Rajesh Exports forms two Subsidiary Companies for retail and infrastructure

Rajesh Exports Ltd has announced that the Board of Directors of the Company has approved the formation of two 100% subsidiaries, to professionally manage and expand its retail business and foray into Infrastructure Development.

The Company would form two 100% subsidiaries namely:

1. 24K Retail Ltd.

2. Bangalore Infra Ltd.

24 K Retail:

The Company has decided to aggressively expand its retail presence to leverage its exceptional backward integration strengths. Under the retail foray the Company has decided to launch retail showrooms under three brands:

1. Laabh Jewellers

2. Shubh Jewellers

3. Oyzterbay

The Company has already launched 24 Laabh showrooms across the country. To increase its focus on retail and to professionally manage and expand retailing, the Company has decided to transfer its entire retailing activities to 24K Retail. 24 K Retail will have 30 Laabh stores, 100 Shubh stores, and 50 Oyzterbay stores (Oyzterbay stores in association with Fossil Inc) in its first phase of expansion. A team of professionals with a rich brand building and retailing experience has already been selected, who would manage 24K Retail.

Bangalore Infra Ltd:

The Company has over a period of fifteen years invested a portion of its surplus cash in acquiring prime properties in Bangalore. Currently these properties fetch a very attractive valuation. The valuation would multiply manifolds if these properties are developed, as all the properties are strategically located at prime locations in Bangalore. The Company has a well developed property division, headed by experienced personnel, who have acquired and are managing these properties. The Board Of Directors of the Company is of the opinion that there is tremendous value locked in the properties owned by the company and this value needs to be unlocked professionally for the benefit of share holders. Apart from developing its own properties, the Company has sensed a huge opportunity to be in the fore front of infrastructure development in Bangalore and other Indian cities. The Company has identified experienced industry professionals, who would be joining Bangalore Infra Ltd along with the existing Company's property team.

The entire retail business of the Company would be transferred to 24K Retail and the entire real estate holdings of the Company would be transferred to Bangalore Infra Ltd. The Company is confident that this move will be of a great value to the share holders of the Company as the company would be unlocking the value of its retail foray and would be exploiting the potential of infrastructure development.

Source : Equity Bulls

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