Rajesh Exports forges Joint Venture with Fossil Inc

Rajesh Exports Ltd has announced that the Company has formed a 50:50 Joint Venture with the NASDAQ listed Billion $ company Fossil Inc.

The JV Co would be called FOSSIL INDIA INC and would be engaged in:

- Manufacturing of watches arid lifestyle products.

- Distribution of jewellery, watches and lifestyle products.

- Retailing of jewellery, watches and lifestyle products.

- Outsourcing of jewellery to the global markets through Fossil Inc.

Fossil Inc is a design development, marketing and distribution company that specializes in lifestyle consumer products predicted on fashion and value. It is listed on NASDAQ and the revenues in 2005 exceeded USD 1 bn with a net income of over USD 78 mn. Fossil Inc has a retailing presence in over 90 countries across the world. Fossil owns proprietary brands like FOSSIL, RELIC, MW, MW MICHELE, WRIST NET, WRIST PDA and ZODIAC. Fossil has license agreements with some of the most prestigious brands in the world like ADIDAS, EMPORIO ARMANI, BURBERRY, DIESEL, DKNY, MICHAEL MICHAEL KORS, MARC JACOBS and MARC.

The Company is the world’s largest jewellery manufacturer and the only fully integrated mines to the consumer entity in the jewellery segment. Apart from manufacturing, exports and wholesaling the Company has recently forayed into retailing. The aggressive retail foray of the Company will have more than 150 retail jewellery showrooms across the country within June 2007. The Company has already launched 22 retail stores under the brand name of Laabh Jewellers in its first phase of retailing.

The JV between the Company and Fossil would bring in exclusive jewellery, watches and fashion accessories under some of the most reputed international brands to the Indian consumer.

The JV Co would be manufacturing globally known brands in India and distributing these brands across the country. The JV Co would be establishing exclusive retail stores across the country for retailing jewellery and globally known brands of watches and fashion accessories. The JV Co would also be designing and manufacturing an exclusive range of international jewellery from the Company and supplying the same to the world wide network of Fossil Inc which is spread over 90 countries.

This JV would open up a new chapter in the retailing of jewellery, watches and fashion accessories in the country. This JV will also be a landmark association for the outsourcing of Indian jewellery to global markets.

As a result of this JV, the Company will have an access to the global marketing strengths of Fossil Inc and the Company would benefit tremendously from Fossil’s experience of building global brands. Apart from establishing the retail network of Fossil India Inc (the JV Co) Fossil would exclusively supply some of its globally known brands to the retail stores of the Company.

The JV Co will outsource all its requirement of jewellery for its domestic retailing and for international requirement of Fossil from the Company. The JV will have a significant impact on the profitability of the Company due to the high margin nature of the products.

Mr Rajesh Mehta, Chairman of the Company, announcing this at a press conference held on December 04, 2006, said "This alliance catapults Rajesh Exports into the next level of growth and in the forefront of retail jewellery, watches and accessories. Both Fossil and REL are billion dollar companies with tremendous synergies: Fossil’s vast worldwide sales and distribution network will be tapped for supply of jewellery, and Fossil’s experience in building world class brands will be tapped for retailing in India. Fossil has a great portfolio of fashion and luxury brands that will be marketed in our retail stores as well."

Mr Vasant Nangia will be appointed the Managing Director of the new company. Mr Nangia has held key positions based in India and Europe with Titan, Tanishq and OyzterBay. His experience in brand building and retailing of watches and jewellery is unique in the country.

Source : Equity Bulls

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