The last year turned out to be one of the challenging years for Indian Jewellers. However, Rajesh Exports, a Bangalore-based jeweller enjoyed a massive growth even in the toughest of circumstances.
After demonetization, a number of companies were striving to sustain their growth in 2017. But the story was completely different for Rajesh Exports. In its latest annual report, the company posted a record-breaking profit for the financial year 2016-17. According to Rajesh Exports MD, Mr Rajesh Mehta, the company was able to manage stability in operational performance on account of growing sales from its retail business.
The company has given priority to the expansion of their retail stores known as Shubh Jewellers. However, the company is not totally dependent on its retail business. It has also been doing well in wholesale business and exports. The zero-debt company is the largest manufacturer of gold products in the world, and the only company with a presence across value chain starting from mining to owning a retail brand.
Rajesh Exports processes about 35 per cent of the gold globally. The company has been posting a massive profit, which keeps increasing every year. The company witnessed an increase of 16.34 per cent in its profits for the financial year of 2017. It posted a profit of Rs 12,436.33 million in 2017 as compared to Rs 10,690.03 million in 2016. The company also posted a record breaking revenue of Rs 24,21,319.84 million last fiscal, compared to Rs 16,52,114.37 million in the year before, a gigantic growth of 46.55 per cent.
According to Mr Rajesh Mehta, Rajesh Exports MD, the currencies have been impacted in the global market because of the decreasing global trade, which has made it difficult for most of the players to sustain the growth trajectory. But Rajesh Exports is one of the few companies which has been able to defy all the odds and post massive profits.
After it completed the acquisition of Valcambi, the world’s largest gold refinery, the company established a strong global presence. The acquisition helped the company in securing raw materials at lower prices and adding technological prowess to their system.
By increasing the number of showrooms and launching an ecommerce platform for global distribution of its products, the company intends to expand its retail presence. Mr Rajesh Mehta also said that the company has been launching new products across different lines and different price points in the retail segment to create more opportunities.
Due to higher tax rate under GST, the gold companies had to face several challenges in the last year. The financial performance of these companies is set to be challenged this year too. The fall in gold prices and appreciation of Indian rupee against the dollar, coupled with the imposition of 5 per cent import duty on jewellery levied by the UAE government, are some of the factors which are going to make it hard for the gold companies to sustain the growth trajectory.
The Rajesh Exports MD is upbeat about the future of his company. Having achieved un-matched success in this industry, he believes that it is all about keeping the business transparent. “The success of this company is based on customer satisfaction and I am hopeful offollowing the same mantra in the future,” said Mr Mehta.Read More...
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