Rutam Vora (Commodity Online)
AHMEDABAD: India’s largest jewellery maker and exporter, Rajesh Exports Ltd (REL) (BOM:531500) is planning heavy expansion in domestic jewellery retailing space by increasing its domestic operations manifold from the current 2% of the company’s total revenues over next 2-3 years.

Speaking to Commodity Online over the phone, Rajesh Mehta, Chairman, Rajesh Exports Ltd informed that the company is planning heavy investments in domestic jewellery retailing space. “Our target is to reach to Rs.50,000 crore turnover in next three years from now, of which about 40-45% revenues will be generated from our domestic jewellery retailing operations,” told Mehta adding that the company is bullish on the latest jewellery retailing initiative launched on the occasion of Akshaya Trithiya on Sunday.

REL had launched the unique jewellery pricing system in India, which gives a competitive edge to the company in India’s approximately Rs.95,000 crore Gold jewellery market. REL, which is already operating at lowest cost in jewellery making, will offer jewellery at almost real rates of gold eliminate all additional hidden charges like making charges, wastage charges etc.

“This initiative will boost our domestic retail operations and we expect huge revenue generation from this segment. We will invest heavily in expansion of our retail outlets throughout the country. We have started off with our Bangalore store, and plan rollout total 350 such stores across the country in next 12-18 months,” Mehta told Commodity Online adding that the company will generate trust among the customers by offering similar transparent pricing system.

REL, having a total turnover of Rs.20,000 crore presently has only 2% share of its revenues coming from the domestic operations. However, with the latest initiative of ‘Gold Revolution’ under the real-rate-per-gram jewellery pricing mechanism, the company is aiming to generate about Rs.30,000 crore in this segment over next two years. “Currently, our exports constitute about 98% of our total revenues, but in next two-three years, we aim to increase our domestic jewellery retailing business to the tune of 40-45% of the total revenue,” said Mehta.

According to him, post expansions, REL will hold about 30-35% market share in the country’s retail jewellery space. “Domestic jewellery retailing is the main thing for us to follow at this moment. We have surplus liquidity of about Rs.1300 crore through which we plan to fund our upcoming retail expansions. A part of funds will also be raised from the suppliers’ credits and then if required, we may think of external commercial borrowings (ECBs) for further fund raising. However, presently there are no such plans,” Mehta added.

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