Crisis forces man to dump diamond industry,take up real estate

Unable to cope with the continuing crisis in the diamond industry,a diamond firm owner has diversified from diamonds to real estate.

Unable to cope with the continuing crisis in the diamond industry,a diamond firm owner has diversified from diamonds to real estate. Himmat Kheni,owner of the M. Kantilal group,in partnership with renowned builder group Rajhans,signed an MoU (memorandum of understanding),worth Rs 400 crore,with the state government,during the Vibrant Gujarat Global Investors Summit 2009.

Out of the four diamond units that Kheni owns,only two are operational. The jobless workers from his firm have migrated back to their native villages,while the rest work at 50 per cent wage cut.

Kheni said: “I am a businessman and want to generate money in various businesses. I will get good profit in construction business and will have the authority to use the money anywhere.”

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Kheni believes that the market situation will become stable in the next three months and many jobless workers will get their jobs back.

He,however,admits that two of his diamond polishing units are operational and he is paying wages to the existing workers.

He said: “Like others,my factory had also become a victim of the global meltdown. The workers refuse to work at lower wages.”

Explaining his diversification to the real estate,Kheni said: “I am holding a partnership with Rajhans group. Our construction business is doing fine as of now.”

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The Rajhans group,in partnership with M. Kantilal group,signed the MoU to develop residential projects at Rundh in Surat.

M. Kantilal group,which is famous for its diamond business in Surat,has now invested their money in the construction business for developing various projects at different sites.

Sanjay Mowadia,owner of the Rajhans group,said: “We signed an MoU with the state government on January 13. We want to develop the project and I don’t mind doing partnership with Himmat Kheni.”

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