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Mumbai terror attacks: Rocked by serial blasts, Mumbai diamond traders may shift to new bourse in Bandra
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Mumbai terror attack: Chaos reigns in city's famous diamond hub Opera House
MUMBAI: "Many of the Opera House diamond merchants' clients are from Israel...they are no strangers to terror and blasts," said Vasant Mehta, a leading merchant who was at home recovering from fever when the blast tore through Mumbai's congested diamond district.
But foreign buyers from the US, Japan, Hong Kong and Belgium are likely to view Wednesday's tragedy with greater trepidation and may postpone forthcoming visits by a few weeks. But Mehta said it is a matter of time before they too return.
The diamond market will remain shut on Friday in memory of the brokers, sorters and food stall vendors in the narrow khao galiabutting Panchratna and Prasad Chambers, one of the hubs of the country's diamond trade which also houses offices of large private financiers.
After Wednesday, there is a growing feeling that a majority of the trade may prefer to hasten their imminent relocation to Bharat Diamond Bourse (BDB), 15 km away in suburban Bandra, to alleviate fears of overseas clients and for better security of the trade.
Overseas clients of Indian diamond merchants come here to buy cut and polished diamonds. India is the world's largest manufacturer of cut and polished diamonds, with 11 out of every 12 diamonds sold globally being cut and polished in cities like Mumbai and Surat.
On Wednesday, at about 6.55 pm, a blast tore through an eatery adjoining Prasad Chambers and Panchratna, buildings which house the country's leading diamond merchants such as Rosy Blue, Blue Star and Venus Jewel. The diamond merchants work out of 2,500 offices in buildings such as Panchratna, Prasad Chambers, Mehta Mahal , Roxy, and a couple of adjoining structures.
The merchants have been doing business in the area for three decades since moving out of Zaveri Bazaar , Mumbai's gold jewellery hub, which was also the target of Wednesday's terror attack. Just 4-5 diamond companies have shifted to BDB, said diamond merchants, with a vast majority preferring their Opera House workplaces, which are closer to their homes in uptown Nepean Sea Road.
Now, that could change. "The blast has left behind emotional scars but will not affect business," said Sanjay Kothari, vice-chairman of Gems & Jewellery Export Promotion Council , a nodal trade body.
"Nonetheless, we will speed up the process of moving to BDB. By Diwali, I expect 50-70% of trade to shift to the new premises. Each (trader) was waiting for the other to move- ...now I think we will witness a more concerted exodus."
The move, said diamond traders, makes sense because it affords better security and the new building is perceived to be less vulnerable to terrorist attacks. Apart from Panchratna, where people and baggage are scanned prior to entry, most of the other buildings lack adequate security.
"BDB is like a walled city, full of electronic surveillance and nobody without authorisation can enter," said Mehta.
"Since many in the trade got permissions to move only three months ago, my impression is at least 50% of the merchants would shift to the new location by Diwali."
BDB has nine towers and a customs complex spread over 20 acres, or 8.7 lakh square feet, with 2,500 offices. The total constructed area is 20 lakh square feet with two basements of additional 10 lakh sq feet. The area also houses a customs complex, banks and restaurants.
Having taken close to two decades to fructify, the complex aims at retaining India's status as a manufacturing hub and making it the world's leading trading hub.
Pooja Kotwani, India head of Rapaport, the world's primary source of polished diamond prices and market information, also felt the shift to BDB would be expedited by the tragedy which had "left a bad taste since it was the first time that the Opera House district was targeted".
"While trade is strong and bound to bounce back, there is insecurity as to what the idea behind the blast was and whether there is a possibility of a bigger strike in future. This may hasten the shift," she explained.
Gems and jewellery are the country's second-largest export after petroleum products. In FY11, the country exported gems and jewellery worth $43.13 billion, up 47% from a year ago.
