Rajesh Exports to increase ‘Shubh’ stores with Rs.7,000 crore

To support its retail expansion of opening 500 ‘Shubh’ retail outfits across India within the next three years, leading gold jewellery wholesaler and exporter, Rajesh Exports is plans to raise Rs.7,000 crore, split up as Rs.1,200 crore through initial internal cash accruals, Rs.2,500 crore through ECB (external commercial borrowing) and Rs. 1,500 crore through domestic debt. In later stages, the company plans raising another Rs. 1,500 crore through internal accruals in a span of next three years.

‘Shubh’ is the retail identity of the company, offering 22carat BIS hallmarked, fine jewellery to the customers, and interestingly at attractive low prices. The company claims its competitive pricing stems from its gold being directly imported from its mines, processsed into jewellery at it’s own manufacturing facility and offered directly at Shubh stores . The company plans to offer the jewellery at 9 percent premium compared to the 17-25 percent premium offered by other competing brands, which it feels would be attractive for consumers considering the volatility of gold prices. With this in mind, the focus is on generating more volume and hence increased profit margins. So far there are 14 Shubh stores in Bangalore, and the company is optimistic about replicating the success of these stores across India.