How Nirav Modi became a millionaire ?

Nirav Modi’s grandfather Keshavlal Modi entered the diamond business in 1920 and expanded his business empire from Palampur in Gujarat to Singapore and Mumbai. His father Deepak Modi further expanded the family business empire to Antwerp, Belgium in the 1960s. Later, Nirav Modi studied at the Wharton business college of the University of Pennsylvania. However, he dropped out after a minimum duration of over a year, then moved to India to work in the diamond business run by his maternal uncle Mehul Choksi, the head of Gitanjali Group. He worked there for around 10 years. He worked for 12 hours a day for six days a week and earned 3,500 rupees a month, all the time learning the little-known techniques and holding fantasies about beginning his business empire all alone.

After ten years, in the wake of accumulating 50 million rupees in reserve funds – he explains that he never acquired them from his family – and by getting the money for his value ventures, Modi had enough investment capital to begin Firestar with 15 individuals.

Nirav Modi-beginning of his journey

He started selling polished diamonds to the wholesalers in the U.S. and, U.K. But on facing tough competition in the market, his profit margin was very low. Modi needed to plan something else to outstand others. It was at this point, he came up with this game-changing idea. He started sorting diamonds as indicated by size, shading, and shape to fit in accordance with the adornments necessities of his clients. This would take 30 days to do and at long last, there would likewise be wastage – around 15-20 percent. Modi offered to do sorting for his customers, setting aside for them the required time and cash as the expense of working together in India was less expensive.

Following a year he soon understood that the market was declining as the Indians. Chinese were bypassing the wholesalers to sell directly to retailers. Modi chose to take over with his biggest customer in the U.S. They cracked the deal finally in 2005 for about $25 million. After two years Modi purchased another U.S. organization from Sandberg. Sikorski who were owners of the 120-year-old brand A.Jaffe, for $50 million. He further invested in Russia, South Africa and gained profit in 2009, one of his friends insisted him to design earrings for her. When his friend repeatedly insisted on design, Nirav designed the earrings.

Conclusion

Thereafter Nirav decided to start designing. Eventually, he started designing jewelry and got appreciated by Christie’s auction house. In 2014 he finally managed to open a store in Delhi. He later on designed for Hollywood stars. Priyanka Chopra and Siddhart Malhotra served as brand ambassadors for his company. His company is vertically integrated and managed to serve the best quality.

Modi’s firm was redirecting imported, duty-free, cut and polished diamonds to the market while utilizing less expensive, low-esteem precious stones to make gems and due to which they were held at check-point by Customs and were made to give a penalty of 48 crores in 2015. In between 2011 to 2017, Nirav Modi’s organizations acquired an aggregate of 1214 fraud LoUs. The CBI got two grievances from PNB against an extremely rich person. Nirav Modi claimed fraud worth about 11,400 crores. Nirav Modi served as 90 percent, an accomplice to many of these organizations. Various PNB staff planned with Nirav Modi to guarantee: LoUs were given to his organizations without credit offices being set up, without giving the essential money edge, without legitimate documentation, and without paying appropriate commission. The LoUs were not appropriately recorded in PNB frameworks.

The returns were wrongly redirected either to the repayment of prior LoUs and to a progression of connected Modi-controlled organizations. Nirav Modi set up various organizations in Hong Kong and Dubai that got the returns of these frauds.

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