Manoj Vekata Saikumar
• Muthoot Group is 126-year-old Family Owned Indian business house.
It was started in 1887 by Muthoot Ninan Mathai in Kerala, India
• It operates predominantly in the NBFS, operating in 23 states in India, and
has presence in USA, UK and UAE
• Muthoot Group offers
FINANCIAL SERVICES |WEALTH MANAGEMENT | MONEY TRANSFER | FOREX
SECURITIES | INFOTECH | MEDIA | HEALTHCARE | EDUCATION | POWER GENERATION | LEISURE
& HOSPITALITY | VEHICLE & ASSET FINANCE | PLANTATIONS & ESTATES |
TRAVEL SMART | PRECIOUS METALS | HOUSING & INFRASTRUCTURE |
MUTHOOT GLOBAL | MUTHOOT MONEY
• As on Nov 2010, it was the largest gold financing company in India with
nearly 129 bn loan outstanding portfolio which accounts 97.6 tonnes of gold
Muthoot Fincorp and Muthoot Finance are two separate companies without any common promoters.
Vision & Mission
Touching the lives of millions with our customer-centric approach nourished
in a milieu that enables creation and innovation.
The focus of the company is on creating liquidity with an asset class, namely
gold, that has the largest consumer market in India. We see it as one of the
preeminent ways of creating wealth in the economy.
Awards & Recognition
1. The Times Of India Award for Excellence in Business - 2009
2. Golden Peacock Award for Muthoot Finance Ltd. in CSR – 2012
3. Twin CSR Awards By IPE - Return to Consumer and Community
4. Muthoot Finance Wins ‘Asian Sustainability Leadership Award for Best Rural
Outreach’ & ‘BFSI Award for Most Admired Loyalty Program’- 2012
And many more…
The group is true to their vision-mission statement as they have
been consistently providing quality service for the past 126 years.
Travel & Tourism
Relative Market Share
Muthoot Group has a balanced portfolio especially in their breadwinning
segment - Finance, consisting of numerous subdivisions like Gold loans, coins, forex etc
Muthoot have strong growth and market share in Money Transfer , Precious
Metals , housing and infrastructure and these are their upcoming sector . The group
is promoting it intensely (sponsoring the Delhi Daredevils team). There is a high
market potential and growth rate in the segment
Finance sector and gold loans is the cash cow, it’s the money generating unit of
the group. It’s number one in the segment (of NBFS), although it’s expanding, it
doesn’t require much attention.
Foreign exchange, Information Tech, Education is a new segment that
Muthoot has decided to venture into. It has high market growth and share potential.
It’s still under the govt approval process.
Media is a division that doesn’t generate much revenue for the Group. Muthoot
owns a local radio station in Chennai (Chennai Live) that plays English music. They
make enough money to sustain themselves currently.
Main Product Line: Finance
1. Gold Loans
2. Gold coin
3. MPower card
4. Money Transfer
6. Wealth Management
Muthoot Finance has become India’s largest gold financing company. By providing fast service and high loan limit,
they are winning new customers. Currently, Muthoot Finance serves about 80,000 people across India on a daily
Muthoot has expanded it’s market by venturing into new arenas. They have introduced Muthoot Global and set up
shops in UAE in 2002, UK in 2007 and USA in 2010. Their prime focus is the NRI population; they provide services
in the following areas: Money Transfer, Foreign Exchange, Travel and Tourism, Happy Day Gifts and Gold Loan
Various new services for existing customers such as MPower Card – which is Muthoot’s CRM arm, benefit the
customers by enabling them to access new offers and services. Muthoot Travelsmart allows customers to avail
flexible and customized travel insurance and foreign exchanges.
Apart from financial services, Muthoot has diversified in to areas such as Healthcare, Media, Education, Charity
and so on.
For Muthoot group, finance and gold loan are the important product line in that they are number one in
this segment and they have covered a wide range of people both in rural and urban by making their market
penetration and market development very high.
Being a company with an increasing asset base, Muthoot group take upon
themselves the onus of ensuring smoother processes of monetary
transactions, whether they are money transfer, gold loans or gold bonds.
Being entrusted with the purpose of delivering value enables us to consider
each customer’s need as unique. We cater to gold loan requirements
varying from a principle loan amount of Rs. 1500 up to the maximum
extent of Rs 10,000,000 (1 crore).
Muthoot Finance is an a market player dedicated to make a positive impact
on countless people, ranging from farmers to salaried employees seeking
financial aid. A diversified portfolio of assets is what sets us apart from the
competition. It is accentuated by the unbridled trust that our customers
have bestowed on us, over the years. It is this mutual trust that has, in
turn, and over the years, created the long relationships between Muthoot
Finance and its invaluable customers.
1. Leading position (Net worth +119%)in gold loan business.
2. High quality customer service and short response time.
3. Strong capital raising capability.
4. Geographic diversification, Brand, Senior management
5.Low average loan tenure shields against gold price volatility.
6.In house training capabilities to meet branch expansion
1. Any major decline in gold price in future can adversely impact
the company’s revenue.
2. Deterioration in asset quality is a key risk to investment call.
1. The gold loan market is underpenetrated and is expected to
continue growing at the rate of 35 to 40% in future.
2. To venture into Banking sector
3. New customer segments.
1. Rising interest scenario
2. 7000 Litigation cases about the company
3. Increased competition from NBFC’s and banks in gold financing
4. Major part of business concentrated in South India. Any
disruption in the economy of the region can adversely affect the
The brand is No.1 in the NBFS in India with 4200 outlets across 21 states and 4 UTs. The
way forward expressed by the company is to get into Banking sector.