Indian jewelry exporter steps into gold financing biz

Author: Paul Ploumis11 Feb 2015 Last updated at 07:18:27 GMT

MUMBAI (Scrap Monster): The Bengaluru-based jewelry exporter, Rajesh Exports Ltd has announced its plans to diversify its business model by foraying into gold finance business. The proposal was approved by the company’s Board of Directors in a meeting held yesterday.

In a filing to the Bombay Stock Exchange, the company stated that the commencement of the new business division is subject to regulatory approvals. The company will go ahead with applying for necessary licenses and permits required to start the gold finance schemes.

The company plans to run the gold finance business through the existing retail jewelry outlets. The entry into gold fiancé schemes is expected to boost the retail business at retail stores. Retail customers are likely to be benefitted largely, on account of easy availability of financing schemes at the point of purchase of the jewelry. Apart from adding incremental value to its retail business, this will also contribute to build customer base for the newly initiated gold financing business vertical.

Earlier, Rajesh Exports had created new history in retail gold business by introducing zero wastage and making charges on gold jewelry. This had prompted other players in the industry to do so, thereby benefiting thousands of retail customers in the country. The company assured that the new gold finance business model will ensure that customers are benefited by making affordable finance schemes available at customer’s convenience.

Rajesh Exports Ltd manufactures gold & diamond jewelry. The company exports its products worldwide and distributes them within India to the wholesale jewellery market. The products are also retailed through its own network of retail jewellery showrooms Shubh Jewellers spread across India.