Surat casts global diamond net | business | Hindustan Times
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Surat casts global diamond net

business Updated: Aug 31, 2010 21:28 IST
HT Correspondent

In an attempt to grab a pie of the flourishing diamond market, prominent diamantaires in Surat have floated a company — Surat Diamond Sourcing Ltd — to directly source rough gemstones from diamond mining countries.

"We have floated the company with six promoters and others as members. The company will act as a catalyst to the process of sourcing stones and selling them through auction to local buyers," said Chandrakant Sanghavi, director, SDSL and the head of the R1,100-cr Sanghavi Exports.

The R200 crore firm will be listed in the stock market after two years of operation, he said.

Technicalities are being worked out regarding the formation of the company, which will have two categories of members. Members with voting rights will have to pay R1 crore while those without voting rights will have to pay R54 lakh, spokesperson Niru Jogani said. "The purpose is to reduce dependency on few global firms, which supply stones. Despite Surat being the world's largest diamond manufacturing hub, 90 per cent of the rough stones are sourced via Antwerp and Dubai." According to the Surat Diamond Association, Surat imports rough diamonds worth over R30,000 crore annually.

"If we have our own entity for sourcing diamond, it will help," said Dinesh Navadia, president, Surat Diamond Association.