India’s gold imports to rebound in 2017 on restocking, good monsoon

India’s gold imports to rebound in 2017 on restocking, good monsoon
Two-thirds of India’s gold demand comes from rural areas, where jewelry is a traditional store of wealth. (Reuters)
Updated 13 August 2017

India’s gold imports to rebound in 2017 on restocking, good monsoon

India’s gold imports to rebound in 2017 on restocking, good monsoon

PANAJI, India: India’s gold imports are likely to jump by a third in 2017 to 750 tons on restocking by jewellers and as good monsoon rainfall is expected to boost demand in rural areas during the upcoming festive season, a leading refiner said.
Higher imports by the world’s second biggest consumer will support global prices, which are trading near their highest level in two months, but could widen the country’s trade deficit.
“Demand and imports are normalizing after taking a hit last year. Jewellers are restocking after destocking last year,” said Rajesh Khosla, managing director of MMTC-PAMP India, the country’s biggest refinery.
India, whose gold consumption is rivalled only by China’s, imported 557.7 tons of gold in 2016, the lowest in 13 years, according to the World Gold Council.
In the first seven months of the 2017, imports more than doubled to 550 tons from the same period a year earlier, according to provisional data from consultancy GFMS.
But import growth would taper off in coming months as jewellers had restocked earlier than usual this year, fearing higher taxes, Khosla said on the sidelines of the International Gold Convention in Panaji, capital of India’s western resort state of Goa.
As part of a new nationwide sales tax regime that kicked in on July 1, the goods and services tax on gold jumped to 3 percent from 1.2 percent previously.
“Jewellery demand has improved this year but investment demand is still weak due to a rally in the stock market and the appreciating rupee,” said Prithviraj Kothari, managing director of RiddiSiddhi Bullions.
The rupee has risen nearly 6 percent so far in 2017 and is trading near its highest level in more than two years.
“Monsoon rainfall is normal this year. This will boost rural demand during the festivals,” said a Singapore-based official with a leading gold supplying bank to India.
Two-thirds of India’s gold demand comes from rural areas, where jewelry is a traditional store of wealth.
The quarter ending in December typically accounts for about a third of India’s gold sales since it includes the start of the wedding season and festivals such as Dhanteras and Diwali, when buying gold is considered auspicious.


Deliveroo raises $180 mln from investors, valued at $7 billion

Deliveroo raises $180 mln from investors, valued at $7 billion
Updated 40 min 19 sec ago

Deliveroo raises $180 mln from investors, valued at $7 billion

Deliveroo raises $180 mln from investors, valued at $7 billion
  • Deliveroo is set to hold an initial public offering in the coming months
  • The internet giant's stake is not expected to increase as a result of its participation in the latest round of fundraising

LONDON: British food-delivery company Deliveroo said on Sunday it had raised a further $180 million from existing investors, including minority shareholder Amazon, in a move that values the business at more than $7 billion.
Deliveroo is set to hold an initial public offering in the coming months, in what would be the biggest new share issue in London for three years.
"This investment will help us to continue to innovate, developing new tech tools to support restaurants, to provide riders with more work and to extend choice for customers," Deliveroo founder and chief executive Will Shu said.
Britain's competition regulator approved Amazon's May 2019 purchase of a 16% stake in Deliveroo in August, overruling objections from local competitors Just Eat Takeaway and Domino's Pizza.
The internet giant's stake is not expected to increase as a result of its participation in the latest round of fundraising, which was led by U.S. investors Durable Capital Partners and Fidelity Management & Research.
Deliveroo operates across 12 countries, mostly in western Europe but also in Australia, Hong Kong, Singapore and the United Arab Emirates. It did not state how much each investor had contributed in the latest funding round.
The company said it would spend the $180 million on expanding delivery-only kitchen sites, on-demand grocery deliveries and subscription services, as well as allowing more restaurants to take orders from via own websites.