Gold prices have been on fire in the last few years. It’s then hardly surprising that Rajesh Exports, the world’s largest manufacturer of gold products and a consistent performer, has been ranked at the top in the Super Heavyweight category of BW Businessworld’s special issue on India’s Fastest Growing Companies in 2020. The ranking is based on a detailed analysis of the last five years’ financial data available in the public domain.

For the uninitiated, Rajesh Exports refines, designs, and sells gold and jewellery within and outside the country. It is a zero-debt company on standalone basis, and boasts annual sales of Rs 1.95 lakh crore (around $26 billion) on a consolidated basis for FY20.

Rajesh Exports has emerged as the single largest constituent of gold business in the world. It processes about 35 per cent of all gold produced in the world, and is the only company with presence across the value chain of gold, from mining to manufacturing and retailing its own branded jewellery. It is also the largest refiner in the world.

Founded by Rajesh Mehta, the current executive chairman, and his brother Prashant Mehta, the company built a large manufacturing unit in Bangalore in 2001. In 2015, it acquired the largest gold refiner in the world, Valcambi of Balerna, Switzerland, for $400 million. Now it is planning to expand its Shubh Jewellers chain of retail stores.

Profitable Growth

Since inception, Rajesh Exports has consistently demonstrated profitable growth and it is a regular dividend paying company with 100 per cent dividend payout for the past 10 years, the company says officially.

“Globally, the pandemic situation had started in the month of February itself, in spite of which the company posted encouraging results. Once the pandemic situation is overcome and normalcy prevails, I am confident that the company will grow impressively both in revenues and profits,” said Rajesh Mehta, Chairman, Rajesh Exports, addressing the shareholders in the company’s annual report for FY20 .

Across its various manufacturing facilities Rajesh Exports has a total installed capacity to manufacture 400 tonnes of world-class gold products per annum including the finest plain and studded jewellery, medallions and coins. The company has set up the world’s finest R&D facilities in Switzerland and in India for developing new designs as well as innovative processes for manufacture of world-class gold products.

The company exports its products to various countries around the world in addition to supplying its products to bullion banks, central banks, wholesale as well as retail jewellery trade.

Rajesh Exports retails gold jewellery in the country through 83 showrooms under the brand name Shubh Jewellers. The brand is one of the most trusted in jewellery in South India, and is known for quality, design and value-for-money prices of its products.

The company has drawn up an elaborate expansion plan consisting of multiple phases. In the first phase, over the next three years Rajesh Exports will increase the number of its Shubh Jewellers showrooms from 83 to 500 across the five southern Indian states, as these account for the highest consumption of gold across India.

In the second phase, the company will further scale up to 1,500 retail showroom across North, East, West and Central India.

This will be followed by two more phases in which Rajesh Exports will add 500 showroom outside India — across Asia, the US and Europe, Mehta said.

Golden Moment