Rajesh mehta, the 52-year-old first generation entrepreneur and chairman of Rajesh Exports (REL) has an inspiring success story that has been heard and much revered. Mehta started the company with a meagre amount of Rs 1,200 nearly three decades ago and now has taken the company’s consolidated revenue up to Rs 1 lakh crore with his sharp business acumen. This is all the more creditable when there is a persistent slowdown in the global economy and companies dependent on overseas orders are wondering when and from where the next bunch of dollars will come from. If one looks closely at the numbers in this BW Real 500 special issue, it becomes clear that companies dependent on global markets have suffered due to a persistent weakness in demand. The forecasts for the near term also do not appear very bright. That’s why Rajesh Exports stands out.
The Bengaluru-headquartered company was in the news recently for receiving an export order worth Rs 929 crore of designer range of gold and diamond studded jewellery and medallions from the UAE. The said order is to be completed by March 2017 and will be executed at the company’s manufacturing facility at Bengaluru.
The manufacturing facility has an installed capacity to process 250 tonnes of jewellery and gold products per annum. With this order, the company’s order book at the consolidated level stands at Rs 36,523 crore, which is to be executed by March 2017. REL has been consistent in winning orders from the international market, despite volatile global market conditions.
REL’s consolidated net profit rose 10.7 per cent to Rs 309.72 crore on 45.4 per cent growth in net sales to Rs 64,458.94 crore in Q2 September 2016 over Q2 September 2015.
Mehta says the company is looking to increase operating margins, besides aiming for double-digit growth over the next 2-3 years. The company reported annual consolidated sales of Rs 1,65,200 crore, or $24 billion, in FY16.
REL, which was established in 1989, is the largest processor of gold in the world. It has a presence across the value chain of gold from mining to retail brand. It is also the world’s largest refiner of gold. In July 2015, REL acquired Valcambi, the world’s largest gold refinery based in Switzerland, from New Mont Mining Corporation. With this acquisition, REL has built up a total capacity to refine 2,400 tonnes of precious metals per annum.
REL has set up 80 retail jewellery showrooms under the brand Shubh Jewellers. The company exports its products to various countries around the world and also supplies its products in wholesale to jewellery showrooms across India. Post the acquisition of Valcambi gold refinery, the company has become one of the largest vertically integrated gold players in the world, from mines, refinery and R&D to manufacturing and consumer retailing.
“Post Valcambi’s acquisition, the company has established a strong global presence,” he said, adding that the company has been consistently growing over the past several years even during challenging times for gold industry. REL processes 35 per cent of the gold produced in the world.
REL is a zero debt gold jewellery exporter. Rajesh Exports has a total installed capacity to manufacture 400 tonnes of world class gold products per annum.
