Surat Diamond Sourcing (India) Limited (SDSL), the company announced by diamantaires in Surat for direct sourcing of rough diamonds, seems to have run into a hurdle over its proposed name.
Surat Diamond Sourcing (India) Limited (SDSL), the company announced by diamantaires in Surat for direct sourcing of rough diamonds, seems to have run into a hurdle over its proposed name.
Surat Diamond Sourcing has approached the Registrar of Companies (RoC) for getting its name registered. However, it may be asked to get a No Objection Certificate (NOC) from Surat Diamond Jewellery, a group of companies having names similar to the proposed company.
Surat Diamond Jewellery is engaged in the business of diamonds & jewellery for many years, and is a leading online retailer of jewellery. The names of the group companies are Surat Diamond Industries Pvt Ltd, Surat Diamond Jewellery Pvt Ltd, and Surat Diamond India Pvt Ltd.
"We are in talks with these companies, and have apprised them of Surat Diamond Sourcing Limited's business model, which is entirely different from their businesses, and non-competing. We are confident of getting a NOC from them," Ashit Mehta, chairman, SDSL, told DNA.
Mehta also said that SDSL's legal and corporate structure was ready, and they are only waiting for the formal registration to start operations.
What is proving to be the bone of contention in talks between the two sides is the fact that the companies, which belong to the same group, want SDSL to sign a Memorandum of Understanding (MoU) assuring that it will never enter jewellery business. However, this is something SDSL does not want to commit.
"Our focus is only on rough diamond sourcing at the moment, and we have no plans to enter into jewellery business. But, we can't predict the company's future. SDSL may venture into jewellery in a few years from now. We don't want to shut our doors on a possible business avenue by signing such an MoU," said Mehta.
Mahendra Mehta, director, Surat Diamond Jewellery, said, "We are ready to give a NOC to Surat Diamond Sourcing Limited, but there are some technicalities which need to be sorted out first. We will respond to the request in due course of time."
However, he declined to elaborate on the technicalities saying it was a private matter between the two sides.
Even as the two sides hold talks, SDSL officials said they are confident that the matter will be sorted out soon. "The name Surat Diamond is a very generic one - it belongs to people of Surat - and we don't think there should be a problem in us being allowed to use the name," SDSL spokesperson, Nirav Jogani, said.
A NOC from Surat Diamond Jewellery will make our job easier.
Even if we don't get one, we have represented the issue very strongly before the RoC, and are confident of getting a positive response very soon, Jogani added.
SDSL is a company proposed by leading diamantaires with the aim of direct sourcing of rough diamonds to feed the massive diamond cutting and polishing industry of Surat. The company plans to raise funds of Rs1,000 crore from members for buying rough directly from miners.
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