Amidst the slowdown blues, Rajesh Exports has kept its growth momentum high with its high revenue and profitability
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Gold retailer company that refines, designs, and sells gold and jewellery, Rajesh Exports has been a consistent performer based on revenue and net profit growth over the past four fiscal. The company was founded in 1989 by the current executive chairman, Rajesh Mehta and his brother Prashant Mehta. The brothers started manufacturing in a 10-person shop located in their garage in Bangalore. By 1990, it opened a retail front and rapidly expanded. In 2001, the company built a large manufacturing unit in Bangalore. In 2015, it acquired the largest gold refiner in the world, Valcambi of Balerna, Switzerland, for $400 million. Now it is planning to expand its Shubh Jewellers retail store.
FY19 saw the company report its total income at Rs 1,75,763 crore. As a result, the net profit for the year under review, after provision for depreciation and income tax was Rs 1,292 crore compared to Rs 1265.7 crore during the previous year. Rajesh Exports performed excellently well in its export, wholesale and retail business and posted an impressive PAT and revenue.
Terming 2018-19 as “one of the most challenging years for the jewellery sector”, Rajesh Mehta, Chairman said. “But even in these challenging times, company kept up its momentum of growth. The company was concentrating its efforts towards increasing its presence in the retail space to ensure increased profitability,” he said.
Mehta said he was confident that REL would emerge as a dominant retail force in the jewellery sector in the times to come. REL, according to Mehta, would keep working towards further growth of profit margins by expanding its retail footprint and by adding more and better value products to its global design portfolio.
With its global positioning and with its innovative and relentless efforts REL will aggressively grow in the coming years both in terms of revenue and profit, he said. In order to provide diversity, REL, Mehta said, has been launching new products across different lines and at different price points in the retail segment, regularly, so that its customers would have a wide range of products to select from and at different price points.
Its secret to success is consistent work towards the goal of being the first and the only global company, which would be seamlessly integrated from mining to consumer in a sizeable manner, he said.
Speaking about the opportunity, he said, there would be a big opportunity to move the gold business from the unorganised to organised space in many countries, including India and China, in the times to come. “The organised segment has huge growth prospects. Growing consciousness of branded jewellery, increasing purchasing power in the tier I & II locations, and increasing demand for diamond jewellery are major opportunities for the next 10-15 years,” he said.
It is through Mehta’s vision that the company has been able to navigate itself even during difficult times in the past. In FY17, it had some negative outcomes for jewellers across India. First, there was ambiguity of higher tax rate under GST regime. Second, the imposition of 5 per cent import duty by the UAE on jewellery, along with the fall in the gold prices and appreciation of the Rupee against the Dollar. But did that deter Rajesh Exports’ revenue? Not really. We can only add: keep up the good show.
Chairman, Rajesh Exports