Rajesh Exports expects 10% topline growth this year

Despite rising gold prices, Rajesh Exports, India's largest exporter of gold jewellery, expects its topline to grow by 10 per cent in the current financial year, said Chairman Rajesh Mehta.

The company's turnover is likely to rise 12.5 per cent year-on-year to Rs 4,500 crore in the current financial year, compared with Rs 4,000 crore last year and its net is expected to rise 51 per cent to Rs 65 crore this year, compared with Rs 43 crore last year.

"Despite rising gold prices, jewellery export marketis witnessing good demand. Dubai is a leading buyer prior to the annual gold festival. Other big gold markets are Singapore and Kuwait," Mehta said.

Domestic spot gold prices are hovering around Rs 7,600 per 10 grams, after touching a high of over Rs 8,000 per 10 grams early this month, and saw a low of Rs 6,000 per 10 grams in May.

Further, the company plans to announce its domestic branded and retail gold venture by December-end and will have its first outlet by November 2006", he added. "The venture will be preceeded with a takeover of a top jewellery chain," he said, refusing to divulge details

"As part of the venture, we plan to introduce four brands of gold jewellery and two brands of diamond jewellery, thereby catering to most price points. Further, to cater to the growing category of gold as an investment, we intend to also mint coins of various denominations," said Mehta.

He added that the company intends to offer quality assurance with absolute guarantee and exchange offers. "Also, in our case, the manufacturer will be directly catering to the consumer, thereby leveraging our current status as the largest gold jewellry processor in the country," said Mehta.

Riding on its proposed branded and retail venture, Rajesh Exports expects it bottomline to grow at about 50 per cent from the next financial year in the next 4-5 years. The company also expects it topline to see a growth of 15 per cent year-on-year.

Next financial year, Mehta expects about 70 per cent of the turnover to come from exports and remaining from domestic market, including 20 per cent from the retail venture in its first year operation.

At present, earns 85 per cent of it's revenues come from exports and the remaining from domestic business, including 7 per cent from branded jewellery segment. In financial year 2005-06, gold imports for the company stood at at 65 tonne, compared with 60 tonne last year.