A year after his marriage ended he met Shetty in London.
Kundra's family was avidly following Celebrity Big Brother, a reality television show, which eventually brought Shetty to international fame.
Shetty's agent in the UK, who happened to be a friend of Kundra's, telephoned him after Shetty's Big Brother triumph to ask his advice on her future business prospects.
The agent wanted to make a movie with Shetty in the lead, but Kundra knew that that would be folly.
Instead, he asked the agent to launch a perfume in her name. "I told him that Shilpa is riding a wave right now, but when the film is released she might not be."
To launch the perfume, Kundra made Shetty an offer, but her mother informed him that her daughter had already received an offer from someone else. Kundra doubled his offer and literally bought the time that he wanted to spend with Shetty.
"I doubled the deal, knowing that it was financially a waste of money, but it was love at first sight," he says.
The floral perfume S2 ("S square") hit the number-one spot among perfumes in the UK when it was released.
Looking back, Kundra says that doubling the deal was an astute investment decision, since "the money went into her pocket and has come back to us anyway".