Rajesh Mehta’s Ascendancy and Fall: A Look at His Scrutiny by Sebi
BENGALURU: Rajesh Mehta, known for his jewellery brands Shubh, Laabh, and Oyzterbay, has seen a significant decline in his business operations amid ongoing investigations by the Securities and Exchange Board of India (Sebi). Once poised to rival Tanishq, Mehta’s brands have largely shut down, with only a few Shubh stores remaining operational. He has returned to his roots in gold refining, manufacturing, and trading.
Mehta’s journey began in a Gujarati family that migrated to Bengaluru after Independence. His father, Jaswantrai Mehta, traded semi-precious stones and founded Rajesh Diamond Company, named after Rajesh, the third of four sons. In the early 1980s, Rajesh and his brother Prashant borrowed Rs 1,200 from their elder brother to start trading silver jewellery, later expanding into gold jewellery after obtaining a licence under the Gold (Control) Act.
In 1989, Mehta established a small gold jewellery manufacturing unit in his garage in RT Nagar, which evolved into Rajesh Exports. The company quickly transitioned from jewellery exports to manufacturing and refining, eventually listing on the stock exchanges in 1995. Mehta built a 10-acre manufacturing facility in Whitefield, employing 300 people. In 2006, the acquisition of Oyzterbay raised his profile, but it was the launch of Shubh in 2010 that made waves with its innovative pricing model. Rajesh Exports’ revenue surged from about $1 billion in 2006 to $24 billion a decade later, although net profits remained modest due to low margins.
A pivotal moment came in 2015 when Mehta acquired Swiss precious-metals refinery Valcambi for $400 million, positioning his company as a global player in the gold market. In 2022, he announced plans to invest Rs 24,000 crore to establish India’s first advanced AMOLED display manufacturing facility in Telangana. However, this project appears stalled due to the ongoing Sebi investigations. Mehta expressed confidence in his ability to demonstrate the legitimacy of his dealings.
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