Tuesday, April 29, 2014

if again the big companies shift their base from BKC to Surat, the rest will follow,"


The Times of India
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Mumbai firms split over shifting to Surat

SURAT: There is division in the Indian diamond industry after big diamond companies in Mumbai, mainly owned by Saurashtrian Patels, decided to 'migrate' to Surat.

At least 50 big diamond companies had agreed unanimously to migrate to Surat at a meeting held in Mumbai four days ago. However, a message on social media is urging the diamond community to do a rethink on its decision.

The message says, "We are talking about Surat Diamond Bourse (SDB) when we already have Bharat Diamond Bourse (BDB) in Mumbai. The BDB has more than 5,000 offices. Why we need factories and offices at the same place (Surat)?"

The anti-migration crusaders in Mumbai highlight non-availability of international air connectivity in Surat. They also say there are no auction houses, diamond mining companies' offices and gemological institutes in the Diamond City.

The message states, "We already have invested crores of rupees in offices and residences. We already have infrastructure in Mumbai. If we have any complaints against infrastructure, have we approached the state government of Maharashtra? If we are banking on Narendra Modi government at the centre for better facilities, we can still do that if and when he comes to power. However, there is no need to shift our offices to Surat."

Industry sources said the diamond business in the country, which was once ruled by Palanpuri Jains, is now in the hands of Saurashtrian Patels. If the 10 big companies owned by Saurashtrian Patels have decided to shift their operations from Mumbai to Surat, then it is going to be a big blow to those wanting to stay in Mumbai.

"When the big companies shifted from Opera House to Bandra-Kurla Complex (BKC), the medium-sized companies followed suit. Now, if again the big companies shift their base from BKC to Surat, the rest will follow," said Surat Diamond Association president Dinesh Navadia.

A DTC sightholder holder and a Saurashtrian Patel said, "The migration movement is not new. It is going on for the past one-and-a-half-decade. Surat was always our first preference and not Mumbai."