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Bengaluru-based jewellery exporter Rajesh Exports Ltd is foraying into gold finance business through a separate business division.
The company’s board of directors approved the proposal, here yesterday, which is subject to regulatory approvals. “The company will soon apply for the necessary permissions and the required licences for foraying into gold finance business,” the company said in a filing to the BSE on Tuesday.
Initially, the gold finance business will be done by utilising its existing retail network of 81 retail jewellery showrooms. The firm operates its retail network under the brand Shubh jewellers.
“Foraying into the gold finance business will also boost the retail sales at the retail stores and add incremental value to the retail business apart from the initiation of a new gold finance vertical,” the company said.
Rajesh Mehta, chairman, Rajesh Exports Ltd, said: “Rajesh Exports was the first company in the country which waived off the wastage and making charges on gold jewellery for its customers which set the trend and compelled other players in the industry to do so, resulting in huge benefit to the retail customers at large all over the country. Similarly, foraying in to gold finance business through its retail stores will result in large benefit to the retail customers as they will be able to purchase gold jewellery and also avail finance on the gold jewellery at their convenience.”
The company operates a gold processing unit and jewellery manufacturing facility spread over 12 acres at Bengaluru with a capacity of 250 tonnes of jewellery per annum.
