Success Story: When he decided to leave his salaried job and start his business, he had just Rs 500 in his pocket but his willpower was worth crores. He was firm, determined and ready to make the biggest decision of his life. He went to a diamond seller and said, "I want to buy raw diamonds." The seller asked, "Cash or credit?". He said, "Cash". And this was the moment that wrote a new destiny for the man named Govind Dholakia, the diamond baron from Gujarat who not only created a business empire worth Rs 4,800 crore but also made India a hub for diamond work.
Who Is Govind Dholakia?
Govind Dholakia, born on 7 November 1947 in the remote village of Dudhala in Gujarat, had a humble upbringing. Growing up in a poor agricultural family with seven siblings, he experienced a childhood without any special privileges or access to quality education. Despite the challenges, Govind Dholakia's childhood was marked by simplicity and resilience. Affectionately known as Kaka, he embodies traits of generosity and kindness. His journey began in 1964, at the age of 17, when he left for Surat, Gujarat. His motivation was not only to support his family but also to pursue his dreams and surpass expectations.
How Did They Start?
Govind Dholakia used to work as a diamond cutter and polisher. However, he decided to work independently along with two friends- Virjibhai and Bhagwanbhai. So, they rented a room of 10x15 feet for Rs 45 per month and started working from there. They kept the company name based on the gods they used to worship - Shree Ramkrishna (SRK) Export Company. They started dealing with Hirabhai Vadiwala who used to deal in rough diamonds. While prevailing norms defined that the weight of the diamonds after polishing must be at least 28 per cent of that of the rough, Dholakia's team achieved 34 per cent, which was an uncommon achievement. This gave him the idea of producing diamonds in his factory. So, for this, he needed a direct supplier of rough diamonds.
Finding Path By Courage
One day in April 1970 with Rs 500 in his pocket, Govind Dholakia cycled to Rameshbhai Shah’s office and met his brother Vasantbhai sitting there. Dholakia said, "I want to buy rough diamonds.” Vasantbhai asked softly, “Cash or on credit?” “Cash,” said Dholakia.
However, Vasantbhai did not have diamonds at that time, he told Dholakia that while he would help him get diamonds, he would charge a one per cent commission, to which Dholakia agreed without hesitation. They then landed at the office of Babubhai Rikhavchand Doshi and Bhanubhai Chandubhai Shah. They quoted Rs 91 as the price of one carat, but a minimum purchase of ten carats had to be made. That meant Rs 910 and a brokerage of Rs 10 had to be added. When Dholakia informed them that he had only Rs 500, they asked him to repay the remaining Rs 410 after reaching home.
However, the problem was that there was no money at home. Since Dholakia did not want to miss the opportunity, he made the payment. After reaching home, he went to two of his friends and borrowed Rs 410 to give to Vasantbhai making the first trade of his life. They then polished the rough diamond and sold it at a 10 per cent profit. And since then, there was no looking back.
