Indian jewelry major to invest $700 million in Australian gold mines

Published: Apr 7, 2015 09:08

Save

The Bengaluru-based jewelry giant-Rajesh Exports Ltd has announced plans to make major investments in Australian gold assets.

Author: Paul Ploumis02 Apr 2015 Last updated at 08:16:22 GMT

NEW DELHI (Scrap Monster): The Bengaluru-based jewelry giant-Rajesh Exports Ltd has announced plans to make major investments in Australian gold assets. The company plans to invest up to $700 million, which will be utilized towards purchasing Australian gold mines and opening gold retail stores in the country.

According to Rajesh Mehta, owner of Rajesh Exports Ltd, the company intends to make physical presence in Australia by setting up subsidiary unit in Melbourne. It will acquire stake in country’s gold mines in order to ensure reliable and uninterrupted gold supply chains to cater to its needs. In addition, the company will also start gold retail outlets to serve Australian customers. The gold sourced from the Australian mines will be send to India, where it will be processed into jewelry. This jewelry will be brought back to Australia and sold through retail jewelry stores.

Mehta pointed out that the time is ripe for Indian companies to invest in Australia, especially on the backdrop of the proposed free-trade agreement which is expected to gain further momentum in the months to come. Moreover, the fact that several foreign miners have left the country makes valuable gold assets available at reasonable price. Above all, the Australian government has initiated several investor-friendly measures to boost foreign investments in various sectors including gold.

The company management refused to name the Australian mines or companies that it was trying to acquire or invest in. However, it clarified that several investment bankers have been already approached by the company to evaluate the best deal in order to fructify long term business relationships with Australia.

Rajesh Exports Ltd manufactures gold & diamond jewelry. The company consumes nearly 140 tonnes of gold per year and exports its products worldwide and distributes them within India on wholesale basis. Its products are also retailed through own network of retail jewellery showrooms under the brand 'Shubh Jewellers' spread across India.

gold mine gold price Australia

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

10 hours ago

"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"

Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan

10 hours ago

11 hours ago

"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.

11 hours ago

Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions

After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."

11 hours ago