It is easy to spot Mehul Choksi in the Italian restaurant at Mumbai’s Grand Hyatt. And not because he looks the part of a Rs3,500-crore jewellery king (though he does that too, with his generous frame and his Ascot Chang-tailored clothes). Recognition comes from having spotted his photographs at various events with the 26 or so film stars who endorse his jewellery. But more on the stars later, we’ve just ordered.
Choksi asks for pizzas and Perrier—no spirits for this strictly vegetarian Jain. The Perrier arrives in no time, with a cappuccino for me. I tell him I was surprised to discover that many jewellery brands I had heard of—Nakshatra, D’damas, Gilli, Asmi, Gold Expressions and Vivaha Gold—all belong to him. “We have many, many brands,” he replies. “So far, we’ve developed 60-70 brands, of which 20-30 are quite famous.” Big numbers, certainly, and ones that might have conventional marketers shaking their heads at the fragmentation of ad spend. But Choksi clearly has a game plan.
Starry-eyed: Choksi has 26 or so brand ambassadors. (Jayachandran/Mint)
Three large rounds of public funding have transformed a Rs10-crore family business into a Rs3,500-crore empire. The money was raised by Gitanjali Gems (named after Mehul Choksi’s two sisters, Gita and Anjali, by their father, the late Chinubhai Choksi). In 2006, an initial public offering raised Rs330 crore. This was followed by a $110 million (around Rs440 crore) foreign currency convertible bond issue that same year and then, in 2007, by a $180 million global depository receipt (GDR). In a business that has seen major consolidations over the last few years, the money proved useful; and Gitanjali Gems, with its publicly funded deep pockets, has gone on a buying spree.
Gitanjali’s latest acquisition—De Beers’ Rs100 crore Nakshatra brand (with $50 million annual sales)—means that it will have sole rights over this cluster of constellations diamond brand, whose jewellery consists of seven stones set around one large diamond.
Public money has also enabled Gitanjali to go global. In the last couple of years, the company has acquired two large jewellery retailers in the US—Samuels Jewelers and Rogers Jewelers—and expanded in China as well. Gitanjali has 20 stores in cities such as Shanghai and Beijing, and plans to increase this number to 100 in the next year.
Amid all the conversation, the pizzas Choksi ordered arrive; margarita and mushroom 12-inchers, with chapatti-like crusty bases. We sample some slices and Choksi asks the waiter to pack one more—younger son Rohan, 17, and his 15-year-old daughter, Maitreyi, are pizza fans too.