After bagging Rs 1,079 crore order from Middle East, the company’s stocks rates have witnessed a massive jump
World’s largest gold manufacturer, Rajesh Exports Ltd (REL) is on course to set up India’s largest gold refinery in Bengaluru’s Whitefield before the year end.
The refinery will be set up at a cost of Rs 350 crore, having the capacity to process over 600 tons of gold per annum, which is about 67 per cent of the country’s total gold consumption per year.
According to the experts at REL, the move will help India save about 2 per cent annually on its gold import bill. Gold is the second highest imported commodity in India. The domestic consumption of the yellow metal is close to 900 tons per year, out of which 90 per cent is imported. As much as 50 per cent of the imported gold comes in the form of pure gold.
Talking about the development, Rajesh Mehta, the chairman of REL said, “We will be importing gold directly from the mines around the world and refine it in India. This will save the refining and branding charges, which are very high in foreign countries, especially Europe and America.”
Rajesh Exports also acquired Valcambi, the world’s largest gold refinery in 2015. The company’s current refining capacity in India and abroad stands at around 2,400 tons.
“The Uttarakhand refining unit had a capacity of 72 to 80 tons per annum, which has been substantially reduced of late and will eventually be closed down. The cost of operating in the hilly state had risen after GST subsumed many of the levies,” Mehta added.
The company’s stock prices have increased from Rs 570 (approx.) to Rs 670 (approx.) ever since it bagged Rs 1,079 crore order from the Middle East. By setting up the country’s largest gold refinery in Whitefield, the stock rates of Rajesh Exports are expected to increase further in the coming months.