RAJESH EXPORTS Share price

The Company was established on 29/5/90 as a partnership firm in the name of M/s Rajesh Exports comprising of 3 partners with the objective of manufacture and export of Gold Jewellery. The firm was reconstituted as a joint stock Company on 25/1/95 and was registered as a Public Limited Company as Rajesh Exports Limited (hereinafter referred to as REL/Company) under part IX of the Companies Act 1956 on 1/2/95 with the Registrar of Companies Karnataka. Presently REL is exporting plain Gold jewellery and studded Gold jewellery mainly to USA UK Singapore and UAE.The Company has within a short period of five years as a partnership firm grown from strength to strength and has registered excellent growth in exports. The exports have increased from Rs.247.89 lakhs as on 31.3.1991 to Rs.3537.06 Iakhs as on 31.3.1995 and the profits from Rs.30.14 lakhs to Rs.394.04 lakhs. The average annual sales growth rate over the last five years is 114.08%.In 1993-94 the Company resorted to a major change in its marketing orientation. The Company had till mid 1993 been exporting its products directly to the retail dealers. Unlike most commodities Gold products cannot be exported generally on sample and approval basis. In the event of any rejection by the importer the jewellery cannot be imported back to India under any circumstances. This gave the overseas retail importers a convenient situation to force their terms on the exporter after the arrival of the consignment. Apart from this the Company was hampered on several other counts such as poor volumes and higher costs of co-ordination in the orders despatch and debit collectionsetc.In order to overcome these problems the Company entered into strategic marketing alliances with certain key wholesalers in UAE UK Singapore and USA. Under the alliances the Company exported large consignments ofapproved designs to be stocked and retailed widely at the respective centers. The Company was thus able to provide a larger variety of its products to its retailers readily. This ensured increased offtake and faster payments.However initially as the concept was new the Company had to effect price adjustments on sales to wholesalers in order to cover their holding costs. As such though the Company could achieve a phenomenal jump in its turnover from Rs.1059 lakhs in 1992-93 to Rs. 2000 lakhs in 1993-94 the profitability was not commensurate with the increase.The new marketing methods resulted in increased volumes and quick offtake from retailers. The consequent reduction in holding costs at the wholesaler level enabled the Company to restore its selling prices and thus improve the profit margin in 1994-95. The Company achieved a sales of Rs.3537 lakhs representing an increase of nearly 77% over 1993-94. The success of the new marketing thrust has encouraged theCompany to set up its own trading offices at UAE UK USA Singapore and Germany. The Company has already identified the respective locations and has obtained necessary approval from Reserve Bank Of India vide their letter No.EC.BG.NO.2496/08.10.54/94-95 dated 7th April 1995 for setting up these trading offices.The Company has received the following awards for its outstanding performance:-Award for highest exports in studded Gold jewellery for the year 1993-94 from The Gem & Jewellery Export Promotion Council sponsored by Government of India."Best Exporters Award" in Gold Jewellery for the years 1992 - 93 and 1993 - 94 from Government of Karnataka.The Company has also received Export House Status from Government of India.The assets of the partnership firm have not been revalued any time in the past.