Valcambi bought by Rajesh Exports in $400mn deal
Valcambi, the world's biggest gold refining company was bought in an all-cash deal worth $400 million by Rajesh Exports Ltd. Rajesh Exports said that this deal will ensure raw material supplies and will go on to add to its earnings per share. Valcambi's existing owners led by Newmont Mining Corp, the world's largest gold jewellery maker, selected Rajesh Exports after a thorough global search.
As far as gold consumption goes, India is the world's largest consumer of gold, with a demand of approximately 900 tonnes per year.
Rajesh Exports Ltd. (Rajesh Exports) was established as a partnership firm to manufacture and export jewellery in 1989. Its headquarters are located in Bengaluru. Its first gold jewellery manufacturing facility in India was established in 1990. In 2007, the company set up its retail chain stores called 'Laabh Jewellers.' Mr. Rajesh J. Mehta serves as the Executive Chairman of the company.
Rajesh Exports came under the scanner for routing gold meant for exports into the Indian retail market. The Directorate of Revenue Intelligence (DRI) Kochi office framed the company under Section 135 of the Customs Act. If the charges were proven, Rajesh Exports would be charged a fine twice the amount of duty evaded. Moreover, the prime accused Prashanth J. Mehtha (MD) would face imprisonment.
Rajesh Exports divulged its plans to invest approximately $700 million in Australia's mining sector; they also have hopes to open jewellery stores there. The company is planning to set up a subsidiary in Melbourne to see into acquiring interests for the company. The company said it wanted to take Australian gold, process it in India and then retail it in the Australian market.
In order to expand its global presence, jewellery maker Rajesh Exports Ltd confirmed its willingness to form a subsidiary in Europe. The company's Board of Directors gave their stamp of approval for this decision to make the company a global name. The Chairman Rajesh Mehta was given the supreme authority to carry out all the required formalities entailing this decision.
Rajesh Exports, which also sells jewellery under the brand Shubh Jewellers with 83 showrooms across India, earned an order of Rs 1,450 crore from UAE on 10 July 2015.
In 2014-15, Rajesh Exports had a revenue increment of 73% to Rs 50,463 crores and a net profit growth of 82% to Rs 655 crores. 95% of the company's revenue comes from jewellery exports and only 5% from jewellery retailing. Hence, the falling gold prices in India did not affect the company. The company expects the retail share to grow by 10% this year.