Major Mumbai-based firm returns to city due to difficulties in Surat Diamond Bourse

Vallabhbhai Lakhani of Kiran Gems

Kiran Gems, which is helmed by diamond trader Vallabhbhai Lakhani and was one of the first firms of its kind to move to the Surat Diamond Bourse (SDB), is returning to the city months after accepting a one-time offer to wrap up operations in Mumbai and set up shop in the SDB.

Within two months of launching operations from the SDB, the firm realised that business was only 20 per cent of what it was in Mumbai. So, before losses multiplied, the company decided to return to the city. While the solution ensures the company's honour is preserved, SDB has agreed to meet the firm halfway to avoid any problems.

The Kiran Avenue township built by Vallabhbhai Lakhani, director of Kiran Gems, for his 1,200 employees

According to market sources, 15 truckloads of goods from Kiran Gems' Surat office and staff reached Mumbai on Sunday. All the company's staffers who had gone to Surat had returned to the city on Friday along with their families. While the employees are working out of the Capital building outside the Bharat Diamond Bourse (BDB), discussions are being held about opening Kiran Gems' office in BDB in a couple of days.

Subject of much discussion

The news of Kiran Gems' return has spread like wildfire. A businessman told mid-day, "Basically, connectivity via international flights is not available there, unlike in Mumbai. There were also some staff issues and due to this, business had declined drastically compared to Mumbai. They were doing only 20 per cent of their regular business, so instead of incurring losses by sticking around, Vallabhbhai Lakhani used his business acumen and decided to start his operations in Mumbai again."

"However, to ensure that this does not have a major impact on other SDB traders, it was decided that Kiran Gems' SDB office would also remain operational and once the SDB is up and running, both operations will continue. He had been doing business in Mumbai for years, so there is no need to start from scratch. The businessmen of Mumbai are ready to welcome him," added another businessman.

Letter to Lakhani

In a release issued by SDB, its media committee convenor Dinesh Navdiya said that after the inauguration in Surat, 80 per cent of the members would start their offices in the bourse by May 2024 and they had given their consent to have the necessary furniture made. Lakhani had also committed to shifting the Mumbai business committee to SDB.

Despite this, the SDB committee members have unanimously agreed to Kiran Gems' shift and signed a letter to Lakhani stating that it was natural as there was still some time left before most of the offices in SDB were formally opened and for business to boom. In such a situation, to ensure that Kiran Gems does not face any problems conducting its business, all the members of the managing committee suggested that Lakhani should continue his business from Mumbai as well.

Navdiya said, "It is absolutely true that the SDB committee gave a letter to Kiran Gems. They have until May 10 to move. It is becoming difficult for businesses to come to a standstill; that is why this step has been taken." A businessman said, "It looks like Kiran Gems will start working from Bharat Diamond Bourse very soon. It is also understood that old staff members who did not choose to go to Surat are being called back so that a team of trusted people can work together again." When contacted, Lakhani's office said that he was in a meeting and would contact this reporter when he was free. However, no messages or calls in this regard were received by press time.

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Truckloads of Kiran Gems goods that reached Mumbai from Surat on Sunday