Rajesh Exports, the world’s largest gold refiner, continued its ‘golden’ 2018 run with another heavy duty overseas order. According to a regulatory filing, the veteran gold player recently bagged an export order worth Rs 933 crore from the UAE. The order is expected to be completed by the end of the current financial year, as stated by company officials. This succeeds their Rs 892 crore order from the Middle East that was secured in August 2018.
The company introduced various jewelry designs under multiple price brackets in the beginning of the ongoing financial year. Rajesh Mehta, Chairman of Rajesh Exports, expressed that the new range has played a crucial role in increasing the global order count as well as strengthening the company’s stand across the globe. “We have bagged a large order this month amidst strong global competition, which speaks volumes about the quality of our products, prompt execution, and attractive pricing,” he added.
Focusing on the execution, Rajesh Exports has been decisive and strategic about their approach towards expansion. With three manufacturing plants in Bangalore, Cochin, and Dubai, the company empowered their refining sector with the Valcambi acquisition. One of the biggest metal refining companies in the world, the deal substantially reduced raw material cost for Rajesh Exports. In other words, the gold giant established the noble metal’s value chain.
Consequently, their retail arm, Shubh Jewellers, managed to capture the South Indian gold market. The stores offer unique, hallmarked, and authentic gold designs at comparatively economical prices due to the absence of additional charges. Their value chain benefits the customer as it removes the hassle of extra payments. While this increases the company profits, it simultaneously helps the public pay for the exact weight of gold they’re buying.
With a fully functioning value chain, Rajesh Exports is speculated to expand their retail chain to other parts of the country after the delivery of the latest order. It will be interesting to see the impact of these deals on the stock prices of the company.