The city of Mumbai's diamond trade sector faces a potential upheaval as several prominent merchants contemplate relocating to Surat in Gujarat, where the Surat Diamond Bourse (SDB), the world's largest office building, is set to open in December. This substantial move aims to transform Surat into the new epicenter for diamond trading in India, potentially replacing Mumbai.
Key figures in the diamond industry are already making the transition. Notably, billionaire diamond trader Vallabhbhai Lakhani, Director of Kiran Gems, has initiated this shift by relocating his Rs 17,000-crore business to Surat. He is even developing a small township to house his employees in Surat.
The ripple effect of this change could lead to approximately 1,000 diamond company offices in Mumbai shutting down and relocating to Surat. This could significantly impact the tax revenue of Maharashtra, as stated by a member of the Surat Diamond Bourse committee.
The Surat Diamond Bourse complex stands out with its nine interconnected towers, each with 15 floors, occupying a vast area of 67 lakh square feet, which surpasses the size of the Pentagon. Currently, the complex is already home to offices for nearly 4,500 diamond companies.
The Bharat Diamond Bourse (BDB) in Mumbai's Bandra-Kurla Complex, the world's largest diamond complex, has 2,500 offices spread across 2 lakh square feet.
Regarding the historical dependence of diamond traders on Mumbai, Dinesh Bhai Navadiya, a member of the SDB managing committee, explained that they established offices in Mumbai due to its international airport, which facilitated the global export of their products. However, the completion of the SDB has drawn diamond merchants from all over India to Surat.
In addition to the opening of the SDB, the world's largest customs house is also ready to commence operations. Navadiya expressed hope that the Central government will approve international flights from Surat, making the transition more convenient for traders.
Furthermore, the SDB is anticipated to stimulate the real estate sector in Surat, as numerous companies have brought in employees from different cities. The complex is expected to be inaugurated by Prime Minister Narendra Modi in December, although the precise date has yet to be determined.
Vallabhbhai Lakhani has already relocated his Rs 17,000-crore business to Surat after operating it from Mumbai for nearly three decades. He has even developed a township with 1,200 apartments in Surat to accommodate the families of 2,500 employees. These apartments are equipped with essential civic amenities. Following the inauguration of the SDB, his employees are expected to start transitioning to the newly constructed apartments.
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