Rajesh Exports acquires retail network of OyzterBay
Mumbai, Mar 16 (UNI) Exports powerhouse Rajesh Exports Ltd has acquired the retail network of OyzterBay as a part of its plan to foray into branded jewellery retailing.
The company will also be investing Rs 100 crore to set up a subsidiary for branded retailing of gold and diamond jewellery.
In a release to the BSE, Rajesh Exports stated that its board has approved the acquisition of OyzterBay's retail assets as also the proposed investment of Rs 100 crore.
This acquisition will immediately catapult Rajesh Exports, through its subsidiary, into one of India's largest branded retail jewellery chain in the country.
As a part of the agreement finalised with OyzterBay, Rajesh Exports will acquire the former's entire retail business including all the exclusive retail stores, retailing systems, management systems, software packages, customer database and other retail assets of OyzterBay, the release stated.
The entire retailing team of Oyzterbay will also join the new retailing subsidiary.
The company will pay Rs 11 crore in cash and offer a 20 per cent equity stake to the promoters of OyzterBay in the new Rs 100 crore retailing subsidiary, the release added.
Rajesh Exports plans to expand in the branded jewellery segment through both the organic and inorganic routes and is already working on a mega-retail jewellery project that involves launching 100 retail stores on its own.
The subsidiary approved by the company's board will be a separate project that will specifically focus on the inorganic growth plans, the release stated.
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