The Hindu Business Line : Gujarat floods cost diamond units Rs 1,800 cr

Dulling sheen
Around 2,000 diamond cutting and polishing units partially affected.
Some 2 lakh diamond workers hit directly by the floods.

Mumbai , Aug. 26

The diamond industry suffered a staggering revenue loss of about Rs 1,800 crore during the floods, according to the Gem and Jewellery Export Promotion Council.

Giving official estimates of the damage, the council said that out of the 6,000-odd diamond cutting and polishing units operating from Surat, around 1,000 units had been totally damaged.

In addition to this, around 2,000 diamond cutting and polishing units had been partially affected.

"The partially destroyed units are not likely to start operations until the first week of September. While no loss of stock in trade has been reported, the estimated production loss amounts to $0.6 billion. The industry has also witnessed a mass exodus of labour with 50 per cent of the workforce fleeing Surat in the wake of the floods,'' said Mr Bakul R. Mehta, Chairman, Gem and Jewellery Export Promotion Council, adding that the total revenue losses could be "anything between Rs 1,500 crore and Rs 1,800 crore."

Iindividual companies are yet to come out with any announcement of their production losses.

Shares of most of the listed companies have shown an upward movement in recent weeks. Shares of Classic Diamond rose from Rs 302 (on August 1) to Rs 439.45 on August 25. Gitanjali Gems increased from Rs 118.3 to Rs 187.3, Su-raj Diamond from Rs 47.1 to Rs 53.75 and Rajesh Exports from Rs 130.05 to Rs 170.3 during the same period.

More Stories on : Gems & Jewellery | Natural Calamities | Industry Associations | Gujarat

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Import of another 20 l tonne of wheat cleared

Carbon credits: It's advantage China

Mylan close to taking Matrix

`Response lukewarm to corporate travel policy'

Gujarat floods cost diamond units Rs 1,800 cr

DoT extends wireless operating licence validity to 5 years

`CSE report on pesticide residue inconclusive'