Surat Diamond Bourse loses Kiran Gems as trading firm heads back to Mumbai base

According to sources, some of the likely reasons for Kiran Gems’ retreat are the reluctance of Mumbai merchants to embrace Surat’s commission structure and a lack of public transportation between the city and the Bourse’s remote location

Surat: The Surat Diamond Bourse (SDB), inaugurated about a month ago by Prime Minister Narendra Modi, will lose Kiran Gems, a major trading firm, that has announced a return to its Mumbai base.

Kiran Gems, helmed by director Vallabhbhai Lakhani, was the first major player to relocate to the SDB in November 2023, building 1,200 flats in Surat for its employees. Lakhani, the brainchild behind the SDB, envisioned it as a diamond trading behemoth, attracting other giants to follow suit. However, this plan did not materialise.

According to sources, losses are mounting due to the shift and some of the likely reasons for Kiran Gems’ retreat are the reluctance of Mumbai merchants to embrace Surat’s commission structure and a lack of public transportation between the city and the Bourse’s remote location. “The employees were hesitant to relocate, and the Surat workers weren’t keen on the long commute either,” added the committee member.

A senior functionary of the Gems and Jewellery Export Promotion Council (GJEPC) said, “It was a wrong decision of Kiran Gems to shut its office in Bharat Diamond Bourse and shift base to Surat. They (Kiran Gem) could have operated the Mumbai office and announced an expansion to Surat.”

Courtesy: freepressjournal.in