Surat Vs Mumbai: Battle Ensues as Surat Diamond Bourse Challenges Mumbai’s Bharat Diamond Bourse

Surat : A fierce battle has erupted between the Bharat Diamond Bourse (BDB) in Mumbai and the Surat Diamond Bourse (SDB) as the latter aims to prove its readiness to compete with the established giant.

The SDB has announced the commencement of bourse activities starting from November 21, prompting BDB office-bearers to express their dissatisfaction by planning to send a letter to the SDB diamond bourse committee regarding their alleged misconduct in luring diamond traders to shift from Mumbai to Surat.

After the unanimous declaration of 190 diamond offices to commence operations from November 21, the SDB bourse committee unveiled a second list comprising 160 additional offices on Friday evening. Despite propaganda circulating in Mumbai claiming that diamond traders are reluctant to start operations at SDB, the SDB management is determined to ensure the bourse is operational by the stated date. As a result, the SDB bourse committee has decided not to wait for Prime Minister Narendra Modi to inaugurate the SDB as previously scheduled.

In the ongoing battle for supremacy between the BDB and SDB, diamond companies and traders are being incentivized and enticed to initiate their operations at SDB. While SDB boasts approximately 4,500 offices in its nine iconic towers, the SDB bourse committee is facing challenges in persuading diamond companies and traders to shift their operations from Mumbai. BDB office-bearers have raised questions regarding the need for SDB to lure diamond traders from Mumbai, considering that Surat already accommodates 10,000 diamond offices in the diamond hub of Varachha, Mahidhapura and Katargam.

Responding to the situation, Mehul Shah, vice-president of BDB, highlighted that BDB holds significant recognition in the global diamond trade industry, with international buyers frequently visiting Mumbai for diamond trading. Shah emphasized that SDB office-bearers should focus on persuading their counterparts in Surat to establish offices at SDB.

He further stated that BDB has invested significant time and effort in operationalizing the bourse in Mumbai’s BKC area, successfully transitioning the diamond business from Opera House. BDB only charges a nominal amount of Rs 1 per square as maintenance fees from office owners. Additionally, BDB has provided assistance to SDB in developing world-class security measures.

According to Shah, the majority of Surat diamond traders are discontented with the incentive schemes introduced by SDB to attract diamond traders from Mumbai to Surat. The reasoning behind their dissatisfaction lies in the fact that while one brother manages diamond manufacturing in Surat, the other brother operates in BDB, Mumbai, for diamond trading. Consequently, there is no incentive for the second brother in Mumbai to close their office and relocate to Surat.

The battle between BDB and SDB underscores the competitive landscape within the diamond trading industry. As the SDB endeavors to establish itself as a formidable competitor to the established BDB, both bourses face the challenge of attracting and retaining diamond traders, with SDB aiming to entice them away from Mumbai. The developments in this battle for supremacy will undoubtedly shape the future of diamond trading in both cities and influence the wider diamond industry in India.