Kiran Gems and its army of 1200 employees shift base from Mumbai to Surat

Mumbai is experiencing a massive exodus as big diamond players transfer their operations to Surat. This comes ahead of the planned opening of the Surat Diamond Bourse slated for December.

The 9-block building is said to be the largest office building in the world and is quickly becoming the one-stop center for everything diamond.

The latest major movement of business from Mumbai to Surat is Kiran Gems owned by billionaire diamond magnet Vallabhbhai Lakhani. This week it became public that the company will be making a major move with 1200 of its employees to Surat. The business with Rs 17000 crore is a big loss for Mumbai but a major gain for Surat which aims to cement its position as the world’s capital of diamond trade.

To ease the transition of the employees, Kiran Gems will provide accommodation for them. Lakhani intends to create a mini-township for the 1200 employees. This will definitely be an economic plus for Surat and its skyline. Reports indicate the apartments have already been set up and a total of 2500 people are expected to live in them. These include the employees and their families.

This will not just be a boost for the Surat diamond industry, but also the many businesses that operate near the building complex. Kiran Gems already has 8 diamond factories in Surat that employ over 40000 artisans. The company is the biggest employer in the diamond sector.

Kiran Avenue

The residential project to house the employees is appropriately named Kiran Avenue. This consists of 2 bedroomed housing units covering an area of 600 sq feet each. The apartment project is only a 10-minute drive from the Surat Diamond Bourse complex where the artisans will be working.

The township has been built with basic amenities that the employees would need to have a comfortable life. Among them is a supermarket to the standard of Walmart, restaurants that will operate till late in the night as well as a market selling fresh vegetables and fruits. Kiran Avenue is also equipped with a dispensary.

Some of the housing units are already being advertised for rent. The availability of such facilities is likely to attract even more investors to Surat. The security of the area is also inviting since it is a fairly safe part of Surat.

Children of the employees in the township will not have to travel far to get to school. There are a number of schools to choose from situated near the township as well as near the Bourse.

Why Surat Diamond Bourse

Some people may wonder what has motivated this exodus of one of the world’s biggest employers. The answer seems to lie in the fact that SDB was indeed built to attract such investors to a more convenient location to do business.

Having several amenities and services related to the diamond trade in one place will certainly ease business. The Indian government has even gone further to finalize plans to set up a custom house in the basement of the complex. This attracts exporters and importers of diamonds such as Kiran Gems.

The proximity to the airport is also attractive to exporters since they will not need to travel far to get their shiny cargo onto the plane.

Dinesh Bhai Navadiya one of the members of the managing committee of the Diamond Bourse in Surat points out that despite Mumbai enjoying a long attraction for traders, its best days seem to be behind it. The emergence of a one-stop center to carry out diamond trade outshines Mumbai’s proximity to the airport.

Vallabhbhai Lakhani has operated his business in Mumbai for 30 years but is now seeking to find a new home for his headquarters. The decision not just to move the employees to Surat but even develop townships is clear evidence of a long-term strategy that includes Surat and not Mumbai.

Most of the top diamond producers in India already have a presence in Surat. Surat has become a favorable location to set up shops to manufacture, polish, sell, and export diamonds.

The official opening of the diamond bourse in Surat is slated for December however there are already hundreds of companies that have begun their operations in the office complex. By the second quarter of 2024, there may be no more space available for companies looking to open up shop around there.