Rajesh Exports, a publicly held gold jewellery exporter, based in this city, is understood to have finalised a plan to leverage on its vast land bank, worth around Rs 2,000 crore.
Mostly in and around Bangalore, this is understood to be about 150 acres. Rajesh Exports,among the country’s top three gold jewellery exporters, with revenue of Rs 25,000 crore in 2011-12, is understood to have initiated discussion with real estate developers.
It is also likely that a subsidiary will be floated for this, though Rajesh Mehta, chairman and managing director, said there weren't such plans in the immediate future.
This comes on the heels of this company buying close to two acres of prime land in the heart of this city’s central business district, for around Rs 80 crore.
Established in 1990, the company has aggressively grown in the gold jewellery export business. In the recent past, it has been increasing its focus on the gold jewellery retailing business in India, to expand its margins. It has set up a gold jewellery manufacturing facility at Whitefield, a city suburb, with annual capacity to process 250 tonnes. While its margin is only two per cent in the jewellery export business, jewellery retailing comes with eight per cent margins.
The company will be aggressively expanding its retail presence across the country, taking its stores to 500 by the end of 2013-14 from the current 80.