bhavnagar ijniversity litlri1ry, bhavnagar. history...

20
CHAPTER III Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF DIAMOND INDUSTRY IN BHAVNAGAR CITY

Upload: truongthuy

Post on 08-Sep-2018

228 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

CHAPTER III

Bhavnagar IJniversity Litlri1ry,

BHAVNAGAR.

HISTORY OF

DIAMOND

INDUSTRY IN

BHAVNAGAR

CITY

Page 2: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

+

3.1 Bhavnagar City - Its Social, Cultural and Economic History :

Bhavnagar is the second largest city in the Saurashtra region in

Gujarat state. It is situated in the south-east corner of Saurashtra at the

head of the gulf of Khambhat, is about 200 Kms from Ahmedabad by

road and 230 Kms by railways. It is well connected with all major towns

and cities of Gujarat and also with Mumbai by State Transport and

private bus services. It is connected with Mumbai by air. Daily Indian

Airlines and Jet Airways flights are flown between Bhavnagar and

Mumbai. Bhavnagar is the fifth largest city of Gujarat with a population

of over 6 lakhs, chiefly engaged in trade and commerce.

Bhavnagar was founded in the year 1723 A.D. by the Gohil Ruler

Bhavsinghji the first. Bhavsinghji-I (1703-1764) a Rajput king ruled the

state of Gohilwad from Srihor, :l towp 22 km in the west. He spotted this

place near the seashore with the twin objective of enabling himself to take

to sea in case of invasion and developing the maritime trade of his state.

The name Bhavnagar was derived from the king's own name, the suffix

mgar meaning a city. Unlike most other princedoms in the Saurashtra

region, Bhavnagar was fortunate in being ruled by a succession of

benevolent princess, Helped and guided by competent and welfare­

oriented administrators, they made it economically, culturally and

politically a progressive state. When India won freedom, Bhavnagar was

the first among the 500-odd Indian princely states to opt for merger with

the democratic Indian Union. The last ruler Krishnakumruji voluntarily

handed over the administration of his state to the people's representatives

in 1948 in the presence of Sardar Vallabhbhai Patel.

- 61 -

Page 3: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

Bhavnagar is a notable cultural and educational center of Gujarat

besides being an important port and expanding industrial and commercial

centre. It is also known as the cultural capital of Saurashtra. Its life is

rooted in communal and cultural harmony.

Bhavnagar got its municipality in the year 1872 which was

converted into Municipal Corporation from 14 Feb 1982. Bhavnagar was

the first state in Saurashtra to get its own railway. Bhavnagar has an all

weather well developed intermediate part with a natural harbour. Where a

look gate was constructed in 1961 to overcome the difficulty of siltation

and to ensure flotation of ships even during receding tides.

Bh~vnagar was pioneer in banking. The Bhavnagar Darbar Bank

was established here as early as 1902 and existed till after independence.

The city IS throbbing with industrial development. Its large

industries include iron and steel works, metal works, rubber, textile and

machine tools factories, while the small industries comprise plastic,

hardware, dyeing and printing, dairy confectionery etc. The largest ship­

breaking yard in Asia is at Alang, 50 km to the south that has provided

base for many industries and vocations in the city. Bhavnagar is one of

most important centers of diamond cutting and polishing industry. This

industry provides job opportunity to over 2 lakhs of people in and around

the city.

- 62-

Page 4: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

3.2 Genesis of Diamond Industry in Bhavnagar City:

Bhavnagar was one of the most important places, which has

supplied trained workers for diamond cutting and polishing industry in

the country. Workp.rs from Bhavnagar used to go to Surat and

Ahmedabad and earned their lively hood by cutting and polishing

diamond there. Bhavnagar was an industrially backward area and there

was less job opportunity for uneducated and less educated peoples.

Therefore this migration was continued to the industrially developed

areas. Migration of workers in the diamond cutting and polishing industry

was a part of it.

The earliest diamond units were ls!ablished in Nirmalnagar locality

of Bhavnagar city by a few Surat trained individuals in 1966. Main

objective of these worker-entrepreneurs was to come ba"k home and scarf

their own business with the help of newly acquired skills. Though this

city was one of the main suppliers of labours for this industry, during that

initial period this industry in the city suffered for the shortage of trained

workers. Industry could no. grow at a faster speed. Wages rate was low

comparing to other centers of this industry and therefore workers were

not interested to come back and start working at h0me town. There was

no training school fur the workers. So the unit owners used part of their

installed capacity for the training of new workforces. Other factor which

has restricted the growth during that period was the shortage of rough

diamonds. Manufacturers of Bhavnagar have to tie up with the importers,

traders and agents of Surat and Mumbai for the rough diamond. Since

these unit owners were new in the business and their business contact

were limited very few were interested to supply rough to them. They

were not in a position to purchase rough diamond to do their own job.

- 63-

Page 5: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

This caused block age of huge funds for rough diamond and they has to

make own effort for selling the polished diamond, in doing so they have

to move to Surat or Mumbai for selling their product Exporters and

merchants did not pay for the product at the time of delivery, thereby

further blocking of their capital. Diamond industry of Bhavnagar started

with all these problems al'd with the passage of time this centre has find

its own solution & superiority in the diamond industry.

3.2.1 History of Growth and Development

The first recession in 1969 hit the diamond industry hard in Surat.

The recession was so grave that many units of Surat was unable to pay

wages to workers and eventually shut down their operations. Workers

working at in Surat were mainly from Saurash~ra region rendered jobless.

Situation was so criti'::al that many workers could return home with just

their shirts on. By the year 1972-73 demand for small diamor.d revived in

the international market. This time those jobless workers back home

filled the shortage of labours that was prevailing in the city. With the

revival of demand some of those displaced workers started their own

business at home town. Thus the initial recession that had hit the diamond

industry in Surat had come as a blessing for the other centers of the

industry. Many new units were set up at different places of the Saurashtra

like Bhavnagar, Vallabhipur, Palitana, Botad, Gadada, Dhola etc. During

the revival period of 1972-73 demand for single cut, diamond kept

increaslllg. Large number of trained workers sitting jobless at Bhavnagar

provided the necessary input to this industry. Large numbers of single cut

units have come up in the city. It was during that period the division

between single cut and double cut diamond units got localised. Thus

Bhavnagar become specialised in single cut while Surat and Palanpur on

- 64-

Page 6: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

double cut, as Surat had lost large part of her single cut workers during

the recession of 1969.

In the meantime during 1973 to 1977 demand for single cut

diamonds increased continuously in the international market. To fill this

supply gap large number of diamond units came into existence in the

Bhavnagar proper. During this spurt lot of rough diamond used to reach

Bhavnagar city from Surat and Mumbai. Demand for trained skilled

workers rose considerably and workers started demanding huge advances

for joining new units.

A competition started among unit owners to get good workers by

paying luracative advances. Many unit owners started to give training to

the new corners and they were later on absorbed by the :mits. Thus units

have used part of tl..eir capacity for training the new & entrants to create a

dedicated army of workers. Bhavnagar is an important centre oftrade and

commerce. People of this city always jumped into those activities where

profit margin is quite good. By seeing the success of the new

entrepreneurs in diamond industry many people joined and started their

own business.

The industry that started its operation in a very small-way in 1966

at Nirmalnagar later on spread into the areas of Sardarnagar, Vitthalwadi

GIDC and Kumudwadi in the year of 1 ';168. In the years 1969-71 the

industry faced recession. During this time many units closed down

permanently and many suspended their operation. After the revival of

demand for single cut diamond in 1972-73 many units reopened and

many more new units were established. This time units were proliferated

into the different areas of the city. Many units came up at Bordi Gate,

- 65 -

Page 7: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

Ghogha Circle, and Ambawadi etc. Though the industry shows rapid

growth and proliferation in seventies, it was not devoid of problems. It is

stated that that sudden rise in activities raised the problem of advance to

workers- "Baki" in somewhat disproportionate way. The quality of

polished diamond could not keep parallel with the quality of rough

diamond. Several Mumbai based traders suffered on account of poor

quality in 1978. With the increase in demand industry further grown and

proliferated into the residential areas of Sarita Society and Vijayraj Nagar

1978-79. In the next year i.e. during 1979-80 the industry again faced

another recession and this time it hit Bhavnagar and other taluka based

units badly. It was only during mid 1980 that the signs of revival were

seen. But this time Bhavnagar based units faced two major problems.

Firstly during the recession of 1979-80, workers could not bet

opportunity to work to their full potential; mallY units suspended their

operation partially. Workers earning went down and many of them

!>hin.:!J into the agricultural field. Many workers rendered jobless and

many left the job as earning was inadequate. This time workers left the

job but pocketed advances received from the unit owners and could not

turned up after the revival of demand at the end of 1980. Secondly

merchants and traders of Mumbai and Surat were not happy with the

Bhavnagar based units. They had suffered due to poor quality

manufacturing and processing of diamond by Bhavnagar units. So this

time they were reluctant to resume their business with Bhavnagar based

units. In addition to this, price (If rough diamond had gone up in the

international market. Those interested to do their own-work found it

difficult to purchase required quantities of roughs. It was either blockage

of huge funds or smaller turnover for the businessmen of Bhavnagar. In

spite of all those difficulties Bhavnagar never looked back. Traders and

merchants of Bhavnagar seeing this opportunity started their own

- 66-

Page 8: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

business at Bhavnagar and provided the rough diamond to the units.

Local availability of rough made it possible for large number of new units

to come up. This time during 1982-83 new units came up in the areas of

Sanaskar MandaI, Rammantra Mandir area, Ghogha Octroi Check post,

Shivaji Circle, Anwantwadi and Desai Nagar. This time it is seen that

new units started shifting from the centre of the city towards the outer

part of the Bhavnagar. With the growth of this industry demand for

residential buildings for diamond units went up. Many buildings were

taken over by the units owners at higher rate of rentals. Thus it becomes

difficult for new unit owners to start business at higher rental premises.

Since workers come from the hereby villages, so moving the units to the

outer part of ci!y broUg!lt them tow8.rds the proximity of labour. Problems

faced by the units owners dunng recessions made them experienced. This

time new units stopped paying any advances to the workers and existing

units gradually recovered the advances fro~ workers. Thus the c.dvance

or "baki" which was a peculiar feature of this industry was gradually

abolished.

3.2.2. Development and Growth of Diamond Market:

Diamond market of Bhavnagar is as old as that of the diamond

cutting and polishing industry of this city. During the sixties also there

were diamond merchants and agents who were dealing with rough as well

as polished diamonds. Their numbers were limited and their activities

were within small range. They were unable to meet the requirement of

diamond industry of this city. Three merchants started their activities in a

small way in the year 1966. They were not the independent merchants.

They were purchasing rough from Surat and Mumbai and selling the

polished diamond at Mumbai. Their number and activities grown with the

- 67-

Page 9: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

growth of the diamond cutting and polishing industry. By the end of

1977-78 number of merchants rose over 25. During the recession of 1979

some of the merchants suspended their operations and some restricted

their activities. After the revival of demand for single cut diamond in

international market at the end of 1980 demand for rough diamond

increased but very few Surat and Mumbai traders were interested to

supply rough to the units of this city. Many units faced the problem of

rough diamond and forced to restrict their activities. During those period

unit owners, merchants and traders of this city realised the problem of the

large number of units suffering due to shortage of roughs. To solve this

problem need of a permanent market for rough and polished diamond in

this city was realised. The !11arket should be in a position to supply rough

and purchase th;! produced diamond. Dealing in rough and polished

diamond is more profitable option than establishing a unit. Only hurdle

for this ousiness is huge amount of investment. One who had investable

sum can eam good return from this activity. Since Mumbai based tmdcrs

were not interested to supply rough to Bhavnagar units, a large supply

gap was created. Bhavnagar people already in trade and commerce took

this as an opportunity and many new people with surplus funds entered

into the diamond trading business. These activities started to grow at a

faster speed and gradually der;endence of Bhavnagar units on Surat and

Mumbai for rough diamond came down. Business of merchants and

diamond traders came into full swing since 1988. A new group of people

joined into this industry as "Agents". They are an important group who

are connecting the unit owners with the merchants, traders and

importer/exporters. Trading activity touched the new height when

multi storied building named "Crystal" with large number of rooms came

into existence since 1990 as the authorised diamond market of this city.

Since that time activities of dj:.mond merchants and agents got localized

- 68-

Page 10: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

in and around the "Crystal" building. Diamond market of Bhavnagar

never looked back after 1990. Number of new people, unit owners and

other businessmen joined into this industry. Number of new complexes

came up around the 'Crystal' building and new businessmen occupied

those buildings. In the year 200 I a new business complex exclusively for

diamond merchants, traders and agents came into existence. This new

complex named "Madhav Ratna" is the new diamond market situated at

Nirmalnagar. Diamond cutting and polishirlg activities started at

Nirmalnagar in 1966 and gradually shifted to different areas of the city

but trading and business activities in diamond remains localised in and

around "Crystal" and "Madhav Ratna" building at Nirmalnagar.

3.2.3. Types of Diamond Cutting Bhavnagar City Specialised In:

Diamond Un;ts of Bhavnagar ciC'J started its operation with the

single cut diamond in 1966 from Nirmalnagar. The industry in this city

faced many ups and down and adopted itself in an efficient manner with

the changing scenario in international market. During the recession in

1969 single cut workers returned home from Surat. With the revival of

demand for single cut diamond since 1972, Bhavnagar units have started

to show up with the help of those jobless workers sitting at home. Since

That time Bhavnagar became specialized in "Single cut" diamond.

During seventies 90 percent or more units were engaged in single cut

diamond. Bigger units in the seventies tried to diversify their activities.

Some of those units started trading in diamond along with manufacturing.

This situation brought them nearer to the national and international

markets of diamond. These merchants' unit owners perceived every

opportunity and modified their activities as per the market demand. The

other units later followed their strategy. Since seventies some units

- 69-

Page 11: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

.--------- --------

shifted their activities from single cut diamond to double cut diamond and

some units have combined double cutting with their existing single cut

activities. By seeing the growing demand of baguette cut diamond (which

is commonly known as "chouki") in international markets at the

beginning of 1990, many units shifted their operation from single cut to

baguette cut production. Since investment in starting a baguette cut unit is

45 percent less than that of a single and double cut unit, many new units

of baguette cut came up during nineties. Demand for baguette cut

diamond was so good that number of diamond units engaged in this

activity overtook that of double cut diamond. During nineties after single

cut, baguette cut diamond dominated the decade. In the decade of nineties

sins Ie CLlt v:ere dominant covering nearly 55 percent of the business

while baguette cut and double cut were doing nearly 30 percent and 15

percent of the total business. It is already explained diamond industry of

Bhavnagar City has adopted nicely with the chan~'.ing trends in this

industry. In the beginning of this entry demand for a new type of fancy

cut diamond namely princess cut increased in the international market.

Bhavnagar units welcomed this fancy "princess cut" diamond and many

units started doing this job. This fancy cut needs same set up as that of

baguette cut but rough diamond for this particular cut need of very high

standard of quality. This costly rough was the hindranc~ for the growt.1-} of

this business. Merchants and agents were not interested to lend this ccstly

rough for job work. Thus bigger units with adequate funds started this

type of cutting. Gradually this cutting makes its position in this city and at

present princess cut diamond commanding nearly 9-10 percent of

Bhavnagar business. Niru-Impex is one of the biggest princess cut units

in India, operation from Bhavnagar. Similarly Jewell Star is the biggest

unit of this city engaged in double, baguette and princess cut diamonds.

Bhavani Gems another star of Bhavnagar city and it is the only DTC sight

-70 -

Page 12: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

holder from this city. Om Diamond another big name of this city

specialist in bigger and double cut diamonds.

3.3 Universe of Diamond Industry in Bhavnagar City:

It is already stated in the previous chapter that data base record of

diamond units of this district and city is not maintained by the authorities

who are suppose to do so. No recorded data are available with District

Industry Centre or with Inspector of Industries. Again all units of this city

are not registered with Shop and Establishment Registrar of Bhavnagar

Municipal Corporation. No effort is made to make every unit registered

with this office. Since no official efforts are made by any of those

organisation to implements its rules and regulation compulsory for all

units, no one is interested to do so. Therefore this absence of data base

and consequently intentional violation of Factories Act 1948 is so

rampant in this city. Due to this very reasons number of other possible

sources like GIDC regional office at Bhavnagar, Small Industries

Association of Bhavnagar, Diamond Association of Bhavnagar, District

Information centre, Collector's office, Office of the District Statistical

officer, Office of the Bhavnagar DeVelopment Authority and office of the

District Development Officer were visited. Other than this offices

Department of Small Seale Industry of Gujarat and Diamond Board of

Gujarat were visited at to Udyog Bhavan in Gandhinagar. Though

. Diamond industry is the one of most labour intensive industry and in

terms of total employment it is one of the first few, no record of this

industry is available either in district or state leveL

- 71 -

Page 13: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

After making so much of fruit less effort, finally Gujarat Electricity

Board was approached. It was observed that all units of this city and

nearly all units of the district use electricity for running the diamond

cutting and polishing work. So GEB was an important source for getting

the required data. But GEB do not keep detail records about the number

of polishing machines, lathes or workers employed by a unit. To have

some ideas about these dimensions of a unit. GEB officials were

requested to provide data about the installed capacity of the meter.

Though it is not dependable criteria for the size of a unit but some general

ideas can be made from this data. After making more than 20 visits in the

GEB offices following time series data of diamond units of this city and

current year data of this industry for this district and city were collected

and complied as show in Exhibit 3.1 and 3.2.

£xhibit 3.1.

Diamond Units of Bhavnagar as on 31-Dec-2003

As per GEB Records

Installed Metcr Capacity

Arca No of Units Upto 10 10-2S 2S-S0 Above SO

BHP BHP BHP BHP

Bhavnagar City 2431 168 20 5

tlhavnagar City Area 8644 235 25 7

District Rural Area 3699 48 08 --

District Total 12343 283 33 7

Source: Gujarat Electricity Board, Circle office, Bhavnagar.

-72 -

Total

2624

8911

3755

12666

Page 14: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

From exhibit 3.1 it is seen that within the area of Bhavnagar Municipal

Corporation there are a total of 2624 units. Out of those 2431 units are

small to medium in size with installed meter capacity upto 10 BHP. This

installed capacity can support nearly 40-50 polishing machines and they

constitute nearly 92.65 pe~ent of total units. Similarly medium to large

size units with installed meter capacity within 10-25 BHP are 168 in

number and they constitute nearly 6.4 percent of total units. These two

groups make a total of 99 percent of the total units. Very large units in

this city are 25 in number and they makes less than one percent of the

total units.

Similarly in Bhavnagar district there are a total of 12666 diamond

cutting and polishing units recorded with GEE. Out of these a total of

3755 units are in the rural areas of the district which is 29.65 percent of

the total units. The remaining 8911 units or 70.35 percent of total units

are operating in the city areas of the district. Out of total units of the

district, a total of 12343 or 97.45 percent are small to medium in size.

Relatively bigger units are 283 in number and constitute 2.7.3 percent of

total units. From the exhibit it reveals that 20.7 percent of total units of

this district are operating in the Bhavnagar City only. Again 59.4 percent

<'fthe medium to bigger units are in this city. Similarly 20 nut of33 and 5

I)ut of 7 bigger and biggest sizes units of this district are from this city.

From this figure we can say that this industry has been proliferated into

the rural areas in large numbers and supplementing the earning for the

rural people. Out of total 12666 units operating in this district 8911 units

are in the city areas. These units are providing job opportunity to lakhs of

peoples of the city and nearby villages. In terms of job creation, diamond

industry comes first in. th.is district as well as in the Bhavnagar City.

- 73 -

Page 15: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

3.3.1 Area wise Distribution ofUnits(As per Official Records):

Records of area wise distribution of units are not available with any

of the authority. However in the record of GEB's city division it is seen

that there are five subdivisions namely Power house, Khar Gate,

Diamond Chowk, Kalanala and Hill drive in Bhavnagar city. From rural

division Chitra subdivision was also taken into account as it comes under

the preview of BMC. This is shown in the Exhibit - 3.2.

Exhibit -3.2

Registered Diamond units as per GEB records

Bhavnagar cit)' Installed Meter Capacity Total

Upto 10 10-25 25-50 Above 50 units

BHP BHP BHP BHP

Power House 1128 85 12 2 1227

Khar Gate 7 2 -- -- 9

~mondChowk 235 9 I I 246

Kalanala 101 27 5 2 135

Hill Drive 630 41 I -- 672

Chitra 330 4 1 -- 335

Total 2431 168 20 5 2624

Source: Gujarat Electricity Board, Circle office, Bhavnagar.

- 74-

Page 16: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

I"

Figure - 3.1

Area Wise Distribution of Diamond Units in Bhavnagar City

[JPowerHouse

II KberGate

o Diamond Cbowk

o Kalanala

[] HiD Drive

• Cbitra

In the powerhouse subdivision 1127 diamond units are registered.

Nirrnalnagar, Vitthalwadi GIDC, Kumudwadi, Bortalav and Desai nagar

areas come in the Power House subdivision. Main market, Vadva and

other prime areas of the city come within Khar Gate subdivision and in

this subdivision only 9 diamond units are registered and all those units are

small to medium in size. Ambawadi, Sanaskar MandaI, Bordigate,

Ghogha circle, Limdi etc comes under Diamond Chowk subdivision and

246 units are registered in this division. In Kalanala subdivision 135

cutting and polishing units are registered. Anwantwadi, Vijayraj Nagar,

Sarita Society, RTO road, university areas comes within this subdivision.

Sardarnagar, Rammantra Mandir, Ghogha Octroi check post, Talaja

Octroi Check post, Shivaji circle etc outer part of the city comes under

Hill drive subdivision. After powerhouse, next highest numbers of units

are seen in these areas and a total of 672 units are registered here with

- 75 -

Page 17: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

"

It

A < ciI .. a

'" ~ ,. ..:

'k",""c \:J>.,w'-

*--,.: 0",

{'~,...:

~o

Figure 3.2

Location of Diamond Units in

Blh:avnagar City

e\\~'1N'b""­"/o.RI'

c~" ,,,1.1 f," \-\ ¥-/\ iI... '-" ¥-IO

SIt'> "'-....

""'l"l, ~ MAP SHOWING LOCATION OF DIAMOND UNITS IN BHAVNAGARCITY DIAMOND UNITS - A DIAMOND MARKET - JOt

\<

BHAVNAGAR CITY ,. N

1. Sarita Society

2. Kumudwadi

3. Borlalav

4. Desainagar ~,," ,.. e>AN\)~~

Page 18: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

,.-.

GEB. Chitra division has 335 registered units that are located in the areas

ofChitra, Fulsar, and Karmachari Nagar etc.

3.3.2 Growth Pattern of Diamond Units in Bhavnagar City

Time series data or historic data for the registered diamond units

since the inception of this industry in the city is not available with any

government agencies. Some sort of data is available with house tax

department of BMC since 1994 but those data are incompletl! in many

respects and not worth enough for considl!ration. GEB records for

diamond units of this city are available with City division of GEB since

19QO. 'fhis data is quite closer to the reality and considered for trend

analysis. Registered diamond units since 1990 to 2003 are presented in

the exhibit 3.3. From exhibit 3.3. it is sl!en that there were 957 units in the

year 1990 which grown to the number of 2624 units in Dec 2003. Growth

of the Industry were higher in the initial period uf nineties and gradually

declined and later on stabilized at around 4.5 percent per annum at the

end of the pervious century. In the current century there was again some

momentum during 2000-2001. After the terrorist attack on World Trade

Centre at New York in 2001, demand for cut and polished diamond

declined suddenly in international market. Diamond industry in India

after that period experienced negative growth rate. Again after a year

demand started rising and industry experienced good growth rate of 6.84

percent in 2003. Compound growth rate for the entire period since 1990

to today is about 8 percent over a period of 14 years. Considering 1996 as

the base year or origin, trend equation of the industry become y= 1790.16

+ 121.38 x, where y is the number of registered units in a year and x is

unit of one year with origin at 1996.

-76 -

Page 19: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

r I

I~ Exhibit 3.3

Registered Diamond Units with GEB Since 1990 Onwards:

Year No of Units Yearly Compound Addition of

SI No (x) (y) Growth Growth new units

Rate (%) Rate( entire

period)

1 1990 957 --

2 1991 1139 19 182 , 1992 1302 14.31 163 ~

t\ 1993 1451 811.44 149

5 1994 1603 10.48 I

152

6 1995 1730 7.92 8.06 I 127 I

" 1996 1845 6.64 t

115 I

-8 1997 1922 4.17

,

77

9 1998 2015 4.84 9' -' 10 ,)99 2118 5.11 1()~

1 1 2000 2283 7.79 165

12 2001 2467 8.05 184

13 2002 2456 -0.05 -1 1

14 2003 2624 6.84 168

IS Total 1687

Source: GUJarat Electricity Board, Circle office. Bhavnagar

From year to year data it is seen that growth is not spread evenly

over the period of 1990 to 2003. From the exhibit it is seen that in 1990

there were a total of 957 units registered with GEB.A total of 182 new

units were added in the year1991. Another 163 new units were added in

the yearl992. Similarly 149 new units in 1993,152 in 1994, 127 new

units in 1995, 115 new units in 1996,77 in 1997,93 in 1998,lO3 in 1999,

165 in 2000 and 184 new units in 2001 were added in the industry.

-77 -

I ,

I

,

-

i

! ,

I ,

I

I

Page 20: Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OFshodhganga.inflibnet.ac.in/bitstream/10603/86409/10/10chapter 3.pdf · Bhavnagar IJniversity Litlri1ry, BHAVNAGAR. HISTORY OF

r--- - --

I" I

Industry seen negative growth in the year 2002 and 11 units were

declined from the previous total. In the year 2003 demand for cut and

polished diamond revived in international market and its positive impact

is seen in Bhavnagar city also. In this year 168 new units joined in the

industry.

Reference:

l.Korat P G, Jani S V and Bhal J D, (1995) History of Bhavnagar State,

Pachrva Prakashan, Ahmedabad.

-78 -