Success Story: A company worth 13,800 Crores was formed with a loan of 10K

Success Story: A company worth 13,800 Crores was formed with a loan of 10K, learn about Rajesh Mehta family, wife, son, career, success story and net worth.

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Feature of the story

  • Rajesh Mehta's Journey from selling gold in stores to owning an Rs 13,800 Crore Company.
  • In July, the company won a $210 million order from a UAE jeweller.
  • Rajesh Mehta, the owner and executive chairman of Rajesh Exports, a business that has developed into one of India's top exporters of gold, is one such notable individual.

Know About Rajesh Mehta's Family, Wife, Son, Career, Success story and Net worth

About Rajesh Mehta

Rajesh Mehta was born on June 20, 1964, in Bengaluru, to Jasvantrai Mehta and Chandrika Ben Mehta. He was raised in a lower-middle-class Jain household in Bangalore. Bipin, Prashant, and Mahesh were his three brothers.

In 1946, his father moved to Bangalore from Morbi, Gujarat, where he was employed by a private company. Subsequently, he left his position and founded the "Rajesh Diamond Company," a tiny semi-precious stone trade company in Gujarat.

Rajesh Mehta wife and son:

Rajesh Mehta is the son of Chandrika Ben Mehta and his wife name is Leena Mehta.

He has two sons. Siddharth, his elder son, works beside him. Siddharth Mehta is incharge of the information technology team at Rajesh Exports Bangalore, which develops custom software for internal operations.

Rajesh Mehta Career

He attended St. Joseph's School and spent two years at National College. Despite his desire to become a doctor, he decided to pursue his father's jewelry company. The family business was taken up by him and his brother Prashant. He launched a silver trading firm and asked his bank-employed elder brother, Bipin, for a loan of Rs 1,200.

He made a fortune by purchasing jewelry in Chennai and reselling it to their relatives in Rajkot. He began selling jewelry to Gujarati wholesalers and shops bit by bit. Later, they began purchasing silver jewelry from Gujarat and reselling it to wholesalers and shops in Hyderabad, Bangalore, and Chennai.

He started trading items after establishing a company named "Rajesh Art Jewellers." Every barter cycle saw a 50% rise in the company's capital base. After seeing success with his silver jewelry business, Mehta turned his attention to gold jewelry in 1989, establishing a 10-person manufacturing facility in his Bangalore garage. "Rajesh Exports" was the name of this business. It achieved INR 20 million in sales by 1992, exporting gold to the US, Europe, Dubai, Oman, Kuwait, and the United Kingdom.

In the end, the export industry reached INR 1.2 billion in 1998.[6] Then, Mehta launched a stand-alone retail establishment that is currently known as "Shubh Jewellers." In Karnataka, there are 81 Shubh outlets.

A company worth Rs 13,800 crore was formed with a loan of Rs 10,000:

After some time, Rajesh Mehta found his path and launched his own company. With his brother's additional contribution of Rs 2,000, he was able to obtain a Rs 8,000 loan from the bank. Equipped with this 10,000 rupee loan, he started his own business in 1982. He initially concentrated on importing jewelry from Chennai and selling it at retail stores in Rajkot, Gujarat. Even though he started this project tiny, his growing popularity soon allowed him to provide jewelry to Gujarati wholesalers.

Rajesh Mehta continued on his entrepreneurial path by extending his company to Bengaluru, Hyderabad, and Chennai. But a turning point in his career came in 1989 when he switched to making gold jewelry and started doing it in a small Bengaluru garage.

These finely created items made their way to markets around the world, such as Kuwait, the US, Dubai, Oman, and the UK.

At the moment, Rajesh Exports Limited has a healthy Rs 13,800 crore market capitalization. This incredible journey doesn't end in India; Rajesh Mehta's forward-thinking strategy has resulted in the construction of gold refineries in both India and Switzerland, enhancing his stature as a trailblazing businessman on the international scene.

In July 2015, the business purchased Swiss refined Valcambi. They even own refineries in India and Switzerland. It is the biggest exporter of gold in the world. In 2021, the company brought in Rs 2.58 lakh Crores.

As the company's founder and chairman, Rajesh Mehta is in charge of managing the business as a whole. He oversees the marketing and finance divisions as well.

According to Forbes, in 2019 he was worth 1.57 billion US dollars, or Rs 12950 crore in current currency.

The company ships gold goods and jewelry from Dubai, India, and Switzerland. The business exports goods to more than 60 nations. For Valcambi, Valcambi manufactures gold bars. Jewelers are given access to these bars.

Net worth of Rajesh Mehta

According to corporate shareholdings disclosed for September 30, 2023, Rajesh Mehta has a net worth exceeding Rs. 3,253.8 Cr. and he publicly owns 6 stocks.

According to the shareholding information submitted to the exchanges, Rajesh Mehta is the owner of these shares. Since not all corporations may have submitted their shareholding data up to this point, the most recent quarter typically has missing data.

About Rajesh Exports

Mehta and his brother Prashant Mehta established Rajesh Exports in 1989. With its first organized gold jewelry manufacturing factory in India, the firm gained notoriety very fast. They also founded the first research and development center for the jewelry industry in the nation in 1991. Three-quarters of the world's gold is processed by Rajesh Exports.

Additionally, it is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Rajesh Exports was listed as the 423rd business on the Fortune 500 list.

Valcambi Exports

The largest gold refining facility in the world, Valcambi is headquartered in Switzerland and was purchased by Rajesh Exports in 2015. Every year, it can create 500 tons of kilogram bars and 400 tons of small-sized gold bars. The London Bullion Market Association (LBMA) has approved the gold bars that are created.

Some Major Points to Learn

  • The acquisition made news as this was the first case where an Indian firm bought an overseas gold and silver refinery; the Swiss company has 60% of the world's gold-refining capacity
  • Under the guidance of Mehta, REL is today the world's largest manufacturer of gold products and gold exporter;
  • REL has one of the world's largest jewellery production units in Bengaluru, and two refineries in Uttarakhand and at Balerna in Switzerland.
  • The company has the capacity to refine 2,400 tonnes of gold per year and can manufacture 400 tonnes of gold products annually
  • Under the brand name of Shubh Jewellers, Mehta set up retail jewellery showrooms across India
  • From gold mining to retailing of gold jewellery, the Bengaluru-headquartered company has diversified under Mehta and refines over 35% of the world's gold.
  • In the financial year 2018-19, it was a zero-debt company on a standalone basis
  • In 2016, Rajesh Exports entered the coveted Fortune 500 company list with a rank of 423
  • Mehta is known to work for 14-15 hours a day

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Frequently Asked Questions

Q. Is Rajesh Exports debt free?

Ans. It's safe to assume that Rajesh Exports does not have a significant debt load given its impressive net cash position.

Q. Is Rajesh Exports a good investment?

Ans. Rajesh Exports Ltd. is a below average quality firm, according to Moneyworks4me's examination of its financial track record over the last ten years.

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Q. Is Rajesh Exports undervalued?

Ans. Rajesh Exports Ltd. is 87% undervalued when compared to the current market price of 353.55 INR.