Raj Kundra- The shrewd opportunist, with a never-say-die-attitude

The IPL controversy memories may not have faded yet, but the man at the center of it - Mr Raj Kundra - has managed to sail through troubled waters to keep his prosperous business career flourishing. Yes, for this former Rajasthan Royals co-owner, his IPL investment goes out of the window, but there are newer ones on the cards already. The launch of his new Viaan mobile smartphones is testimony to the fact that there has been no stopping him ever since Justice Lodha Committee read out that judgement over IPL betting a few months ago, pronouncing him guilty and banning him for life.

This sports enthusiast feels it was an unfair trial but life doesn’t stop for him there. It didn’t stop for him either when doors were slammed on his face at the beginning of his career as he tried to sell the Pashmina shawls he bought from Nepal, to fashion houses in London. He was persistent. Soon, he rose from being a small-time seller to becoming the largest buyer of Pashmina shawls. Business opportunities in Antwerp, Russia, Ukraine and UAE pushed him forward into various ventures and investments across the board from mining to real estate and renewable energy to entertainment and hospitality. That’s not all. Today, he owns Indian television home shopping channel - Best Deal TV Pvt Ltd and a construction company called Kundra Constructions Pvt Ltd. Married to one of the prettiest and fittest Bollywood stars, Shilpa Shetty, Raj has evolved as one of the most recognized faces in the biz world today, more so after his recent decision to plunge into the risky consumer electronics space with the launch of affordable smartphones in the name of his son Viaan.

At a time when the mobile market is flooded with all kinds of phones – affordable to premium to luxury – and Reliance Jio is bracing up to descend in the market with its affordable Lyf phones, how is this British businessmen really planning to work this out for himself? As he bets his money in yet another business prospect that he believes in, Business Insider chats with him to get you a sneak peek into his beginning days of struggle, journey to a successful career amid lows and highs, and his newest venture with his wife Shilpa Shetty.

Q) We understand you dropped out of college to choose a career path of your choice. Take us back to the beginning of your journey when you sold Pashmina shawls.

I was 17 when my father gave me six months’ ultimatum to either choose a career line or manage the family-run restaurant business in London. Running the restaurant was not something I was keen on doing. So, I backpacked and set off to discover something that I would want to do my entire life, well aware that I will have to return to London and run the restaurant in case nothing worked out in these six months. However, during my visit to Nepal, my eyes were fixated on the colourful Pashmina shawls that were hanging outside several shops in Kathmandu. As I learnt more about it from the shopkeepers, I felt the product was interesting for the cold climate conditions in London. A credit card with 2000 pound limit in it was all I had. I asked the shopkeeper if he had a factory. He said yes. I asked him to give me one piece of every colour assuring him that I’ll soon get him orders. I swiped my credit card and put all the money into these Pashminas, and took these to London with me. As I reached out to several companies to sell the idea, doors were slammed on my face. Nobody wanted to talk to me since I was a single-man army. Soon, a chance meeting with someone at the airport landed me with a whopping 10,000 crore order. There started my journey. Luck was on my side, and there has been no looking back ever since.

Q) Amid your successful businesses is a low point you faced when Justice Lodha Committee pronounced you guilty in the IPL betting controversy in July this year. It brings your crucial IPL business investment to an end. How has that affected you?

It was not an investment for us, but something Shipla and I were passionate about. We had nothing to sell neither any product to advertise, it was just for the love of the game. I don’t agree with the report. First time around, they said Raj is in the clear but we need to investigate a bit more. To my surprise, without showing me any evidence they suddenly called me guilty. This is huge violation of natural justice. All I know is whoever was guilty has been arrested. I was not once arrested or picked up by the cops. Even they agree that there is no evidence against me. It was an unfair trial. I am not guilty. There’s nothing I have done and I clearly mentioned that if an iota of wrongdoing is found on my part, I’ll forfeit my shares. In any case, it was a judgement that we cannot argue about, so we silently walked off. I don’t want to do anything where there is violation of natural justice.

What brings you to the mobile segment now?

After trading Pashmina shawls, I got into buying and selling mobile phones in UK. It led to me learn the business and eventually, I understood that space very well. Today, I look at India as having so much potential with the demands of nearly 500 billion middle class population residing in the country. I would often complain about certain handsets not working in a certain way. Sometimes you just want to pick your phone, hear a human voice and get your work done. The personal touch that is lost in this tech age is something I still like. And so, I thought not everyone likes to use an app to book their tickets and maybe we need someone to go back to the basics.

What’s the USP?

Our USP is V Assist - 24x7 personalized concierge service which will provide users details on best deals on products and services. With the cheapest entry level phone, you have got a personal secretary at your service to do everything. Just pick your phone, get details and ask our staff to do it for you. It is a free subscription for 1 year. Also with every handset, we are giving a 2 lakh accidental insurance. It’s a lovely add-on. The trivia is that India is known as the accident capital of the world. We cannot prevent these accidents, but a lot of it happens when you are busy on your mobile phones. At least, we can help in this way. We are going to be all about service.

So are others. Don’t you feel that the entering the mobile market is a risky affair with the telecom giants innovating day by day. Soon, Reliance Jio’s Lyf phones which are again affordable phones like yours will hit the market. How do you aim to crush your competition?

I think there is no dearth of demand. Look at the consumption. There are 2 crore handset requirements every month in India and it’s growing at 20-30 per cent every year. It’s a huge consumer market and an average consumer changes his phone twice in a year. With a billion people living in the country, one can imagine the actual consumption. Yes it’s cluttered and you need to create the brand, but it all goes down to service when it comes to a handset. You will provide the same features - camera, memory, speed etc. What different can you do? It is all going to be in the service you offer, the quality of your phone and the affordability factor.

What are you expecting as returns from this new venture in the coming 2-3 years?

We have tied up with a company in Ukraine and we have already launched in 7 CIS countries simultaneously. This one agent in Ukraine is going to look at the CIS turf. His projected business is $80 million a year. If I am taking $80 million internationally and I am doing the same kind of figure in India, you have done a business which is nearly $200 million in the first year itself. Success is assured.

With several start-ups waiting to climb up the ladder of success, what would be your one advice to the newbies?

You have to take risks if you want to run a business. As they say, with no risk comes no gain. However, you can minimize the perceived damage the decision can have of play safe if you take calculated risks. When you put money somewhere, just make sure you are able to see an exit option during unforeseen circumstances.