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India's six diamond kings Born into an Antwerp-based diamantaire family, Nirav Modi was sent as a 19-year-old to Mumbai to learn the ropes from his maternal uncle Mehul Choksi, chairman of Gitanjali Gems. A decade in sales later, in 1999, Modi decided to step out from the shadow of his family. "Being naive was my greatest strength," says Modi, whose siblings eventually joined the company. He had just one business mantra—find the large opportunity with a big moat around it. Thus began the global search for the finest and rarest diamonds. Aided by his youngest brother Neeshal, Modi began buying yellow diamonds from Sierra Leone, white stones from Russia and Armenia, and pink diamonds from Argyle, the company's only Indian customer. "We see diamonds as more than luxury. Like a house, they appreciate in value and are passed on to the next generation," says the 41-year-old. Around 2005, Firestar acquired a company in New York with a jewellery sales network. In 2007, it acquired Sandberg & Sikorski, a US company that had the concession to jewellery to shops in all defence bases. "We now sell jewellery worth $million annually to the largest armed force in the world,'' he says. In 2009, when the global economy, and the luxury market, were in meltdown mode, Modi took the gamble of setting up seven manufacturing units in six countries, including Armenia and Russia, where he is the only Indian player. The next niche opportunity arrived in 2010 when his Golconda Lotus necklace in a cut, patented by Modi, was auctioned at Christies's for Rs 16 crore. Since then Modi sends a few pieces to each of the 16 auctions held annually by Christie's and Sotheby in Geneva, Hong Kong and New York. Designing a pair of earrings for a friend helped Modi discover the artist in him and 'Nirav Modi' the brand was born. Modi, who says he can't hold a pen, shares his ideas with an in-house design team who work on them till he is satisfied. "I wanted to be a music conductor as a child. This could be a manifestation of that same urge," says the maverick designer, who loves the poems of Robert Frost and has David Ogilvy's 'Confessions of an Ad Man,' and the Gita on his bedside. Nirav Modi Firestar Diamonds/NMJ Jewellery TURNOVER: Rs 12,000 crore http://www.firestardiamond.com/our-work/#jewelry http://www.niravmodi.com/

India's six diamond kings& jewelers who control india's gold

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Page 1: India's six diamond kings& jewelers who control india's gold

India's six diamond kings

Born into an Antwerp-based diamantaire family, Nirav Modi was sent as a 19-year-old to Mumbai to learn the ropes from his maternal uncle Mehul Choksi, chairman of Gitanjali Gems. A decade in sales later, in 1999, Modi decided to step out from the shadow of his family."Being naive was my greatest strength," says Modi, whose siblings eventually joined the company. He had just one business mantra—find the large opportunity with a big moat around it.Thus began the global search for the finest and rarest diamonds. Aided by his youngest brother Neeshal, Modi began buying yellow diamonds from Sierra Leone, white stones from Russia and Armenia, and pink diamonds from Argyle, the company's only Indian customer."We see diamonds as more than luxury. Like a house, they appreciate in value and are passed on to the next generation," says the41-year-old. Around 2005, Firestar acquired a company in New York with a jewellery sales network. In 2007, it acquired Sandberg & Sikorski, a US company that had the concession to jewellery to shops in all defence bases. "We now sell jewellery worth $million annually to the largest armed force in the world,'' he says.In 2009, when the global economy, and the luxury market, were in meltdown mode, Modi took the gamble of setting up seven manufacturing units in six countries, including Armenia and Russia, where he is the only Indian player.The next niche opportunity arrived in 2010 when his Golconda Lotus necklace in a cut, patented by Modi, was auctioned at Christies's for Rs 16 crore. Since then Modi sends a few pieces to each of the 16 auctions held annually by Christie's and Sotheby in Geneva, Hong Kong and New York.Designing a pair of earrings for a friend helped Modi discover the artist in him and 'Nirav Modi' the brand was born. Modi, who says he can't hold a pen, shares his ideas with an in-house design team who work on them till he is satisfied. "I wanted to be a music conductor as a child. This could be a manifestation of that same urge," says the maverick designer, who loves the poems of Robert Frost and has David Ogilvy's 'Confessions of an Ad Man,' and the Gita on his bedside.

Nirav Modi

Firestar Diamonds/NMJ Jewellery

TURNOVER: Rs 12,000 crore

http://www.firestardiamond.com/our-work/#jewelryhttp://www.niravmodi.com/

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India's six diamond kings

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India's six diamond kings

In a family-driven industry where your name is your business card, managing director Mavji Bhai Patel is refreshingly free from tradition."My father was cotton farmer living in a village of 500 people in Gujarat's Bhavnagar district. We are first-generation entrepreneurs," he says. With some seed capital from his father, Mavji's eldest brother and chairman, Vallabhbhai S Patel, shifted to Mumbai and set up the company in 1985 where he was soon joined by Mavji, a fresh commerce graduate.Despite such humble beginnings, Kiran Gems today is India's largest exporter of diamonds and jewellery. It is also the diamond industry's largest employer, with an army of 30,000 craftsmen handling over 5 million carats in rough diamonds each year.How did an 'outsider' make it so big so fast? "The most important thing is family because the business is all about trust," he says, without the least trace of iony. Nine family members, including his five nephews, handle areas—raw material purchase, manufacturing, marketing and finance, and each has equal importance. "We have no ego factor. We have no individual success story," says Mavji Bhai, who spends his free time on family holidays and Bollywood films. His 18-year-old son is still studying. His daughter is married into another diamond business family.His most precious memory in business is of the day Kiran Gems gotsightholder status from DeBeers. "It was fantastic,''he recalls. The company is among the largest suppliers of jewellery to stores in the USA, as well as Indian brands like Tanishq, he says. There are no immediate plans to enter the Indian retail market.

Mavji Bhai Patel

Kiran Gems Pvt Ltd

TURNOVER: Rs 7,700 crore

http://www.kirangems.comhttp://www.kiranjewels.com/

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India's six diamond kings

The 53-year old had a crystalclear goal even in his teens: to become the world's largest luxury player in branded jewellery. Mehul joined the business in 1975 and took over the reins of a Rs 50 crore firm in 1985 after his father Chinubhai Choksi died. Chinhubhai had laid the foundation of the company, which he named Gitanjali after his two daughter—ita and Anjali. "I was attending college during the day and was learning the tricks of the trade from my father in the evening," recounts Choksi.Initially, trading in rough and polished diamonds formed the core business for Gitanjali, and it was considered one of the biggest exporters of raw diamonds worldwide. This led to Gitanjali entering the international jewellery arena and it gradually started expanding the business. Mehul, who loves yachting on weekends, realised that by selling diamonds as a commodity Gitanjai was not realising its full potential. "This triggered me to launch the Gili brand of jewellery some 18 years ago," says Mehul, who loves Chinese and Mexican food.Today Gitanjali's product portfolio consists of several brands, including Gili, Nakshatra, Asmi, D'damas, Maya, Diya and Sangini; they are sold through over 4,000 points of sale in multiple retail formats.Gitanjali enjoys direct access to the US retail market through 111 high-end stores under Samuel Jewelers Inc, acquired by the group in 2006. Popular brands retailed in the US include Love Universe, Passion Stone, Affiance, Lune Dargent and REVV. The company also acquired Italian brands like Valenete, Stefan Hafner, Nouvelle Bague, IO SI and Porrati.Mehul has a medium-term target: "Within next five years, my target is to achieve a turnover of Rs 50,000 crore."

Mehul Choksi

Chairman and MD, Gitanjali Group

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India's six diamond kings

Asian Star Company started its journey in 1971 when three cousins Dinesh Shah, Arvind Shah and late Prabodh Shah floated a partnership firm for diamond processing; the compan had a small diamond processing unit in Surat.The second generation of the Shahs took up the business in 1990. Dharmesh Shah is the joint MD and CFO and his brother Vipul Shah is theMD besides being the chairman of the Gem & Jewellery Export Promot Council. Dharmesh, who is a graduate from Bombay University,

says: "Asian Star is now one of the biggest diamantaires. The year 2000 marked the launch of the jewellery manufacturing business of Asian Star."Dharmesh took up the business when the turnover was around Rs 350 crore; In FY12, that figure stood at Rs 1,835 crore. "Our aim is to double turnover within next five years," he says.Asian Star plans to consolidate its position in the core business of diamond processing, while exploring further in the jewellery manufacturing business. Asian Star is a B2B company and hence does not promote consumer brands. "But I can proudly aim that 'Asian Star ' is a renowned corporate brand within trade circles," says Dharmesh who loves to read and play cricket.At 46, Dharmesh is hungry to acquire brands overseas. " As and when opportunity comes we will grab it," he says

Dharmesh Shah

Joint MD & CFO, Asian Star Company

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India's six diamond kings

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India's six diamond kings

Laxmi Diamond was started 40 years ago by Vasant Gajera, the elder brother of Ashok Gajera. While Vasant stays in Surat, Ashok is based in Mumbai and looks after the sales and marketing.The company imports rough diamonds, processes and exports polished diamonds to US, Far East, Europe, the Middle East and South East Asia.Ashok, who joined the company in 1986 after the opening of the firm's office in Mumbai, emphasises that sourcing is the most important thing to become a major player in the industry. It gets regular supplies from mining companies like Rio Tinto, BHP and Diavik Diamond Mines."Every piece of diamond is a canvas and cutting diamond or making jewellery is a work of art. Our method of quality control ensures less than 0.25% of rejection rate," says Ashok. The legendary diamond cutter Sir Gabi Tolkowsky is the training consultant of Laxmi Diamond and has trained and sharpened the skills of its workers The company sells diamond jewellery under the brand name Cygnus and has 180 outlets in India. "Every year we have plans to increase the numbers by 10-15%," says Ashok. However, the company is cagey about sharing numbers.

Ashok Gajera

Managing Diractor, Laxmi Diamond

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India's six diamond kings

Belgium-based Rosy Blue, flagship of the Mehta family, is one of the world's largest diamond jewellery companies and owns the retail brand Orra. The privately-owned company began trading as B Arunkumar more than 50 years ago. In 1973, with Dilip Mehta at the helm, Rosy Blue Antwerp began expanding into global distribution and sourcing of diamonds. "The company and the business were started by my father and his maternal uncle in 1960 and were growing in the '80s when I joined," says Russell Mehta, chief operating officer of Rosy Blue India.Today Rosy Blue consists of two legal entities, one operating in India, Rosy Blue (India), and the other active in the rest of the world, Rosy Blue investments Sarl. All the companies operating within these entities share the Rosy Blue trade name."Rosy Blue is a 'family corporation'. We have evolved differently from most diamond companies, which are managed by the core family. We have trained and groomed professionals to take over key job of trading diamonds which I don't think many other companies have done. This allowed us to scale up," says Mehta. Even so, family ties remain crucial. "All diamond trading happens on oral promises and without any written contracts or documents. Also, large part of trading is on 'clean credits'. Hence the family's reputation, roots and heritage are quite important in trading diamonds," says Mehta.Inter Gold is the jewellery manufacturing arm of Rosy Blue India, and is one of the largest diamond jewellery companies in the world. Orra, Rosy Blue India's retail chain, has over 30 shops. In 2011, Rosy Blue India became a member of the Responsible Jewellery Council that has been established to promote responsible ethical, social and environmental practices, throughout the diamond and/or gold jewellery supply chain, from mine to retail.Mehta believes the reputation and the trust Rosy Blue and the promoters enjoy among suppliers (diamond miners) and customers (retailers across the world) are its biggest success. "The real challenge is to maintain it," he says.

Russell Mehta

Rosy Blue (India)

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Jewelers who control India's gold

Born into a farmer family, MP Ahamed ventured into business in 1979 with an ice-making factory at Kozhikode. The business failed, and in 1981, he started trading spices and copra.

In 1993, the 36-year-old was advised to try his luck in gold. Ahamed, who has studied till high school, took the plunge. 'I started with the Rs 50 lakh I had earned from my business and opened the first Malabar Gold & Diamonds showroom at Calicut,' says Ahamed.

At that time, unfair trade practices were rampant. 'I started my business with the motto of transparency. We were one of the first in the industry to introduce 100% BIS hallmarked jewellery,' he says. A savvy marketer, Ahamed roped in global branding agency Brand Union to create a distinct corporate image in the highly competitive overseas market.

Malabar now has 82 outlets, of which 52 are in India and 30 in Gulf Cooperation Countries. It plans to expand to more states in India as well as Indonesia, Malaysia, Thailand, Singapore, Sri Lanka, the US and UK. 'We are among the top five jewellery retailer groups in the world, and are striving to become number one,' says Ahamed.

MP Ahamed, Chairman

Malabar Gold & Diamonds

TURNOVER: Rs 12,000 crore

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Jewelers who control India's gold

Rajesh Mehta was a rank holder at the Karnataka higher secondary and senior secondary school examinations. But instead of pursuing higher education, the 16-year-old joined his father, Jaswantrai Mehta, in supplying semiprecious and imitation stones to jewellers. ‘I gradually developed an interest in the business,' says the 49-year-old Mehta.

In 1982, Mehta borrowed Rs 1,200 from his brother and started manufacturing jewellery in the garage of their Bangalore home. In 1995, Rajesh Exports entered the capital market with a public issue and raised Rs 10 crore.

The company mechanised manufacturing to cut costs to below 1%, enabling it to sell jewellery to retail customers at a 'real rate per gram'. The company still does not levy making charges.

Mehta has an aggressive roadmap for his business. 'Within four years, we plan to have 2,000 showrooms pan-India,' says Mehta.

Rajesh Mehta,Chairman

Rajesh Exports

TURNOVER: Rs 30,000 crore

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Jewelers who control India's gold

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Jewelers who control India's gold

When Suvankar Sen (29), joined his family business in 2007, he had an inheritance to build on. His great grandfather, Maranchand Sen, ventured into the gold jewellery business 75 years ago.Suvankar's grandfather, Prabhat Chandra Sen, joined the business in 1950 and in 1968, opened the first shop in Kolkata's jewellery hub, Bowbazar. And by the time Suvankar joined the business, his father, Shankar Sen, ran a chain of 30 stores.

'I have added 16 new stores and we have expanded to Odisha, Assam, Jharkhand and Delhi. We now have the largest number of retail outlets in West Bengal,' says Suvankar, an MBA from IMT Ghaziabad. Senco is also exporting to Dubai, Singapore, the US and UK.

Suvankar's training has helped him give the business a professional edge. 'My focus is to highlight the art and creativity that gold artisans from Bengal are famous for,' he says.But the major obstacle, he says, is that customers in West Bengal are extremely price sensitive. This has forced Suvankar to expand his business to other parts of India.

His other regret is that work takes away his leisure time. 'I would love to go to Bali, my favourite destination,' says Suvankar, rushing into a video conference with an overseas client.

Suvankar Sen, ED

Senco Gold Jewellers

TURNOVER: Rs 900 crore

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Jewelers who control India's gold

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Jewelers who control India's gold

In the 1800s, Cotha Krishniah Chetty started out by selling Armenian coloured beads to the British in Bangalore Cantonment. The company was appointed as distributor for Rolex of Switzerland, and imported products from Mappin & Webb, and The Goldsmiths and Silversmiths Company of London.

'Rolex made diamond-encrusted dials with the name C Krishniah Chetty & Sons on top. Not many companies in the world can claim that honour,' says C Vinod Hayagriv, a fifthgeneration family member who joined the company in 1981, fresh out of school. This year, it is the only Indian company to be selected in an Antwerp contest on design, he adds.

And now that his two gemologist sons have joined the business, the avid golfer and traveller can look back at his own imprint on the company. 'Excellence is a process. I am not tired, and that is something I could be happy about,' he says.

C Vinod Hayagriv, Managing Director

Krishniah Chetty & Sons

TURNOVER: Rs 600 crore

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Jewelers who control India's gold

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Jewelers who control India's gold

When Shrikant Gopaldas Zaveri joined the family business at 19, he already had a business philosophy. 'I knew the tricks of the trade and the areas where I could add value to the business,' says Zaveri, who took over as CMD in 2000.

Selling jewellery was in his blood. In 1864, the late Shri Bhimji Zaveri started Tribhovandas Bhimji Zaveri (TBZ) in a tiny tin shack at Mumbai's Zaveri Bazar.

Deep insight into customer behaviour gave TBZ an early edge. In 1938, Bhimji Zaveri's grandson Gopaldas Zaveri shook up the market by offering a full-value gold buy-back scheme, which is still in operation, says Zaveri. TBZ was also the first to promote lightweight jewellery and offer certified solitaire diamonds, he says.

The company was listed on the stock exchange in May 2012, but the family is still at the helm. 'My business is an art and a science,' says Zaveri. He is keen to expand the store network to 57 from the current 23 across India by March 2015.

S Gopaldas Zaveri,CMD

Tribhovandas Bhimji Zaveri

TURNOVER: Rs 1,385 crore

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Jewelers who control India's gold

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Jewelers who control India's gold

In 1925, when K Bhima Bhattar started Kerala's first jewellery showroom - a small shop in Alappuzha - he hadn't dreamt of creating a sprawling chain of two dozen stores across South India. Instead, he focused on a key principle: sell pure gold. 'This learning has helped me and my brothers to run the business successfully and to be a part of the lives of countless people,' says Dr B Govindan. The company was the first to implement hallmarking, bar coding and the rate card system, and get an ISO certification among jewellers, he claims.

This focus leaves Bhima with little room to offer discounts. Its other challenge is appealing to young customers.

Govindan's three daughters and their spouses are helping the brand scale up. In the next five years, the company hopes to add 25 stores across India and establish a stronger presence in West Asia, he says.

Dr B Govindan, CMD

Bhima Jewellers

TURNOVER: Rs 8,000 crore

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Jewelers who control India's gold