Scaling with Strategy: Saurabh Gadgil on PNG's Legacy and its Super-Successful IPO

In the debut episode of Indian Jeweller's How Did You Do It? podcast, Dr. Saurabh Gadgil of the renowned PN Gadgil Jewellers charts the inspiring journey of transforming a 200-year-old family legacy into a publicly listed jewellery giant. Sharing insights into pivotal strategic decisions—including launching an IPO that raised over INR 1,100 crore for nationwide expansion—he highlights how the business sustained its deep-rooted family culture amid rapid growth. Dr. Gadgil also candidly addresses how they navigated critical business challenges, offering practical lessons drawn from real experiences like weathering global economic downturns and adapting successfully across diverse Indian markets. This episode is essential listening for jewellers looking to scale sustainably and thrive in India’s dynamic retail environment. 

Transcript

[AV] Why would you go from a model that is already successful to taking that risk, because I mean market fluctuations—you've had this experience...

[SG] It's a great, great platform to attract great talent and to build an organization, which is not possible if you're playing in a limited space. So that was the real reason why we did the IPO.

[AV] You raised 1,100 crores expressly for the purpose of expansion; where are you planning to go?

[SG] The money was primarily for expansion, and with that, you have to give a business plan on how many stores you want to do. So we set a target of 12 stores to be done using this money, and I'm happy to say we've already achieved the target.

[AV] So what would you say then would be the core strength of PNG? What has helped the brand grow through the years?

[SG] For us, what's important—and what really helped us and what we'll continue doing—is to be customer-focused, and being their guide, friend, advisor in the entire journey of jewelry shopping and jewelry investment.

[AV] Hi, this is Anjana, and you're watching Indian Jeweller's "How Did You Do It?" series. Today we're sitting with Saurabh Gadgil, who needs no introduction; he represents the sixth generation of a family that's been in the jewelry business for almost 200 years.

[SG] We started in Sangli in 1832, and after 145 years in Sangli, we moved to the city of Pune. So, in 1958 it was Pune.

[AV] And then you joined the family business in 1999?

[SG] Yes, I was doing my MBA, but in the second year itself, I joined the business.

[AV] Yeah, I read that you did your internship at the RBI, which is very different from anyone in the jewelry business; normally, you would just join the family business directly.

[SG] See, my family was always very, very focused on me completing my education in a good possible way. So I was very sure that I wanted to do it in the right institute, in the right possible way. After finishing my first year successfully, I had options of doing it maybe at our own company or with some jeweller. But I said, you know, can I do it at some place which will really add value to me as an individual and as a student—open my eyes and also give me more insight in the industry, right? That's when this RBI thing came to my mind.

[AV] So what was that whole experience like?

[SG] I applied to RBI; I got through. It was a three-month internship. They were kind enough to allow me to select a subject of my choice, which would also benefit the bank, but primarily be of benefit to me. So I chose the futures market in gold, which at that time was not present in India. So that was the study—about the history of the Indian futures market, which was way back in 1964 when the forward markets were banned, and then the country was contemplating having a futures market again. So I studied the London market, studied the US market. Now, those studies were primarily research online, but also I had a chance to meet a lot of government officials, policy makers. So that kind of further broadened the whole vision for the industry. It really made me aware that, okay, this is the start of where the industry can explode, and that further strengthened my desire to be a part of the industry.

In a way, it was a very enriching experience. I had never stayed alone, so three months living in Bombay—at that time we had a small room in a chawl, so I used to live in a chawl.

[AV] And I read you got food coupons?

[SG] Yeah, fortunately lunch and breakfast were at RBI. So we had like a three-rupee veg and five-rupee non-veg lunch coupon. I used to go by locals, catch it from Chinchpokli to go there. Weekends I used to come back home, again go back on Mondays. So I think it was an exciting three-month period, a lot of learning, meeting really intellectual people. I also got a chance to finally meet the Deputy Governor, because at the end of the internship I had a nice project that I had to submit to RBI. So I think what made the journey very special was the interaction I had with people there. Each one was so learned; they had a lot of information to share—not only about the subject but also about the career ahead, tips on what you can do. So they all became like mentors in that short period.

[AV] So was this idea for the IPO seeded there?

[SG] No, I was too young at that point to look at an IPO. When I finished my MBA, I used to always feel like, "Hey, we are doing one store." Somebody told me there, "Having one store is like a hobby. You do it for goodwill, you do it because you enjoy it, and it kind of feeds the family—but it's not business-business." So when I finished my MBA, I spoke to my grandfather, my father, and my cousin-uncle, and I said, "Guys, with all respect, we have been doing very well, we have a great brand, we have established it so well in the city. But can we do a SWOT?" So I got a professor from Symbiosis who used to teach us, and he was also a PNG customer. We did a proper SWOT. In that SWOT, the strengths obviously were known, but there were quite a lot of threats and weaknesses we discussed with the family. Primarily, Pune was changing; it was no longer what it was in the 1980s. Women had become dominant in the workforce; they had become independent decision-makers. The city had expanded. So the one line was: If you did not expand as the city expanded, the city would leave you behind; people would find other options. That held their attention.

We decided to start with one store that would not be run directly by us but have a manager there. So we did a hybrid model. One of our karigars who worked with us for three generations—one of his sons was educated and wanted to do something different than traditional work. So we trained him at our existing store and placed him as a manager. The family was comfortable because he was known to us. But along with him, we set up reports, processes, systems, and that worked well. The store, right from day one, picked up. It was a landmark store because it was inaugurated by Lata Mangeshkar, who was a regular PNG customer. That also kind of gave us luck, as it was started by such a great personality. And then that paved the journey; I gained confidence that, yes, we can do it—system-driven stores, process-driven stores can happen. So that was a major turning point in my career.

[AV] Yeah, I was going to ask you why... because there are inherent risks when you launch an IPO. Why would you go from a model that is already successful to taking that risk? Because, I mean, market fluctuations—you've had this experience...

[SG] When I speak to people about IPO, I always say, IPO—on one side, you know, there's compliance, accountability, uncertainty. All that is fine; that's something I'm comfortable with because we're already doing that. But the biggest advantage is it's like you're playing cricket, and now you're playing international cricket. Maybe you're playing at the MCG in Melbourne. It's a bigger platform. So what it brings to you are bigger challenges and bigger opportunities. It's a great platform to attract great talent and to build an organization that's not possible if you're playing in a limited space. That was the real reason why we did the IPO. Some people ask, if you're private for so long, what's the reason for doing it now? So, obviously, the reason was not just to do it for the name of it. Two things: one, you unlock the brand value. It's like a box—you know there's treasure inside that box, but no one knows until the box is opened. One was unlocking that value, which the market handsomely rewarded because of the trust, the legacy, and relationships built over the last 200 years. And second, it's a bigger canvas for us to plan the journey ahead. So that's why we decided to go public. Compliance was never something that bothered me, because it's part of our DNA. You have to be compliant; you have to be organized, able to justify your performance to outsiders. You answer to investors, bankers—but first, you answer to yourself. If you're not doing the right thing, you answer to yourself first. That was never a blockage in my mind when going public.

[AV] When you were talking about how you came up with the idea to launch the IPO... you played chess at the national level, right?

[SG] Yeah, during school and college days I played at the national level.

[AV] Do you feel that sort of helped you strategize?

[SG] One hundred percent. I always tell people that chess is a game that has enormous benefits. It was very underrated in India until now, with so much happening in the country. But as a child, when I was maybe 10 or 12 years old, sitting in one place—at that time we didn't have digital books, just physical books—reading for five, six hours at a single stretch gave me not just patience, but perspective. Patience is one thing, but looking ahead is another. Chess helps you memorize, prepare for various openings, and enhances calculation speed. Most importantly, it’s not just a game; it's about understanding the strategy of your opponent. In chess, every move you make, you analyze from your perspective and also from the opponent’s perspective. That doesn't happen in any other game. You're not just thinking about how you want to proceed, but also how your opponent wants to proceed. That's an important attribute in today’s business world. It's not just about doing it your way—it's about the market, competition, environment, and other factors. You must analyze and stay one step ahead; that's how you secure a win.

[AV] You raised 1,100 crores expressly for expansion, correct? So, expansion is going to be within Maharashtra, but I heard you're also looking at other places across India. Where are you planning to go, firstly, and secondly, PNG is a household name in Maharashtra—people understand the brand. How do you translate that when you go to different places?

[SG] See, IPO money was primarily for expansion, and you have to give a business plan about how many stores you want. So we had a target of 12 stores using this money, and I'm happy to say we've already achieved the target. What would have been a year-and-a-half target, we did in three months.

That's very satisfying because it really highlights our capabilities and strengths to deliver what we commit. When we were doing IPO rounds and talking to investors, the idea behind this was to expand. We are the second-largest jeweller in Maharashtra today, in terms of number of stores. We're some stores behind the market leader, and we want to overcome that gap in this coming financial year and become the largest in the state. Post that, the journey we've charted is similar to what the Peshwas did after conquering Maharashtra. We plan to follow the Peshwa route: Maharashtra, then Central India, Madhya Pradesh, Chhattisgarh, Jharkhand, UP, Bihar, and then Delhi.

This decision wasn't random; it involved thought and research. Every store we do involves extensive physical and primary research. We also hold exhibitions to test the market first-hand, and based on that, decide to expand. Two things clearly emerged: these markets are fast-growing with a major shift from unorganized to organized sectors. They value brands and transparency. Second, these regions have a strong connect with Maharashtra. Many students from these states study in Pune or other parts of Maharashtra. Many government servants and private sector employees from these states live in Maharashtra, so the brand is well-known there. We felt these customers would become brand evangelists when we enter their states. Also, with a 20-decade legacy, people in these states would definitely give us a try. That’s how we mapped out this journey.

Interestingly, the entire Central India belt shares similar culture and language, making expansion smoother. South India, however, has different traditions and languages for each state, making it harder to blend quickly. Central India is evolving rapidly, becoming more progressive, shifting from unorganized to organized retail. They want better brands, services, and credibility, so that's where we have great potential, and that's where we'll expand further.

[AV] That's very interesting because you brought up culture. You also had your store burglarized in California—can you tell us about that?

[SG] It was a very unfortunate incident. Ours was the fourth in line. When the first burglary happened at another Indian store, we immediately did training for our entire staff there. We clearly instructed them—in case a situation like this occurs, we value your life most. Do not resist, press the panic button, and go into the staff room or a safe place. The store had panic buttons and dual-layer glass counters, designed to buy time.

When this incident happened, we were actually in the process of installing additional grills and security measures. Strangely enough, the security company executive was in the store at that very moment. You can say it was just bad timing. If it had happened a week later, we would’ve been fully secured. U.S. guidelines require stores to have glass facades, and we had two doors with a vestibule in between. Still, around 25 burglars came at about 2 PM on a working day. They arrived in five cars, carrying hammers and swords, barged in, broke the glass, threatened the security guard outside, tied him up, and entered. The entire incident took just about two and a half minutes.

When you press the panic button, the police typically arrive in about three minutes. They did reach exactly in three minutes, but these people finished everything in two minutes and twenty seconds and left. But I must appreciate the Sunnyvale police—they did a fantastic job. They caught one car immediately; five people were arrested, and they're still behind bars. Later, five more were caught. They've taken it very seriously because it was the fourth such incident involving an Indian jewellery chain. Everything was captured clearly on camera. Being compliant, our stock was fully documented, and insurance helped us recover the losses.

[AV] So, coming back to the idea of work culture—when you set up a store in a different geography, even within India but definitely outside India, it’s a different culture. In India, for example, we're very close to our customers, in any industry, but especially in the jewellery industry. So, there must be lines you have to draw, and you must train your team to treat customers differently?

[SG] See, I think there are two things. One is culture, and the other is etiquettes or what's socially acceptable in that particular place you're operating. First, culture derives from the people involved. Every family has a culture, and every business has a culture, built by stakeholders: karigars, employees, customers, investors. The relationship you nurture with them defines your culture.

We always say our philosophy is “Think Pure.” Even our logo says that. Purity is at the core of our culture—not just purity of metal; that goes without saying—but purity of thoughts and purity of actions. Anything done with noble intentions gives good results. That's what we genuinely believe as our culture. We believe we are a family business, and everyone associated with us is our extended family. This culture builds our values—transparency, honesty, fairness, and progressiveness. These values shape who we are.

Indians are known for being gracious hosts and going the extra mile to ensure customer satisfaction. So we strive to ensure, wherever we are, that these values remain the core of our service. But, yes, we must always keep in mind the likes and dislikes of the consumer base in that geography, and the rules and regulations of each particular country.

For example, one jewellery brand in the U.S. had face recognition software. Whenever a customer walked into the store, the window displayed their photo and a message welcoming them. Now, some people called this offensive—they said, “It's invading my privacy, why should you display my face without permission?” So, these kinds of things you have to be sensitive to. People today are very particular about privacy. Even when it comes to our employees—what to ask, what not to ask, how to interact without intruding into their privacy, but at the same time showing care, compassion, and empathy—this is what we focus on during training. That’s how we bring our family culture into play without overstepping personal boundaries.

[AV] So, what would you say, then, is the core strength of PNG? What has helped the brand grow through the years?

[SG] I think the biggest strength we have at PNG is our family culture. Though we've expanded—from one store to nearly 48 stores today—what remains intact is the family atmosphere we have in each store. For our employees and customers, it's never just a transaction; it's a relationship. Many customers have been with us for three or four generations because they see value in this relationship. It's based on mutual trust, respect, and it’s mutually rewarding.

What's truly helped us, and what we will continue doing, is being customer-focused—being their guide, friend, and advisor throughout their jewellery shopping and jewellery investment journeys. We offer all the things a family jeweller does but in an organized way. That's why we proudly say we’re the only organized family jeweller.

[AV] Yes, I was going to get to that as well, because when you have a smaller organization, maintaining personal relationships is easier. But now that you’re expanding so rapidly, how will you maintain those customer relations and stay close to the customer?

[SG] It's a mix of our desire to do it and technology. As we expand, technology and data become crucial. If I know your shopping habits, the occasions you shop for, how many years you've been our customer, your spend with us—all these parameters help us understand you better. That's where technology plays a big role.

But the desire to always see you as valuable, to give you the best designs and best value—that must come from within. So it's a combination of technology, personal values, and training. Training is vital because our salespeople represent us. They're visiting cards of the company. Ensuring their values align with ours is essential. Retail today is complex, and every customer is different. We put a lot of focus on mixing technology with our values. Even the way they communicate, how they use selling techniques—we call it the PNG way of selling. There's an entire handbook on this that we train our staff on.

For example, we never ask customers directly about their budget. We feel it's rude. Instead, we subtly probe by showing designs. From their reactions, we understand their preferences—heavier jewellery, lighter jewellery, style, and so on. It's very subtle, but it works effectively. Jewellery retail is about being subtle yet precise—understanding exactly what the customer wants without directly asking. So this is what we do at PNG: a subtle approach, and we remain very sensitive to each customer’s needs. At the end of the day, jewellery shopping is very personal. We want customers to feel comfortable, respected, and genuinely taken care of.

[AV] Is there anything that you would undo? It’s been such a long journey for you…

[SG] Yes, certainly there are a lot of things that, in hindsight, we could have done differently. But I don't think I would undo anything completely. Maybe I would’ve handled it differently. For example, after my grandfather passed away in 2014, he was not only my mentor but also my friend, someone I truly admired. I always felt I could have spent more time with him. He worked until he was 99 years old. Of course, I spent a lot of time with him, but if there’s anything I could ask for, it's just a little more time.

After his passing, as a tribute, we rapidly expanded—we opened 10 more stores that same year. Emotionally, it felt right. But practically, it meant we were highly leveraged financially. Soon after, things beyond our control happened—demonetization, GST implementation—and those three years became challenging. Our finance team was skeptical about expanding so fast. But for me, it was deeply emotional; I wanted to honor my grandfather’s legacy.

Today, our decisions are still emotional, but now balanced carefully with data, science, and practical strategy. We always have a Plan B now. If one thing doesn't work, we have another approach ready. I think the worst thing anyone can do is not learn from mistakes or tough experiences.

[AV] How did that help you through COVID? What did you do during that challenging period?

[SG] COVID caught everyone by surprise—the whole world just stopped, especially retail. Our first concern was our employees; we ensured their safety and took care of them. Business-wise, we quickly shifted our focus digitally. We created digital catalogues and made sample jewellery pieces in copper and silver to show customers. We moved the entire buying journey online—customers selected designs digitally, and when stores reopened, we fulfilled those orders physically.

We also built robust backend systems, streamlined our inventories, and learned to work with less inventory but more efficiently. Now, about 30% of our business comes from these made-to-order items. COVID really taught us to do more with less. We improved our revenue per square foot significantly. Before, it was around three or four lakhs; now it’s over six lakhs, among the best in the industry. Each of our stores averages around 130 crores annually, again among the industry’s highest.

[AV] But you've had other challenges in the past as well?

[SG] Absolutely. Business, like life, is full of challenges. We had another big challenge in 2008 when we opened our store in the US. Just as we started, Lehman Brothers collapsed. Nobody expected something of that scale; the U.S. economy completely halted. For two years, the store struggled, making losses. But we decided to be resilient. We didn't give up; we continued, we built strong customer relationships during that time, and eventually, the store did well. Every challenge brings opportunities. If you only see challenges, you'll never recognize the opportunities.

[AV] That's a great outlook. If I could give you a magic wand and you could get anything you want, would you want a life without challenges? Or what would you wish for?

[SG] I don't think I'd want a life without challenges. Challenges shape who we become. If there’s anything I truly wish for, again, it's more time with my grandfather. If the magic wand could've given me that, more years with him—that would have been a blessing. He passed away at 99 years and four months. I always wished he had touched 100. That would’ve been truly special. But life is about accepting what's in front of you and making the best of it. When he was 97, we took him to Switzerland. At 98, he went dune bashing in Dubai. We made the most of our time together. So, no regrets—but yes, more time with him would've been beautiful.

[AV] As someone who's seen the jewellery industry evolve so closely, what challenges do you anticipate in the future, and how are you preparing for them?

[SG] The jewellery industry is at the cusp of significant change. As disposable incomes rise, India's jewellery market, currently around $80 billion, is expected to reach nearly $200 billion in the next few years. That's massive growth, but it will bring challenges. Staying relevant, staying connected to customers, being ahead of the curve, delivering consistent value—these are the challenges we foresee.

But there are also huge opportunities. The shift from unorganized to organized retail is happening quickly. Customers now value transparency, certification, brand legacy, and service more than ever before. Compliance and being organized aren't optional anymore—they're mandatory.

International brands are also entering India, recognizing our potential. It's a very exciting time. Challenges and opportunities are both abundant.

[AV] And finally, ten years from now, what is your vision for PNG? Where do you see the brand?

[SG] Ten years from now, we'll definitely continue growing. Currently, we are strong in Maharashtra, but we'll be present pan-India and likely in many more international markets as well. But more importantly, I want PNG to be recognized as a brand known for quality, exceptional standards, and a great workplace culture. Financial growth will naturally follow, but beyond that, I want us to be admired, a brand people benchmark themselves against. If we achieve that, it would be the ultimate success.

[AV] How lovely. Thank you so much for your time. It has truly been a pleasure speaking with you.

[SG] Thank you. The pleasure was all mine.