Rajesh Exports was established in 1990 as a Partnership firm in the name of M/s Rajesh Exports consisting of 3 partners with an objective of Manufacturing and Exporting of gold jewellery. The company was reconstituted as a public limited company in 1995 and was registered as a private limited company as Rajesh Exports Limited (REL) under Part IX of the Companies Act, 1956 with the Registrar of Companies, Karnataka. REL established India's first organized gold jewelery manufacturing facility in 1990. The following year, it established India's first research and development (R&D) facility in the jewelery sector. In 1993-94 the Company adopted a major change in its marketing orientation. Until mid-1993 the company exported its products directly to retailers. Unlike most commodities, gold products cannot generally be exported on a sample and approval basis. In case of refusal by the importer, the jewelery cannot be imported into India under any circumstances. This gave overseas retail importers a convenient situation to impose their terms on the exporter after the shipment arrived. Apart from this, the Company has been hampered by many other reasons, such as low volumes and higher costs of coordination in orders, shipping and charge collection, etc. To overcome these issues, the Company has entered into strategic marketing alliances with some key wholesalers in UAE, UK, Singapore and USA. Under these alliances the Company has exported large consignments of approved designs to be stocked and widely retailed in the respective centres. The company was thus able to readily supply a wider variety of products to its retailers. This ensured larger withdrawals and faster payouts. In 1995, the......half of the paper......%. EBIT margin and net profit decreased in 2009 due to the economic downturn. But with timely action and a conscious decision by the board, REL was able to successfully withstand the impact of the recession. Perceptions about gold jewelery are mostly negative due to the prominence of money laundering and black money transactions. And with the RBI introducing norms on gold import, the share prices of Rajesh Exports fell. RBI norms also impact the current year's performance. Net profit and EBIT margin are declining through the third quarter of the current year. The company plans to make investments to open various retail stores and expand the retail business. Therefore, it wouldn't be a surprise if we saw the company's net earnings decline further. Despite the fledgling stock prices, the company has increased its dividend payout. Earnings per share are low as the stock price is declining.