Rajesh Exports, the Rs 7,000 crore Bangalore-based jewellery retailer and exporter, plans to tie up with leading retail chains worldwide to sell its branded diamond jewellery. The company is already engaged in discussion with J C Penney and other retail chains.
"So far, we have not finalised any retail chain. We intend to have a presence in 100 countries in the coming years by partnering the top two distributors in the respective nation. We are looking at 200 international clients worldwide for our retail operations," Rajesh Mehta, chairman, Rajesh Exports said today.
The retail expansion abroad is part of the company's strategy to reduce bulk exports and focus on private label exports, diamond jewellery and retail, which fetched better margins.
"It is our aim to reduce the quantum of bulk exports from the existing 93% to 25% over the next five years. While bulk exports offered operating margin of 3.5-4%, in case of retail it was 14%, private label exports - 20% for and diamond jewellery - 35%," he said.
This year, the company's revenue guidance is pegged at Rs 8,000 crore with close to Rs 7,200 crore coming from bulk exports. "Bulk exports constitute 93% of the total revenue. We want to improve the profit margin by reducing dependence on bulk exports," he added.
Mehta said the company will not be hit by the slowing demand in the US. "We are aware of the slow down in the US retail market. Besides, it will not affect us since we are not totally dependent on the US. Our business is well spread," he added.
The company earns 40% of its revenue from West Asia, 20% from Far East, 10% from Europe and 15% from the US.
Rajesh Exports has also lined up expansion of domestic retail operations with the demand for gold and diamond jewellery going up in the country. The company operates three format stores - Shubh, Laabh and Oyzterbay. It intends to increase the number of Shubh stores to 400 and Laabh and Oyzterbay up to 150 each country wide over the next five years.
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