Rajesh Exports buying out jewellers in south

NEW DELHI: Rajesh Exports is in the process of buying out local jewellers in south India to launch its second retail brand, Shubh, in the next two months. This chain would be located in non-metros. In total, the company is planning to open 100 company-owned and operated Shubh outlets by the end of FY09 with an investment of Rs 300 crore.

The company had raised funds earlier through an FCCB issue and is sitting on strong cash reserves. “We would look at opening 20 Shubh stores in the next two months around Bangalore. By March ’08, we would like to sign deals for the next 80 stores. Of this, some would start operations early next year while the rest would take a few more months,’’ said Rajesh Exports’ chairman and managing director Rajesh Mehta.

This is Rajesh Exports’ second retail brand and the company is now looking at forward integration of the traditional gold jewellery manufacturing and exports business. Rajesh Exports already operates 30 Laabh retail outlets in metros through the franchisee model. The company is also learnt to have roped in a Bollywood actress as its brand ambassador for the Laabh brand.

The Bangalore-based company is also getting into diamond jewellery with the launch of five new brands later this month. These will be sold in India through its existing Laabh stores and upcoming Shubh retail chain. The company is preparing for exports as well.

Meanwhile, the company has put on hold plans to enter foreign markets through acquisition of stand-alone jewellers. The idea is to first implement domestic expansion plans. In June, the board approved plans for overseas joint ventures and take-overs with an investment of up to Rs 1,000 crore, generated from internal accruals and the proceeds of the recent FCCB issue.