The company is also planning to expand its refinery at Rudrapur, Uttarakhand with technology from Valcambi, he said.
Jewellery firm Rajesh Exports fully acquired Switzerland-headquartered gold refinery Valcambi for USD 400 million (about Rs 2,560 crore) in an all-cash deal, and said it is looking at venturing into gold mining in the next 2-3 years.
"Acquiring Valcambi gold refinery is our first step towards venturing into mining. We are hoping to venture into gold mining in the next 2-3 years time," Rajesh Exports Managing Director Prashant Mehta told reporters here.
The company is also planning to expand its refinery at Rudrapur, Uttarakhand with technology from Valcambi, he said.
"In 1-2 years, we are planning to expand our refinery in Uttarakhand with world-class technology from Valcambi. This will be under the 'Make in India' initiative that help us in providing international raw material in the domestic market." Valcambi was owned by Newmont Mining Corporation and a group of Swiss investors.
Commenting on the acquisition, Rajesh Exports Chairman Rajesh Mehta said: "With this acquisition, we will also be acquiring a larger market share besides helping in our global gold business expansion. We will seamlessly integrate Valcambi into Rajesh Exports Ltd (REL) group and will continue with the professional and globally acclaimed management of Valcambi." This acquisition will add significantly to the revenues and profitability of REL
Group during the coming years, he added.
The company said that with the acquisition, REL will become an integrated player covering precious metal refining and gold jewellery making.
Further, Mehta said about 30-35 per cent of the funding of this acquisition is done by Credit Suisse through a long term debt and the rest is through internal accrual.
"We are expecting to wipe out the debt in four years," he added.
Rajesh Exports said for the last three years, on an average per year, Valcambi generated revenues in excess of USD 38 billion (Rs 2,36,500 crore) by refining and selling 945 tonnes of gold and 325 tonnes of silver per year.
Valcambi CEO Michael Mesaric said, "The coming together of REL and Valcambi would ensure Valcambi improves on its global share of gold business, by opening up new markets in India, Middle East (West Asia) and China." Grant Thorton assisted REL in due diligence.
Going forward, Prashant Mehta said REL, which has a controlling market share (50 per cent) in supplying raw materials to 14 states, is also planning to expand the number of stores under its retail brand 'Shubh' in three years.
"At present, we have 82 stores under 'Shubh'. We want to expand it to 450 stores in a mix of company-owned and franchise options by 2018," he added.
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