Rising prices and the falling rupee has impacted the gold imports into India, the second largest buyer of the metal in the world.
The imports are expected to drop by 18 percent in 2018. According to a study, India imported 880 tons of gold in 2017, but it is likely to import only 725 tons this year. Although it could weigh on global prices, India will be able to reduce its trade deficit.
However, the drop in imports and the reducing gold demand has hardly impacted Rajesh Exports, which is evident from the profit posted by the company in the 2016-17 annual report. It posted a profit of Rs 12,436.33 million, a 16 percent jump from the previous fiscal.
The credit goes to the vision of Rajesh Mehta, the CEO, and Founder of Rajesh Exports. He, along with his brother Prashant Mehta, Rajesh Exports MD, has led the company with their experience and dedication. The company has been able to manage stability in the operational performance primarily on account of increasing sales from retail business and change in product mix.
The company has always kept the growth trajectory through challenging times and has been able to outperform many competitors, not only in the domestic market but in the international market as well. It is currently the world’s largest manufacturer of gold jewelry.
With the acquisition of Valcambi, the world’s largest gold refinery, it has established a greater global presence. The refinery is capable of refining 1,600 tons of gold per annum and an additional capacity to refine 400 tons of other precious metals.
REL intends to increase its retail presence by increasing the number of showrooms across the world and launch an e-commerce platform for global distribution of its products. The company has also been launching new products across different lines and at different price points in the retail segment. “Expansion is in our blood. We can’t sit quiet, we are always doing something,” says Rajesh Exports MD.
Following the footsteps, vision, and approach of Rajesh Mehta, Siddharth Mehta, his son, is speculated to play a crucial role in the expansion of Rajesh Exports. This can be attributed to Siddharth’s pet project of expanding the business into the e-commerce sector. Being the Chief Strategist of the company, he has scaled his way up the ranks with hard work and patience over the years. When he entered the family business at the age of 19, he started out as a normal employee as he had to understand the intricacies of business functioning in an inverted pyramid structure.
Gold demand could improve in the second half of the year with some of the festivals around. This is the time when many people prefer to buy the gold items. However, it won’t be sufficient to compensate for the fall in the first half, making the situation tricky for the bullion industry.