Jewellery maker Rajesh Exports today said its Board has given nod for foraying into gold finance business and would soon apply for the licence.
"The company is pleased to inform shareholders that the Board of Directors in the meeting held on February 9 has unanimously approved to foray into Gold Finance Business subject to necessary regulatory approvals," the company said in a BSE filing.
The company said it will soon apply for the necessary permission and the required licences for the new business. Initially, the Gold Finance Business will be done by utilising the existing retail network of 81 retail jewellery showrooms.
"Foraying into the Gold Finance Business through retail stores will result in large benefit to the retail customers as they will be able to purchase gold jewellery and also avail finance on the gold jewellery at their convenience," the company's chairman Rajesh Mehta said.
The move will also result in increased retail sales for the company.
Rajesh Exports has a manufacturing facility in Bangalore with an installed capacity to process 250 tonnes of jewellery per annum. It sells jewellery through its retail brand 'Shubh Jewellery'.
The company's shares closed down at Rs 164.30 apiece on the BSE today.
