Although born with a silver spoon, it was gold and diamonds that Mehul Choksi was more interested in. The chairman and CEO of the Rs 3,500-crore Geetanjali Group has been considered by many as one of the architects of the present-day organised retail jewellery market.
After completing his studies, Choksi joined the family business as he thought that having a practical understanding is always better than cramming oneself with theories. With the initial money that he took from his father, he diversified the family business from a pure trading-led enterprise to a marketing-oriented retail format. And this is just the beginning, he says.
After convincing his investors about the benefits of a retail format, Choksi targeted the government undertaking MMTC (Minerals and Metals Trading Corporation) to kick start his retail venture. "I used to queue up in front of the MMTC office to get the best offer. And it was through this order that I was able to earn my first million," he says.
It was a bit easier for me to earn my first revenue as I entered the diamond market when it was at a high, he adds. At the same time, he also started to sell his product at the Zaveri Bazaar in Mumbai directly to end customers. In 1985, Choksi decided it was high time that he produced what he sold. And thus, his company ventured into manufacturing.
"It was during this time, that the Gold Control Act was lifted and we looked at the opportunity in mass production of jewellery," he recalls. He also travelled extensively through to collect international clientele. "There were times when I had to travel three countries in a single day to meet clients," Choksi says.
But the most difficult times were yet to come. According to Choksi, he had a harrowing time convincing the organised retailers to house his branded jewellery in their shops. "Brands for a gold or diamond product were relatively unknown during the early 1990s. I had to convince department stores to keep my jewellery instead of cakes and biscuits," he says.
Not many readily agreed, for the consumer, who relied heavily on the family-run, small jewellery shops, had to be convinced of the branding strategy for Choksi’s products. Moreover, he also had to drive home the point that a diamond was not just meant for the rich and famous but the middle-income group too could afford it. "We helped democratise the diamond in India," Choksi says.
As of now, the company already has some of the leading jewellery brands such as D’damas, Nakshatra, Sangini and Asmi under its umbrella and it plans to acquire more brands in the near future. The idea is to reach consumers at all levels.
To attain this objective, the company is now planning a Rs 500-crore investment in building a gem and jewellery SEZ that would cater to the entire value chain of the industry, from manufacturing to retail. Moreover, it also plans to venture into other lifestyle products such as silverware and watches, in addition to catering to the lifestyle needs for high end weddings. "We want to manufacture these products and would also look at partnerships with foreign brands," says Choksi. All that glitters is indeed gold for this enterprising entrepreneur.
Related link:
No comments:
Post a Comment