Mumbai: Kiran Gems, a foremost player in the jewellery industry, has shut its operations in Surat and relocated to Mumbai dealing a blow to the ambitious project barely a month after Prime Minister Narendra Modi inaugurated the Surat Diamond Bourse (SDB).
With this move, the PM's aspiration to elevate Suraj into India’s diamond capital appears to have received a setback. The firm shifted its business base to Mumbai on Monday.
Just two months ago, Kiran Gems's showcased its trading hub at the Surat Diamond Bourse in a video. "Welcome to the headquarters of the world's largest manufacturers of natural diamonds, Kiran Gems , at the world's largest diamond trading hub, Surat Diamond Bourse," the video caption said.
With a registered capital of Rs 71 crore and a paid-up capital of Rs 20.98 crore, Kiran Gems Private Limited, the unlisted private company, generated a whopping revenue of over Rs 500 crore in the fiscal year 2021.
Founded by Vallabhbhai Patel, Kiran Gems metamorphosed into one of the world's largest manufacturers of diamonds. Diamond trader Jaisukhbhai said no one is willing to do business outside Mumbai because Mumbai has all the amenities and facilities. The Gujarat government created the Surat Diamond Bourse, a commercial hub for diamond traders in Surat.
Surat's diamond merchants spent around Rs 3,400 crores to built a world-class diamond business hub. Around two and a half thousand offices have been set up in this diamond bourse, sprawlled over an area of two lakh square feet. The 16-storey building here is about 81 meters high with state-of-the-art facilities.
Earlier, Vallabhbhai Lakhani had decided to shift Kiran Gems Private Limited Company, the largest diamond trading company in Mumbai, to Surat. The company, which has an annual turnover of around 20,000 crore rupees, was shifted to Surat considering the increased cost, travel time and inflation in Mumbai.
However, apart from Kiran James, no other company has started business to Surat. Speaking in this context, diamond trader Jaisukhbhai said earlier, many traders decided to go to Surat due to inflation and travel difficulties in Mumbai. Though 130 companies which have shown their readiness to go to Surat, have only set up offices with one or two employees. But the companies head offices remained in Mumbai.
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