Jewelry exporter and retailer Rajesh Exports (REL) has planned to scale up its retail chain ‘Shubh Jewellers’ to 550 outlets with an average area of 500-550 sq.ft. in South India by 2014. The company is hoping to generate a revenue of over Rs 20,000 crore from retail alone by 2014-15.
REL that had net sales of Rs 20,844 crore from both exports and retail, visions to become the biggest player in the Indian retail space alone.
Speaking on the future plans, Rajesh Mehta, Executive Chairman, REL, said: “The company hopes to acquire 8 percent of share in the Indian retail gold jewellery trade, which would in turn create a retail revenue of about Rs 25,000 crore.” He also added that the expansion plan will require an investment of Rs 6,000 crore, which will be generated through internal accruals, supplier credit, and debt.
With around 70 retail outlets in Karnataka, the company now plans to take the store count to 125 stores in the state by April 2012. REL is also looking at having retail presence in pan-India expansion once it completes opening 550 outlets in the southern states of Andhra Pradesh, Goa, Karnataka, Kerala, and Tamil Nadu.
-Tista Sengupta
