Rajesh Exports to Establish Gold Jewelry Retail Chain

Rajesh Exports, a publicly traded $680 million Indian company, is expanding its gold jewelry business by opening a chain of jewelry stores and adding diamond jewelry to its line of products.

According to Chairman Rajesh Mehta the company plans to invest over $100 million in the ambitious operation that includes opening 100 stores in South India in the next two years.

The diamond venture involves a $16 million investment to create an international brand. The diamond jewelry is planned to first be offered to stores in the leading markets, and then expand the South Indian retail chain into markets outside India.

But the company, until now a gold refiner and gold jewelry manufacturer, plans to upstream as well, setting aside $50 million to acquire gold mines in Australia or South Africa.

In recent interviews in the Indian press, Mehta said a consortium of banks is backing the expansion and most of the money has been secured.