With natural resources exploitation at its peak, the world is now looking to develop sustainable model, which incorporates self-sustenance without harming the environment. Of all the minerals mined from the Earth, none is more useful than gold. Its usefulness is derived from a diversity of special properties—easy to work, ductile, etc. People buy gold for a variety of reasons such as for its auspicious sentiment, asset allocation, hedge against inflation and its cultural notion.
When a cultural notion is attached with a thing, be it a jewellery, statue, Vastu architecture, people are automatically drawn towards it. Even in the modern times, the progressive Indian society always looks for a house which is constructed as per Vastu principles. The same applies to gold jewelleries, as it is identified with Indian Gods, wealth and prosperity.It can observed that many Indians buy jewelleries during Diwali, Dhanteras— symbolizing the strong cultural values.
Such demand in this world can only be compensated with sustainable means and this has been the story of Rajesh Exports. Owned by Rajesh Mehta, “Rajesh Exports”has been the leader of the global gold market since the past decade. What began as a mere idea has revamped the face of gold industry.Apart from being the largest exporter of gold products in India, Rajesh Exports is also responsible for refining approximately 35 percent of gold mined on Earth. With zero wastage charges under its subsidiary “Shubh Jewellers”, the brand continues to complement the growth of indigenous intricate gold designs.
It would be therefore, important to highlight the legacy behind such work culture:
Rajesh Mehta began his journey with the company in 1989.The secret behind REL’s success lies in his complementing personalities. The company’s stock price has always been a market highlight as it grew almost six times in the last 5 years. For the first quarter figures of FY18-19, REL’s consolidated net profit stands at Rs. 399.1 crore. The yellow-metal giants have their current market presence in India, Dubai, Europe, the US, Oman, etc.
Building up a successive chain of ‘profits to investment’, Rajesh Exports expanded their reach to major metropolitans like Hyderabad and Bangalore. Over a period of time, a web network of jewellery trade of the company was set up between different states pan India. Rajesh Mehta developed a retail branch Shubh Jewellers, which currently has 82 stores in Karnataka. By 1995, the export business was Rs 35 crore and their company raised Rs 10 crore as they became public. Recently, Rajesh Exports was listed in ‘Fortune Global 500’ for 4th time in a row. With good economic perspective, intricate craftsmanship and zero wastage charges at its core, the company looks good.
Expansion with zero wastage facilities
Rajesh Mehta’s out-of-the-box thinking constantly surprised everyone in the market.When the company exports rose to almost Rs 120 crore in 1998, he decided to build a manufacturing unit in Whitefield, Bangalore. A master visionary, he built the facility for a capacity of 250 tons on a 10-acre plot.
Today, it has a machine manufacturing unit along with a R&D branch dedicated to reducing waste and increasing designs. This facility increased the company’s profit by five-folds in just 1 year of operation (2002-03).
Establishing a Value Chain
Vision of doing more but better has been the principle of the company and thus the recent designs besides being culturally rooted, are also sustainable designs. One of the most prominent turning points of REL came in July 2015 with the acquisition of Valcambi. Based in Switzerland, the company is one of the world’s biggest metal refiners.
With manufacturing in Whitefield, retail through Shubh Jewellers and mining via Valcambi, Rajesh Exports established a value chain under their name in the gold market. The combined efforts of a 2013-established gold refinery in Uttarakhand and the latest acquisition enabled them to refine approximately 2,400 ton yellow-metal annually.
With their own processes in every vertical, cheaper raw material, advanced refining and negligible wastage, Shubh Jewellers dominated the local as well as global market. As a result, for FY16, their consolidated turnover stood at Rs 1,61,000 crore.
With an aim to expand Shubh Jewellers to over 2,000 stores across India and register a 15 times jump, Rajesh Mehta’s Rajesh Exports continues to be world’s largest manufacturer of gold jewellery.