Fabrikant owes Indian market $25 MN: Kothari

THE bankruptcy of the US-based jeweller M. Fabrikant & Sons, whose annual diamond purchases from India exceeded $60 million, could have a major affect on its Indian clients, and may further slowdown diamond exports which were hit by the Surat floods earlier this year.

Fabrikant told a US court that it has $225.9 million in assets and debts amounting to $363 million. The Gem & Jewellery Export Promotion Council (GJEPC) chairman Sanjay Kothari said that of its total debts, Fabrikant owes Indian diamond merchants around $25 million. “This is expected to slow down the business further,” he added. In the April-to-October period this year, India’s total jewellery exports dropped by 17 per cent to $6,291.3 million compared to a year ago.