Kathiawaris were once known for their farmlands and their occasional battles with droughts, but today they are renowned as the dominant force of India's diamond trade.
SURAT: Kathiawaris were once known for their farmlands and their occasional battles with droughts, but today they are renowned as the dominant force of India's diamond trade.
The Jain community from Palanpur, North Gujarat, controlled India's diamond trade since its inception. But over the years, the Kathiawaris, who are Patidars from Saurashtra, have unravelled Palanpur's stranglehold on the Rs50,000 crore industry. That the Patidar community has earned the sobriquet of 'hirawalas' demonstrates the Kathiawaris' dramatic evolution.
Every leading diamond manufacturing and exporting company run by Jains is matched by one owned by the Kathiawaris. So for every Jain-powered Venus Jewel, Sanghavi Exports, C Mahendra Exports, or K Girdharlal Exports, there is Kathiawari-driven Karp Impex, Laxmi Diamonds, Ramakrishna Diamonds or Sheetal Diamonds. In the early 1960s and 1970s, when the diamond industry was still in its infancy, most of the traders and diamond workers in Surat were Jains.
Today, nearly 90% to 95% of the estimated 6 lakh to 7 lakh workers in the industry belong to Saurashtra, which reflects increasing influence of Kathiawaris on the diamond trade. And it also shows the extremely close bonding within the community.
“The Kathiawaris were basically farmers and had to face recurrent droughts. They looked upon the diamond industry as a chance to change their fortunes,” said Pravin Nanavati, a former president of Surat Diamond Association, and a Palanpuri Jain.
“Many of them came to Surat in the early 1970s, and began working as diamond polishers in units owned by Jains.” The Kathiawaris, known to be extremely hardworking, soon developed expertise in diamond cutting and polishing. Around that time, some members of the community — like Govind Dholakia, Vasant Gajera, Jeevraj Dharukawala, and Bhikha Maldar — began buying rough diamonds directly from Antwerp and Israel.
“Instead of working in other people's units, these Kathiawaris started employing the cutters themselves,” Nanavati said. “They also brought in their relatives, and gradually expanded their businesses. The Kathiawaris today control over 50% of the diamond trade in Surat.” Chuni Gajera, the director of Laxmi Diamonds and a Kathiawari, said:
“We realised that working as farmers would take us nowhere. We came to Surat in the early 70s and started working in diamond units, toiling for more than 12 to 14 hours each day. But all the hard work has paid off.”
Govind Kakadia, one of the most successful Kathiawari diamantaires, said that the diamond industry provided the community with an opportunity to redefine its life. “We grabbed it with both hands,” Kakadia said. The transformation of the community, however, was not without its struggle.
"We started as ordinary workers and faced several problems in the initial stages," said a Kathiawari diamond merchant. "But we mastered the art of cutting small stones like no one else could, which paved the way for our success. Today, some of the biggest and best known diamond manufacturers in the world are from Saurashtra."
The hard work, vision, risk-taking ability, and the zeal of the Kathiawaris are pillars on which the community's success stands, said KK Sharma, the executive director of the Indian Diamond Institute.
"They have also played a role in making Surat the world's biggest centre of diamond cutting," he said. The Jains, however, are still a reputable force in the sector. They continue to dominate the trading part of diamond trade in Mumbai as well as in the international hubs such as Antwerp.
k_summit@dnaindia.net
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