Mumbai, Dec 15 (IANS): Soaring gold prices notwithstanding, a leading jewellery company has announced the opening of 550 retail outlets across southern India under the Shubh Jewellers brand, an official said.

This would include 70 retail stores already launched in Karnataka and another 55 to come up within next four months, followed by the remaining in Andhra Pradesh, Tamil Nadu, Kerala and Goa by end-2014, said Rajesh Mehta, executive chairman of Rajesh Exports Ltd (REL).

The expansion project is estimated to cost around Rs.6,600 crore and would be followed by a pan-India expansion with retail outlets in all states, he said.

The company has also introduced a revolutionary concept of 'Real Rate Per Gram' (RRPG) which offers customers the actual value of the gold they buy without any hidden costs, Mehta said.

The traditional concept of Rate Per Gram (RPG) has lost relevance as jewellery is ultimately delivered at a much higher price to the consumer, Mehta explained.

"We have introduced RRPG in which the customer would pay for the actual physical weight (without any additions like making charges, wastes, stone charges, etc, to it), enabling them to buy hall-marked pure gold jewellery at a cost of 10-20 percent lower than any other jeweller," Mehta said.

Mehta said that by 2014, REL hopes to generate revenues of Rs.25,000 crore from its south Indian operations alone, besides the existing revenue of Rs.20,000 through exports and retail.

"This year, India is expected to consume 900 tonnes of gold and the market is slated to grow at 15 percent per annum for the next five years," Mehta said.