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

Published: Apr 7, 2015 09:08
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.

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