BBA (Hons.

) Semester 6

Project
International Business
Title of Your Project
Another city of Gujarat- Surat is known as the ‘Diamond City of India,’ for its domestic as
well as global business. Write about the business of “Gujarat Diamond Industry” (including
data and facts).

Submitted by Submitted to
Yashvi Gadhiya Dr. Hema Prakash
Sneha Donga
Urvish Dave Assistant Professor (FMS)
yashvi.gadhiya107017@[Link] Marwadi university

Introduction
1.1 Surat, the entrepreneurial city
By the early 18th century, India was a global diamond trading hub, aided by the Portuguese; colonial masters
of diamond mines in Brazil and the Indian port-city of Goa.

The Surat chapter of the diamond story began in 1900 when two enterprising brothers from the Patidar
community, Gandabhai Kuberdas Mavjivanwala and Shri Rangeeldas Kuberdas Mavjivanwala started diamond
cutting and polishing in Vadi Faliya area of Surat upon their return from South Africa. It took over 50 years for
the small tribe to take steps towards becoming a large scale industry.

The second world war further aided in Surat’s development. Govind Dholakia, Founder & Chairman at SRK
Exports, explains. “Before 1940, the business of diamond cutting and polishing was in Yangon, Myanmar
(known as Rangoon, Burma). The Japanese invasion of Myanmar caused diamond artisans to return to their
hometown, Surat-Navsari, Gujarat, India.” According to Dholakia, merchants sending rough diamonds to
Rangoon shifted to Surat. The Zari industry was already flourishing under the leadership of the Patel
community. Their entrepreneurial instinct resulted in their involvement in diamond cutting and polishing.

In 1956, Mr H.B. Shah, a diamond merchant in Mumbai, started a cutting and polishing unit for natural
diamonds and welcomed workers from other communities. “Until the early sixties, the industry used to get
limited rough diamonds from Golconda and Panna mines, sufficient for local market demands,” explains
Sevantibhai Shah, Chairman at Venus Jewel. The Indo-China war of 1962 dampened domestic demand for
natural diamonds, motivating players to seek international clients. In the mid-sixties, the Export Promotion
Council (EPC) was established and the Indian government introduced the replenishment license policy, which
permitted the import of rough diamonds equivalent in value to 70% of processed diamond export earnings. The
policy was a game-changer, magnifying the scale of diamond processing in India. Few entrepreneurs played a
leading role in the industry’s development, namely Hemchand Mohanlal Jhaveri, Kirtilal Manilal Mehta,
Chandulal Mohanlal Mehta, Mafatlal Mohanlal Mehta, Ratilal Becharlal Jasani, and Kirtilal Kalidas Doshi.

Well-trained and skilled employees are vital to the progress and expansion of any industry. Till the mid-eighties,
India was a processing centre for low to medium-value natural diamonds, with the higher quality goods cut in
Israel or Belgium. Venus Jewel’s founder, Sevantibhai Shah, decided to up-skill Indian diamond cutters and
created a large-scale, world-class manufacturing environment for high-value natural diamonds in Surat,
rewriting the rules of the game.

From mentoring his karigars (workers) in crafting high-value diamonds to strategic planning and managing risk
during production, he changed the diamond cutting sector in India, realising greater efficiencies, precision and
indisputable quality

added Sevantibhai before telling us a notable story from the 1970s: “The workers were used to sitting on the
floor and working on the diamond polishing wheel. We realized this was not healthy for their posture. Despite
their resistance, we introduced tables and chairs in the manufacturing environment, which later became the
industry standard.”

At Venus Jewel, continuous knowledge sharing along with on-the-job training helped upgrade the skills of the
karigars. In the 1970s, Sevantibhai Shah introduced a breakthrough performance-based-pay-system which
incentivized the artisans to deliver superior quality in their work.

The karigars (workers) of Surat also played a significant role in shaping the industry. From 1960 to 2000, the
industry had limited access to technological tools with a mere loupe used to observe diamonds with the naked
eye. Regular meetings were held to discuss how to minimize the loss during diamond processing, and decisions
were made with the help of the diamond cutters.” explained Sevantibhai.

Ashish Mehta, Partner, Kantilal Chhotalal shares his views, “In my opinion, while Surat’s development as a
global diamond processing hub in the sixties and seventies may have been due to lower costs, the graduation
towards high-value goods occurred in the late nineties when stakeholders embraced technology. It was no longer
about lower costs but the adaptability towards state-of-the-art tech.”

Background

The word 'Diamond' brings sparkle in every woman's eyes. These precious stones are best weapons to woo a
woman, be it proposing for a wedding or gifting on anniversaries. Today diamond epitomizes prosperity,
endurance, dignity and peerless quality. Talking about diamonds and that's when the city of Surat comes to your
mind. This city has been a home to world's biggest diamond industry since early 1960's. Surat is the largest
market of diamond polishing, cutting and crafting in the whole world. Surat has left its mark of excellence in
all the three departments of the business— manufacturing, importing and the export of processed diamonds.
Surat produces insignificant amount of diamonds, however due to the availability of low waged workers and
presence of the international market, Surat prevails the diamond polishing industry.

2.1 Background of surat Diamond globally business

Diamonds are believed to have been recognized and mined in India first, at the spots where considerably alluvial
stone deposits could be found many centuries ago along the rivers Penner, Godavari and Krishna. However, the
diamond industry started when a local business man in Surat had brought a boat full of diamond cutters from
East Africa to commence the city's diamond polishing industry in 1901.
The diamond cutting and polishing industry started way back in the 1960s when some entrepreneurs belonging
to the Patel community of Saurashtra started importing rough diamonds and exporting polished diamonds. This
industry grew gradually until 1980s after which there was rapid growth. This rapid growth was the result of the
proximity of Surat to Mumbai which helps in importing the unfinished diamonds and exporting the polished
diamonds. Also the Patels from Saurashtra and the Jains from north Gujrat venturing together helped the
diamond industry of Surat prosper. The economic reforms in 1991 added to the enlargement of this industry.
In 2005, Surat was reported to have cut 92% of the entire world's diamond pieces and earned India $15 billion
in exports. India imports for polishing about $11 billion worth of rough diamonds annually, with 80% coming
from diamond mining companies and the rest from Antwerp.

The city contributes to more than 80% of the Indian annual export amounting to Rs 70,000 crore. Every 9 out
of 10 diamonds you get to see in the stores in the big cities all over the world is cut and polished in India and
75 % of the credit about the diamonds' shine goes to the Surat Diamond industry. Over 1.5 million people are
engaged in the diamond & diamond jewellery industry of Surat and they have made the city, the heart of nation's
diamond polishing industry. The growth in the Indian exports can be highly attributed to the gem and jewellery
industry of India. The Industry valued at US$ 43 billion in the financial year 2011-12, is one of the leading
growth sectors of India’s export led economy and leading foreign exchange earner accounting for 14% of the
total Indian exports during the last financial year. Diamonds account for 54% of the total gem and jewellery
export basket of the industry and India is world’s leading exporter of Cut and Polished Diamonds. Surat and
many other cities and towns like with Navsari, Amreli, Bhavnagar are popular worldwide as big diamond
manufacturing/processing centers whereas Mumbai serves as the diamond trading hub.

2.1 of Diamond Industry

The industry surely had to face problems Future like lack of technical expertise in the manpower but with
improving skills of the laborers, the Surat diamond jewelry industry is now getting orders of larger and pricier
stones. The irresistibly advantageous market processing the diamond jewellery is getting bigger day by day.
The state is also aiming to develop the laborers as jewellery makers in the true sense with an overall
development.

Arrangements are being made by the state and Surat Diamond Association for training, research, marketing
and recognizing new potentials for the diamond industry. Also, the jewellery park of Surat is trying to bring
down major diamond manufacturers of Surat under a single roof. Bulk of the work has now become
computerized. The number of diamond consumers are increasing day by day and so is the demand. Currently,
the industry is growing at a phenomenal rate and with various government efforts and incentives coupled with
private sector initiatives, Indian gems and jewellery sector is expected to grow at a Compound Annual Growth
Rate of around 13% during 2011 - 2013. There is an upcoming Jewellery Park for the Gem & Jewellery
entrepreneurs which has all state-of-the-art facilities providing international level infrastructure of highest
quality standards. Diamantaires is the world's biggest diamond cutting and polishing center in Surat which has
been giving sleepless nights to the diamond manufacturers in Israel and Antwerp.

Literature and cases

In recent times, academicians and researchers have shown considerable interest in family enterprises in
management research. One of the major reasons attributed to this trend is that the majority of businesses are
represented by family enterprises. They have been responsible for increase in employment around the world
(IFERA, 2003). As a body of literature, studies relating to comparison between family enterprises and non-
family counterparts, their performance and behaviour have been emerging over the last one decade (Chrisman,
Chua & Kellermanns, 2009; Miller, Lee, Chang & Le Breton-Miller, 2009). Further, family enterprises have
the capacity to survive for longer years. They are likely to invest more in the business along with a longer term
view (Duran, Kammerlander, van Essen & Zellweger, 2016; LeBreton-Miller & Miller, 2006; Gedajlovic,
Carney, Chrisman & Kellermanns, 2012). According to Astrachan and Kolenko (1994), HR practices were one
of the neglected factors in family entrepreneurship research. Ever since, scholars showed interest in
understanding HR practices, its impact and implications for family enterprise (Barnett & Kellermanns, 2006;
Hauswald, Hack, Kellermanns & Patzelt, 2016; Kim & Gao, 2010). Unlike non-family run professional
enterprises, family enterprises are complex in nature. It involves extreme emotions and feelings represented by
family members. Also, it entails business firmness, fairness, and shrewdness as well. Hence, it is necessary to
understand family business dynamics leading to proper attention towards family business research and practices.
However, the current level of research is in its budding stage (Miller, Wright, Le Breton-Miller & Scholes,
2015). Research pertaining to family business enterprises has focused broadly on large enterprises. Family-
enterprises in the form of smaller firms have not been covered in the research so far (Heneman, Tansky, and
Camp, 2000; Upton and Heck, 1997). Hence, the available literature is sparse and limited. Over the last one
decade, we have observed considerable change in the status quo. Scholars and researchers have started writing
and publishing their research work relating to family business enterprises and major issues. However, the
progress of research is fairly slow in the direction of issues and challenges of enterprise management including
HRM in family firms in small and medium enterprises (Reid et al., 2002). Past literatures substantiate the family
business research. It emphasises upon the relevance of optimal utilization of resources including human
resources for family enterprises, thus helping in building competitive advantage in business. It also stresses on
how relevant is the management of people to business growth and development (Astrachan and Kolenko, 1994).
Some of the difficulties faced by family enterprise were due to the liabilities of smallness, and scarcity of
resources. These factors restricted the family enterprises to attract and retain talented employees. Also, modern
and sophisticated business practices were difficult to be conceived under constrained environment (Cardon and
Stevens, 2004; Songini and Gnan, 2013; De Kok and Uhlaner, 2001; Heneman and Berkley, 1999; Aldrich and
Langton, 1997). For the present study, given the socio-economic environment, the researcher strives to learn
the experiences of family-run enterprise owners in running their family business enterprises. Also, the paper
attempts to explore as how the family business dynamics affect in terms of running family enterprises in the
form of smaller organization

Data and Facts

The word 'Diamond' brings sparkle in every woman's eyes. These precious stones are best weapons to woo a
woman, be it proposing for a wedding or gifting on anniversaries. Today diamond epitomizes prosperity,
endurance, dignity and peerless quality. Talking about diamonds and that's when the city of Surat comes to your
mind. This city has been a home to world's biggest diamond industry since early 1960's. Surat is the largest
market of diamond polishing, cutting and crafting in the whole world. Surat has left its mark of excellence in
all the three departments of the business— manufacturing, importing and the export of processed diamonds.
Surat produces insignificant amount of diamonds, however due to the availability of low waged workers and
presence of the international market, Surat prevails the diamond polishing industry.
4.1 History Behind Surat Diamond Industry

Diamonds are believed to have been recognized and mined in India first, at the spots where considerably alluvial
stone deposits could be found many centuries ago along the rivers Penner, Godavari and Krishna. However, the
diamond industry started when a local business man in Surat had brought a boat full of diamond cutters from
East Africa to commence the city's diamond polishing industry in 1901. The diamond cutting and polishing
industry started way back in the 1960s when some entrepreneurs belonging to the Patel community of Saurashtra
started importing rough diamonds and exporting polished diamonds. This industry grew gradually until 1980s
after which there was rapid growth. This rapid growth was the result of the proximity of Surat to Mumbai which
helps in importing the unfinished diamonds and exporting the polished diamonds. Also the Patels from
Saurashtra and the Jains from north Gujrat venturing together helped the diamond industry of Surat prosper.
The economic reforms in 1991 added to the enlargement of this industry.

4.2 Statistics of Surat Diamond Industry

In 2005, Surat was reported to have cut 92% of the entire world's diamond pieces and earned India $15 billion
in exports. India imports for polishing about $11 billion worth of rough diamonds annually, with 80% coming
from diamond mining companies and the rest from Antwerp. The city contributes to more than 80% of the
Indian annual export amounting to Rs 70,000 crore. Every 9 out of 10 diamonds you get to see in the stores in
the big cities all over the world is cut and polished in India and 75 % of the credit about the diamonds' shine
goes to the Surat Diamond industry. Over 1.5 million people are engaged in the diamond & diamond jewelry
industry of Surat and they have made the city, the heart of nation's diamond polishing industry. The growth in
the Indian exports can be highly attributed to the gem and jewelry industry of India. The Industry valued at US$
43 billion in the financial year 2011-12, is one of the leading growth sectors of India’s export led economy and
leading foreign exchange earner accounting for 14% of the total Indian exports during the last financial year.
Diamonds account for 54% of the total gem and jewelry export basket of the industry and India is world’s
leading exporter of Cut and Polished Diamonds. Surat and many other cities and towns like with Navsari,
Amreli, Bhavnagar are popular worldwide as big diamond manufacturing/processing centers whereas Mumbai
serves as the diamond trading hub.

4.3 Future of Diamond Industry

The industry surely had to face problems like lack of technical expertise in the manpower but with improving
skills of the laborers, the Surat diamond jewelry industry is now getting orders of larger and pricier stones. The
irresistibly advantageous market processing the diamond jewelry is getting bigger day by day. The state is also
aiming to develop the laborers as jewelry makers in the true sense with an overall development.

Arrangements are being made by the state and Surat Diamond Association for training, research, marketing
and recognizing new potentials for the diamond industry. Also, the jewelry park of Surat is trying to bring down
major diamond manufacturers of Surat under a single roof. Bulk of the work has now become computerized.
The number of diamond consumers are increasing day by day and so is the demand. Currently, the industry is
growing at a phenomenal rate and with various government efforts and incentives coupled with private sector
initiatives, Indian gems and jewelry sector is expected to grow at a Compound Annual Growth Rate of around
13% during 2011 - 2013. There is an upcoming Jewellery Park for the Gem & Jewelry entrepreneurs which has
all state-of-the-art facilities providing international level infrastructure of highest quality standards.
Diamantaires is the world's biggest diamond cutting and polishing center in Surat which has been giving
sleepless nights to the diamond manufacturers in Israel and Antwerp.

The primary data has been collected through a structured questionnaire/unstructured interview from Surat
district. The sample size for the study included 100 workers households 50 each from Varaccha and
Katargam areas of the district. Simple tabular analytical techniques have been followed to analyses the
Collected data.

4.4 Socio-Economic and Demographic dimension

To evaluate the effect of recession on the workers one must have the idea of socio-economic conditions
of the workers. Most of the processing units are owned by the upper caste communities. The workers in
these units are migrants from different parts of India specially Uttar Pradesh, Maharashtra, Madhya
Pradesh and Bihar. From the table 1 it can be noted that there is wide difference in labor participation
rate gender wise but there is also wage discrimination among male and female workers for the same
nature of jobs. The facts from the field survey reveal that the participation of women are sparse and
confined to low wage earning activities only. It can be further noted that 57.6 per cent of the worker is
not earning anything out of which 36.1 per cent are females and 21.5 are mails. Moreover, most of the
employed women are earning just 1000 to 2000 per month. The mails are earning comparatively higher
and they are employed batter.
Recession and Economic Situation
During recent recession the wide spread tendency is decline in level of employment. During and before
recession it was observed that the diamond industry also faced the problem of shut down. During this
period the overseas market collapsed and also had the adverse effect on Indian diamond industries. As
the lack of diamond demand, the panic among diamond unit worker accelerates and forces them to stop
production. So during this phase there were wide evidences of job cuts and reduction in wage rate. The
fact from the primary data shows overall change in the wage scenario in post economic crisis. The pre
and post crisis wage level provides the real picture of the nastiest condition of worker.

Graph

For the last six decades, every sparkling gem processed in the Indian city of Surat — the world’s largest diamond cutting
and polishing center — would end up in Mumbai, the country’s economic capital. That’s where international buyers
would visit diamond offices to seal deals, and that’s where exporters would ship the stones to countries across the
world. Next year, this dynamic is set to change. India will get its second diamond exchange, the Surat Diamond Bourse
(SDB), which will be three times the size of its Mumbai counterpart, the Bharat Diamond Bourse (BDB). “The SDB is
different from all the diamond bourses in the world,” declares Mathur Savani, one of the exchange’s core committee
members. Touted as the world’s largest office building at 6.6 million square feet — bigger than the Pentagon, which
spans 6.1 million square feet — the INR 25 billion ($336.2 million) project is a game-changer for Surat’s economy, as
well as for the Indian diamond industry. The state of Gujarat — which includes Surat and other districts in the Saurashtra
region, such as Amreli and Bhavnagar — processes about 93% of the world diamonds. While the polished diamonds
from the large and medium-size factories usually reach Mumbai for trading, the smaller diamantaires in Surat and the
other Saurashtra districts have been trading their goods in the diamond markets of Mahidharpura and the Mini Bazaar
in Varachha for decades. The small alleys in those markets remain cramped throughout the day, with diamonds to the
tune of INR 5 billion (about $67.12 billion) exchanging hands daily. The angadias (diamond couriers) shuttle between
Mumbai and Surat on trains, transporting the precious goods. Once the SDB becomes operational in mid-2022, however,
the diamond merchants will shift their business from Mahidharpura and Varachha to the Khajod area, where the new
bourse will be situated. “Not just the buyers — even diamond mining companies will have to visit the SDB for the
auctions,” says Dinesh Navadia, regional chairman of the Gem and Jewellery Export Promotion Council (GJEPC) and a
member of the SDB’s finance committee. “The SDB will not only save the time and money of the diamantaires, but it
will allow them to connect with the world under one roof.”

The SDB is part of the vision the Gujarat government has for the region. The complex is among the businesses that will
make up Surat’s Diamond Research and Mercantile (DREAM) City, a government initiative that will cover 700 hectares
of land in Khajod. This “smart city” is near the Surat airport and connects to the Outer Ring Road, a major highway
project that is currently under construction. When Anandiben Patel, then chief minister of Gujarat, laid the foundation
stone for the SDB in 2017, the diamond merchants and others occupying offices in the BDB started shifting their bases
of operation from Mumbai to Surat. The city’s realty market has boomed over the last three years as a result, riding high
on the influx of people connected with the Mumbai diamond trade. In fact, trade members had already claimed all 4,200
diamond offices in the SDB before construction even started in 2018. When it opens in 2022, the SDB will hold “a grand
inauguration,” with government leaders and “the who’s who of the global diamond industry” in attendance, according
to Savani. Leading the charge on the SDB project has been Kiran Gems chairman Vallabh Patel, along with other movers
and shakers in the Indian industry. “Our dream of transforming Surat into [a] diamond trading hub will be a reality soon,”
says Patel, who serves as the bourse’s chairman. “The SDB is purely a trading center for diamonds and jewelry, and no
manufacturing activity will be allowed.” On top of that, it features “infrastructural and other facilities [that] were lacking
in other diamond bourses across the world.” All of this will help realize the project’s aim of developing India as a modern,
sophisticated market for diamonds, gems and jewelry.
Trade, import and export for MSMEs: MSME-dominated Surat’s diamond industry, which reportedly accounts
for 90 per cent of the world’s total rough diamond cutting and polishing, is expecting export-related challenges
in the coming months amid a jump in rough diamond prices. The growth in polished diamond exports from
India grew 45 per cent to $2,560.27 million in October 2021 from $1,764.73 million for the year-ago period, as
per Gem and Jewellery Export Promotion Council (GJEPC). An increase in overseas demand over the past few
months had consequently led to the price rise of rough diamonds by miners. While the prices for rough diamonds
increased 25-30 per cent per carat, the polished diamond prices jumped by only 10-15 per cent. The major jump
in demand has been led by the US.

“The US is the main market for diamond consumption with around 65 per cent share globally. People prefer
purchasing diamond jewellery more in the US and with the Covid recovery, the demand went up. Now, if the
current price challenge in rough diamond persists, then there will be an impact on exports in one-two months.
That’s also because polished diamond prices haven’t increased in proportion to rough diamonds. Even if there
is another 5 per cent jump in prices of rough diamonds then there can be an impact,” added Navadia.

India’s diamond exports are likely to grow past the $20-billion mark this fiscal year from around $16.4 billion
revenues last fiscal. “Towards the second half of last fiscal, pent-up demand and stimuli had buoyed
consumption of diamonds and jewellery in the US and China, which account for around 75 per cent of India’s
polished diamond exports. With the pandemic said to be contained in China, and the US inoculating around 40
per cent of its population, consumer confidence has improved in both countries,” Crisil had said in a statement
in June this year.

According to industry estimates, Surat has around 5 lakh workers working with around 5,500 cutting and
polishing units. The price rise had also led to a reduction in daily work hours for workers to cut and polish rough
diamonds as the purchase of rough diamonds dropped.
“Rough diamond prices have increased 25-30 per cent to Rs 17,000 per carat. Now due to lesser stock, workers
don’t have full-day work. Though demand in foreign countries is there and we have enough orders in hand, but
the polished diamond prices haven’t increased in the manner rough diamond prices have jumped. I think
polished diamonds have increased by only 10 per cent,” Jagdishbhai Khunt, Vice President, Surat Diamond
Association told Financial Express Online.

Smaller, labour-intensive polishing units had witnessed 20-30 per cent labour migration post second wave, the
rating agency Crisil had noted. Also, before demand picked up, the industry had voluntarily stopped importing
rough diamonds to manage the then-existing inventory that had piled up as polished diamond exports declined
during the Covid period. “We had kept a voluntary ban on import of rough diamonds for three months to make
the best use of existing stocks and sell them after Covid subside,” added Khunt.

Finding

A 17th-century account by French gem merchant Jean-Baptise Tavernier paints a vivid picture of a vibrant Surat,
a key entry point for European traders seeking India’s spices, cotton, silk, and natural diamonds. During the
Mughal period, Surat earned the nickname of ‘Zari City’ courtesy a unique textile craft, a result of mixing gold,
silver and copper threads with silk and cotton.

6.1 Surat, the entrepreneurial city

By the early 18th century, India was a global diamond trading hub, aided by the Portuguese; colonial masters
of diamond mines in Brazil and the Indian port-city of Goa.

The Surat chapter of the diamond story began in 1900 when two enterprising brothers from the Patidar
community, Gandabhai Kuberdas Mavjivanwala and Shri Rangeeldas Kuberdas Mavjivanwala started diamond
cutting and polishing in Vadi Faliya area of Surat upon their return from South Africa. It took over 50 years for
the small tribe to take steps towards becoming a large scale industry.

The second world war further aided in Surat’s development. Govind Dholakia, Founder & Chairman at SRK
Exports, explains. “Before 1940, the business of diamond cutting and polishing was in Yangon, Myanmar
(known as Rangoon, Burma). The Japanese invasion of Myanmar caused diamond artisans to return to their
hometown, Surat-Navsari, Gujarat, India.” According to Dholakia, merchants sending rough diamonds to
Rangoon shifted to Surat. The Zari industry was already flourishing under the leadership of the Patel
community. Their entrepreneurial instinct resulted in their involvement in diamond cutting and polishing.

6.2 Decades of development

In 1956, Mr H.B. Shah, a diamond merchant in Mumbai, started a cutting and polishing unit for natural
diamonds and welcomed workers from other communities. “Until the early sixties, the industry used to get
limited rough diamonds from Golconda and Panna mines, sufficient for local market demands,” explains
Sevantibhai Shah, Chairman at Venus Jewel. The Indo-China war of 1962 dampened domestic demand for
natural diamonds, motivating players to seek international clients. In the mid-sixties, the Export Promotion
Council (EPC) was established and the Indian government introduced the replenishment license policy, which
permitted the import of rough diamonds equivalent in value to 70% of processed diamond export earnings. The
policy was a game-changer, magnifying the scale of diamond processing in India. Few entrepreneurs played a
leading role in the industry’s development, namely Hemchand Mohanlal Jhaveri, Kirtilal Manilal Mehta,
Chandulal Mohanlal Mehta, Mafatlal Mohanlal Mehta, Ratilal Becharlal Jasani, and Kirtilal Kalidas Doshi.

6.3 Patronage and progress

A network of players originating from India established trading offices in Antwerp, offering diamonds on
credit to Indian manufacturers. By 1966-67, diamond exports from India had reached 28 million USD, but this
was only the beginning.

Well-trained and skilled employees are vital to the progress and expansion of any industry. Till the mid-
eighties, India was a processing centre for low to medium-value natural diamonds, with the higher quality
goods cut in Israel or Belgium. Venus Jewel’s founder, Sevantibhai Shah, decided to up-skill Indian diamond
cutters and created a large-scale, world-class manufacturing environment for high-value natural diamonds in
Surat, rewriting the rules of the game. From mentoring his karigars (workers) in crafting high-value diamonds
to strategic planning and managing risk during production, he changed the diamond cutting sector in India,
realising greater efficiencies, precision and indisputable quality.

dded Sevantibhai before telling us a notable story from the 1970s: “The workers were used to sitting on the
floor and working on the diamond polishing wheel. We realized this was not healthy for their posture. Despite
their resistance, we introduced tables and chairs in the manufacturing environment, which later became the
industry standard.”

At Venus Jewel, continuous knowledge sharing along with on-the-job training helped upgrade the skills of the
karigars. In the 1970s, Sevantibhai Shah introduced a breakthrough performance-based-pay-system which
incentivized the artisans to deliver superior quality in their work.

The karigars (workers) of Surat also played a significant role in shaping the industry. From 1960 to 2000, the
industry had limited access to technological tools with a mere loupe used to observe diamonds with the naked
eye. Regular meetings were held to discuss how to minimize the loss during diamond processing, and decisions
were made with the help of the diamond cutters.” explained Sevantibhai.

Ashish Mehta, Partner, Kantilal Chhotalal shares his views, “In my opinion, while Surat’s development as a
global diamond processing hub in the sixties and seventies may have been due to lower costs, the graduation
towards high-value goods occurred in the late nineties when stakeholders embraced technology. It was no longer
about lower costs but the adaptability towards state-of-the-art tech.”

Conclusion

No doubt recent recession impacted almost all economies of the globe but the intensity differs among them.
Diamond industry which is more inclined toward international trade reflects the worse picture ofSurat as
compared to the some other sectors of the economy. More precisely the most badly affected were the
workers at the cutting and polishing industry. Even the intensity differs in different social groups. The reality
from the study area explains the worse condition of workers during recession. In the globalization phase the
labor and labor market are prone to influenced by international market movements. The workers social-
economic conditions get mare substandard because of reduced wages, joblessness and long working hours. It
was noticed that during recession government has announced social welfare schemes for those who are jobless.
But the survey experiences and data analysis reveal the fact that social welfare schemes was total failure
in Surat diamond industries. The workers are economically and socially weak so government and
organizations should have to enhance the awareness among workers. What is needed at the very first is that the
units should be made registered. Last but not least the policy of the government must be within the accessibility
of the targeted workers which is essential for proper implementation of policies.