Rajesh Exports Forms JV with Fossil for Indian and Overseas Markets
December 04, 06
A new joint venture between leading Indian jeweler, Rajesh Exports (REL) and Fossil, a leading watchmaker, has been formed to manufacture and market an array of brands in India. The two companies will also work together to develop jewelry lines for the international market. Both partners will hold equal shares in the new entity.
The announcement was made at a press conference in Bangalore on Monday afternoon by REL Chairman, Rajesh Mehta and Mark Parker, Senior Vice President, Fossil Asia Pacific.
REL, a Mumbai Stock Exchange listed company, reported an annual turnover of over Rs. 54.83 billion ($1.23 billion), and an after-tax profit of Rs. 665 million ($14.9 million). REL has recently launched its retail venture “Laabh Jewellers” in the Indian market, and already opened 22 outlets out of the 150, it plans to have up and running by next year.
NASDAQ-listed Fossil closed the year 2005 with revenues of over $1 billion and a net income of over $78 million. Fossil has a retailing presence in over 90 countries. Some of the brands it retails and distributes include Fossil, DKNY, Diesel, Emporio Armani, Burberry, Zodiac, Adidas, and Michele.
The new JV will offer jewelry, watches, and fashion accessories from these brands to Indian consumers through exclusive retail stores that it plans to establish throughout the country. At the same time, it will also design and manufacture an exclusive range of jewelry by REL for Fossil’s stores outside of India.
Vasant Nangia will head the JV. Nangia has held key positions with Titan, Tanishq and OyzterBay in India and Europe.
According to Parker, the companies are “very pleased with this alliance. We get a running start in India with a professional team and a great company. We believe in the future potential of India, both as a market and as a hub for international sourcing.”
Mehta added, “this alliance catapults Rajesh Exports into the next level of growth and into the forefront of retail jewelry, watches and accessories.’