Shreyans Dholakia - Taking on a Global Family Business, SRK's Timeless Principles, Social...

I'm very fine, how are you Lauren?

Today we are celebrating our 60th anniversary. My father came to Surat at age 14 in 1964, learned diamond cutting and polishing. In 1970, he started the company with two friends, having only 500 rupees in his pocket and borrowing 450 from a partner's wife. They bought the first rough parcel for 950 rupees. The company began on March 12, 1970, and never looked back. For 25 years they grew, and in 1995 the three families split into separate companies. My father retained the brand Shree Ramkrishna Exports. The name comes from a saint's teaching: keep God's share in everything. Shri, Ram, and Krishna represent prosperity, character, and action. In 1977, my father traveled to Belgium and found the trade welcoming. One partner died of cancer in 1983; the others continued his share until his children were old enough. In 1995, they separated, and we merged with my uncle's company, making SRK a family company. The new structure is now 29 years old.

No, never. I was born with a diamond spoon. My father had fame and the company was established, so I was always in that world. He used to take me to the office, so I saw operations. There was never a second thought or plan B. At age 16, I formed my purpose: to do what my father did and continue it. Even maintaining what he did would be a blessing; growth is the cherry on the cake.

People said my father laid a nice runway, but it's like being handed the controls of a plane midair without knowledge. We are given training through every stage of the business. I joined in 2009-2010, 15 years after my elder cousins. The company was innovative in technology but sales were traditional. I was fond of marketing and branding, so I brought e-commerce. We developed our first website in 2008 and launched e-commerce. The 2008 recession helped because people avoided travel and trusted our system. By 2009, we were doing 35% of business online. The family gave me free hand to try new things, and our website stayed a step ahead.

Our mission is to create a large family of stakeholders, including our people, customers, suppliers, and bankers. We want to grow this family and create value for each of them, both value of money and value of life. Core values are respect, transparency, honesty, and family culture. My father interpreted giving back as taking care of people around you, then the city, then broader. He started a girls school in 1990, later co-ed, with a medical center offering free checkups and specialist doctors. He also set up a relief center for financial, education, and family issues, dedicating one hour daily for 35 years, meeting over 3 million people. We gave students the Bhagavad Gita; if they completed all 18 chapters, we adopted them for education. 22,000 students have been adopted. We also build temples in tribal areas. There are 311 villages, and we have completed 60 temples, with a target of 100 by this year. My father's mantra is 'I am nothing but I can do anything' – being egoless and recognizing that we only know one of thousands of things.

Why do we have that ego? That means I am nothing, but that does not mean you can't do anything. As a human, you have the potential to do whatever you decide. So that's the energy he's talking about: one is being egoless, and the second is the endless energy God has given us.

Yes, so I want to quickly touch on the supply chain where SRK sits. You buy rough, produce polished diamonds, and export to buyers. The whole supply chain: miners are mostly country-owned, licensed to companies like De Beers, Alrosa, Rio Tinto, Anglo American. Mining happens in southern Africa, Canada, and Russia. Rough stones come to India, mostly to Surat, where about 80% of cutting and polishing occurs, involving about a million people. Polished diamonds then go to trading hubs: Mumbai, Dubai, Hong Kong, Antwerp, New York, Israel, then to jewelry manufacturers, retailers, and finally consumers.

Traceability was always important. In 2017-18, people started asking questions. Blockchain was coming into the industry, but in 2018 we didn't see its acceptance. We had an in-house ERP tracking everything from rough to polish, with individual numbers and parent-child relationships. We knew who cut each stone. But customers couldn't trust our internal system, so we got it certified by the British Standards Institute under the PAS 7000 supply chain integrity certificate. We were the second company globally, first in diamond and jewelry, to get it. We called our program 'Footprints'. It includes audits for child labor and all aspects of ESG. We charge a 1% premium for those who want origin on the invoice, and we guarantee we can back it up with documents. Now with G7 regulations, it's mandatory for every supplier to declare the origin.

Initially we thought free information is not good. We were early adopters in 2019, so we charged a premium. Only serious buyers approached us, and they were selling to European brands who got an even higher premium. It was a sustainable business model. But post-COVID, lab-grown diamonds started to gain traction, and people began questioning the origin of stones. The war also changed things. Today we still charge that 1% premium for information, but the origin is available on our website. If you want it on the invoice, we guarantee we can present all documents if questions arise. Now with G7, it's mandatory for every supplier to declare the source.

No, we only give the country of mining. We know everything, but we have a Footprints Plus program for customers who want more, like a video of the diamond being cut from rough to polish. We provide more information to those who want it. I think the younger generation is going to demand more of that.

Yes, today we are in that phase of crazy waves. Once it settles down, we'll be in a better position. If you go and buy an LV or Hermès bag, you don't question where it comes from because you trust the brand. Similarly, in our industry, branding was missing. There are many players in the mid sector, but nobody cared about creating brand value. Tiffany is doing that by telling the origin story, but how many Tiffanys do we have? The diamond industry's future is about branding, advertising, and creating a brand that can compete with LVMH and others.

We were doing it step by step, so it wasn't a big pain. But if a new company has to do it today, it's a bigger pain. It's costly, time-consuming, and involves a lot of paperwork. It's not easy, but it's necessary to move your business forward. Technological investment is also needed.

My family was into farming, so we know the value of environmental sustainability. My father came to Surat at 14 to earn extra money because a bad season ruined the crop. That background drives us. We built a new factory in 2011 with an architect who focused on natural light and heat reduction to use less air conditioning. In 2014 we got LEED Silver. In 2019, two of our crafting units got LEED Platinum, and they are consistently ranked top five in the world for green buildings, competing with the Pentagon and Empire State Building. Net zero is more than carbon neutral; it's about netting energy, water, waste, and carbon. We installed a 7 MW solar plant that covers our daytime electricity needs. For water, we installed a treatment plant to reuse water. For paper waste, we send it to a recycler. For e-waste, we recycle computers. For carbon emissions, we encourage carpooling, walking, and electric vehicles. We are also planning charging stations.

That's not yet structured in India. There are a few platforms that sell carbon credits, but very few diamond manufacturing companies use renewable energy. The technology is not readily available.

I'll touch on the net zero part. Apart from energy, there are three other elements: water, waste, and carbon. We are netting water by reusing it, waste by recycling paper and e-waste, and carbon by encouraging employees to carpool, walk, and use electric vehicles. We are installing charging stations.

The diamond business in the future will compete with the best luxury brands. We need to be the best in compliance and sustainability. ESG is about governance, environmental, and social. In Indian family businesses, governance is already ingrained; we just need to structure it. Environmental sustainability is prepared. The industry will consolidate, and technology will be key. AI, social media marketing, and neuroscience are new tools. Collaboration is key: do what you're best at. For example, we don't upload our inventory on RapNet because it would clash with our customers. We focus on crafting diamonds and let our customers do the selling. That's a healthy ecosystem.

World Federation of Diamond Bourses, World Diamond Council, and GJPC from India propose a declarative method for origin determination. We don't have technological support to verify a stone's origin today. It's just data flowing from one point to another. We have to trust the flow of information and put methodologies in place. We are on the right direction. It's going to take time, and many small companies will face problems. But large companies will be fine.

In the next 10 years, we are working on collaboration. We will be prepared to take market share to the next level. More collaborations with world-leading companies will create win-win situations. We do best at what we do, they do best at what they do.

Time is valuable. Allow time to pass; time heals everything. Nothing stays forever, whether good or bad. We have to be struggling forever and satisfied forever. There are no shortcuts. Take a long-term approach, do good homework, and be prepared for a long leap. That's how you become long-term sustainable. Our business is multigenerational, not like startup culture. There is a lot of scope for youngsters in diamonds and jewelry.

I consider myself a brand custodian. I'm only a custodian of this brand that my family built. I'm not here to own it; ownership tends to make you lose it. In family businesses, we have to pass the baton to the next generation. My father always says this business is for generations. I have to do my best and pass it on. We already have 15 people in the company, eight of them youngsters. They are more energetic, humble, and serious.

Thank you very much for all this time and effort early morning. It's always good to talk with you. Thank you.