Hari Krishna Exports

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Hare Krishna Exports Pvt. Ltd.

Type	Private
Industry	Diamond Manufactures and Exporters
Founded	1992 (1992)[1]
Founders	Savji Dholakia[1]
Headquarters	Bandra Kurla Complex, Mumbai, India
Number of locations	Mumbai Surat
Area served	Worldwide
Key people	Savji Dholakia (Chairman)
Products	Diamonds and Jewellery
Revenue	US$ 1.1 billion (Rs. 7,000 crores) [2]
Owner	Savji Dholakia and family
Number of employees	6,000 (as of 2018) [3]
Divisions	Raw Diamond Procurement Diamond Polishing Diamond Marketing & Sales
Website	www.hk.co

Hari Krishna Exports Pvt. Ltd., also known as HK, is an Indian diamond conglomerate, headquartered in The Capital, Bandra Kurla Complex, Mumbai, India.^[4] HK was established in 1992 by Savji Dholakia and his three brothers.^[1] The company has manufacturing units at Surat in Gujarat and its marketing and sales office in Mumbai.

History[]

In 1992, HK started as a small-time diamond cutting and polishing unit in Surat with a few machines and employees. It later expanded to Mumbai to meet a growing demand for raw diamonds.

In 2005, HK launched its own jewellery brand - KISNA. Today, it is the largest distributed diamond jewellery brand in India, available in over 6,250 jewellery outlets.^{[citation needed]} KISNA offers over 563 designs of rings, earrings, pendants, necklaces, bangles, bracelets and nose pins.^{[citation needed]} It uses VVS diamonds and 18k hallmarked gold.^[5] From 2007 until 2008 HK grew by 49% and recorded a turnover of ₹ 1,025 crores (US$ 260 million at the time).^{[citation needed]}

Hari Krishna Exports Pvt. Ltd. grew, strength to strength, over the next decade. In 1994 the diamond exports increased multifold after an Israel client's referral to the international clients. In 2001, the ambitious export company made yet another leap as it started to trade and manufacture diamonds of sizes ranging from 0.18 Carat to 0.96 Carat. In the fiscal year 2002-03 Hari Krishna Exports Pvt. Ltd. recorded a 200% growth.

Initially the export company started to trade and manufacture round diamonds with a value of less than 0.18 carats. The company recorded a turnover of Rs. 1 crore (10 Million) in its first fiscal year of operations to a US$975 million (INR 6,000 crores) in 2013-14 with customer friendly system & services in place. In a span of twenty two years, the company has traveled from being a small entrepreneurial outfit to the position of a Group with interests in domestic and international business arenas. The vertical integration process transformed the company from a mere diamond polisher to one that processes, manufactures and markets polished diamonds and jewellery in the domestic and international markets with affiliates in New York, Hong Kong and Antwerp and Dubai participating in achieving the task.

The vertical integration process transformed HK from a small diamond manufacturer to a complete mine-to-market supply chain with supply from miners like Diamond trading company (DTC),^[6] Rio Tinto,^[1] DDC (earlier BHP),^[7] Alrosa.^[8]

The company is also involved in diamond jewellery manufacturing and exporting H.K. Designs and Unity Jewels. Through H.K. Jewels Pvt. Ltd. the domestic market is being catered to. Kisna Diamond Jewellery is a pan India brand distributed through more than 480 distributors to more than 6500 retail outlets.

HK is exporting polished diamonds to 79 countries ^[2] Currently, HK manufactures over 40,000 carats of diamonds every month (500,000 carats every year).^[5]

Controversy[]

The company received media attention for 'gifting' his employees cars, jewellery and homes as bonuses on Diwali. In 2014, it gifted 491 cars, 525 pieces of diamond jewellery and 200 apartments worth ₹50 crore (US$7.0 million).^{[9][10][11][12][13][14]} In 2016, the company gifted 1260 cars and 400 apartments.^[15] The company gifted 600 cars in 2018.^[11] The claims were disputed by Mera News portal which reported that the employees are paid salary on the cost to company basis and the down payment of the 'gifts' are sourced from the amount deducted from the salary under the title of bonus. The cars are brought under the name of the company and the employees have to sign a job bond of 5 years. The company benefits from the bulk discount and tax credit on the cars.^[16][17]

In December 2016, the company was issued notice by the Employee Provident Fund Organisation's (EPFO) Surat regional branch for violating Employees Provident Funds and Miscellaneous Provisions Act,  1952 and Factory Act after two years of investigation. The company had registered only 17 employees under Employee Provident Fund (EPF) despite employing 3165 people then. It had not paid EPF to employees for several years. The EPFO ordered the company to deposit ₹16.6 crore (US$2.3 million) with 12% annual interest and 25% annual damage penalty.^{[18][19][20][21]}

Recognition[]

• The Gem and Jewellery Export Promotion Council (GJEPC)'s Annual Exports Award for the Year 2002-03 to 2011-12 (for ten consecutive years).^[22][23]
• The GJEPC's “Most Innovative Company of the Year” Award for the year 2012-13.^[24]
• The Stevie International Business Award for the "Management of the year 2012-13" ^[25]
• The Stevie International Business Award - 2014 “Company of the Year – Manufacturing” and “Fastest-Growing Company of the Year (Asia, Australia and New Zealand)"^[26][27]
• JNA Award "Outstanding Enterprise of the Year" in the year 2014.^[28]

References[]