Rajesh Exports eyes gold sourcing JV with New Mont

Rajesh Exports, India's largest gold jewellery exporter, is set to enter into a joint venture (JV) with New Mont, the world's largest goldmine company, to source its gold requirements.

"We are in JV talks with few leading gold mining and refining companies to consolidate our control over raw materials for our products. Initially, we would source around 10 tonne of gold, which may gradually go up to 60 tonne in five years," Rajesh Mehta, chairman, Rajesh Exports said.

"With such a strategic joint venture, we are set to make a mark in the international jewellery market," he added.

The company currently sources gold from AGR Matthey, an Australia-based gold mine company.

The company needs around 60 tonnes of gold costing Rs 3500 crore every year. Entering into a joint venture with the leading goldmine is part Rajesh Exports' strategy to be a fully integrated jewellery manufacturer.

The company plans to invest over Rs 800 crore for forward and backward integration in the next two years to fuel its growth in the international arena. Of this, Rs 250 crore would be invested in forming strategic joint venture to source its gold requirements.

The company plans to set up over 100 company-owned retail showrooms across the country in the next two year with an investment of Rs 450 crore.

The company will also invest over $10 million in the next two year for marketing and branding its products.

For the financial year ending March 2004, Rajesh exports revenue stood at Rs 3000 crore.

It hopes to close the current financial year with a turn over between Rs 3500 crore to Rs 4000 crore.