Rajesh Exports plans retail expansion

Bangalore-based Rajesh Exports Ltd (REL) intends to invest Rs 7,000-8,000 crore in the next 12-18 months to expand its retail business across the country. Chairman Rajesh Mehta said the company would increase the number of retail outlets to 350 from 26 at present to have a pan India presence.

Mehta said the company would use its surplus cash of Rs 1,300 crore in the first phase during the first 3-6 month. It plans to raise about Rs 4,500 crore through credit from the gold suppliers in the second phase. REL is importing gold for its jewellery making facility from Australia and South Africa. “The remaining funds would be raised through the External Commercial Borrowings (ECB) and Foreign Currency Convertible Bonds (FCCB) route,” he said.

REL on Tuesday reported a growth of 49.72 per cent at Rs 18,478 crore in turnover for 2009-10 while its net profit climbed by 121.35 per cent to Rs 193 crore. Its order book position stood at Rs 5,743 crore. Net profit for the quarter ended March 2010 increased year-on-year by 948 per cent to Rs 98.5 crore.