The Bharat Diamond Bourse (BDB) in Mumbai’s Bandra Kurla Complex has announced an expansion plan that includes the addition of 1,000 new offices and improved infrastructure.
This development comes at a time when the Surat Diamond Bourse (SDB), which was positioned as a competitive force, is experiencing difficulties in filling its office spaces.
Expansion Strategy and Its Implications
The Mumbai Metropolitan Region Development Authority (MMRDA) has revised the global Floor Space Index (FSI) to 4.0 for the area surrounding BDB, facilitating a significant increase in construction capabilities. This change will allow BDB to add approximately 12 lakh square feet of built-up area, creating space for the additional offices and expanding its current facilities. Presently, BDB encompasses 8.1 hectares and is a central hub for 2,500 diamond traders, providing essential services such as banking and customs.
A knowledgeable source stated, “With the previous FSI in BKC at 1.5 for residential and 2.0 for commercial use, the new global FSI of 4.0 for the E and G blocks will enable an increase in BDB’s total constructed area to 32 lakh square feet.”
Surat Diamond Bourse’s Current Standing
The SDB, despite being acclaimed as the world’s largest office building with over 4,500 offices spread across 7.1 million sq. ft, has appeared to struggle with occupancy since it opened. The situation has been further compounded by the departure of notable entities and individuals back to BDB, including Vallabh Lakhani, chairman of Kiran Gems. SDB’s challenges are not limited to occupancy issues; it is embroiled in a legal tussle with PSP Projects Private Limited over construction payments, highlighting operational hurdles.
The recent appointment of Govind Dholakia as chairman is part of ongoing efforts to address these issues. This marks the third change in leadership for the SDB this year, indicating a period of adjustment and reassessment for the bourse.
Industry Observations and Future Perspectives
Industry experts view the expansion of BDB as a significant development for the diamond trade, likely to enhance its capacity and appeal. An anonymous industry leader commented, “The adjustment to a global FSI of 4.0 for BDB could significantly influence the diamond industry’s landscape, enabling the addition of 1,000 offices.”
Diamond analyst Aniruddha Lidbide noted, “The expansion efforts by Mumbai’s BDB, along with the ongoing occupancy challenges at Surat’s Bourse, could lead to a reevaluation of the future dynamics within India’s diamond trade.” The initiative by Mumbai to upgrade its infrastructure and services might continue to keep it at the forefront of the industry, despite new competitors.
Prime Minister Modi committed a lot of jobs at the official opening. “Surat diamond industry has been giving employment to around 8 lakh (800,000) people, and with the coming up of new diamond bourse, 1.5 lakh (150,000) more of them will get jobs,” he told.
The developments at both BDB and SDB will likely have widespread effects on the jewellery industry, influencing employment, business dynamics, and the distribution of the diamond trade within India and potentially internationally.
