Rajesh Exports Ltd. to Open 25 Retail Stores on Dhanteras
To sell its jewelry under Shubh Jewellers...Rajesh Exports Ltd. will open 25 new retail stores in the southern state of Karnataka on Monday on the occasion of Dhanteras, an auspicious day for gold purchases in India.
The company, which sells its jewelry under the Shubh Jewellers brand in India, stated that the opening of new showrooms will take the total number of stores to 65 in Karnataka and a total of 73 stores across the country.
Rajesh Exports said that it is looking forward to an aggressive retail expansion plan, which would be the main driver for the incremental profitability in the coming quarters. The company plans to establish 500 Shubh Jewellers stores across India by 2014.
Many branded jewelry retailers, including Orra, Shree Ganesh Jewellery House Ltd. and Shrenuj & Co., are looking to expand their retail operations in the small to mid-size cities given the growth potential and lower cost of doing business.
According to a study by CRISIL Ratings, growth across India's branded gold jewelry sector is likely to be driven by new stores opening in small to mid-size towns. Retailers are expected to generate more than half of their revenues from these smaller population centers by fiscal period 2012 and 2013, compared with around 40 percent in the fiscal cycle 2009 and 2010.
By: Dilipp S Nag of RAPAPORT
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