Growth of a Gold Jewelry Manufacturer, Rajesh Exports in India

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Rajesh Exports was established in 1990 as a partnership firm in the name of M/s Rajesh Exports comprising of 3 partners with the objective of manufacture and export of Gold Jewellery. The firm was reconstituted as a joint stock Company in 1995 and was registered as a Public Limited Company as Rajesh Exports Limited (REL) under part IX of the Companies Act, 1956 with the Registrar of Companies, Karnataka. REL established the first organized gold jewelry manufacturing facility in India in 1990. In the following year, it established India's first research and development (R&D) facility in the jewelry sector. In 1993-94 the Company resorted to a major change in its marketing orientation. The Company had till mid 1993 been exporting its …show more content…

In the same year, the company acquired the retail network of OyzterBay. In the following year, the company established retail stores under the brand 'Laabh Jewellers'. REL entered into a joint venture agreement with The Muthoot Pappachan Group to retail its products in South India in 2007. In the same year, the company launched retail jewelry store under the brand name, 'Shubh Jewellers'. In 2009, they consolidated “Shubh” and “Laabh” into one named as “Shubh” due to the slump in retail and strain of managing two separate entities. In 2010, the company launched seven SHUBH stores in Bangalore. The company launched jewelry service center under the brand name of 'SHUBH SERVICE CENTER' in 2011. In the same year, REL launched 25 Shubh showrooms in the state of Karnataka. In April 2012, REL launched 20 new SHUBH showrooms in the state of Karnataka. The company launched its 81st retail jewelry showroom in Karnataka under the brand name of SHUBH Jewellers at Chennagiri, in April 2013.

Financial Performance of Rajesh Exports
Rajesh Exports has fared exceptionally well financially with its total revenues increasing by 111% annually for the past 4 years. Similar is the case with net income which has shown close to 143% growth annually over the past 4 years (refer Exhibit 1). It has been able to cut down its cost and is reportedly the lowest cost gold jewellery manufacturer in the world.

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