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Valcambi will Stay Standalone after Acquisition by Rajesh Exports


Michael Mesaric, CEO, Valcambi Suisse, spoke on the recent acquisition of Valcambi by Rajesh Exports, which did not make any structural change on the Management level, its newly launched armillary coins and company’s India plan while talking with Bullion Bulletin at IIGC’2015, Goa


Valcambi has been acquired by Rajesh Exports. We wanted to know in brief about the deal. 

Yes it is true Valcambi has been acquired by Rajesh exports in India, which is a clever move by Rajesh. It helps him to diversify also to have a foot outside of India. As far as the management structure of Valcambi is concerned, it will stay standalone and will not be connected anyway to India. The connection is only on the top level of the share holding but not on the management and daily business of our company. The management has agreed to stay for another 3 years and we follow the same rule as we did. We have the same targets, ideas of conduct business. Risk profile of the company remains same, the investment policy remains same, and we will not make any debt. From that point of view it is as before.


Valcambi is always dynamic in product range. This time you have created a new product, armillary coins. We want to know little about this product optimization?

The idea is relatively simple.  I think traditional products like everybody does today can still fetch some money but it’s not what really makes you a lot of money. We thought that we need to gift people something which are of another dimensions either it differently manufactured or it has a different shape or it has a two/three dimensional functions. The armillary coin is legal tender coin which is four coins in one as a one ounce piece which can be worn as a jewellery, as a gift, as an art object on the table. In this conference we are gifting 5 gram star shaped silver which has Lord Ganesha on the backside, I hope it will bring everyone a lot of fortune.


You have another product called Combi bar, how popular is it now?

Combi bar is a quite a good success story, it started very slow, but when people understood the price advantage of one gram bars separately packed then it clicked and today it is US and Europe which are the biggest clients of that. There are 1000s of pieces every week going out to US. It has been by far better than what we expected.  


What is your Asian plan, and more precisely India?

The plan remains the same, we have not changed our plans and ambitions. The area to grow is Asia, and not Europe or the United States from that point of view nothing has changed. In India we have a big foothold already that might not be so well-known because, we distribute lot of bullion to banks. Nevertheless the Valcambi brand itself is well known in India and is quite popular. Of course we try like everyone else in the market to increase our market share and we will do everything necessary.


Gold price is coming down continuously, is there any impact on the refinery segment?

There is a small impact as well because if the gold price is very low there is very little scarp coming in. Otherwise, since we are not connected to any gold price and our factory works independently gold price doesn’t matter really. We would hope that market moves because when the market moves that’s when we have demand and supply, scrap and physical demand. Gold prices will bottom around may be 1000-1050$. I believe strongly that in 2016 gold price will move towards 1300-1350$ than 950$ what everyone predicts.


Disclaimer: Views are personal and not the views of the publisher.