Thursday, 9th February 2006 (3816 views)

Leading Indian jewellery manufacturer Rajesh Exports is set to dive head first into the branded jewellery market by acquiring retail chain Oyzterbay, according to the Economic Times.

The Indian newspaper says Rajesh has reached an agreement to acquire at least 76 per cent of Oyzterbay, which owns 36 outlets across India.

The deal is said to be worth around Rs 40 crore and is set for completion later this week, although the duo have as yet refused to comment on the move.

It is understood that Rajesh and Oyzterbay are now fine-tuning the deal's equity structuring. Over half (53 per cent) of Oyzterbay's stock is currently owned by ICF Ventures with the rest owned by its current management team.

Rajesh has spent the last few years ramping up its modern jewellery manufacturing facilities and can now process 250 tonnes of gold annually.

But it still lacks marketing clout and the Oyzterbay acquisition would help in its quest to penetrate the branded jewellery market.

Rajesh recently announced a 46 per cent year-on-year rise in revenues to Rs 1294.89 crore for the three months to December 31st.

 

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