The popular perception that Palanpuri Jains dominate the global diamond industry may have been true till very recently, but history seems to be repeating itself with the Palanpuris.
ANTWERP: The popular perception that Palanpuri Jains dominate the global diamond industry may have been true till very recently, but history seems to be repeating itself with the Palanpuris. The members of the Marwari and Kathiawari communities are now making a mark on Hoveniersstraat, the diamond trading market in Antwerp. Nearly a century ago, it was the Palanpuri Jains who had taken over the business from the Hasidic Jews.
Nearly 40-50 firms owned by Marwaris have started operations in Antwerp in the past few years. Sources in the Antwerp diamond industry say that the Kathiawaris are so omnipresent now, that they don’t have a specific count of their numbers. Though members of the two communities were always present as middlemen in the trade, it is only recently that they have moved up the ladder with full-fledged diamond trading companies in Europe. “Several Marwari and Kathiawari businessmen have opened offices in Antwerp recently. Each year, at least 3-5 new Marwari firms are established here. The entrepreneurial streak is similar in these communities and we are fairly well established here now,” said a Marwari broker, Lalit Nahata, in Antwerp.
These new firms already have their polishing units in Surat which, in fact, were started here as a way of backward integration, a source in the industry said. “The top, powerful rung of the business, however, is that of trade in big precious stones, and this is still dominated by the Palanpuris,” he added.
The Palanpuris were able to take over the global diamond trade from the Hasidic Jews because of their strong family ties in India, where they got the roughs polished at a much lower cost. Passionate about the business, Jews refused to outsource polishing, priding themselves as diamond connoisseurs. In fact, one of the most striking features of Palanpuri families is their deep-rooted ethnic family values and traditional Gujarati way of life even in Europe.
Over the years, thousands of Palanpuri, Marwari and Kathiawari families have minted billions from contracts for diamond polishing that came their way from all over the world mainly because they could get the work done cheaply back in India. Now, as a natural progression, they too are venturing into high-powered diamond trading in Antwerp, the hub of the diamond trade in Europe.
Back home in India, the polishing industry is based largely in Surat and Mumbai. According to a research study done in 2005, 96.3% of the diamond polishing units in India are owned by the three communities—Kathiawaris (29%), Marwari (17%), and Palanpuri (54%).
“In Antwerp, despite our distinct work and ethnic cultures, we work harmoniously with Jewish and Lebanese diamantaires. Marwaris and Kathiawaris have also adapted to the work culture here,” said a Palanpuri diamantaire with offices in Mumbai, Tel Aviv, New York, Dubai and Bangkok.
s_jumana@dnaindia.net
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}