Bangalore-based Rajesh Exports Ltd (REL), one of the world?s largest gold jewellery makers, plans to invest Rs 7,000-8,000 crore in the next 12-18 months to expand its retail business across the country, a top official of the company said. Chairman Rajesh Mehta said the company would increase the number of retail outlets to 350 from 26 at present to have a pan India presence.
The funding for the expansion would be through multiple options. He said the company would utilise its surplus cash of Rs 1,300 crore in the first phase during the first 3-6 month. It plans to raise about Rs 4,500 crore through credit from the gold suppliers in the second phase. REL is importing gold for its jewellery making facility from Australia and South Africa. ?The remaining funds would be raised through the ECB or FCCB route,? he said.
REL on Tuesday reported a growth of 49.72% at Rs 18,478 crore in turnover for 2009-10 while its net profit climbed by 121.35% to Rs 193 crore. Its order book position stood at Rs 5,743 crore. Net profit for the quarter ended March 2010 increased year-on-year by 948% to Rs 98.5 crore.