rajesh expoters ltd
TRANSCRIPT
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All thatglitters is
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India is a leading player in the global gems and jewellery market. The gems and jewellery industry occupies an important position in the Indianeconomy. It is one of the fastest growing industries in the country.
Large market for Gems & jewellery with domestic sales of over $10 billion. India is the largest consumer of gold jewellery in the world.4% of the global Gems & Jewellery market.Exports of over $15.5 billion; over 18% of Indias exports.Accounts for over 23% of the world consumption.India is the largest diamond cutting and polishing center in the world.Third largest consumer of polished diamond after USA and Japan.
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JEWELLERY CONSUMPTION TOTAL GOLD CONSUMPTION
COUNTRY CONSUMPTION(mt) % TOTAL CONSUMPTION(mt) % TOTAL
INDIA 558.2 23% 773.6 27%
CHINA 302.2 12% 326.1 12%
USA 269.9 11% 278.1 10%
TURKEY 188.1 8% 249.3 9%
SAUDI ARABIA 120.2 5% 129.4 4.50%
UAE 99.8 4% 107.3 3.40%
RUSSIA 77 3% 77 3%
EGYPT 67.3 3% 68 2%
ITALY 58.8 2% 58.8 2%
INDONESIA 58.3 2% 58.7 2%
UK 48.6 2% 48.6 2%
OTHER GULF 40.8 2% 43.7 2%
JAPAN 32.2 1% -24.1 -1%
VIETNAM 21.6 1% 77.7 3%
HONG KONG 14.4 1% 15.5 1%
TAIWAN 14.4 1% 21.8 1%
EUROPE 0 0% -5.9 0%
OTHER 460.9 19% 527.3 19%
TOTAL 2425.7 100% 2830.9 100%
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Gitanjali group
Shrenuj & Company
Suraj Diamonds andJewellery Limited
Asian star
Laxmi diamond
Rajesh exports
Rosy blue
Titan Industries(Tanishq into Retail)
Suashish Diamond
B. Vijaykumar
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COMPANY OVERVIEW
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Business Established in 1989.Head quartered at Bangalore-India. Manufacturer, wholesaler and retailer of goldjewellery
Key Highlights Worlds largest gold jewellery manufacturer
Worlds lowest cost producer of gold jewellery
Worlds largest catalogue of jewellery designs
12% of gem and jewellery export from India
25% of gold jewellery export from India
2% of world gold trade
Market share
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Rings
Earrings
Pendants
Chains
Necklaces
Bangles
Bracelets
Necklace sets
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Product line
Asian Jewellery Western Jewellery Diamond Jewellery
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REL specializes in ASIAN JEWELLERY. Manufactures Asian Jewellery in 22cts, 21cts and 18ct. Having a portfolio of over 20,000 designs.
REL has developed several unique designs to suit the western taste. They are a combination of machine and hand-work skill sets. Manufactures the western style jewellery in 9, 10, 12, 14 and 18 cts gold.
Finest designers both in India and abroad have contributed to therange of exclusive diamond designs. REL has developed eight diamond design ranges each withdistinctive workmanship. Manufactures in 18 cts gold and VVS quality of diamonds in GHcolour
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Gold bullionand alloy heated
to 1000o C
Molten goldpoured into castto produce rods
Furtherprocessed as
(C) CastingProcess
(B) ManualProcess
(A) Machine
Chains
Production commencement..
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Wires drawnfrom gold
ingots
Wires thendrawn using
diamond dyes
Wires woundon spools and
mounted
Solderingof chain
Non-solderedchain is woven
Gold chains ofvarious sizes
Chain withoutloops
Quality checkand delivery
(A) Machine Chains (for standard gold chains of various designs)
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Wire drawingand stampingWire drawingand stamping
Dye cuttingDye cuttingDesign
fabricationDesign
fabrication
Design pieceswith loose
ends
Design pieceswith loose
ends
Soldering and
polishing
Soldering and
polishing
Quality check
and delivery
Quality check
and delivery
(B) Manual Process (for hand-made jewelry)
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Metal master &rubber mould
making
Wax injection& spurring
Investmentcasting
Burn outof wax
Liquid goldinjection
De-sprucing &initial
polishing
Setting & finalpolishing
Quality checkand delivery
(C) Casted Jewellery( for plain and diamond jewellery)
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1989
Year ofEstablishment
1995
IPO of 2m shares @400% to face valueof INR 10
1996
Indias largestjewellery
manufacturer(6 tpa)
2003
Worlds largestjewellerymanufacturingfacility(250 tpa)
2006
Revenues exceedUS$ 1 billion
24K Retail andBangalore Infra ventureslaunchedJV with MuthootPappachan Group
1960-1989
2007
1.Whitelabelled jewellery
2. Diamondstudded jewellery
2007-2012
3. Retailing:Shubh,Laabh &Oyzterbay
Promotersengaged in goldjewelleryretailing
Saga of Rapid GrowthSaga of Rapid Growth
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Rajesh MehtaExecutive Chairman
Experience of over 20 years in the jewellery industry Pioneer in organizing jewellery trade in India Director, Handloom & Handicrafts Exports Promotion Corp President,
Jewellery Exporters Association of Karnataka
Prashant MehtaManaging Director
Experience of over 22 years in jewellery manufacturing Expert on global best practices in jewellery manufacturing and
technology.
Vipin SharmaCEO (Shubh)
Experience of over 12 years in brand building & jewellery retailing Part of the Oyzterbay promoter-group
Kirit TurakhiaCEO (Laabh)
Experience of over 20 years in retailing
M APrakash
CEO (Banglore Infra)
Experience of 7 years in real estate and construction
Management TeamManagement Team
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Largest gold jewellery manufacturing facility.
Lowest cost advantage because of economies ofscale.
Understanding of various global markets andportfolio of 29000 exclusive jewellery designs.
Experienced team of jewellery professionals.
Government recognized trading house injewellery sector
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New player in retail sector.
No ready retail distribution network.
No brand recognition.
New entrant in diamond jewellery
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Fast growth in organised jewellery retail marketsin India.
Organised retail market in India is lesspenetrated (Single player commands ~50% ofthe market share).
Foray into diamond jewellery.
Entry into white label jewellery exports.
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Growing investment opportunity in other assetclass like equities, real estate etc to affect goldjewellery consumption.
Slow down in US and other developed market.
Weaker outlook for US $ may further spur thegold prices in future.
Emergence of other luxury products to replacegold jewellery.
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RAJESH EXPORTS LIMITED
Manufacturers, Exportersand Wholesalers
24K RETAIL BANGALORE INFRA
LAABH
SHUBH
OYZTERBAY
Parent company
SUBSIDIARIES
STORE BRANDS
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One of India's top jewellery makers and exporters. Currently having 25 retail outlets in the country. plans to open 300 retail stores in India over the
next three years. The firm plans to increase revenues from retailoperations to 20-25 percent of total revenues fromthe current 1.5 percent.
company plans to set up retail operations overseaswith showrooms in the Middle East, Far East, U.S.and parts of Europe including the U.K. and France.
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22K Guarantee
Largest Range
Technology
Competitive
Pricing
Service
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For mass marketTo replace mainstream urban and rural jewellery stores 5,000 exclusive designs available at Shubh stores
SHUBH offers guaranteed 22cts purity gold jewellery.
REL has designed an exclusive portfolio ofFive thousand designs for
SHUBH.
The color, shine and tarnish resistance are the distinguishing featuresofSHUBH jewellery.
SHUBH offers international class service at all its showrooms. All
the showrooms are connected online, which helps to serve the
customers better
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International Lifestyleplatform I own it!
Targeted at youth and rapidly growing upwardly
mobile economic strata
To offer jewellery, watches, and accessories
1,200 exclusive pieces of jewellery designed for
the Oyzterbay Collections
To launch 30 stores in malls and shop in shops during
Q1 of 2008-09
To expand to 150 stores in next 3 years
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To monetise land-bank owned by REL of 170,458.16 sq. ft of primecommercial space and 137 acres of land outside the city municipal
zone
Acquisition cost: US$ 25 million
Estimated market value: US$ 200 million
Post-development value: US$ 350 million
Land bank, primarily in Bangalore foremost technology growth
engine of India
Exponential appreciation in land bank value, due to low historic
value To be managed by highly experienced industry professionals
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y Ranked No. 1 Investor Friendly Company in a National Survey by Business Today
y
The onlyPremier Trading House
in Jewellery Sector in India
y Overall Excellence in the category of Gold Exports by the Gem & Jewellery Export Promotion
Council for13 consecutive year
y Karnataka State Government Best Exporter Award for past 9 years
y Awarded Gold Trophy for exports by Federation of Imports & Exports
y Accorded Nominated Agency status to import gold for domestic consumption.
y Ranked No. 1 in the Gems & Jewellery sector in India by Dun & Bradstreet
y Ranked as the Second Fastest Growing Company in the Large Scale Sector.
y Accorded as the Jeweller of the Year Award by Jewellers Association, Bangalore
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