Surat: In a major setback to Mumbai's diamond industry, Vallabh Lakhani, chairman of Kiran Gems, the world's largest manufacturer of natural diamonds in small sizes, has relocated his unit along with 1,200 employees to Surat.
Kiran Gems, with an annual turnover of a staggering ₹17,000 crore, has long been a prominent player in the diamond industry. The company has been headquartered in Mumbai's Bharat Diamond Bourse (BDB) in Bandra Kurla Complex (BKC), occupying 12,000sqft.
Furthermore, Kiran Gems holds the distinction of being the world's largest employer in the diamond industry, with approximately 48,000 skilled diamond artisans employed across its eight diamond factories, all situated in Surat.
To accommodate the employees who have been an integral part of Kiran Gems for the past two decades, Lakhani has constructed lavish 2BHK apartments on a sprawling 40,000 square-yard property in Jiav village, Surat at a cost of ₹600 crore. This location is conveniently just a 10-minute drive from the Surat Diamond Bourse (SDB) situated at Khajod on the Palsana-Hazira State Highway 168.
The residential project, aptly named 'Kiran Avenue,' is now fully operational and ready to welcome the diamond assorters and their families from Mumbai. They are scheduled to shift to their new residences in Surat after the Diwali festival, coinciding with the inauguration of Kiran Gems' state-of-the-art office space, spread over an expansive 1.17 lakh sqft, at the SDB on November 21.
Kiran Avenue |
Lakhani said that Kiran Gems' office in BDB will be locked after the Diwali festival. “This step is intended to instill confidence among diamond company owners that the promise of relocating the business from Mumbai to Surat has been upheld,” he said.
Other diamond companies follow suit
It's worth noting that several other diamond companies in Mumbai are following suit, choosing to make the momentous shift alongside Kiran Gems.
Mumbai has been the heart of India's diamond trading for decades. It began at the Pydhonie jewelry market with diamond traders operating from tiny 100sqft offices and then moved to the bustling Opera House, where business was conducted from 2,500-3,000 sqft offices. With the emergence of the BDB in BKC, the diamond offices transitioned to larger spaces ranging from 4,000 square feet to well over 10,000 square feet.
Lakhani said, “We are not forcing anyone to shift from Mumbai to Surat. We're merely saying that by coming to the SDB, diamond companies can benefit in terms of a richer social life, drastic reduction in travel time (from two hours to just 15 minutes), affordable real estate properties (at one-third the cost of Mumbai), and, most importantly, a direct reduction of 3-4% in the prices of polished diamonds.”
