Top diamond trader Kiran Gems shifts Rs 17,000-cr business from Mumbai to Surat

Surat Diamond Bourse, built at a cost of Rs 3,400 crore has started attracting diamond traders and merchants from across Maharashtra and Gujarat to Surat

Mumbai: Mumbai’s diamond trade is likely to be jolted as prominent merchants are looking to shift base to Gujarat’s Surat, which is preparing for the opening of the Surat Diamond Bourse (SDB) – the world’s largest office building – in December. With the bourse, built at a cost of Rs 3,400 crore without government support, Surat aims to replace Mumbai as the country’s diamond trading hub.

Billionaire diamond trader Vallabhbhai Lakhani, Director, Kiran Gems, has set the ball rolling by moving his Rs. 17,000-crore business to Surat. He has also established a township of 1,200 apartments in the city to accommodate the families of 2,500 employees. He has also provided basic civic amenities in the apartments.

According to him, after the inauguration of SDB, his employees will start shifting to the newly constructed apartments.

Nearly 1,000 offices of diamond companies are likely to wind up operations in Mumbai and relocate, which will result in a major hit to Maharashtra’s tax revenue, according to a member of the Surat Diamond Bourse committee.

SURAT DIAMOND BOURSE

The Surat Diamond Bourse complex boasts nine interconnected towers with 15 floors each, spread over 67 lakh square feet, making the office building larger than the Pentagon. The complex currently has the offices of nearly 4,500 diamond companies.

Currently, the Bharat Diamond Bourse (BDB) in Mumbai’s Bandra-Kurla Complex is the world’s largest diamond complex, with 2,500 offices spread over 2 lakh square feet.

Speaking about the dependence of diamond traders in Mumbai, Dinesh Bhai Navadiya, Member, SDB Managing Committee, said that they had to open their offices in Mumbai due to the presence of an international airport, to manage the export of their products across the world.

However, with the construction of SDB, diamond merchants from across India have come under the house. The world’s largest customs house is also ready to get operationalised along with SDB and Navadiya hopes that the Central government will give its green light to start international flights from Surat.

He also said that SDB will also boost the real-estate sector in Surat as many companies have also brought in their workers from different cities.

According to him, the complex will be inaugurated by Prime Minister Narendra Modi in December. However, the exact date has not yet been decided.

Courtesy: www.indiatoday.in