to diversify with their existing product basket

 Optimizing the pre-existing consumer base

 Easy to built trust with new/existing customer due to already established

brand name.

 Volatility in the gold market has come as an opportunity for arbitrage

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 The current scenario
 With the dollar weakening, no alternative currency has substituted the dollar.

 GOLD is therefore seen as an effective option.

 Secondly, there is a direct relationship between the hike in oil prices and gold
prices.

 With Inflationary pressures due to the oil price hike, GOLD becomes an
effective hedge against inflation.

 As the prices of gold scales an almost two-decade high, local banks & private
players are moving in to take advantage.

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 The target
 Gold Coin Distribution through the
extensive network

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 The Gifting Market Size
 The Indian GGSP (Gifts, Greetings & Stationery products market is
estimated to be around Rs.15000 crs p.a
 GGSP market is growing at a CAGR of 20% p.a
 Pure Gold coin at affordable price points would be in position to
- Expand
- Acquire
The GGSP market

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 Shopping for Gold
 Due to growing disposable income ,
more and more consumers are
discovering that gold is a sensible Average household disposable income
investment to add to their portfolios in (INR thousands) rupees)
order to reduce risks

 
 Gold will play an increasingly
important role in the risk
diversification of portfolios.

 In the near future then ,this precious                                                            

metal should retain its attractiveness
as a shining alternative. *Circled figures represent compound annual growth rates.
Source: McKinsey

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 Eyeing the gold consumer
 Given Indians’ love for the yellow metal, we are increasingly looking at retail
gold coins as an avenue for additional investment portfolio.

 We are the latest entrants to the business of retailing gold coins.

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 Why us?
 Customers need the assurance of quality and the backing of a reputed brand.

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 Making gold coins accessible to all

 Gold is a low-risk product

 As customers can buy in small

lots, it becomes a good
investment over a period of time

 The 0.5 & 1g coin has become

the trump card

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 Road Ahead….
 This move would bring about a paradigm shift in the gold retailing space in
the country.

 GOLD today is a costly metal with limited usage.

 We intend changing this by making pure gold available to a larger set of

consumers by offering it at a convenient price point.

 We expect this move to grow the demand for gold significantly.

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 Reliance Money –
Whenever it’s a question of your money

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Thank You

A Reliance Capital company