360° Leadership
No words about Eurostar can go without a special comment about Kaushik himself, the architect of this companys astonishing achievement. Why is it that Kaushik is universally admired and respected in the international market? It is because, as well as being an exceptional businessman, he never loses sight of the human touch. He is always approachable and always generous and kind in his dealings with others. I, and all at Bonas and Co, salute him for what he has achieved, and for what he is today. Mr Benjamin Bonas, Bonas & Co.
Those who have the privilege of working with Kaushik K. Mehta know that he exemplifies the phrase lead by example.
A respectful, honest, and diligent man who began his career in 1966 when he joined his fathers business working at Kirtilals by simultaneously managing a jewellery retail store and a diamond polishing plant in Coimbatore, India, Kaushik Mehta is known best for founding and building Eurostar, the global diamond mega-conglomerate with an annual turnover of over $1 billion and a workforce of 10,000 strong.
As with so many others in the industry, Kaushik Mehta comes from a diamond background. Being the second son of the late Indian diamantaire Kirtilal K. Mehta, his childhood was enriched by the fascinating beauty of diamonds as well as a solid set of morals and values that coloured his fathers life and work. Kirtilal Mehta taught his sons, Pankaj, Kaushik, and Paresh a balanced approach to business, which includes maintaining a long-term mindset while always taking things one step at a time; focusing on the requirements of each customer while paying attention to quality and detail across the whole spectrum of business activities. The family company, Kirtilal Kalidas & Co was set up close to 70 years ago as a high-end diamond jewellery retailer, and still operates today.
While this rich heritage set a foundation for Kaushik within the diamond business, it is his passion for diamonds and eye for innovation that have shaped Eurostar to be the growing and glowing success it is today.
It was in 1978, when Kaushik first travelled to Antwerp, that he recognized the opportunity of a lifetime. Initially Kaushik concentrated on buying polished diamonds for the Kirtilals operations. Encouraged by his brother Pankaj, whom Kaushik recognizes as one of his greatest mentors and a diamond guru in his own right, Kaushik began to look for other ways to expand the business.
With the crisis in the diamond industry in the early 1980s, Kaushik saw the opportunity to open a polishing plant in the Kempen, a diamond processing area just outside Antwerp.
At the time, confidence in the market was completely lost, recalls Kaushik. Many companies and factories were closing down. It was quite a risky venture for us to be taking, considering the adverse market conditions at the time. Nonetheless, we saw efficiencies that could be tapped into with the factory in the Kempen. We built and maintained our market position by focusing on sawable diamonds that fit into the higher end of the spectrum.
It was a move that effectively capitalized on synergies, and the foresight shown by the move is now quite clear. By 1986 Eurostar was awarded a DTC sight and over the years, Eurostar added sales offices in Dubai, Hong Kong, New York, and Shanghai, as well as a large diamond manufacturing plant in Guangdong, and now, in a major move reflecting the change in the diamond business in Africa, it has set up a factory in the Botswana capital of Gaborone at a cost of over $6 million. The plant is designed to enable Botswana, the worlds largest diamond producer, to increase the percentage of its own diamonds that can be processed domestically.
Kaushik believes that one of the most important decisions he ever made was about a decade ago, [when] Eurostar repositioned its operations strategy with a focus on quality rather than the industry standard of simply seeking to maximize polished diamond yield. This resulted in a higher quality product line, greater consistency and increased efficiency.
The strategy also clearly enabled the firm to build a scaleable business. Although the strategy was in contrast to the industry standard, it proved to be a great success while setting a new benchmark for the industry. Today, Eurostar polishes more than 1.3 million carats of rough diamonds every year in its 10 diamond cutting and polishing operations in Belgium, China, India and Botswana. Its largest plant in China employs more than 6,000 workers under one roof.
Looking to the future, Kaushik remarks that the DTCs Supplier of Choice strategy has shifted the industry from being commodity based to one that is customer and brand based. Client relationships have become even more important, and as a result Eurostar has focused on nurturing value-added partnerships with top jewellery and watch manufacturers who have the required marketing and branding expertise in a diamond industry that was transformed almost overnight.
Eurostar bought a large stake in U.S. diamond firm Hearts On Fire. Both companies have gained a great deal from the strategic partnership, with Eurostar supplying Hearts On Fire with a large and stable source of diamonds and the added benefit of guaranteed manufacturing capacity, while Hearts On Fires marketing and branding expertise means a rise in diamond sales for Eurostar. In a similar vein, Eurostar established partnerships with high-end jewellery and watch manufacturers such as Damiani, as well as Paul Winston, in which the company has a large share.
With all the changes within the industry, for Kaushik, it is still all about quality and innovation, the centre stones upon which the company has been built. In fact, Eurostar encourages innovation, quality and commitment in all aspects of its business. In spite of the rigors involved in working for the quality-conscious firm, a majority of Eurostars workers have been with the company for more than 10 years, clearly indicating that the company is providing them with a rewarding environment in which to work.
Kaushik is positive about the future of the diamond jewellery industry despite the large and sometimes daunting challenges that the modern-day industry poses. With change taking place at a greater pace than at any time in the diamond industrys history, companies will have to change their business models in order to survive. Kaushik, at least, expects to do so with his trademark energy and innovation.
Above all, he is looking forward to bringing his business to the next level and growing the business relationships he values the most. Kaushik considers all Eurostars clients to be much more than simply customers. For him, they are partners in a quality driven enterprise, and only by working together will they be able to grow.
And yet, the most important partner in Kaushiks life is Purnima, with whom he has three children and one grandchild.
With the exceptional achievements he has made and the sparkling promise of a bright future, it is evident that Kaushik Mehta is a true visionary who not only creates the opportunity of a lifetime in every moment, but also inspires others to do so by leading by example brilliantly so.