--- Switzerland-headquartered Valcambi is the world’s largest precious metals refining company
--- Valcambi has a capacity to refine 1,600 tonnes of gold or altogether 2,000 tonnes of precious metals per annum.
--- Valcambi processed and sold 945 tonnes of gold and 325 tonnes of silver on an average a year during the last three financial years
--- Rajesh Exports has the world’s largest jewellery manufacturing facility at Bengaluru with a capacity to make 250 tonnes of gold jewellery and gold products per annum.
Even as globally investors seem to be turning away from gold, Indian gold jewellery major Rajesh Exports Ltd. (REL) announced the acquisition of Valcambi, the world’s largest integrated precious metals refiner in an all-cash deal of $400 million (around Rs.2,560 crore).
REL, a global-scale manufacturer of gold jewellery and gold products, has, through its fully-owned subsidiary in Singapore, fully acquired European Gold Refineries, the 100 per cent holding company of Valcambi in an all-cash deal.
Valcambi has a capacity to refine 1,600 tonnes of gold or altogether 2,000 tonnes of precious metals per annum.
A statement from REL said Valcambi generated revenues in excess of $38 billion and operating profit of $33 million (Rs.205 crore) by refining and selling 945 tonnes of gold and 325 tonnes of silver on an average a year for the past three years.
“More than the price of sale, my aim was to deliver the company to a buyer who would maintain its world-class standard and stature,” Emilio Camponovo, founder and current major shareholder of Valcambi, said in a statement.
Valcambi was fully owned by Credit Suisse, which divested it in December 2003 to the U.S.-based Newmont, the world’s second largest mining company, and to several Swiss investors among whom were the former founders of Valcambi.
Credit Suisse is part financing the acquisition through a long-term debt to REL. Michael Mesaric, current CEO of Valcambi, and the senior management of Valcambi have agreed to be a part of REL for smooth transition and future expansion, the statement said.
“This is a historic moment for REL and for the global gold business,” Rajesh Mehta, Chairman, REL, said in a statement. “The coming together of REL and Valcambi would expand the global gold business and prove very productive for the future global plans of REL group. The acquisition is also of national importance for India, as India is the largest consumer of gold in the world.”
“On a theoretical basis Valcambi is capable of supplying the entire gold requirement of India. This acquisition will add significantly to the revenues and profitability of REL group during the coming years,” Mr. Mehta said.
Rajesh Exports claims to be the largest manufacturer of gold jewellery and gold products. It has the world’s largest jewellery manufacturing facility at Bengaluru with a capacity to make 250 tonnes of gold jewellery and gold products per annum. REL also has a gold refinery in Uttarakhand with a capacity to refine 200 tonnes of gold per annum.
REL posted revenues in excess of Rs.50,000 crore, an operating profit of Rs.1,204 crore and a net profit of Rs.655 crore for 2014-15. It is the world’s only fully integrated gold company with operations across the entire value chain of gold business. The company and its subsidiaries have consumed more than 170 tonnes of gold for its operations in 2014-15.
